Republic of the PhiliPPines

DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNM

Regional Olfice I

MESSAGE FOR TRANSMISSION

TO : ALL DILG PROVINCIAL DIRECTORS

SUBJECT REQUEST FOR COMMENTS ON THE STUDY ON THE ROLE, NATURE AND
5TRUCTURE OF THE DILG UNDER A FEDERAL SET UP

DATE : SEPTEMBER 18, 2019

Attached is unnumbered Memorandum dated September 17,2OL9 from Usec. Jonathan E. Malaya re:
Request for Comments on the Study on the Role, Nature and Structure of the DILG under a Federal Set
Up.

For your information and immediate action.

RD FADRILAN

OK FOR TRANSMISSION:

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Regio nal D irect$

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Republac ol tlle Philippinos
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OEPARIf,EI{T OF THE NTERJOR AND LOCAL GOVERT{ ENT
DILG-NAPOLCOM C€.t6f, €OSA comsr Ouezon Av€iu6. W€6t Tdangl6, Qu€zoo City
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OFFICE OF THE UNDERSECRETARY FOR PLANS, PUBLIC AFFAIRS, AND COMilIUN

MEMORANDUM
FOR/TO: ALL DILG UN DERSECRETARIES, ASSISTANT SECRETA
HEADS OF B UREAS AND SERVICES, AND ALL REGIONA
DIRECTORS

SUBJECT: REQUEST FOR COMMENTS ON THE STUDY ON THE ROLE,

NATURE, AND snll€TURE OF THE DrLG UNDER A FEDERAL SET-
UP

DArE: 17 SqP 2019

This is provide your good office the herein attached copy the study
to
commissioned by the Center for Federalism and Constitutional Reform (CFCR)
entitled The Rote Nature and Structure of DILG under a Federal Set-Up.

The said study aims to address the following questions, and identify policy
recommendations that concem the Department in relation to the proposed shift from
a Unitary to a Federal system:

1. Theoretical Bases of local government supervision under a Unitary and a

Federal set-uP;

2.ModesandFormsonSupervisionexistinginaFederalandUnitary
Countries;

3. Overall performance of the DILG in terms of supervision of Code;

Local
Governrnent Units (LGUs) since the passage of the Local Government

Perception of the DILG stakeholders on the proposed shift from

Unitary to
4.
Federal system;

5.PositionoftheDILGstakeholdersonthepossibleroleoftheDILGundera
Federal set-uP
(

6. Policy recommendations on the transformatlon of the role, nature, and

structure of the DILG under a Federal system.

Anent thereto, may we request for your commenB on the said study
speclfically on the recommendatlons enumerated thereln. Ukewlse, we would gready
appredate receivlng such on/or before 23 September 2019.

Your prompt and prefurential action on this request will be greatly appreclated.

I,lALAYA
Undetsxrctary
 AUTOilOxY AilD L0CAL GOVERilANCE fAl{AGEilEI{T: fiE ROLE I{ATURE,
AND STRUCTURE OF THE DEPARTIEIIY OF II'TERIOR A}ID LOCAL
GO\,ERIIIE}IT UNDER A FEDERAL sET{'P

lntroducdon and baclqround of 0te rfirdy

Th6 r€vlvd of the bderalH morrornont was a r€ault of Ule vlctory of Pr€sHent
Dutorte and his commitmont b emcnd O16 1987 Conaffinirn, ornphasbing the need br
a lbderd syebm of government het wlll reodve elddng darelopment aeymrn6El6 tlat
hampersd eoonornlc grcw(h and fficd developrnent ln varlolr partr of lhe country.

The aqumeil ln $rppoft of a lbd*al ayetem hae olbn beon lep€trd for the @
hrc decedB €rren b6re the lnk hae drlod on lhe 19€rf Congtltrton. The agurrnt can
be summartsad ln the followirg poinb:

o A Federal sfucfuir€ wal prwido r€d fl6cd arrbnomy since fiscal rr\rsmE srf, bo
shared bdrreen tho $frEnd Fedsd Golromment

r A Federal stsuctue wll be aUe b l€gHab loal moardruilil local logldaton dnco
fte $ab u,ill hsrro its o*n CorBess reprccandng the varlous conrilltrqdeo ln
the State.

o A Federal sfucfuro wlll be ablo b havo rel potttcal togsesntedm Bino6 Stabs
boilr Ug and smd wlll havo r€al I€pr€sanbUm ln e Federal CongrBs, wtdler
lfs a blcamexal or udcam€ral stuctrro.

o A Federal sfucfuro wll allow under Epr€senbd conmrunltlco thet has bc6n
higtorlcally marglnalEsd ln ow hletorlcd development Thla *puild furdudo qr
maryindizcd Crtrtral Commtmllles that ae lhe lPe and llorq.
o A Federd Btucturs wlll unleash the untapped pfrntd of our communl{los lhat
wll hopc'fuly biru de\relopment ln our'probinsya'.

A big pfft of fno dobab is lho aryumont lhat 'lmpqial Mailla' was an owrbeedng,
olr centallzed sEb that hao takon lhe ovonte and oppotuni$ fiom the ptwlnoa
and us€d it fur th6 natonal gotemmont Schohrs fiorn Pt$lic Adminisffibn and
Polifrcal Schnce in the Philippines aryued that sch centdtsilon ha\r€ roducod the
oppornrnfty avellabb 6r LGUs. Thls lunalnc a oonctant ]lftah d€spib the p*sage d
the Local C'overnment Code (LGC) ttlat lnsuficionw dovolt€d lml tspooeibilitie but
sdll r$ln€d fbcal o8'nhallzatm.

Even though there exls0s a wlde llbratJr€ of sfr.rdl€s thet esteil tho oppo3b,
argulng lnsioad that in tuth the natimal govrrnment ls rveek and captur€d bV pwhclal
leede]s h tp pedphery falllng untler the rubdc of Weak S:tabstong Sodoty
perrpedirc, unfurtunately, UEt debeie bettrcen 'Fodoralbf end 'Anli-Fcdenlif lr

lol2TlPaee
hof. Alfred A" Sureta and Pmf, Brlc De Torres
ofun r€ducod inb percehrsd qrrdrues ffin asodabd ln the ttudy of fic PoliUcd
g@m in the Phfihdnos.

[.ost in thls cacop]rony of platitrd* and generalizdon ls tho coordlnatlon and

r€lafiorts of trs locd gowntmont unlts with tho reglmal gpt omrient and ndonel
fed€ral stuctu€, Whlb theee issuc ar€ buc'h€d upon, tlely llile data or luEearch hes
be€n undartaken b model lh€ tmpect of rcqrsututlonellzetlon' (Relsnan and t/tlldra,
2015) b bo0r efidilcy and d6ramic of gowmen6. ln fad lhe eryedence of the Unlbd
States of Amodca and lhe Europeen Unlon are borne out of tne lnsopemblllty d
arbnomy and srJpervlslon bdt roon fuderd govemment and lts cotdtpttt ur{ts. lt ls
rBDassaryt tlortrro, b look into how t!6 natlonal govemment reds€8 superyblon
orcr mgional and local gortmmont unfr8 and analyze lpw lhe tariltlr pracfea is
applied in tte Phflpph€s by bolrlng et the rcae of lhe Depertnent of lnMr and Locd
Got,Emrnent (DILG) u,ffier lho proposed lbdord IysErII.

L RmorrcfiHdology
The paper is a Ce SUdy andlorcd on the Qudlffive rgoeaftfi paradlgm. lt
r.r0ltsed vados dab ga$e.lng bcrrnlqJ€s and data s6
r€bt ant in prcvldlng
lnbmadm aborn the Resercfr Brobhm: l) Primary dotrrtncniu thet lndudo oilfdd
reportB, publlcetlons *bcls frr edauiehing a basalhe br tho t€8oafth; 2) Condud
d Kry lnfurmant lnbndervs uting nd!8totrctur€d quedionnaire and guHe qqes0gns
that riill exhact rCevant inbmdon ihom identfied key tEpondontq sltd 3) Con&ct
of Foqrs Gmup dlscusslons wlthh a gflrup of ldfiUfied paildpents usrng tho
RrDosh,e Samdlng bdrn(m.

2. Racarch Problem

Tho rmh r€soamfi Fobhm lb ttb Hor ls rylht b On t* d OD

Dryrfilrrut d rnffi .txr r.otcril Oorryarrrlc unir t ffi tyffiT
To arwEr ltile mdn proDlem, tho lUlofllng stb prodefilr must bo dlsltot€d:

1. Whet arc the ttEotdcd bso8 of local gpvemrrnt supewlslon undor 8

mlhrysnd a {bderal sysur?
2. U}tat aro the nrods and brm on srpendCon of lel govurment units
edrdng ln Fedcrd and Urdtuy Contlce?

3. Whet was lheoleall perfurrrance of the DILG ln bnm of aryentlCon of

bcd go,fiiment udts slnce the passagp of fie L@?
4. What are the pqi[m of DILG stakohold€Is urtrt r€oard fte popoeed ahm
lionr a unlfy b a lbdoral EytHfl?

2of2TlPage
Prof, AIfred id Surea and Prof. Brlc De Torres
 5. What ar€ lh6 po.iflorB of th€ DILG stakohold€B 'rvth
r€g8rd tho rcb of tllo
DILG urdda Federal systom?

6. lllhatpollcy rccommendalkrm can be medo as rEg8]d8 tho Uansfunnatlon

of $e rclo of the DILG under a Fodord system?

