[ DBM CIRCULAR LETTER NO. 2002-16, SEPTEMBER 27, 2002, September 27, 2002 ]

ALLEGED SYNDICATES WORKING FOR THE RELEASE OF FUNDS TO LOCAL GOVERNMENT UNITS (LGUS)



1.0       The Department of Budget and Management (DBM) is alarmed that despite several issuances published earlier to WARN all concerned of alleged syndicates representing themselves as brokers or facilitators of the Department of Interior and Local Government (DILG) and/or the DBM for the release of funds to local government units (LGUs), among others, from the Local Government Service.  Equalization Fund (LGSEF), a number of these LGUs still fall prey to the unscrupulous acts of these persons/companies.

2.0       In fact, the following fixers have already been caught -

- On 26 August 2002, a certain Manuel Tolentino was presented to the media after an entrapment undertaken by police authorities.  The entrapment followed a complaint filed by a private contractor who said that Tolentino demanded P200,000.00 as facilitation expense for the immediate release of funds from DBM.  According to the contractor, Tolentino also claimed that he could get an approval of a proposed project in Sibulan, Negros Oriental from the Office of the President (OP).

- On 24 September 2002, police authorities entrapped a certain Nestor Dapar in the process of extorting money from Misamis Occidental Governor Loreto Leo S. Ocampos.  Governor Ocampos complained to the authorities that Dapar approached him and claimed that he could facilitate the release of his LGSEF request in exchange for 20% of the amount.

3.0       We are AGAIN warning all concerned that the DBM does not authorize any person or group of persons to represent this department to solicit from the LGUs to facilitate the release of funds to them.  The government releases/deposits funds directly to the current accounts of LGUs concerned maintained in their respective authorized government depository banks.

4.0       LGUs are advised to report directly to the undersigned, or through the DBM Regional Offices concerned, any representation of a person or group as broker/facilitator of the Government and/or allegations or information on the matter.

5.0       For the information/guidance of all concerned.

Adopted: 27 Sept. 2002

(SGD.) EMILIA T. BONCODIN
Secretary