Wednesday, December 22, 2010

Aquino: Purchase of luxury vehicles banned in government offices

Philippine President Benigno Aquino III has signed Memorandum Circular No. 9 that bans the purchase of luxury vehicles and sport utility vehicles (SUVs) in various government agencies, government-owned and government-controlled corporations, financial institutions and local government units.
The circular prohibits all concerned agencies from acquiring and using these expensive cars for their operations. It also warns government agencies to be more prudent in spending public funds, particularly the acquisition of motor vehicles in order to maximize the use of scarce government resources.
Exemptions to the circular include the following:
1. Cars, vans, pick-ups and similar vehicles with engine displacement not exceeding 2200cc if gasoline-fed or 3000cc if diesel-fed, with engine not exceeding 4 cylinders, and
2. SUVs with engine displacement not exceeding 2700cc if gasoline-fed or 3000cc if diesel-fed with engine not exceeding 4 cylinders.
Other exemptions include:
1. Emergency vehicles: ambulances, fire trucks, rescue equipments,
2. Patrol cars: armored vehicles, prison vans,
3. Motor vehicles for public service: mass transportation, road construction, cargo transport, farm machineries, waste management or environmental sanitation,
4. Motor vehicles that are directly related to government transactions and business operations, and
5. Motor vehicles those that will be authorized by the Offices of the President, Senate President, Speaker of the House of Representatives, or the Chief Justice.

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