3. The Beglnnlnge of Euparvblon and Fedcrellgn: The Amrlcan Expcrhnce

Federdlsm imflie gnantng eubatanho poicrs to consdtjont unib b govem
itself induding the porrtr b tax, spend, how paourceo are deHbubd li'om the conbr !o
the pedphory, and fnally lrow nd€ gocrnlry poll0c.l behavior and pmceduruo of
acoormtabllty and Esponsiblity am diefiibnbd. The Flrd Gonordon Fetleraliem
hnplies the role of cental gorernment ln @mcdng maftet faluw and lf need be
disfr'bub roaou!6 b locd Julsdlc{on. Cloo€ly ted b thls pdrldpb b he cflHlty of
the nle of tho Contd Got €rnment ln oonecdrg me*et fatute and acflry ae find
dl8fflbubr of r€sourcee b Locd Crovomment

Tlris prindple dely fuflored the bellef of Aexander HamXbn wh*t he sald fi8t
'stetes wtl be hcilned b thtw ofi the buderc of gowmtnont upon thc noighboc
accodl]rg to thdr circumstances and inHsctr, lt was hb alm b ovorcorne the pmblem
by cr€atng a 8trong and rssourceful goy€mfire{il wltt competendee delegabd W the
poode of lhe Unlbd Stales of Amerlca.

Ham0ton was of oourse rtrning b the lnadoguacy of eldodng conioderebd

sysbm in the thlrteen !ffiE of tho Continenbl America in managlng tfrc afialrs of the
colonir. He popced tho ctodion of I stong Edorel govgrnm€rlt that wlll managp lh€
afiaira of the Unlon, tt eppeeE b be counblmunive b use the Arnerican elgerbrce c
a model for Fllipho F€deralist bday, but tre hit torical dw€lognent d Amerlcan
foderali8m rai8os imporhnt ftoolutcal leesons that should guido t$rmers ln seklng b
amfid the 1987 Condtuton. An analysb d the foderal €xpeddtce ln fi6 AlrErhan
seltng rercab fiat F€derallsrn urss dG6ly tod b fte noed b rnalnteln dconess
bdrilEen cental goronunent and lls conefitrnt unib. This b of cour:e tho oppclb of
Jame Madison'e pooifion who aryrd that centsal got/omment sfiottld be weak, hence,
gMng blilh b a prcelrlenltal E/€t6m d eeparabd potrels and pdndpl€s d dt€d(s eld
bdancea.

EEmlnlng the hlstodcal dey€aopm€nt of Federallam h t,te USA tJYodd yleld thme
dlsdnctlw phasee wheo Federalitlm in the USA Earuilormed l?om a looce ftderd set<.tp
ffi a more cantalhed bderal govemmcnt Thi6 b tcd b incrcasing lole of $6 F€d€rd
grovemrnent b the gorcmance d the Stdes. Thie conbr€d amund the mle of the
Fedord budget wlrilr b<lay 8q'\roa 8{r the main insh.ment in oilabifzing lhe naflond
econofiry, regulale levela of goab (bbt b meke lt eustahaue fid mar impoftanty t\e
iederal budget ls sr4porbd by a tsdng polur and htW tole of Federal goromment ln
tro stab (Rlekman and ti4,{ra, 2015).

3of?TlPage
Prof, Alhed A. Surcta and Prof. Eric De Torres
 ln the beginnirq of fuderalbm, the United Stabs had a smdl bderal gowmment
wlth etate govomment taking over mucfi of fie functon of delhrcllng publlc goods, but
sfill exerdeed consideraHe emount of polr€r over lhe etate ln brrE of th6 cnaffon of a
nauonal congrB $at had vesiled the pot{or b bx. Howewr, dudng thb first phase of
hderalbm, sil#s en|4@ r€latrc ffscal aubnomy bd ewnfually led b a finandal cdsb
fudng the Ederal govemm€nt b take over. ln thls second phase, the federal
governrnent furced tlo 8teb to brmulab bshnosd budgeb, and placed limib on efiate
borcwlngE, ard fiorn $at polnt aftenrards, espedally durlng th€ time of the New Deal
in the 1930'e, tho 8Ee of the Gderal go\romment got larg6r.

The ftderd e,e€ndturB wcnt fiom 2.6 % ol GNP ln the 19q)'s b U.5 ln 1990.
Thls shlfr ln Fcderd spendlng was a resJt of furdng stetos b malntaln thelr budg€tB ln
the lntereet d mcroecorpmic sfiability. Orora[ tho bderal expedeno d tho Unibd
Stabs, was an atbmpt to acfileve Macro Economlc stab'Ilty embedded ln lhe
cons0tufon lhat lusfrfied for the need of e sfiong oenbal gwerunent Thre perbd ln
Uni6d S:tate'e hkbry l€d b tho oreanBion of Federal spending powor. Th6o arr lhe
b[owlng:
A Bsture fis CMI Ws, the eeonomy yyas diyi&d into the lnduefid Nortr
and Planffion eoondny of tlo Souft. Stat* amrmulated so much dobt
0lat l6d b a bubble economy whlcfi ln tum led b tho clEdon of fi€ US
FHbenk
B. After fi6 Ovfl War, a Natlonal banklrg 1p1s* passed, and tre cununcy
wa3 r€guhbd,

C. By 1913 a Federal Reeeftt wus estaHbhod that was mspordble br

bo0t mon€tery pollcy and benk r€gula0on.

The estaHisttment of the maJor grants prqrams rnqred the Amerlcan systern
fom coodln# federallsm b coop€ra$re lbderellsm lnsfrtutonallzed ln the program of
fio Now Do€lere (Riolcnan and Wyndna, 2015). This hend ln the 1930's conthued
further up to tte €nd of lhe Secod World War. Culmlna$ng ln the Grcat Sodety
Rogram ln th6 197Os wss the conoopt of Natbl C€ntor€d Fedora$sm. This ideology
malntalnod that'Conhal Administratiyo ac.tion i6 enhqed by lhe gradual aoc6@nce of
fio idea that in certaln ffelds a I,IATIONAL MINIMUM STANDARD ie in the publlc
interest (Agranofr, 2001)'. The Amorlcan expedenco witr fuoralizod gpvomanoo
iilusfabd lhe necessity d udng Ots Fod€ral Goyomment as a bd b coordinate,
stmdadiz€, a&ice, and lf wanantad, dlrscdy lntcn ene in the goremance of the Stabs
and its @nsfituent unlls. Whll6 lt rccognEes that Steb6 as constlfuont unlts, creatng a
nathnal mlnlmum 8tandard end msking sur€ ib implementaton ic guaranbe<l
actralhed tho conc€il of substanthre autonomy.

Howeror, the dyumlcs of Amerlcan fuderal experlence ie unQue 6r lta orrn

pdltical contgxt, resulong from a dls{inrfll,e polifrcal expedence of slavery, chrt war, and
recons&u6'tlon. Thls led to ths em€(gence of the wlsdom of respec{ng the aubnorny d
States wtthln the conbxt d an acdvist Federal goromment Sudr experlence nrlstrt not

1ot27 lP age
Prof, Alfred A. Sureta and Prof. Erlc De Torres
mlnq slrillar ds\rglopmont tlowevsr, tt ptwldes an lmportant letoon ln underrtanding
pofl0cel eubmmy b he reepedhre consiltrent unlts.

{ Thc Loc!! emonomy Wevr: Thc Elillt tlm ContnrlE d Gorrrnucr b

D.c.nfidhdSyrb.tl!
As o6rly as 10{9, h tho Fedoral Repbtc of W6t Genmny, locd golrertrnent
were com0t lbndly rccognlzed. ln Spaln, tte 1978 Consttutm guaranb€d aubnomy
d locarl govemment, it was fllowed h Brazl ln 1988, ln lhe Phffina h 1991 wih th6
passago of tr6 tocal Gorcmmant Code, in lndia durhg the adopdon of tho 73" and 74i
amcndrnGnt of ils conatitrtbn in 1992, in 1996 South Aftica ocognEed tho local
govomrnent unlta, lt heppened ln 1909 h bofi Nlgprta and Surttrerbnd, a shtler ect
yres pass€d ln Thaland, ln 20Ol lrdonGb edo@ e Local Govenrnent fuOmmV Acq
Cambodh ln 2002 ado&d a slmlhr law and ewn ln a one pafiy sbE \neham as far
bad< as 1992.

Under C'ennan Ba$c law of 1949, Arlido 28, lt staba that'tlunicipali$ drall be
guaranbed Ute ,ig[r[ b man{o lhe afraks of tte locd communlty m fieF own
I€spordbilM. Tho Bradhn @nstlt tbn meanlfilo itabs tut local goYEllrmont udts
can leglshb on u$ecB of locel lnbl€st. Bnt fio moot eutomflDus cold perhm be
the Spnbh Costtudon wh€r€ k boldty statas that lt'munldpelldes shdl enJoy sdf-
gov€.nmont (&lido 138 of the 1978 Conrfifutionf. The expansbn of local gowmment
untts was accompanled by the lnoesing numbor of compotendet being bansfuned b
lovrer lsvola of goternmonb. Undor I b(brd ry$em the socond 0or of go\remment
norma[y a Reglonal Gorommont or State got amment act as eupolvl8ory uilt outr
lorver tler of govemmente. But thie doee nd 8dre fio prcbbm of overlapplng
compeianclos. \IYhe0rer lts educdm, heellhcaro and o rer sotylces dorohrct b local
units. The n€od to malntaln stEndardE and atrpoil,lslon rcmalnod end malnbinlry thb
dandard got mom complicab<l rlitr the multiplkity of comp6t6ncy.

