| League
meets Secretary Atienza to discuss mining concerns
The
League, as represented by twelve governors and headed by its
National President, Governor Loreto Leo S. Ocampos met with
the Department of Environment of Natural Resources (DENR)
Secretary Jose L. Atienza last September 22, 2008 to discuss
issues on the recently issued Department Administrative Order
(DAO) 20-2008. The said DAO requires the issuance of a Mineral
Ore Export Permit (MOEP) from the DENR prior to the shipment
of mineral ores outside the country.
The
Governors formally presented its opposition to DAO 20-2008
by virtue of LPP Resolution No. 2008-22. This resolution states,
among others, that an MOEP interferes with the power of the
local governments specifically the Provincial Mining and Regulatory
Boards (PMRBs) on the issuance of Ore Transport Permits (OTPs).
Under the current set-up, OTPs issued by the PMRBs are sufficient
basis for the transport and shipment of mineral ores.
Governor
Amante cited that an MOEP is an additional bureaucratic practice
which may impede the sales and economic value of mineral ores.
This view was shared by Governor Dominguez who said that the
proposed DAO will just create another layer of bureaucracy
that will burden local business. The governors also cited
the lack of necessary consultation by the Department among
the Local Government Units (LGUs) prior to the issuance of
the DAO.
Secretary
Atienza said that the purpose for the issuance of the DAO
was for the Department to monitor and ensure that all mineral
exports are recorded and taxes are properly paid to the government.
He manifested that it is within the Department’s jurisdiction
to take into account such movement of minerals outside the
country. The Secretary noted that in a recent Export Development
Council meeting with the President, it was found out that
there was a huge decrease in the export of minerals which
amounted to the significant reduction of earnings for the
government.
According to him, records show a huge disparity in the volume
of minerals declared shipped out and the volume actually received
by the importing countries. In China alone, an estimated three
(3) million metric tons of mineral ores are unaccounted for.
He attributed this to the unscrupulous mineral export practices
which deprived the national and local governments of billions
in taxes. The issuance of DAO No. 20-2008 is thus a curative
measure to address this problem.
Governor Carrion presented the formal position of Marinduque
and Zambales with regard to the issuance of the DAO. He stressed
the following points: 1. a MOEP is not provided for by the
Philippine Mining Act of 2005; 2. a MOEP is another bureaucratic
red tape that will be a host for corruption; 3. a MOEP is
too burdensome for small-scale miners and is a waste of time
and resources; 4. the DAO violates the government policy on
decentralization and export liberalization.
Governor Yebes further noted that it should be the Buraeau
of Intenal Revenue (BIR), the Bureau of Customs (BoC) and
the Central Bank of the Philippines which must be answerable
to the DENR and not the LGUs considering that these institutions
are primarily responsible for the conduct of quality and quantity
checks and the issuance of export permits. Director Ramos
of the Mines and Geosciences Bureau (MGB) noted that the BoC
is at present incapable of monitoring the misdeclarations
and undervaluation in mineral ore exports.
On
a more constructive note, Governor Reyes highlighted the success
of the League and the DENR in coming up with a proposed DAO
on Small-Scale Mining and noted that similar inter-agency
consultations on DAO No. 20-2008 will sufficiently address
the concerns aired by the governors. In relation to this,
Governor Ocampos urged the LPP-DENR Committee on mining to
be work swiftly to come up with workable recommendations so
as to aver the possible misinterpretations that may arise
on the ground, especially among DENR provincial directors,
upon the effectively of the DAO.
In response, the Secretary informed the group of a recent
memorandum he signed clarifying the date of implementation
of DAO No. 20-2008. According to the memorandum, applications
for MOEP shall only begin to cover shipments beginning December
01, 2008 and that shipments before the said date shall continue
to be covered by guidelines/procedures applicable prior to
DAO No. 20-2008.
This development was welcomed by the governors as this would
give them more time to discuss with the DENR their comments
and suggestions on DAO No. 20-2008. In this regard, a follow
up meeting was set on Oct. 03, 2008 to be held at the Palawan
Center in Makati City to be hosted by Governor Reyes of Palawan.
Secretary Atienza thanked the governors for their presence
in his office and reiterated his pro-local government stance
citing that he was also a former local chief executive. (Jesse
Alcaraz)
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