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23 March 2017

ATTY. GIOVANNI TIANERO


BAC Chairman

RE: REQUEST FOR LEGAL OPINION ON THE PROPRIETY OF THE


PURCHASE OF LEARNERS MANUAL BY THE CITY OF
MANDAUE FOR DEPED.

Sir:

This is in relation to the request for legal opinion on the propriety of the
purchase of Learners Manual by the City of Mandaue for the Department of
Education (DepEd).

Our office is of the opinion that the purchase of Learners Manual by the
City of Mandaue is proper.

Attention must brought to the following provisions of the Local Government


Code of 1991 (RA 7160):

SECTION 235. Additional Levy on Real Property for the Special


Education Fund (SEF). A province or city, or a municipality
within the Metropolitan Manila Area, may levy and collect an
annual tax of one percent (1%) on the assessed value of real
property which shall be in addition to the basic real property tax.
The proceeds thereof shall exclusively accrue to the Special
Education Fund (SEF).

xxx
SECTION 309. Special Funds. There shall be maintained in
every provincial, city, or municipal treasury the following special
funds:
(a) Special Education Fund (SEF) which shall consist of the respective
shares of provinces, cities, municipalities and barangays in the
proceeds of the additional tax on real property to be appropriated
for purposes prescribed in Section 272 of this Code;

Xxx

SECTION 272. Application of Proceeds of the Additional One


Percent SEF Tax. xxx Provided, however, That the proceeds shall
be allocated for the operation and maintenance of public schools,
construction and repair of school buildings, facilities and
equipment, educational research, purchase of books and
periodicals, and sports development as determined and approved
by the local school board.

(Emphasis supplied)

Also important is the relevant provisions of the Implementing Rules and


Regulations of RA 7160 which provides:

ARTICLE 363. Application of Proceeds of the Additional


One Percent (1%) Special Education Fund Tax. xxx (c) Said
proceeds shall be allocated as determined and approved by the
local school board concerned only for the following purposes: (1)
operation and maintenance of public schools; (2) construction and
repair of school buildings, facilities and equipment; (3) educational
research; (4) purchase of books and periodicals; and (5) sports
development.

As can be gleaned from the above provisions, the City of Mandaue is


empowered to collect an additional tax that would accrue to the Special
Educational Fund. This additional tax (SEF Tax) can be used to purchase
books. The Learners Manual purchased by the City of Mandaue is
undoubtedly covered by the term books under Sec. 272 of RA 7160. As long
as the fund used to purchase the Learners Manual comes from the Special
Education Fund, it is opined that such purchase is within the bounds of law.
However, it is important to note that any deviation from the purposes
prescribed by law under which the SEF proceeds can be appropriated and
disposed would constitute malversation of public funds or technical
malversation of public funds, as the case may be.

I hope you will find this in order.

Respectfully,

ATTY. OMAR B. REDULA


CITY LEGAL OFFICER