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September 30, 2004

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DILG

Excalibur 

PR Mgt. Consultants

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Proposed internal revenue allocation cut 

draws differing views

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DILG Sec. Reyes calls for a 

"win-win solution" ...

(from left-right) Robert Limbago, program, dev't. officer, League of Provinces of the Phils., Hon. Melchor P. Rosales, undersecretary, DILG, Ms. Sandy Paredes, executive director, Union of Local Authorities of the Phils. (ULAP) with Esther Gallardo, forum moderator (partly hidden) explain their positions on the proposed cut in the internal revenue allocations of the local government units at the Makati Business Forum. 

DILG secretary Angelo Reyes wants the various local government leagues and the national government to be united on the issue of internal revenue allotment (IRA) cut, and calls on them to agree on a win-win solution to the problem. “A strong national government could only be attained if you have a group of strong local government units (LGUs),” Reyes said.

DILG undersecretary Melchor P. Rosales echoed the advocacy of the secretary  whom he represented at The Makati Business Forum, on having a sense of national community under the rule of law.  This could be done, he said, through capability building, which according to him is a very important factor in improving the efficiency of  local executives and their personnel.

They should also be properly monitored, undersecretary Rosales added, to ensure compliance with their duties, and the maintenance of peace and order and public safety through our law enforcers. U/Sec Rosales noted that private sector volunteers are actively participating in the maintenance of peace and order and the fight against criminality in the local government levels. (Excalibur News)   

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IRA cut weakens LGUs' capabilities to deliver 

basic services

 Robert Limbago of the League of Provinces of the Philippines (LPP), who represented LPP president Erico Aumentado, said that any cut in IRA should be done in accordance with due process. “The IRA is intended to fund basic social services and all devolved functions and other enlarged responsibilities of LGUs, to ensure the general welfare of their constituencies,” Limbago said.  

“A cut in the LGUs’ share will mean lesser funds for anti-poverty programs, food security, health, social services, mass housing, infrastructure projects, and other efforts to improve the quality of life of our people,”  he added.

This predicament will give opportunity for the leftists to take advantage of the situation and be more active in recruiting sympathizers and members among the ranks of a disgruntled citizenry, he stressed.

Governor Erico Aumentado of the province of Bohol is the national president of both the League of Provinces of the Philippines and ULAP. (Excalibur News)   

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"Proposed IRA cut illegal and 

unconstitutional..." - ULAP

Sandy Paredes, executive director of the Union of Local Authorities of the Philippines (ULAP) said “no” to IRA cut saying it is unconstitutional. “It totally disregards the clear provisions of the 1987 Constitution,” Paredes said. Article 10 of the 1987 Constitution provides that “LGUs shall enjoy local autonomy and shall receive just share in the national taxes, which shall be automatically released to them.”

“It is illegal because in contravenes the provisions of the 1991 Local Government Code,” Paredes further said,  “which mandates that LGUs shall have a forty percent (40%) share in the national internal revenue taxes based on the collection of the third fiscal year preceding the current fiscal year.”

“The government can only do so in the event that the national government incurs an UNMANAGEABLE PUBLIC SECTOR DEFICIT, but in no case shall the allotment be less than thirty percent (30%)of the collection of national internal revenue taxes of the third fiscal year preceding the current fiscal year,” she added. 

Paredes also cited the Supreme Court decision on Pemintel vs. Aguirre Case (G.R. 132988) “The Constitution vests the President with the power of supervision not control over LGUs ….xxx… He may not withhold or alter any authority or power given them by the law. Thus, the withholding of a portion of internal revenue allotments legally due them CANNOT BE DIRECTED BY ADMINISTRATIVE FIAT.” (Excalibur News)

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C. Luzon media group at 

The Makati Business Forum

In view of the on-going negotiation between the Excalibur PR Mgt. Consultants and the incoming officers of the Central Luzon Media Association, for them to serve as Excalibur's network of provincial media outlets (both print and broadcast), a member of the group, Past President Francis Cardona, was invited as special guest panelist for the day. 

Francis, a veteran radio broadcast journalist, clarified important issues surrounding the proposed cut in the internal revenue allocation of the local government units.

Francis is also the manager of Phil. Radio, a network of several radio stations and broadcasters in Luzon and other parts of the country. Excalibur is negotiating for the taping of the forum discussions and airing them in the provincial radio stations, whether as news or with commentaries. (Excalibur News)

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