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Article X
Local
Government
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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.
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 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.
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.
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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)
Connecting it to the Constitution
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.
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.