Proposed EO on funds, projs dividing Cordillera officials

EDITORIAL

The proposed executive order purportedly to accelerate socio-economic development of the Cordillera Administrative Region while regional autonomy has not yet been attained may deserve closer study as it is now dividing Cordillera officials.

The National Economic Development Authority-CAR and Regional Development Council drafted the EO entitled, “Accelerating the socio-economic development in the Cordillera Administrative Region and appropriating funds thereof.”

The draft EO, to be submitted to President Aquino provided appropriation of additional funds to accelerate social growth and development of the region, over and above the Internal Revenue Allotment (IRA) provided to local government units including allocations provided through regional line agencies and other appropriations to the region.

It seeks augmentation of annual allocation for “social preparation of CAR  into an autonomous region” to cover capital outlay, personnel services, maintenance and other operating services.

Baguio City Mayor Mauricio Domogan said he is in favor of its intention, but expressed apprehension on its legality.  He said additional share from national funds can only be granted not by an EO but by law, which is what House Bill 4649 or the autonomy bill is for.

The proposed EO is in the Cordillerans' favor, he, said, but it could muddle the issue on the pursuit of autonomy by giving people the impression that self-rule can be attained through an EO.

A report by Pryce Quintos of the Philippine Information Agency said in November, NEDA-CAR pushed drafting of an EO that will make CAR a special region pending its autonomy. However, the legality of the proposal was put into question by some national and regional officials, including Budget Secretary Florencio Abad who expressed his view during his visit in the city last month.

The draft EO stated it was "prepared in cognizance of the President’s empathy over the plight of indigenous peoples in the Cordilleras.” It also mentioned “an urgent need to immediately address legitimate concerns affecting the administrative region” such as exercise of powers and functions.

Another reason for pursuing the EO is the national government’s appropriation of the least IRA allotment to CAR and annual agency budgets.

Under the draft EO, the RDC will be reconstituted and shall have additional functions such as accelerating socio-economic growth and development of the region by providing overall direction for utilization of development funds generated through the proposed EO considering national, regional and local development plans and investment programs as priorities.

The RDC shall also prepare establishment of an autonomous region and administer the funds annually appropriated for SPCAR.

The EO stated CAR and its LGUs shall have at least 50 percent share of taxes and other government revenues generated in the region. Ten percent of that share will be distributed to barangays, 10 percent to municipalities, 15% to provinces or cities, and 15% to CAR through the RDC.

The CAR shall also have a share in national internal revenue taxes equivalent to 1 percent based on collection of the third fiscal year preceding the current. Eighty percent of such share shall be appropriated in the annual regional budget for development projects. The IRA share of CAR will be released directly to RDC-CAR.

The CAR shall have a separate 40 percent share of the national wealth tax under the proposed EO. LGUs shall have a 1.5 percent share of the gross sales or receipts or 50% of the gross collections, whichever is higher, derived from renewable energy taxes, mining taxes, royalties, forestry and fishery charges, including related surcharges, interests or fines, and from its share in any co-production, joint ventures or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction.

Under the draft EO, the President has the power of general supervision over CAR and its LGUs. RDC is also tasked to submit an annual report to the President on the status of socio-economic development in CAR as well as on the social preparation of CAR into an autonomous region.

When signed, the EO shall remain in force until the region attains autonomy.

There are questions which beg to be answered like what the NEDA and RDC impart to the populace during their so-called information drives on regional autonomy considering the draft EO. Political observers are saying the draft EO put the cart ahead of the horse saying such proposal/s should have been subjected to the people’s approval since it involves a general concern like the use of huge government funds for so-called development projects.