PUTTING the territory's two municipal councils under the jurisdiction of the Ombudsman would not compromise their independence, the Government insisted yesterday. Despite stiff opposition from the Urban and Regional Councils, the Government announced that the Executive Council had approved putting the two bodies under the Commissioner for Administrative Complaints, Arthur Garcia. The Commissioner for Administrative Complaints (Amendment) Bill 1993 will be gazetted on Friday and tabled to the Legislative Council on July 21. The bill has come three months later than originally scheduled as officials tried to persuade municipal councillors to accept the change. The Director of Administration, Nicholas Ng Wing-fui, said the decision was not meant to single out the municipal councils although the district boards and the Legislative Council did not fall within the ambit of the Ombudsman. Mr Ng said the district bodies and the legislature had no administrative functions while the two municipal bodies did carry out executive functions. Noting the arguments that the executive arms of the councils, the Urban Services Department and the Regional Services Department, were already subject to Mr Garcia's jurisdiction, Mr Ng said it was not logical that the parent bodies should be excluded. ''To have an effective system, it is important that not only the executive agencies of the councils are included, but also the principal bodies,'' he said. ''Surely, the inclusion of the two councils can only enhance the public's confidence in the councils.'' He said the Ombudsman could help complainants to seek proper and immediate redress, such as compensation in cases of a loss. The decision to include the two councils was made with due regard to their functions and their extensive dealings with people's livelihood, Mr Ng said. Exempting them from the Ombudsman's independent monitoring would clearly be against the public's wishes and interests, he said. Apart from the two councils, the Ombudsman's jurisdiction will also be expanded to other statutory bodies like the Housing Authority, the Mass Transit Railway Corporation, the Kowloon-Canton Railway Corporation and the Securities and Futures Commission. A government spokesman said other statutory bodies would be brought under the Ombudsman's jurisdiction when resources allowed. The bill also allows him to receive complaints directly from the public. At present, Mr Garcia can only deal with cases referred to him by non-civil service Legco members. The proposal to allow him to publish his findings would also promote public awareness of the system and enhance confidence in it. It is estimated that an extra $14 million a year will be needed for the changes. The Ombudsman's office will be boosted by an extra 19 staff.