Institute of Politics and Governance

On the Local Government Service Equalization Fund

Speech delivered by Former Asst. Executive Secretary Antonio E. Nery, August 8, 2000 in Sulo Hotel
(continued)

However, since the OCD already authorized the release of the LGSEF for CY 1999 and CY 2000 based on the agreed upon guidelines, and considering that President Estrada had already approved OCD Resolution No. 2000-023 last July 5, 2000 (before the Supreme Court ruling was officially released), we will abide by whatever decision has been reached by the OCD, as provided for under Special Provision No. ³ of the GAA. Therefore, there should be no reason for DBM not to release the remaining balance of P 2.5 Billion from the LGSEF for CY 2000 as scheduled."

Right now, I have no indication of what position the OCD has on this matter. A meeting has been scheduled this Friday, 11 August to specifically discuss the ruling and detemine the position as well as make the necessary resolution to address issues raised regarding the provisions of the ruling.
So you see how providential the LGPF invitation was. It gave me the time and space to share all these with you.

May I close by saying that the LGUs are mandated to exercise their powers, functions and responsibilities in accordance with the provisions of the Local Government Code of 1991. In this light, the local Government executives (governor/city/mayor/municipal mayor/barangay captain) concerned have the authority to plan, identify, manage and implement projects/activities that would benefit the majority if not all of their constituents within their jurisdiction, including those with funding support from the LGSEF.

The recent articles in the newspapers maligning the LGSEF and myself with all the trimmings of malicious allegations were definitely concocted to destroy rather that build whatever gains we have achieved.

You will agree with me that time and again, some scrupulous interest groups, influence peddlers and the like, have continued to ply their trade using various modus operandi as well as devious approaches that lure vulnerable LGEs to agree to dubious schemes and unethical arrangements.

We therefore call upon all local government executives to be wary of uncscrupulous suppliers, middle men and the like. Let us put a stop to devious and dubious designs perpetuated by unscrupulous groups that tarnish the true intent of government programs such as the Local Government Service Equalization Fund.

Let us join hands in sustaining the LGSEF. Let us forge a partnership in creating solutions to the problems that hinder us from achieving the goal of local fiscal autonomy. As advocates for policy reforms, let us create a synergy in orchestrating a transparent and unified action towards effective decentralization and local autonomy. For, ours is a process that ultimately has an impact on the sustainability and empowerment of every LGU.

Thank you very much.