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Surigao LGUs Win DILG Awards

October 20, 2012, 7:32pm

BUTUAN CITY The provincial governments of Surigao del Norte,

Surigao City and the town of Hinatuan in Surigao del Sur were

the regional winners of the prestigious Gawad Pamana ng Lahi

2012 by the Department of Interior and Local Government (DILG).

These local government units (LGUs) received their respective

awards during the 2012 Regional Forum of Local Governance held

at citys hotel and convention center on Friday.

The province of Surigao del Norte received the Gawad Pamana ng

Lahi 2012 award as regional winner for the provincial category

while Surigao City also received the same award for city

category and Hinatuan town in Surigao del Sur for municipality

category.

The awarding of the 2012 regional winners highlighted the

regional activity, where top DILG officials were present. In

this same forum the DILG officials presented the Call to

Action of the national in all programs lined up by the agency

for all LGUs throughout the country.

In this same forum, Surigao del Norte Gov. Sol F. Matugas,

chairperson of the powerful Regional Development Council (RDC)

shared the best practices of her province, which earned the

award on good local governance.

Connecting it to the Constitution

The news above, which integrates good governance and can

be connected in the Section 3 of Article 10 of the constitutions

which says that The Congress shall enact a local government code

which shall provide for a more responsive and accountable local

government structure instituted through a system of

decentralization with effective mechanisms of recall,

initiative, and referendum, allocate among the different localgovernment units their powers, responsibilities, and resources,

and provide for the qualifications, election, appointment and

removal, term, salaries, powers and functions and duties of

local officials, and all other matters relating to the

organization and operation of local units.


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Furthermore, it should be an emulating move that other

local government units could follow the steps of the place

featured as an awardee of a worth remembering award.

Leyte LGUs Receive Good News

By JACK C. GADAINGAN

September 18, 2012, 6:13pm

TACLOBAN CITY, Leyte The Department of Budget and Management

(DBM) in Region 8 has announced to local chief executives of

Leyte province that all local government units (LGU) in the

province will get an increase in their share of Internal Revenue

Allotment (IRA) for 2013 during the recent regular meeting of

the League of Municipalities (LMP) Leyte Chapter.

DBM Region 8 Director Imelda Laceras reminded the attending

mayors to efficiently and effectively allocate the IRA by giving

priority to peoples basic needs and community developmental

projects.

She said five areas should be given priority according to a

memorandum issued by the DBM, that is, programs and projects for

anti -corruption, accountable and participatory governance;

poverty reduction and empowerment of the poor; rapid, inclusive

and sustained economic growth; just and lasting peace and the

rule of law; integrity of the environment and climate change

adaptation and mitigation.

IRA share revealed for the towns in Leyte in 2013, Abuyog will

receive P128 million; Alangalang P73.5 million; Albuera P8.4

million; Babatngon P51.3 million; Barugo P52.8 million; Bato

P56.6 million; Burauen P85.38 million; Calubian P53.4 million;

Capoocan P60.7 million; Carigara P71.6 million; Dagami P60.6

million; Dulag P65.76 million; Hilongos P86.7 million;

Hindang P40.64 million; Inopacan P44 million; Isabel P63.2

million; Jaro P71.8 million; Javier P52.5 million; Julita P34.5

million; Kananga P73.6 million; Lapaz P41.49 million; Leyte,

Leyte P67.5 million; McArthur P39.9 million; Mahaplag P51.2

million; Matag-ob P42.4 million; Matalom P57.7 million; Mayorga

P34.8 million; Merida P50.7 million; Palo P94.13 million;

Palompon P 77.9 million and Baybay P429.29 million.

Of the 40 Leyte municipalities, the LGU of Palo will get the

highest hike of 17.58 percent or an increase of over P14 million

in its IRA share.


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This is largely due to an increase in population in Palo,

Laceras said during the LMP meeting.

Meanwhile, Laceras also presented the prescribed guidelines in

the preparation of the FY 2013 local budgets and introduced the

concept of bottom-up planning and budgeting in relation to local

budget preparations.

She also urged LGUs to coordinate with the DBM regional office

for technical assistance in preparing their FY 2013 annual

budgets.