Prcdqm of cornrmn @mpobncy and $e tluto b r€sdve them codd lcd b

ttrtrlorufrgorbore:
. Drdlxtlon of s€n ics
o lntrctile satvloo dehr€ry
o Or mudr worst, no eelvlce delhrcmd
o Locd gowrnmont hanpssd Rbo mucrt ttgddona
o And lad<of eccountaUllty (&rand,2001)
ln order b rnEne€ the6s prcbloms, siep6 wor€ tEk6n by varbue cannfies in
oder b limit thelr n€galiE outcorrB. Firsil, fiolg is a ne€d 6r dear€r and grEaior
dM8ion of porretB whk$ can bo dm€ by dealy def,nlng the fundime and ita locations.
S6cond, ther€ 8hordd be darfiy on degr€os of exduslro poU6r8 whhrr can be actriovod
by relylng on elthe Judldd lntory€tatlon of competenda, legilslalbn or mde eft€ihroly
thurgh lnBgoromrontal pacts htrroon Fodemt, Reglod (stab) and local
govtmmont unfta. This was thc experience in Spain vvhelein aftar lho crualirn of the

Sof27 lP aze
Prof. Alfted ,lL Surtta and Prof, Bric De Torr€s
Albmmous Cmrmunlthc, a seoond round of decenbaltsadon happened called 'Pacno
Local'u,h6rE Ccnbd Stab, Fodoraton of Spankh prwlnccc and municipalita funrpd
an inEgovEmrflental poct beooming a mode d Cooperativo Foderalbm ln Europe
(Sby{or, 2005). Subddhrlty ie also an impoltant pdrrcido in managlng compotng
comp€tsncy elnce lt meane $et esped of got/emmflt fiet ls beGt dmlnlstoGd at the
local level sho.ild be resofued at the local lewl.

Gemnny, meamvhlle, llmlbd Foderel Pedhm€ntb leglslatng ln Prlndd6s'hll6

State lars ar€ l€ft b l€gBlate on th6lr offii dnp€dency. llou€\rer, Stab law tiunphs
over munkipal legidalim making ho Stab (landers) the supoMlory agentB of $e locd
gov€mrn€nt unib. In Soutr Afrioa, orcmling munhipal ordlnancss Ehodd nd
oompromlee or lmpe<lo a munldpattyrs rlght boxordra ns potrer or per{om lts
funcdons. ln th€ case of Arsbalh, lt creabd s Probcd Agroomont wtlh Tasmanh thet
is basod on d€ar dvision of powers and reponsibililies.

5. A ftrntFd( on lnbrgovtrflment l RC.ton. for Loc.l Govunmcnt .nd

Gentlrl Gownumnt

Whether it ls a unilary or frdoral s!/sbm, tho conept oflel sef{orromnront b

pnacflced. Evon ltu,rgh ttse b a gmat degrce of dltlbronce bdrloon the poweo d a
local gorcmrnent unlt undsr a Federal and Unlhry sotrp, one hportant concept
rsmains, lalf{an€rnmenf wtrkft drans on lhe ldea that porar shouH be llmibd and
not abeolub ln natJlE, ln addition, thelE shouH be a 'Bldom of qthd' b pr€vEnt tho
ov€rsbpplng of the Smlt and b guarenbe prEerveton of the belance bolrueen
communfi and lndtuldual ,lgirtB (ECRIG, 1999)'. Admlnl€frethro supavldon of local
authodffe shdl be exer*sed in eucfi a rvay b onsuro lhat ini6n €nlion of tp contollrU
authortty kept h Eoporuon b the lmpoftance of the htelst ln h'hlcfi lt lnbnds b prcbci
(ECRLG, fggO). Tho prlndple of locd gu/orlment a.pe*ialon oocurs ln vartdy d
conterG, but gpncra[y speakhg, there are sevenal dhnernlone, vlz:

A. Legalsuporvblm
B. Flnandal and Axrlt Supervlsbn
C. PolltfualSupeMslon

Eech dlmonslm of supewblon hae eaneral undertyrns eubdasslllcatbn: lhe

Legal Supervision oo\rors adminhtuathro sr^porvlsbn thru.lgh dorneedc courb, bodlos
ortside reglonal and faderal giovEmment lnduding coriedfulbnal bodl€s end
lnbrgo\rommolttal bodies; Finan<jal and Adt Supervleion is sfaightfunrard nince
countlee hev€ unlfom€d llnandal and audtng rulos; erd Pollticd Supcrvicion can be
done thrcugh elected assarnb0ee or dlmci rcieendum.

These vedous lewls of sup6n igory sfiucfur€s omanato frrom the local
go\,6mm€nt authorlty. Slnce local chlef exec-utlves possoss d€l€gated/dgvdved porflors,
the o<edso of lh6e pou,ers mek6 them accountable to the delegefiE autlorlty wttlch
is th6 Canfd Gotorornont Thb ls especbfiy trle br c€nhdlz€d shbs whhh had llile
history of autonomous locd gorornmont Slinca the locd govornment ar€ pdldcal

6ot27lP age
Pmf, AIfred A. Sureta and Prof. Eric De Ton'es
cr€aton of lhe cenrd gnililnont tlolr d€loOfrd pouor b kiln€dably drqmtcrt€d
byfta ndond gpte.nment
Tho rrlo6d o)dllme brm of polltcal 8llpeftbbn by ole confral steb b higltlghbd
thnilgh b
ib qacity suspond or rorno\ro local dll€l o,(mutlvEt, e noosery
machanbm b prB6n o Ule funcdonlry ol a democrdc systom €sp€ds[y h'h€n lt has
becotne pardyzed by dbagreement wlth aescrnbly ltself (ECRLG, f sg8).

ln pracile, polltcd aupendelm could cover the la,vfrrlnes of tlccbions and

eryeOlercV of dodCons ttself. Flnandd supailbbn meenruhfie oould bcrr on
rmnagemer* of frlcal r€ao.rrqr and acoontrg practoc!. orr bp of fiese lryult of
eupeMlbn b thc drfilffirle Ereo,rlb[lty d one or mddple agsncy ou a funcfon
tH wac delegtrd b a local gov€lrunqt unlt

A fhr pncdo of Local Gonmrmnt Supcwbbn: fho Gormrn, Frrnoft end

8p.rd$ modd of focrl Gorrnmeit &rpowfrbn
ln the caso d Wasbm R rope, tro sdroob of [Dtrgm oldst h brrr d
supon sftg bcC govemrnont Tho Gcmm rnodC, wtrd€ frE lrnder maffilm the
ffirtbnd lhk bdnson locd Goarnmonl unlta exerrhlng sferUdon ovorthe local
go{remrEnt unlt, nfille et tE oarno tme bolng lhe dhed authorty [nbd b F€derd
gotlcrnrnortt and on the o0pr end dthe apecfum, lh€ Frendt Model wherdn bo{lt O16
Roglonal an<l Natond govommont nElnbln s0ong hsdultonal m
wft bcal
gov€mmonb.

ln Spaln, the euapenaim of locd authot[e le ody a[oumd unter exoepdaul

drcurn8tmco& Undcr thco drcurxnancos $fiorsh lhero lg ltnpeflIng acdon agffi
local goomment unlts bysrporvl*rg gulhoridc, fto Coxfs pbye rde h el0rerlsarhg
? stay !n €xeqilion (Frane, Gemnny). ln $dbdand, He lhe Canbrnl gpu€rtm€nt
that lnltlabr lhc qrpmrlslon plooefut€ b srspcnd tre dedsion of tlg tocat govEntment

O,erdl, tro r€oognitiirn d local aeEgovflinrent lr a Eatre of modom

(bnocrdc 8tabs. Hor,uarror, lt 18 ql0cd o unoeruano hat fle natrra of local solF
gtoElrtrHrt lmp{s that the u8e d trosc pouro rhald nolth.r run @unbr b dab
coinFbn6{6 nor b lho axordsB d rlghbuhlcfr hevc been $anbd b thc duaam by
bn. Tli" frdfreo th€ of admrnhfrahrc anrr iudrid drp"wbi",r; i".at
gpv€rnanco. nf" doE b eafrg[rdd fto bgafiy aanea
"ncdle nre of lrulot s- puuL
.uUrortti€s b emurr Oe complan-o u,lh 0E pdrfupt- A Oe nrc-A &-iEdRG,
llp]._f qq sofl.of amrd;bn i.ewtvs h rre fom a dtatofle
DsruEen oon.at md bcal aulhorlty u,lth 0re funcflon of advlolry
and evdudd b
enpnadzed (ECRLG, rS0Bf.

After ,,rrovrng the erQe.ren€s of cilnti*

em:r*mug. rn bnm of thorr supondsofy

7 of27 lP a ge
Pnot, AtfudA. Surcraand M, EttcDeTcr€s
itB suporvlsory func0on and estaulsh a besh fur phnnlng lt8 po8slbb mle ln the
proposod shlfi b a b<lenal syrtem.

