LOOPHOLE:

SEC. 91. Statement of Assets and Liabilities.- (a)  Officials and employees of local government units shall file sworn
statements of assets, liabilities and networth, lists of relatives within the fourth civil degree of consanguinity or affinity
in government service, financial and business interests, and personnel data sheets as required by law.

“The SALN is a public document that any public official or employees’ may fill out for the declaration of his/her wealth
which serves as “wealth tracker” and “relatives tracing mechanism” for the government.

Scheme: Registering in the names of relatives, law offices, business associates, and even foundations as fronts.

GENERAL RULE:

Section 520. Prohibited Acts Related to the Award of Contracts Under the Provisions on Credit Financing. - It shall
be unlawful for any public official or employee in the provincial, city, or municipal government, or their relatives
within the fourth civil degree of consanguinity or affinity, to enter into or have any pecuniary interest in any
contract for the construction, acquisition, operation or maintenance of any project awarded pursuant to the
provisions of Title Four in Book II hereof, or for the procurement of any supplies, materials, or equipment of any
kind to be used in the said project. Any person convicted for violation of the provisions of said Title shall be
removed from office and shall be punishable by imprisonment of not less than one (1) month, nor more than two (2)
years, at the discretion of the court, without prejudice to prosecution under other laws.

EXCEPTION:

The execution of contracts to address such a need is his statutory duty, just as it is the city/municipal council’s duty to
provide for such service. There is no provision in the law that prohibits the city/municipal mayor from entering into
contracts for the public welfare unless and until there is prior authority from the city/municipal council.

“Since a contract for street cleaning is a contract creating an indebtedness against the municipality within the meaning
of General Orders No. 40, it requires for its validity concurrence of the majority of the members of the municipal
council.” ( ACUÑA v. MUNICIPALITY OF ILOILO, 2 Phil. 217, 5/13/03)

The general welfare clause shall be liberally  interpreted in case of doubt so as to give more  power to local governments
in promoting the economic condition, social welfare, and material progress of the people in the community. (Sec. 5(c))

The general welfare clause has two branches. One branch attaches itself to the main trunk of municipal authority and
relates to such ordinances and regulations as may be necessary to carry into effect and discharge the powers and duties
conferred upon the municipal council by law. The second branch of the clause is much more independent of the
specific functions of the council which are enumerated by law. It authorizes such ordinances " as shall seem necessary
and proper to provide for the health and safety, promote the prosperity, improve the morals, peace, good
order, comfort, and convenience of the municipality and the inhabitants thereof, and for the protection of
property therein.”