PASSING LANES

>> Sunday, July 8, 2007

Why does Benguet have to beg for what is hers
Jorge Pawid

Some national laws that provide for the allocation of shares for local government units hosting projects providing large sums of taxes to the national government are flawed as far as the smooth transfer of shares to these host localities.

Such is the case of the provincial government of Benguet and some host municipalities to multi-national mining companies and independent power producers. The province is host to the Lepanto (Mankayan) and Philex mines (Itogon and Tuba). Bakun, Sablan, Tuba, La Trinidad and Itogon are sites of mini-hydros of the Hydro Electric Corporation (HEDCOR) and a sister company.

From the sales of these multi-million grossing companies, the hosts are entitled to some percentages as shares as stipulated in the National Wealth tax law and some local agreements entered into as in the case of HEDCOR in La Trinidad.

While the shares are dutifully remitted to the Bureau of Internal Revenue, national government seems to take for granted the smooth release of the rightful shares of the local government units. Sometimes, it needs the act of Congress such as incorporating the allocations in the General Appropriations Act for the amounts to be released by the Department of Budget and Management.

We believe that the shares of the province and the host municipalities should be automatically released every year thereafter as long as the companies were in operation. Why should the local government executives spend so much time and effort claim and collect what is rightfully their share.

It is a pity especially for low-income municipalities whose shares will go a long way in terms of projects and programs for their constituents. From these funds can be constructed additional school buildings, barangay roads and pathways, water and irrigation works and even health programs.

What is happening in the implementation of national government release of shares seems to be without sincerity by way of helping those in the countryside especially so that we are the backbone of the country’s economy. Itogon used to host the biggest gold producing mine in the country.

Look at what happened to Bokod and Itogon who host the big dams producing electricity for the companies paying megabucks to the national government. Years of neglect has left Bokod and Itogon undeveloped even after the dam has ceased to be fully productive after more than 40 years of operations.

Even Tuba that hosts a larger part of Philex mines seems undeveloped because the rightful shares are claimed by their main offices in Makati . Only tidbits are thrown back to the municipal government of Tuba. Mankayan shares the same predicament for having Lepanto in its midst. And come to think of it, right in their midst is where the ores are extracted.

Benguet officials have to exert so much extra effort to ensure the arrival of their local government’s shares. We hope the representative of the Benguet people in Congress lends his support. And we want to see dedicated support like how other congressmen fight tooth and nail for their constituents.

We fervently hope so because some Benguet town officials have already sought the assistance of Congressman Domogan of Baguio City to assist them in collecting shares from mini-hydro production.

Itogon officials continue to ask the Department of Energy to compute the taxes due them from the sales and operation of the San Roque Multi-purpose Dam. Until now, their rightful share has not been given them. Some people in national government are not doing their duties. And it has to take the Mayor Mario Godio and his fellow officials to remind them to do so.

Why the way, Domogan who grew up in Lepanto mines last year sponsored a bill in Congress correcting the injustice done to mining communities by directing national government to make sure that taxes due local government units from sales are remitted directly to the local treasuries. Baguio City has no mines but Domogan seems to have a heart of gold for the people of Benguet.

The Benguet people are no beggars and it makes our heart cry to see how some mayors make do in terms of delivering basic services to their constituents with their town’s very meager budgets.

Their shares from national government projects in their towns could very well spell some progress for their constituents. Why should they beg for what is rightfully theirs? Benguet has been blessed with so many natural resources. She has never been selfish to her neighbors and the country. She has shared these resources.

Until now, her immeasurable generosity remains unrecognized. She has been taken for granted for so long. We hope our leaders finally come to realize that our government owes Benguet so much.

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