7. A theorctical Frammrk for Local Govemmcnt Supervblon und.f a Fodonl

ryrtem for tho Dcpartment of lntcdor and Locrl Govlmmcnt (Fhurc f )

Federal/Cental Departnem Interior Regional Goverament

Government and Local ksrclslng lxrect Supervlsory
Supervisory over lead agenry Authorlty over Local
Regional to gulde, eveluatc, atx GovErnment Units
supervls€ together
Federal and Reglond
Governmeats, the
Government units
Local

Federal/Cenral o Provinces
Government ng o Municipaltties
Shar€d Det powels r Barangays
over local r I.,).l

Recognition of local Ersuring the

GovemmentAutonomy Wthin the framework malntenance of
and regional and
supenrision oflocal ofgains ID
governnent units local governanca

The theorstirul frameuodr illuffid in Figurs 1 oudine lhe ooncepfrral tools

u0lized in this rseoarch. lt bogins with understanding th6 1016 and r€Honshap of th6
Cental Goremmert vls+.yis R6gional Goremment end Locol Gowrnment unlts.
Thls wlll be analyzed ln the hlsbrlcal eleedence of the ne0onel gov€mnEnt ln th€
Phlippines in supervislng LGUs. Afierwads, the rcsearcfi looked at how speciflcally

I of27 lP a ge
Prof. AIfred A" Sureta and Prof. Eric lle Torres
 tp Dopartnont of lnbdor and l-ocal Gowrnmqrt cortduct tte day b &y oporaton
of superylCrU and coodlndng wllh lel
govemmem unll3 elne lhe pessage d the
Local Go\remmont Code ln 1991, lt w{[ r€lrioy th6 po]specinb of dildab h the
cenhal, ptwlndal, and munidpal dcos d the departnent The tescardr ass€ssod
tho o\roral $porvlsory performenco of the qency and loolte<l inb bed practcos,
gaps and other bsue lhat arcee ftom the mom tian tvo d@d6 ald a half
operaum wlder tlo locd Gorcrnment Cod6. Mo!€orsr, lt elm6d b ldenry the
sfratoghs ufllzed h fyng b addrcse the dtafiengm ddccon tsation. fuid llnally,
the r€soa]tfi inquind on the pcrfoimance of lhe agpncy tom thr pcapcc{fuec of h6
superulsed, LGtls.

Futhenrpm, the paper engaged otidab of lhe Udon of Local Artrdltos of tho
Phllhdno! (UllP), L€agu6 of MunidpdltG, ftilpplne erouncllors League, Vice
Mayoe Lague, Mayors Leegrc grld LlgE ng mga Bemngay wffr the afn ol gffiig
thdr polnt of vlef,, on the perfrrnenco of the DILG as a srpqv{Eor and ooordlnatho
body.

Flnal,y, based on the prceeeed rqrts of firo dffi gdromd, re hfls

recommended opdone that prcpoee a roallcflc polfion lbr lh6 DILG und6r a shflt to I
new polltlcd e1@m, underrcodng the lmportaru of rdntinip bdt he pdndCe
of local gorcmment autonorry, @ordna[on and supervlslon ae the operdtrc
tramevuork that will gukle the DILG under a pmpoaed f.derel syst m,

4fu. 68bDlbffiE lho thorodcal b8b of locel gpt€rilnent u4cruiskn, the

fuloyvlng pail of the pepor har luri.n{sd lhe ]ole d fie DILG under the cuntnt sst
up provlded by$e t99t Locd Gorernment Code,

E. Thc fitc ot Dlc.nfrllhltlon ln $r Phlllpplru: &Dorvlrlon of l-st

Govtrnanco b.ftru.nd dbr tr Lql Go,trnmcnt Godc.

For tho pest thrce to bur decade, canfieo ln the Aslan Padfrc Reg[on het
uldeqone'tfiuctrral changes'ard ad@d new lnstlt tonal anangomonb ulthln atd
among levds of tha gorqnmonb. Thb c8n be afflbrrbd b a hlgtdy erttdzed
characbrfrilc of admlnbhelfrrc sfructro *'hlcfi b @m mn b mod cou.tEi€o in lha
reglon, due b the fullowlng 6a8on8: 1) the otpedene d colonLa[on and monanfilcal
rule; 2) the tad< of naton/stab btriHftU dulq the pct+donlel pedod, and 3) the
Contallst ttoory d devslopment in thc 1950s and 1960s (Sl€d€nbpf, 1987, p. 7, dbd
by De Guznan and R€fuma, 1998 ln Tapdc, Cuarwna, & Cabo, lg98, p.25). lt b h
t{s r€gnld thet admhhfrath/a rfurne haw be6mo their ma}r concsn in bnns of
lmproving the efrcfireneee and effidency ln bdrq sblo to lrtest the deman<k of the
populaco.

Accordlng b Rebma (2003, p.355), tadmlnlshil\re rfrnn lirst eme,ged ln the

Phlllpplnos followlng the grent dlbmd lndcpendence duo laE€ly b the rsdlzilon and
dlscontnultlos botu 6€n a cohnial adminktrdrn syttem and tho needs and dermnds of

9of2TlPage
Pro[, AJfred A. Sur€ta and Prof, Eric De Torres
sowr€bn gol,ernmfft8.' The Phlllpplre' lom standhg l*sbry attd efuggle hr
admlnlstrffi,€ refome led to s)domlc and lngfftutftmal draqgc! in the goyurnmant by
ushg decenbaltsaton as a sfratagy and framerql< to be aHe b iryIovs the dellwry of
eoMcs fiom the natond b the local govemments.

When the Manna Law ln 1883 was enacted by tp

Spanlstr govermmt lt
slgnltted the daild &ce'rbdtsaton ln lhe Phlllpplne wffi tho o.t blsfimcnt of
Ttbwdes ,rtndfrs and *mtas hovtnclals (Bdlanbc, 2000). Under tte Fird
Philppine R€puulc and the lrdoloc Consfitrtion in 1808, 'it addrEssod a mofit
shrctural and syrfiemlc dknensbne d looal admlnisfation as leg[aldve aasernUios
wam oqanized at lhc munft*nl hwl b fullll badc cribrion of local aubnomy atd
u,tlo8o dalog€bc *crc indimcdy chcen by thc pcode; the munldpal captalns, on tllo
ofter hand, d€6d lho ofidala to tho provindal a$emby (De Guzman and R6forma,
19tt8, p.36).

During the &netuan ocanpation, a n{losbne ln decenhalizaton vrEs adrl6,sd

d6r yeels d bdns hhily contdtsod uthen munldpd antl prwhclal councde were
oqanizod ard cfioton under lhe oonduct of gelofal sufrego. O0lor prcdamEtone
indu& the following: 'lhe lnetudhn d P'€sklent Mcl(nloy b the Til Comrilgelon; the
hcomoraton of the City of Marilla (Act 1&l of tho Phlllpflne Comml$lon ln 1902); the
establbhment of the liorc Prcvlnce (l\d.787 ln 1903); tho oEer*zstlon of pmvlndel
govemmenb (Ad 1396 ln 1905), and tl€ exhnlon of popular onhol, like he
ollmlnatm of appolnthre membel8 fiom the Hovlndd boer(r (Brfllanbs, 2003, p. 4)L

When pdltcal lndepen<bnce ulas grenhd by lho tunedcarts b the Phlllpplneo in

1948, The Flrst l-ocal Autonomy AE{ (RA 22,06) was enacied ln 1959, entded 'fui Ac[
Amending tte Lawu Govemlng Local Goveinrnents by lncreaCng thslr Aubnqny and
Reoryanldng Prcv{ndal Govemments.' (Brillanbs, 20fi1, Do Grznan and Refuima,
19SB). Bdilanbs (2003) polnb out that thb onaUes the dty and muniipsl gotremmenb
mor" fiscal, plarrrlng, and regulebry powcls wtrlcfi dro brcadens thelr taxing porrers
wlthln the perametort of the taldng; law at the natond levol. ll wes abo the sanE y6ar
when th6 Barto Chafur Act (RA 2370) vras Prom.rlgaed, ghfug some texing pou,om b
the barlos ten yeas frer the RA 5150 or tha Deoenhaltsation Act of 1967 waa enac'tsd
that $ould lnqEso the frnandal l€eoutuos and brofll€nod lhe dedalon maklng porrola
of the locd govemmcnb (Brilanbc,2fl)3).

Durhg Marlhl Law ln 1972, tho long oilh.b d decsilraltsdon cotapsod as tho
counEy wEnt bad( b a highly enbdiz€d fuim of adminiefation by lh6 Marcos r€glm€,
Howsver, De Guznan and Rebrma (1998) aEued that thers we,r sfil Gom€ hretancee
of decentsdtsation during tro pofud, thece indude: 1) the creeson of rcgional
gwerrun€nt8t 2) craation d lbgtronal oficos of natonal got emmont departnonb; 3) lh€
crellon d regldral derelopment comcls; 4) tho adopton ol lnitegffirl *ea
dorrebprnent epprcacfps,

ln 1986, nfien llarcoe was ougted ltom dnco rrd Corazon Aryho became tre
pr€sldsrt sbnmcafit cfrflrgG weIB made h the @ndtrtbn pdrnadly omudng bcel

l0 of27 lP age
proe, AIfred A. sureta and prof. Ertc De Tonus
etunofity *llh a apedftc pordon ln lhe Conr0futhn do\rd br fio locd gp\rornrtont
un<hrAllcle X

Tho passags of [E Locd Gorcmmcnt Code h 1991 tx& m(nurrntal and orp
of tlte mod radlcal apprcachos undataksn by Ote @ttnty bward dccenfalLcton.
Derohrcd porrors werc gavon b LGue ln lhme dlmensions: 1) Admlnhbdto; 2) Fhcd;
and 3) perhershlp and peilldpddl of Nffind Gdremrnont ofgaldzefims (NGO8) and
People Orgsnlzetolrs (POs). Tho 6io{r1ry, accodhg b BrllenbE (2fl)3), ao the
mqlorlbdrrcsof the LGC:

