Institute of Politics and Governance

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Press Statement

The Local Governance Policy Forum, a network of civil society groups advocating for the implementation and strengthening of local autonomy as the path to genuine development and democratization, are calling on the present administration to prioritize in its reform agenda the issues of local governance.

The coming to fruition of the EDSA event, which in a very clear fashion asserted the people's desire for good governance, demands not only a change of administration but for political reforms. These reforms should allow for the participation of civil society in governance; the participation guaranteed by the strengthening of local autonomy. This new administration claims to recognize the power of civil society as a force of reform and promises to adhere to good governance. The arena where civil society and good governance meet is in the strengthening of local autonomy.

The Estrada administration subverted local autonomy with its policies that sought to control local fiscal autonomy and restore the patronage relationship between national and local government. If this government wants meaningful and sustainable reform in governance and development, if it is sincere in its desire to establish structures that will ensure good governance through people's participation in governance, it should take seriously the task of strengthening local autonomy as enshrined in the Constitution and the Local Government Code of 1991.

Therefore, it must work for the following:

o Order the immediate and complete release of the internal revenue allotment (IRA) of local government units for the year 2000

o Ensure the full and automatic release of the IRA in the 2001 GAA

a. Executive Order 189 (Office of the President, December 21, 1999): Directing all LGUs to submit to the DBM their Annual Investment Plan, and allocating the 20% of the Development Fund to nine (9) priority areas

b. Local Budget Circular No. 70 (March 14, 2000) providing for the implementing rules and guidelines (IRR) of EO 189

c. Executive Order No. 190(Office of the President, December 1999) directing the DBM to remit directly the contributions and remittances of the LGUs to the concerned NGA, GFI, and GOCC

d. Executive Order No. 250 amending Section 1 of EO 189: directing the allocation of the 5% of the 20% development fund for anti-illegal drug activities

e. DILG (1999): Circular requiring prior concurrence and approval of local loans by the department where the IRA is used as a guarantee

f. DILG (1995, 1996, 1997, MC 99-66) Restricted utilization of the 20% development fund

g. COA (1996): Limited Use of the Special Education Fund

o Ensure the immediate implementation of provisions for democratization, and people's participation mechanisms already mandated in the Local Government Code, particularly,

a. Amendments of the Code providing for penalties for violation 2(c), 26, 27 of the Local Government Code

b. Amendment of the Code providing for the date and manner of election of local sectoral representatives to the Sanggunian

c. Enactment of a law providing for penalties for failure to implement the Code's provisions on the local special bodies

d. Amendment of the Code providing for the creation of a Local Housing Board

o The new administration should also develop and implement a clear program to assist local governments in tax mapping and participatory development planning

o Reactivation of the Oversight Committee and the establishment of a Technical Working Group with a permanent civil society representative to assist in overseeing the implementation of the Code

o Review and assess the Master Plan for Devolution as formulated and initially implemented under the Ramos administration

These are only a few of the issues the new administration needs to address. In its term, this government must work for more genuine and far reaching local government reforms that will ensure genuine autonomy.

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