Section 61. Use and Release of Confidential and Intelligence Fund for Government Owned and/or Controlled Corporations and Local Government Units. —

No amount shall be released or disbursed by GOCCs for confidential and intelligence activities unless approved by the President of the Philippines and specifically identified and authorized as such confidential or intelligence fund in their corporate operating budgets: PROVIDED, That the grant of confidential and intelligence fund shall be limited to corporations performing activities related to information gathering and surveillance activities which have direct impact to national security and/or intended to support its mandates and operations: PROVIDED, FURTHER, That the GOCCs shall submit to the President of the Philippines through the Governance Commission for GOCCs (GCG), Senate President and Speaker of the House of Representatives, a quarterly report on the accomplishments in the use of confidential and intelligence fund: PROVIDED, FINALLY, That the implementation of this section shall be subject to guidelines to be issued jointly by the DBM and GCG.

Likewise, no amount shall be released or disbursed by LGUs for confidential and intelligence activities unless approved by their respective Sanggunian and specifically identified and authorized as such confidential or intelligence fund in their respective budgets: PROVIDED, That the grant of confidential and intelligence fund shall be limited to LGUs performing activities related to information gathering and surveillance activities which have direct impact to national security and/or intended to support its mandates and operations: PROVIDED, FURTHER, That the respective LGUs shall submit to the Department of the Interior and Local Government, a quarterly report on the accomplishments in the use of confidential and intelligence fund.