1. lt devokcc b Locd Garemment Unllc tosponitilSty for $e doltGry ot

reryle Hrera pstlqdy the ]€spolrBlbmy of
varlotrB asp€cb of baslc
tre netmal gp\romment. Thee baolc eervlcee hclrde H€*t (fcH heltt
and hGpltd serv{cos and olhor b(tety servlcsE), Socbl SoMooG (sodal
rvelfam esvicaa), ErMmment (communltytased fuEfry goJ€cts),
Agricufurc (aglcdfurd cxtenalon and on€Ite reaeemfi), Publlc WodG
(fuidod by the locd furda), Educa0on (scfiool h.ildlng program), Tourlsn,
(hctitts, gomotlon, and d6\tolrynofit), Tclecommunlcatlon Sort lc8 and
l.lodng Pmj€ctr (fur ptwinceo ad cltbs), and dpr serulcc ludl s
lnvestnent and Support

2. h devolws b locd gp\rorilnqtE th€ r€Gpondbffty br the enblqnent d

cerEh reguhry porlorc, sucfr * mddllodon of agdailtrral landa,
enfucGmort of €nvironmental laws, lncpectbn of food prcdrrcto snd
quarantne, enbrcement of nadonal hldlry oode, oporatlon of tlq/dcs,
Eooesshg drd ?pro\ral of eubdlvbbn dans, snd edabtshmeil d
ood<dtB and holdng @dQlt ilgtrtg

3. The Code dso plovldea the l6gEl ad hdtrtlond lnfrarillrctull fur the
eceanded pailldpaton d civll sodoty ln locd gowmanco. iror€
sp€cllcally, it dlocfrs b l.lcOs and POs epodfrc eeatB ln local spedal
bodes. Ttr€se sp€del bodio! lndude the Locd Do€lopmofit Cdrnct, tlo
Locd Flealth Boad, and lho Locd Sch@l Board. Tho Codo aho opem
lh6 door for NGO and PO pard@tion in governance, pailhulady ln the
anac of proflltrg local accounteH[ty end ansorabffi thmugh tho
r!ca[ and pooplCs lnltatfue prwlslonr.
,+. Tho Code lncrease the fmndal ro8ortroee avalsblo b local govemment
unfts by (1) bmadenhg thelr tat'ng po*ers; (2) povidlng tlrern wlth e
apecifrc eharc fom tho ne0onal rrEat{rl eogbbd in lhoir eree, e.9,, mhlng,
frshery an<! fuerily cfia]goo; end (3) lncr€aslng thelr shara lhom tlo
nadonal tErcs, i.e., intemd reronue aldrEntB 0RA), tofit a prEv{ous lorfl
of 1'l% to e8 mucfi s 4O96. The Code dso hcrse tre olbclrr rmnr of
locd got omment! b gEnorab rqrqlue lhonr local tbes and ctraryos.

Llof27 lP age
hof. AIH A Sunta and Pnof, Edc De Torres
 5. Flttafy, fio Cods lays the fuundadon br tho dordopmont and evoh.ilon of
moro ont€pr€n€urH orl€nbd local govErimentB. For lnstEnco, lt aXorB
local gorcrnments b
enbr fu[d.operete{renstbr (BOT} amangomentB
witr the Fhrab sscbf, 0oat bonds, obbin loars fionr local pdvab
inEfitutons, €tc. Al ttl€ss arc hbnded to encourago thom b be 'mqs
busin€ssliko' and comp6tithre in their operatons dnpar€d b tadltonal"
govE nment nfirlE arld opeiEtms.

It has b6€n 20 years Eince lh6 LGC rvae enacbd and thqe are rmlry rxrtB
iesues and chalbnggs of local afunory in tlre counfy. Thie invltas scfidaa, polficy
md(ors, NGO8 and PCls b
sit dou,n alld furthor r€virw fto codo as well as lhe
pr€lre[hg condltdE oI hbrgowmmenbl ]€latlons bstrrcen ndond and local
govomm€nt and frrtre dlrscfon d deenbdtsatbn. The bbh below eXdalnr morc
fansfur of powss fiom the Natonal b
Locel go\r€mm€ntu vla kouance d
mernomndurrs and Exmiivr Oders fur tro past 10 yeare.

A. ilGA ()ldrlr alrd Clrcrders lor Locd Autsrorfthrr

2000 DILG conducbd a natlonrr{de Butvsy on fie stetla of dsyoluton and the
concornltant budgp0ary dhcdonc at tre locd gorrominont unib lhrcugh
MC 2()00 - 24 and 2000 -15S

200/ DOF lssued lho ueo dcr.ffi munbuo fums bV locat gowmmqrt
unlts

2005 DlLcdodar€d 016 operatbrC aubnomy of local weter dirlticts hrough

MC 2005 -21. DOH lssued dlrectivac b lmplernent the Medlum - Term
Philhphos Oateopment Plans (MTFDP 2004 - 2010) and lledium -
Tern Publlc lnw&nent Prcgram (MTPIP2OOS - 2010). ln additbn, DO+l
teit€tabd AO 70 Sod€s 2003 hrough MC 2mO 0060 s0engthenhg -
lnbmal Conffi q/sierrc of dl corremmail unlb. DENR anO OOn aso
ftwed a joint Esolulk n contaidng Ure pdidos and gulddinee on efrcdve
and propor hending colledlon, hansport fsafrnent srd dinposd d h€€fth
caro wa8b8.

2006 a&pted the potrcy of harmnizng oertfrcdon standards of

-DOH
SentongSlgla (SS) and eocredlffion of PhllH€dh standarde fur rurd
heelth units / hoalth conHs (RHth/HCe) through MC AnS - 0060. Same
o,fic6 ls$od dll€cd\r€s br lhe adopton of me aenAr book on
Perfoimance lmprcvoment of l-ledh Sendcee thlqgh MC ZE6 {tmg

z)O7 DILG Implernenbd EO 305 stri€s 2004 that devoh,€o b munldpal and cily
gqoqlnenn {g_Eg$ralon of tut*rg vweb thrce grw tdnnage ani
bdowthrough ir02fi7 -37

1d.?r.donfrsn Prot Ediridrry. Ftantarbn or rn!.d .. Ht 116 tircn.A oro$r.,r ,'dx t'cGdo..dr*do.f
l2ot27 lP age
Prof, Alfted A" Sureta and kof. Erlc De Ton es
 An8 DLG hdled MC ZnO - m3 $d stabo the flsffitg the inbgrabd
Sanggunlang Kebahn (SK) OryE rEElion LeeOellnh and Reorbndon
(SKOI-AR) andthe El€ctbn and li€oting dSK Nationat Fed€ration

Zng DENR prcscrlb€d guldef,neo br fie sysbrnb dbpelt{on d afisnable and

dhposafro m*lental hnd8 hrough mbcdlaneoue sde qllcalbn
unde Repuuic Ar* No. 730 that permits the sde rffilout nruic aucdon of
puHic lands thurgh MC AnO - 0E

2lJ1O OENR dol€gntod thG autMty b hsuo mlnord oro oport pormilo b the
df€dor€, rcgbnd dlr€dor of the mh6s and gcedencae hrcau
cmsned and tre prwlmid gre / dty mayoa @ndned emong
olhors tmrrgh MC 20't0 - 07

B. bsucq Glnlbngc, end Concornr ol Dorcludon ln tlro phffippfin

.. tp!. ale lhroe (3) nffi oonoems h the derrofution of functons among LGus ln
the Phupplnos:

1) Otodapphg dpowers and frrrcilon& as w€[ 6 sd\rl6ttrat LGUs provlde;

2) lncorno $are d LGUo lhom tho IRA (nbnral Revenrc Aldnent} *rO
3) Conv€rBlon of a Town or MunichallVb a Oty

Baaad on Secdon 3 of the l-ocd GorommentCode (tGC), sftlch ls 0re Operafrro

Prlnddos of Decenbaltsadon, tho @ordiutbn, alocatd,r, and tre efrcffvq uso of
polrer8 and fundims by trs LGtJs are lndbabd fr he bfodrB pararaptr of
tre
soction:

(a) Tholu sHl be an €{bcflvo docdon arrong the dlfiai€nt loca!

gpr,ernnent unlts of tlielr rcopecffvo pourss, funcdom, lecpondbXltee,
and l€eources:

O) Th€r€ sfidl be €stsb[3hod h

s\rEry bcal gpvlmment unlt an
€{llcbnt, and d!,nildcoEedfronal stucfrrE srd opere0rrg
mecfiedsm fiat wn rneet tte prlorlty rr€d8 and servico logrisfrililB;i
Itsonnud{es;
(d) Tho wletg of duty, lepondbllfi and accot nbbil$ in locd
gov€rflnem udts ehel Oe acconparlad rri0r govldon
for'reasraUv
adequab n*ouno€ o.otauqe irar poruorE ;nJ #;d;,y 6,ry;i
-b
thelr func0ons; honoe, they stra[ have d,. porer
crsffi and broaden
lhdr own eourqe of rcvenne ald the rtgfrt O a ;raro k na{md
fud
and an eqtltaDlo share$.t e proceeds d tre ,iUE"ton -O*iloernili
taxa;
otthe natimd wsdth rUmh tif
rcgectve "rO
"*I'
Prof, Alfred A" Sureta atrd pltof, Erlc 13 of27 lP a s,e
D,e Tones
 (e) Provinces with respect to component cities and Municipalities, and
cities and Municipalities with respect to component barangays, shall
ensure that the acts of their component units are within the scope of their
prescribed powers and functions;

(f) Local Govemment Units may group themselves, consolidate or

coordinate their efforts, services, and resources for purposes commonly
beneficialto them;

The LGC may provide the operative functions of the LGUs but it does not have a
clear delineation as to what LGU will provide in terms of services in the development of
their respective localities. Areas such as agriculture and fishery, environmental
management, health, education, social welfare, maintenance of public works,
infrastructure development, and tourism are services and or functions common to all
local govemment units based on Section 17 of the LGC. (See Table 2)

Tabb 2: er.r|$pirg o0 t}crrohrc Scnriccc iv tGlll

Poycrdfu nct bas/Serrlts cftY Fronftrce Mu*klp*tv
1. Agriculturc and Fish.ry
2. EnvironrDental Manage[E nt
3. He.lth
4, Education
5.S*cial Wclfure
6" ll.intlnlnc! of Public Worksand
lnfrlstrucfu rc Ocvrlopnrcnt
7.Tourirrtl
Lcgrnd: A CcllMth .. ftlllns thrt tha tGU hrs the sanE Forirlr and funcUons and prorridcthc rrma rarvkrs

Tebk 3: Comperhon of crdrttrp and propo*ad Affocdbnz

{.

