NPM No. 007-2016

Requesting Entity: Municipality of Mondragon

Issues Concern: Provision of Honoraria



Whether the Sangguniang Bayan has the power and authority to regulate the honoraria of the BAC and if you can protest to such act.

[T]he Government Procurement Policy Board (GPPB) or its Technical Support Office (TSO) is not in the position to decide for and on behalf of a procuring entity. More so, it is not within the powers and functions of the GPPB or its TSO to give its imprimatur to acts of the Sangguniang Bayan that are well within the latter's authority, discretion, and accountability.

[T]he honoraria granted under Section 15 of RA 9184 shall only be given to only those who are entitled to receive such, to wit: those personnel duly assigned as chair or member of the BAC or TWG, or members of the BAC Secretariat, if applicable as the honoraria that may be granted is for the performance of procurement tasks or involvement in procurement activities beyond their regular function.

On the other hand, it is our considered view that the proposal to appropriate and distribute 40% of the requested honoraria to the BAC, Secretariat, and TWG members, and 60% to other elected and appointed employees finds no basis in RA 9184 and its revised IRR, including the abovementioned DBM Budget Circulars. If at all, the limitation sanctioned by RA 9184 and its associated rules refers to the payment of honoraria in an amount not to exceed twenty five percent (25%) of the respective basic monthly salaries of the BAC, Secretariat and TWG members are entitled to 100% of their respective honoraria, but in no case shall this exceed 25% of their respective monthly salaries.