The news talks about a particular municipal division of

Visayas which is the province of Leyte. The existence of this

province is being supported by the constitution. In Section 4 of

Article 10, it says that the President of the Philippines shall

exercise general supervision over local governments. Provinces

with respect to component cities and municipalities, and cities

and municipalities with respect to component barangays shall

ensure that the acts of their component units are within the

scope of their prescribed powers and functions.

Moreover, provinces like Leyte is legally cited in Section

1 of Article 10 which states the territorial and politicalsubdivisions of the Republic of the Philippines are the

provinces, cities, municipalities, and barangays. There shall be

autonomous regions in Muslim Mindanao and the Cordilleras as

hereinafter provided.


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Govt Urged To Act Against LGU Open Pit Mining Ban

By JAMES A. LOYOLA

October 5, 2012, 3:38pm

MANILA, PhilippinesThe National Government is being urged to

act fast on the increasing number of ordinances being issued by

local government units (LGUs) that violate national laws and the

Constitution, particularly the open-pit mining ban that is

affecting the viability of the Tampakan copper-gold mine.

Pacifico A. Agabin, chairman of the Constitutional Law

Department of the Philippine Judicial Academy of the Supreme

Court and the concurrent general counsel of the Integrated Barof the Philippines, noted that there have been a range of

provincial ordinances which have been been put in place by LGUs

in clear contravention of existing national laws and the

Constitution.

The National Government, I think, should see the urgency of

resolving this concern and without further delay to defend

national law and the Constitution, Agabin said.

Agabin cited the Ordinance issued by Sangguniang Panlalawigan of

South Cotabato in June 9, 2010 which prohibits open-pit miningin the province which directly hit the $6 billion-Tampakan

Copper-Gold Mine Project of the Sagittarius Mines Inc. (SMI),

the single biggest foreign investment in the country.

It should be noted that local governments cannot regulate

large-scale mining, Congress already passed a national law

authorizing open-pit mining and LGUs cannot pass an Ordinance

that contravenes the national law, said Agabin.

Agabin added that, as the subject of open-pit mining has been

pre-empted by Congress, this precludes local government from

passing any ordinance on the same subject that conflicts withnational law or policy, unless this is authorized by Congress

itself.

He pointed out that, under the Constitution, LGUs are mere

agents of the State with powers that are delegated by the

National Government.


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Agabin is also urging the National Government to exercise its

political will through the Department of Environment and

Natural Resources (DENR) to firmly and expeditiously resolve

this concern.

It is clear from the provisions of the law creating the DENR

that it was tasked with the function of balancing environmental

concerns against that of the development of natural resources,

he said.

SMI is a contractor of the Philippine Government under the terms

of a Financial and Technical Assistance Agreement (FTAA)

In January this year, the DENR denied the application of SMI for

an Environmental Compliance Certificate (ECC) pending the

resolution of the open-pit mining ban imposed by the local

government of South Cotabato.


Every local government should conform with the standards of

the government and it is supported by Section 4 of Article 10

that says President of the Philippines shall exercise general

supervision over local governments. Provinces with respect to

component cities and municipalities, and cities and

municipalities with respect to component barangays shall ensure

that the acts of their component units are within the scope of

their prescribed powers and functions.


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LGU To Construct School Facilities

August 30, 2012, 5:53pm

CAGAYAN DE ORO CITY The local government unit (LGU) here is

expected to earmark P50 million for the immediate construction

of school buildings at the City Central School.

The city government is now in the documentation and technical

process for the commencement of the project located in Yacapin

and Velez Streets.

Early this week, City Mayor Vicente Y. Emano ordered the city

engineer and technical personnel of the City Engineering Office

(CEO) to prepare the plans and programs of the proposed school

building project for its immediate implementation.

Emano made the decision after the citys biggest elementary

schools 59 classrooms were destroyed by fire recently, causing

an estimated damage reaching P70 million.

The mayor said priority will be given to the construction of the

damaged classrooms and school offices.

Education is our prime importance, he added.