LGu. Prctrnt Fortrtda Progoe Iormub lncrcuc/Ilrarcar!

Prolrir$G ,2r* P6l"r3 A r 1316. ?t66.t[5 E P5,32 EI*r

cftv x23Y. F6l.t3 a tTSK - P53,16 B ?7.97 Bb*
ftunlcbdry r 34!6 ?!10.37 B r 36!t - I
P!r5.68 P5.31 Bt trn
ffstr(u x 20r( PP53.15 B r MX - P50.5I P2"66 B losr

lncome has been the primordiat considerations of LGUs; they

based on their annual income frorn first to sixtr clais -ity, ruunicipali(,
are classified
ano province.
(See Table 4) with the institutionalization of the oevolveo
func{ions given to LGUs,
funding forthe implementation of programs and proiects
tn" immediate concem.
"r"
The prevailing. sharing scheme of IRA results to the struggles
particularly the Municipality in addressing and of some LGUs
meeting the growin{ieeos and demands

prof, Alfred A. surea and prof. L4 of 27 | P ;r g

Eric De Torres ':
ol b"slc sarvlces ln lheF respecdw se of iurbdidion. Thb, h efrct, r€sultE b opffig
of some municlpe[0ee ln bocomfg a dty.

It has bom lheir immedlab soluton b raise thelr dlocation share as they
become bo IRA dependont Socilon 450 of fie LGC provirle the fullnrring baria of the
cretlon of cr'ties:
(a) A munhipallty or a cludor of barangays may be converbd lnb a @mpond
gty lf lt heB an avoraga annual lnconre, ae cerlified by the Departnent d
Fhance, of at loast Tvyonty mllllon pec (P:10,000,0m.00) hr the iast tro (2)
consoorlive yesrs based on 1991 @nstant pdlces, end f lt has elther of the
fulloutlng mqulsfteo:

(i) a contguons bnibry of at leasl one hundrpd (100) squaE kilomerq

ae oerlifi€d by the tanda Managenent Burcau; or,

(ll) a popdalion of not lees than ono hundrsd fifty turcard (f 50,000)
lnhSitads, I oertfrod by the l.latonal Statsfrcs Ofice: provided, IhaG
the seatftrn theeof shall not rcduce lhe lend ar€E, populdon, and hcome
of th€ odglnd unlt or unib at tho tirre of saH creaton b less than the
mlnlmum r€qLdtement8 proglbed heBln.

ln June 30, 2(X)7, RA 9m9 was promulgabd as an amendmont b S€cfron 450 of

the LGC, incroaelng the 20 Mlllon PesG b 1(X) Millm peec. Thlc becam tre
!np{* d lhe conbo€r€y lfiet s0E€d tE LGUB ln the phlllpplnes aG the Supmmo
Court mado a nr'ing favouring the sbrteen (16) munkCpdltea'he statra of dQfnod.
Th6e munt@tit€s aI€ Bahc, loos Norb; Tabu( tG[nga; Tayah, elezon:
B^".yb9y: Lryte; catbalog€n, Borcngan, Eagbm Samir; euiliutngi, l.l€grcs
-Samac
odental; ePgo,-l{"g", q! Carcar in cetu; Tendag, Sudgao del sun 6aoooua-ran
Agusen del l{orte; EI Sahrador. Mbamie Ori6ntal;- Md, Oavm Orfentali
Bay{an,Agusan tlel Sur and Lemltan, Baef,an. Afor graning thedtyhood ,tat s,G
lRA shame cf ttte 16 muntd@ides dramatca[y lncrease sfildb depia,ed in T;Mb.
EIGilIFICAI{T II{CREASE I}I tRA

lS of27lP age
Prof. AIfted r" Sureta and prof, Ertc De Torres
 IRA Comparison of the 16 New Cities
(in rlllioDl
+ 2tX)l ItLl r\ rnuxlr 4r.r:tlr.'\ ''+-ii,[a lL,l r\ Irdu.rFrljtrrr frxlli lR.l $ rrllrr

'aill '.
lx: :t:t..,
tl t.l
-'1t :
lrt ; .,tr,r:i .: :.r { lntl i ::n I --'
tle : | "i .
:s
lt.
*r-+imf'+-il

..-" -f" +*' "$' o$* .'s

-rr-.'"" ""'.*o..d.3J .J.,*$aa;""..0"s"*" .,.o"' "ot..
Sourca: LOGOOEF

The League of Cities of the Philippines (LCP) strongly opposed the conversion
because the towns covered by the various cityhood laws do not meet the requirernent
under the law that before conversion they must have a minimum income of P100 million
(Capino, 20Og). The ruling made by the Supreme Court is very crucial as it affects the
oveiall shares of IRA of most cities which relatively become an integral part of their
income.

Based on the issues that were discussed, it is essential for policy makers, the
academic community, and the NGOs and POs to re-examine and re-evaluate the
devolved functions and IRA sharing of LGUs. Substantive and procedural changes are
needed so that a better framework could be crafted to pinpoint the future and direction
of decentralization in the Philippines.

FISCAL AUTONOMY OF LGUS

l00n'r
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99Po
98P'.
97*o
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L6of 27 | :' ,, ,

Prof. Alfred.d Sureta and Prof. Eric De Torres

 This could be traced to a number of factors. First, financing options for LGUs
remain unclear, with wide variations in linancing terms and uncertainty about availability
of grants. The long approval process and tsdious paper work are discouraging factors.
There is lack of effective project development and implementation assistance provided
by the GFls and the line agencies to LGUs (Panadero, 2006,'121, Assessing the State
of Decentralization in Revlsitin g Decentralization, KAS, LOGODEF and GTZ)". ln
addition to the lRA, LGUs were given revenue shares from Mining and Corporations
operating in th€ locality; share in the GOCC, credit financing, bonds and long term
maturing loans, and local funds. The table below illustrates the num€rous funding
resources available to the local govemment unit. The Code also specifies the
parameters on the computation and distribution of the funds available to the LGUs in the
Philippines. As a result of these new sp€nding powers, LGUs have been able to expand
their sponding allocation across a broad spectrum of public service. The discussion that
will follow shall tackle the spending priorities of the LGUs under the cunent set up.
Besides the lRA, the LGC also provided additional sources of LGU incomos. (see Table
3 and Table 4)

--+- l,),lilr. 9. 'rnu.

.{- Ld rrq.rt, Ii.

+ Iod ofth Ltri{.

l0 000 000 000 ---.-.l.fll..r 7*{,
Ur.r(hrart
ta (a0ltfta.r &ooorx 8t 4rl,a
{0 006 00(r our -!ar,(!
--*tolt..t
.--- oilEr ?a(arrc
-a- &llt rrol&'rri.Pfrlotoana
€'trorirr. r.ei{, l&
l0 0(i0 000 000
+ LorrAtorro;.m&
---r -- H.r.Lodl.-rd,
*6rrrE PralkJ.riL.s
r0 000 000 000 Crfur. J,liorfr Hrvor .r B...lo}fi..a
--- HrIl lludroit t$l{on(inlal
n
hi-hr;r;-"J -tdl.1..r
. t*'!r i', &vlo, n.rr
' Hiurrt lld (ornuti,0. rbl,frtrt
r,:ac r,s r.toa t.fl r,thr ,,rot t,s: ,, st lrr(llJ.(tl , ,.. ?lr.
'roJ5ani$i

IRA A8 a Doublo - Edge Swod

. . . Th€ IRA undoubtedly is an effective tool in empowering LGUs in its spending

priorities. However, it has also become one, if not, the strongest impetus to the
undedevelopm€nt of some LGUs by making them totally dependent to the remittance
of the national govemment. According to a study conducted by ttre LOGODEF and the
BLGF using data from the quarterly stratement of income and expenditures submitted to

Prof. Alfred A. Surea and Prof. Eric De Torres

L7 of 27 l'
the DOF from 2002 to 2005, the study concluded that provinces remain to be the most
dependent on IRA relative to other LGU tiers, with a dependency ratio of 85 percent in
2005. At the other extreme are cities, which recorded a lower IRA dependency ratio of
45 percent for the same period (Panadero, 2006, pg. 116, Revisiting decentralization by
l(AS, Logodef and GTZ)".
ln addition to the dependency created by the lRA, effective decentralization also
faces another challenge: the lack of clear and eftective monitoring mechanisms in the
IRA formula computation as afiirmed by both the national and local govemments. LGUs
hoping to increase their IRA allocation have used the law by using inaccurate Cadastral
survey in order to justiff increases in their lFlA allocation. Clearly, the lack of proper
mechanisms to validate this data undermines the purpose of the law, On the other
hand, it has also been repeatedly argued that the national government has been short *
changing the LGUs through the exclusion of other taxes (customs, sin, etc.,) and solely
using the lntemal Revsnue as the base in its computation of IRA allocation for the past
20 years.

