Article X Local Government

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 local government 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.

Furthermore, it should be an emulating move that local government units could follow the steps of the featured as an awardee of a worth remembering award.

other place

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.

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.

Connecting it to the Constitution

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 political subdivisions 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.

Govt Urged To Act Against LGU Open Pit Mining Ban By JAMES A. LOYOLA October 5, 2012, 3:38pm MANILA, Philippines The 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 Bar of 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 mining in 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 with national 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.

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.

Connecting it to the Constitution 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.

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 Festival 2012. 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

the program Indahag.

held

at

the

citys

relocation

site

in

Barangay

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)

Connecting it to the Constitution The territorial and political subdivisions shall enjoy local autonomy and its cognizant to the Section 2 of Article 10 of 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.

BSP Rationalizes LGU Borrowing Plans By LEE C. CHIPONGIAN October 2, 2012, 5:06pm MANILA, Philippines To 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 the impact 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 the Bureau 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.

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 in 2006 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.

Connecting it to the Constitution 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.