Monday, November 22, 2010

‘Paluwagan’ style on calamity fund eyed

'Paluwagan' style on calamity fund eyed

Tuesday, 19 October 2010 00:00

BY JEFFERSON ANTIPORDA REPORTER

INTERIOR and Local Government Secretary Jesse Robredo is proposing the
pooling of national calamity fund with the calamity fund of local
governments to ensure that the resources would be readily available in
the event of a disaster. In a press news briefing during the launching
of the 19th anniversary celebration of the local Government Code held at
Heritage Hotel in Pasay City,
Robredo said that the Deapart-ment of Interior and Local Government
(DILG), with the help of different local officials, are now formulating
the mechanics that would be used in the said program. He said that they
expect it to be completed before the end of the year.

"This concept of disaster risk pooling has been successful in other
countries and I believe that it will work in the Philippines if it will
be supported by the local officials," Robredo said referring to the
proposed project dubbed as "Paluwagan para sa paghahanda sa Kalamidad."

The project, he said, is similar to the concept of saving for a
paluwagan, an agreement in which members pool money at a scheduled time
and take
turns in receiving the pooled amount.

Robredo said that the project would give local government units (LGU)
better access and discretion in the use of funds since they are in a
better position to know which areas and sectors badly needed disaster
intervention.

He added that this is a better alternative to the existing set-up where
financing for calamities and disasters are largely disbursed through
national government agencies which also have their own priorities.

"Come to think of it if all cities in the country would contribute P5
million a year we will have at least P600 million in the calamity pool
plus the national calamity fund it would be a big help for the relief
and rehabilitation of LGUs hit by calamities," he explained.

Robredo said the plan had already received support from the League of
Municipalities and League of Province of the Philippines but they have
yet to seek the approval of President Benigno Aquino 3rd.

When asked if the plans still requires the approval of the congress
before it can be implemented, Robredo said the project could be
implemented through the signing of a memorandum of understanding with
all concerned parties.

Meanwhile, also on Monday, four joint memorandum circulars were signed
between the Interior department, Department of Finance, Department of
Budget and Management, Department of Justice and the Department of
Social Welfare and Development (DSWD) that aims to increase real
property tax collection, transparency and protection to the women and
children.

Two of the joint circulars were signed by the Interior department under
Robredo and Finance department headed by Secretary Cesar Purisima, that
enjoin all provinces, cities and municipalities to prepare for the
schedule of fair market values of real property in their jurisdiction
and the imposition of an additional ad valorem tax on idle lands.

A joint memorandum was also signed between the Interior department and
the Budget and Management department that requires the full public
disclosure of local budgets, bids and public offerings and other
financial information.

The purpose of the memorandum is to institutionalize public
accountability and transparency in local government transactions and to
advance the primacy of full public disclosure of financial information
as a guiding principle in performance-based local governance.

The fourth memorandum was signed between the Interior department,
Justice department and DSWD that calls for the creation of local
committees on the anti-trafficking and violence against women and their
children.

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CARLOS ANI - SEEDFINANCE Corporation - PhilDevFinance
http://phildevfinance.posterous.com
Email:carlosani@seedfinance.net