With regard to the expenditure pattem of the LGUs another clear trend emerges.
LGUs devote a majority of their fiscal resources to general public service. From 2001 to
2008 the spending for public service outspends all other devolved functions given to
LGUs since 1991. This overall measure takes into consideration the various LGUs that
have performed effectively in terms of providing basic social services. Consistenfly the
LGUs have spent a majority of their funds for the maintenance and operations of tne
LGUs and only a small percentage of its income is devoted to other spending priorities.

ln some cases like the ARMM provinces spending for public services cgnsumes
all the IRA allotment. A stark example is Lanao del Sur, wtrich in 2008 spent 100
percent of its IRA for public service. No provisioning was lefr for capital ipending.
eccor!!ry to LGU finane,e expert even though there is an increase in pubiic spending dy
the LGU. lt "did not automatically result in efficient spending as can-be seen in the-biil
gap between income and expenditure of local govemments. lt seems that loca-l
govemments have been under spending relative to their incomes (Llanto, 2011, pg. 60,
Colloquium on the lmpact of Decenfalization by the LOGODEF). This is true for social
health and education and services while spending for generil public service have
increase far more rapidly.

Besides spending on public service another trend that can be observed is the
relative increase in the spending for social services. Looking at tablesu 6 and 7, one can
observe a c-lear rise on the amount spent on social servicei as the amount of allocated
IRA is increased. While the same can be observed with regards to table 3 wherein as
the national govemment transfers the health sector, its spending has decreased while
there was a coresponding rise in the amount spent by the LGU; on health. According
to_a study conducted by the DILG they observed '{rom 1gg4 to 20CI4, revenues of
LGUs increased by 11.2 percent, with revenues fom local sources sucfi as proceeds
from real property tax collection expanding at a slightly higher rate that those from
7 Pate 115, Panadero, Eu8enlo ln Revlsltlng Dec€ntralization ln
the Phllipplnes 200G, mS, LOGODIF and GTZ

78of27ll'rqe
Prof. AIfred.d Sureta and Prof. Eric De Torres
oDdorral Bounres. LGUe depend on €ctbmal souw br tto bulk of thek rcvenue
generaton vrltt only a lhltd @rnlng fionr own'aourcs or local rcvsnues. AtnonS ttc
categori€s C elpenAnurco, healh elqcndlhrms grai, $o M' follouted by todal
sen icos end hbor and employmenP.

ln addlton, exp€rtB on LGU frnancee ohoffod that'expendltrmo at all Fryls Gf

hcal gn emmont (sdtt Uto excop{lon of fio cfic) dedlned rnhen meanrcd tddvc b
GNP in 1998 and 1909 tuflowlng fie oneel of tho Adsn finardd crbb. Them ta a
Bcovory ln 2fi)0, rtridt wr
ehortllv€d ln 2001 (3'75% of CttlP) ertd 2m2 (3.1296$
GNP) dira b th€ adv€rss lm@ d NG fscd rggtllhE on LGU spendlng. ln lbcl' ln
nornlirat l6\ds. eggl€gste LGU €rgeldlhlrc in 2002 dedhed by dryo{ 1fercent. ln
the sarr peaenta0on (Panedorc, 2006, Rarisitng Docontrdlzen h the Phfllpdnc'
l(AS, LOGODEF and GTZ}, Manalan (2006) aesetudtgt LGU spondhg on
devdopmont eDgondltrr€s (i.e' educdon, healtr' lnfiastructum) haw^Doon. htgoly
'ry
drivon fio rcobums (1.e., lRA antl wnanrrce ranwnr) analabb b LGUe(lbH).
Bo6ld€8 spottdktg socbl ss\r{cas, the L@ dso mmdabd that LGU8 mrst
dt
p€rfum tle trloriring respomlHllte: l-and rse planning, agrlortrd €xEnCo,l eo{ces
inO ruan*r, oornmunlty bsod for€lt managsn€nt, solld wasb diEPGal g}sbm'
environmenbl managgn6tl! pohnion control, prllnary;eallh caru, hoepftsl cam, sodd
wdhre esrvloee, bca UuilOUUs and stuctul€s, pubilc perts' munldPal fac8lt6
houdng, commurd inlggton, 'nffi urpply, drehago, s€u,€iagp, iood con0ol ald lnbr-
munHfu efcomnrrrnfAons (lanb, 201't, 37, Collggulum m_D@nfrdtsaUon'
LoGobEFf. Agdn h separft assossflionts perum* by 0to PIDS and tto AElm
Dar€lopmdnt Bank (ADB), Mt at€ ln agrc€rnent lhet thelE wae a rcnurkaHe incrcaso
h Lcu'spendlng forbcaty pwldod lewloel; howowr, crfrcC obsorvdons w€lo rnade
ln tE flis bt emAency in LGU'S ddhr€ry of puulc servlcae ln the hlorthg crudd secrbrs
of Educdon, Heelth, Sodal Sgndcee and Capfrd lnvtofrnent
The or,qall perbnnance of LGt s 20 yoalt 8ficr d.ocnfdEdon strwa a very
mix lurd. lf rrossurcd in brms d apendlng and lncome gon€reilion, the LGUa haw
inq€asod bo0r lheir inconre and spendirg. LoohrU at the thme brbba abor' lt deady
shoy6 a pmgrEosive lncreag€, Howwtr boklng dc6f at ad&lo data' lt can also bo
oOgennd Urat tre lncrwe ln lncome ls a t€sult dthe lncpasa ln LGU IRA efiae. Thle
lnevitaUy roeulbd ln the increasql d€pendonoo of LGt s b thG dlocalion lhoflt tho
-gorrcmmont.
ndond ln additlon, lnc,€8€d spondlttg hqs beon concenhebd ln one
parthlar eedor. General puUlc ceMce confnues b account for a larye sharc d
rpardhg by the LGUs; whlo, osrer socbm such as oducathn, eodd urlhtu, and
h-eal0r dl hho elgerbned stagnant grurWr ln H?ns of the amunt sp€at and fits,
cmdng an ulqren leyul of human dw€loDrnent ttftrrghilt lhe county (eee TaHe 8
bCorr).

HUTA}I DE\,ELOPIEI{T IIOEX OI{ SELEGTED PROVIITICES AilD REOIO}.E.

8Dd

t9 df27 lP age
Pr,of. AIH A" Sureta and Pro[ Eric De Torms
 a.t

at
a.r

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l.t
i

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f tr d.r;4/ f .f
0

*'.,f d"
$

The uneven delivery of public service due to difiering capacities of LGUs in terms
of implementing their devolved functions. LGUs that are financially autonomous are able
to function effectively making them less dependent on the IRA while, less developed
LGUs h-ave Jo rely more on the IRA to func{ion. Since these IRA dependent LGUs
cannot function without it, they cannot get out of the cycle of IRA dependency hence,
making it difficult for these LGUs to become fiscally autonomous from the national
government. Even though there has been numerous best practices by highly
effective
local govemment all over the country (see table 4), these LGU's rima'in iimpty as
"islands of governance" and "pockets of development;. The imposed
challenge for ftscat
decentralization to become effective is how to transform theie islands of
into an archipelago of govemance remains yet to be achieved.
iovemance

9. The DILG Bureaus, Reglonal offices and Local Government Officerc;

perspective on Federallsm and the role of the DILG under a Federal system.

This mixed performance of the locat govemment units in performing their

mandates
can be traced to both lack of fiscal resouices and non performing localihief
executives.
However, for the past two decades, the agency in charge of minitoring
ano ;valuating
the performance of these local govemment wnicn is t6e DILG, have
also evolved in
terms of its function and responsibility:

o Assist the President in the exercise of general supervision over local

govemments;
o Advise the President in the promu.lgation of policies,
rutes, regutations and other
issuances on the general supervisidn over localgor"rnr"rts
and on public oder
and safety;

9 Philippine Hum.n Devel@ment Report 266

Prof. Alfred A Sureta and prof. Eric De Torres 20of 27li, r:: r:
 . Esbulsh ad ptcecrlbe rules, rcgulatons and ofter ireuancos impl€monfrtg
lm on pbfic ordcr and csftty, lh€ ggtoral qrporvislon olEr local got Grnll6ntB
and the prorotim of locd auulomy and ccnmunlty erpouuement and monibr
cornpllence $er€ol:
r Prorftle es€istanoe tilards leglrlaton rcgadlng local gpt,ernmffib, law
enftrcement ard tr.bllc Gddy;
o EdaHieh and prcecrlbe dans, po[clos, prgrams and proFcfs b plomote peaca
and oder, eneurc pblic 8af€ty and firfi€r sheng0rdr lhe adnhhffive,
bcfinlcal end lbcd capebllldee d locd gownment oficeo and porconnol;
o Fonnlab plans, polidos and pl!$am3 u,hlch wll mgd local emagencbs
arlslng ,iom mtrd and manrnade dbastors;
r Eaiablbh a qr8t6m of coodlnafon and @perdon arurg lhe ddzsryy, local
exoc[JtivEs end he Depdfnent b ensum trcihte and ddant dellvery of b*ic
sewhesbthe puUh;
r Organtso, hdn and equh pdmaily for the perfomance of pollco funcdom, a
polloe furc6 tut b ndond in soope and clyllian in dtarador.

lfe wllhln fiose brced tmnd&o fiet th€ agsncy hes peifumod re eupenlsory
funcdm thmugh lts locd Gorcmment Operdom Offioen, Prwindel l.ocal
Govemment Opsr*ons Oficem and Rog[on€l oficors. The agency b prssfft h Ell
locd goomment unlb acflroly inE acfE, coordlndm and monhorhg locd
gorcrnmnt ddeb, At tmee, fto8e feld office.s of tre agenc, aci aa lnbrmedhry
b€hveen ciltseng ard dedod lel
golrorwlent ofichls b artiqlab and rqnhd €a€6d
offidde of thets rmndabe. Guided by the limita sd by tleh own lndlvHual rnenddes.
Occa8bnaly fioy ete porsdnlly sougrht albr by elected omdah sspeddly tf trey h€ro
derreloped a worting rdationshlp allowing for a smodter ooodhdon betuaen lhc
agency and local gowrflmort unib. Wlthin hb conbd of locd gorEmment EupoMslon
and coodlnaton thst the campdgn br @rl8dtr0onal r€fum b happonlng.

