| LPP
calls for multi-lateral dialogs for release of P19.9B unpaid
IRA due to LGUs
 |
Key
officers of the League query from DBM officials whether
the national government acknowledges its P19.9 billion
unpaid IRA to the LGUs. |
The
League of Provinces of the Philippines will take the initiative
in calling for multi-lateral dialogs to secure the eventual
release of the P19.9 billion unpaid IRA still due to the LGUs.
The members of the National Executive Board, during their
first meeting recently, agreed to conduct multi-lateral talks
between concerned national agencies and other LGUs with the
end of coming up with a united action to request Pres. Gloria
Macapagal-Arroyo to order the release of P19.9 billion.
The said amount represents the unpaid IRA due to the reenactment
of the 2001 and 2003 national budget and a portion of the
Local Government Service Equalization Fund which was not released
according to the provisions of the Constitution, the Local
Government Code and the landmark Supreme Court decision on
the issue.
The
P19.9 billion is broken down as follows: P3-Billion of 1991
LGSEF, P2.5 Billion of 2000 LGSEF, P2.0 Billion of 2001 LGSEF
due to the re-enactment of 2000 GAA, the P10.0 Billion discrepancy
due to the re-enactment of 2000 GAA, and another P2.4 Billion
difference due to the re-enactment
of 2003 GAA.
 |
Rep.
Hermilando Mandanas |
Batangas
2nd District Rep. Hermilando Mandanas, who was invited to
talk about the matter of the unreleased IRA due to the LGUs
explained that of the P15 billion allocated for the LGSEF,
only P7.5 billion of it was released according to the codal
provisions, and considered as valid payments.
 |
DBM
Dir. Delantar |
 |
Gov.
LRay Villafuerte |
Director
Carmencita Delantar of the Department of Budget and Management,
who was also invited to the meeting to discuss with the governors
about the 2008 IRA, however, said that the DBM and the national
government has already disbursed the entire P15 billion LGSEF,
although only the P7.5 billion of it was according to the
codal formula.
Upon
query of LPP national chairman, Camarines Sur Gov. LRay Villafuerte,
whether the national government acknowledges the P19.9 billion
still due to the LGUs, Dir. Delantar said that the DBM does
not recognize the P7.5 billion relative to the LGSEF because
it has already been paid out to the LGUs, although it was
not according to the codal provisions.
She
reiterated the earlier statement made by Budget Sec. Rolando
Andaya Jr. that the DBM did not initiate the LGSEF in 1999
– 2001. Rather, it only implemented what Congress approved
in the GAA. At the same time, the whole amount of P15 billion
was released to the LGUs – the provinces, cities, municipalities
and barangays.
She
added that in its decision in the case of Batangas vs. Romulo,
the Supreme Court only said that there should be no earmarking
relative to the IRA.
 |
| Gov.
Leo Ocampos |
While
the governors were for taking a strong stand for the national
government to give to the LGUs what is due them, league president
and Misamis Occidental Gov. Loreto Leo S. Ocampos said that
what should be done first is to ask the government to recognize
the P19.9 billion obligation to the
LGUs. If the national government recognizes it, the LGUs could
get the amount either from the savings of the national government
or through a monetization scheme.
 |
Gov.
Erlpe Amante |
Meanwhile,
Agusan del Norte Gov. Erlpe John Amante shared that the recent
monetization of the unreleased IRA due to the reenactment
of the 2000 and 2001 national budget left a bad taste in the
mouth, because the LGUs are being asked to pay interest for
money that is due them.
 |
| Gov.
Raul Daza |
Gov.
Raul Daza of Northern Samar added that the monetization contract
may be grossly disadvantageous.
Delantar
explained, however, that the national government has included
the unreleased IRA for 2000 and 2001 in the national budget
for the next seven years, and the monetization contract was
between the LGU and the various government financial institutions,
and not with the DBM. (AJSanchez)
 |
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