In another development, Emano turned Tuesday over 636 more

houses to the victims of typhoon Sendong in the city, in time

of the citys fiesta celebration.

Emano expressed his heartfelt gratitude to the SMC, and HFHP for

the help in providing decent and permanent houses to the

affected people.

The program was one of the highlights of the Kagay-an Festival2012.

Emano, Vice Mayor Caesar Ian Acenas, the City Councilors,

department heads together with San Miguel Corporation (SMC)

executive Ferdinand Constantino and Habitat for Humanity

Philippines (HFHP) CEO Charlie Ayco, among others, took part in


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the program held at the citys relocation site in Barangay

Indahag.

The houses were funded by SMC and implemented by the HFHP.

As this developed, the mayor expressed his gratitude to SMC CEO

Ramon Ang for how the company has helped this city recover from

the devastations of the calamity.

He said Ang had committed to build 5,000 more houses in this

city. (Mike U. Crismundo)


The territorial and political subdivisions shall enjoy

local autonomy and its cognizant to the Section 2 of Article 10of the Philippine Constitution yet their limits are also

monitored by the bigger body of authority, which is the

government, and it is noted in the Section 4 of Article 10 of

the same constitution.


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BSP Rationalizes LGU Borrowing Plans

By LEE C. CHIPONGIAN

October 2, 2012, 5:06pm

MANILA, PhilippinesTo avoid deferment of a loan from a local

government unit (LGU) seeking the required opinion from the

central bank, the Bangko Sentral ng Pilipinas (BSP) has issued a

new circular which rationalizes all LGU domestic borrowing

proposals.

In the circular memo released as Circular No. 769, the BSP

revised the guidelines on requests for Monetary Board opinion on

any LGU proposed loans, which the issuer needs to determine theimpact of such borrowings to the countrys balance of payments.

The borrowings are domestic not foreign but it could be either

in peso or dollar-denominated and even if the loan will be

sourced within the Philippines, it may have an impact on BOP as

well as other monetary aggregates and price levels.

The guidelines direct either the LGU or the lending bank to seek

the BSP opinion before the loan release. Once the completed

documents have been submitted, the Monetary Board will evaluate

the proposed borrowings and its implications on BOP.

Once an opinion has been released, it will be valid for six

months. But, BSP said no opinion will be issued in cases where

the LGU borrowing has already been partially or fully disbursed.

Based on the circular memo, BSP Governor Amando M. Tetangco Jr.

said the new circular supersedes the previous 2003 regulations

which may be inconsistent with the revised rules.

Last year in another memo, the BSP has cautioned government

financial institutions (GFIs) and private banks lending to LGUs

without the requisite certificates and documents issued by theBureau of Local Government Finance which would reveal whether an

LGU has enough resources or capacity to pay the loan.

There is no limit to which an LGU can borrow but the maximum

debt service allocation in the local budget has been set at 20

percent of regular income.


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However in 2010, the central bank did attempt to restrict LGU

borrowings from GFIs, such as Land Bank of the Philippines, the

Development Bank of the Philippines and Philippine Veterans

Bank.

The Monetary Board has been assessing banks and not just

state-controlled banks total investments in debt securities

issued by LGUs.

The Local Government Code of 1991, or Republic Act No. 7160,

authorized LGUs to issue bonds as an alternative means of

raising funds for local projects. Unlike traditional LGU fund

sources such as IRA, loans and grants, municipal bonds can be

used only to finance self-liquidating development projects since

the source of repayment comes from cash flows generated by the

project itself.

One of the largest GFI underwriting LGU bond issuance was in2006 when Land Bank assisted with a P40 billion notes issue for

the Municipality of Bulan, Sorsogon. The Bulan bonds were the

first municipal bonds that were not guaranteed by the National

Government. The proceeds were used to finance two of the

municipalitys priority projects the integrated bus terminal and

slaughterhouse projects.


Local government units may group themselves, consolidate or

coordinate their efforts, services, and resources for purposes

commonly beneficial to them in accordance with law; and its

listed and explained in Section 13 of Article 10 of the 1986

Philippine Constitution. On that case, the local government

teamed up with Bangko Sentral ng Pilipinas.

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