Pocessho lhe Foctls Grouo Drcdrssioa Orip{r,

a) Particioants

I
(1) 8€ttt€en July and $
mlg, e sd{es d Foo.rs Grcup Dlearaelons were
hoH d $€ DeparEnent of inbilor and l-ocal Go,sr?rnr€nt O'ftb et the
I.IAPOLCOM buldhg h
Orreon City. Theoe wele partw by
mpreoentahtes fiom tho Msfo Menlb Ootatofrnent futrorlty, Fmner
!9tq l{m. Flerbefi Badsta, the ncwty olecbd Vloe llayor of-San Juan
CIty Hm Warnn Vrua, mpcsontrtr/os from $e Ofnce ot Undemocr€tary
Matfi Dlnlo, r€pms€ntatvos horil the Omco d AEshtant Secratary br
Aslsdo, Bureu of Locel Gorror?lment B.wlopm6rt F{ennlng bur€au(DILG)
ad Local Govpnrnent Acaderry, Unlon of Locd eornmrrent frsorjatoni
of the Phfipfiea

Asldo fiom lhe vadous &rmaus in tho Csnfd Ofrca of h6 Departnent of

fto DILG, tho FGtt)6 rFll aboparddpabd by roprlsonffi,res &ming fiom
varlous Reglond Flo6 o{ilco of
ttre Daperhrtt There wulo
2lof2TlPage
Prof, .eJfred A" Sureta aad Prof. Erlc De Torres
 ropr€contsllr/€s fiom fte Natbnd Capihl Region frld ofrco, Roglon lll ffdd
ofice, and Reglon lV-A fi€6 office. These f6ld offoos sent lh€h €09€rtB ln
l-ocal Govemment SupeMdon whk$ endcfied Ur6 dbcursbns.

b) Prccessino the Oubuts

The partdpants yvere glv€n three gukle quesfions:

@tbn of DILG dakehoHem 'rri6 r€g8ds b tlo ehift from a

(1) t'\,hat erc tho
unltary sysbm to a lbd€ral E/sbm?
(2) What ale the pooition of tro DILG atakehotsen wlth rcgads b lho rolo of
the DILG udera F€dersl syrbm?
(3) What pollcy teommendaton cen be made witr reg8rd3 tro b
tranatbrnrllon ofthe rcb ofthe DILG undor a Fod€ral qEfiern?

The reeponsee u,oI€ th€n Burnmadzed and group accordhg b tha slmllarity
and derimilan'ty of rcaponsee. ln addilim, a queaffonnaln wao also Bent to
verious bursaus and r€glonel fi€ld 0ffice6 b gEt thelr l€sponsos. Thcse sBre dso
indu<led ln the summarlzod rrourb,

c) Summary d Reeulte

Those ar" the qmmsrizod rBponeos frrom the pdnb ,*ed durhg the rumdtable
dborcslon&

l. 9n tt luDpoil ot $c p.rnch.ntl !o tlrc rilft firom e unltly rycbm to a

tdrnlryrionr
a. F€deralEn will Uhg e r€suttB ff lmplomenbd cadifly 8nd
poslut
leadines d tho stakeholdee ar€ aceur€d.
b, lt wlll be advantageous on the part of prwlnoes wlth lese lmme becauae
they can ehae witr o0t€r govinc that ha\€ bigger income ild mdtl
withan the saroo r€glon.
c Some of tE DILG peraonnel favor the drafr concfrtrton M then shotfi
b6 an 6surance that DILG wouu r€maln yaluable ln the govemrrnt and
cwrant omdo!,€6s would not b6 dbdacod.
d. When adGd lf fiqaro ln fryor of bderdlsm, par0dpants agrca that the
pemonnel of lhe DILG Contd O,mce sftorld bo oducabd firC on rnedb d
fud€ralbm. The unswaren€Gc on the fundamental pdndphq of lbderdbm
hae . bougf* eome negdive corrnote0ons, epocilic1illy h
brms of
emdoymant and bnurs.
e. b
Pr*rs Fodoialbm pIovire tre MMDA pollce porrers. Tho lad( d
authorlty and pou,or was corrBido[od bV Ure partr&jnt ae the wralmeee
dtheMMDA

22of27 lPage
Prof. AIfred r{, Sureta and Prof, Erlc De Torres
 f, [ien0oned the seflU]rent dfie DILG ddde on ths dlminbtdng rrtum of
promo0ng Federallsm. f
th€y pmnrole Fcd€ralbrm, tholr wod( and
fundonsrrrtll be frded n€gatyoly.

ll. On fio rcb of the IIILG undcr a Fed.ral q'tt rr

a, The DILG shodd @ntinue b edat as a Federal Gonmment agoncy b
as8iEt the PEsidont and regiond gol,omola in thoir shsr€d gon€ial
sup€rviaory powam ovlor LGth and gulding the htbr b adrlane urdfed
dadoprnont ofrorts.
b. Tho rdo of Ute DILG l8 very mucfi lnbrillnod
'rulh
lho local gorommcnt
unlts. Ewn udtt its lntdld funcdons whkh deds wlth prHic oder and
s#y b no 6xoaNm. Flencs, th6 expmseed exisbnco of one is
nececray furthe erd#noo of anofier.
c. A[ DILG emplopee holdlng camer pooltorp, or dronfllso, end p€fiaps
ail olh6? govammom ompbyo€8 should b€ guananbed b the con{nuance
of theh seoffiy of bnur€ under tho fud€ral sst-up wttput $e lGs d
senlodty rlgttb.
d. Iho a8p€d of $e locd govemmont stuucfurs, povuttl and eqitabb rhare
of the egbnal and natlonal urodh and thc nafulo of lho r€Hiorcrlp t{itt
the b(lerated r€gions must be doarty spelled out or at least mentoned.
e, ln order b probct fie 8ecudty d bnur€ of the employee, the Bayanlhan
Constltuton shonld Indude the cpaton of a Federal Commlssbn m Good
Goremflce and local govrmrnent owGtight ri,ltr DILG mconrmcndtrg
fimcdona eudr as fn promodon d good govunrancc, perfoirnance audit
and pollcy compllane, ca@llty bulldlng, bcfinlcal aselafiance and
hcon0vBandflrard.
f. Tho DILG shotrftl be one otthe mardabry dtlc€s tn the lbderabd r€glons.
g. The DILG should snaln b be pen of the g&srmsrt stucturr anA Uom
levols of governanca.
h. ThoF eho.rld be mom darifrcaton on lhe fnd soi up b ddemlno u,here
wo are st the sdr€rno of thlng.
i. The proposod shn b e bderal brm of gotemmont ls a bng aduous
procass thd must bo besed on bcts. These hctB must b€ estabflshed and
frrmly danbd ln the mlnds of fie gpn€rd publh In order br fudcralbts
gsh s€diblily.
b
j. Tho frarultion plan should not only bogh once the corrUtrton b ratfed.it
shorlH begin now byoducdng the publc..
k The DILG shodd be under the helm d the *ar€d porrer ru{e. The
Soordty of one Ederaterl region drodd be the corrcem of the frdeml
gorrornmont bocarse if one albnp0e to br€ak ofi from the fudcralbn lt
*{9 f* dlshE4ht P the oounfy. Flenco, botr Federated Reglm
gnd F€deral govemfirontshci.Id eDcrcho power 0116rthls matbr.
l. DILG'8 capadty darelopmont erd monlbdng funcflon $oru be undor ths
Feder8ted mglons. Thb ls ln llne uitr tre groabr aufruny n& gh,sn b

23of27 lP age
Prof. Alhed A. Sureta and hof. Erlc De Tones
 the rcglono. Tho Fedord mgions ahould be drr.n a free hand on lrow b
hdp local govomment untts ln anhanchg theh ca@ty ln oder b ddlvrr
efrdentseMe,
m. The DILG ehodd r6mah undortro bdord govrrilrnfit qffijdng gencral
supervldon over lDglonal gowmmenb.
n. Willront indlcathn sfrucfirts and Bets of funcdons tut wlll be arsumed by
the d€partnent, lts dfilqrlt b a8€fiah tle posluon ol tho IXLG reglond
doe petonnel, mudr like our prwindd fiald officctr.
o. We bdlew ln the lde d Fedorslbm espedafy gfugn our otporirnce wi[r
LGUI ofun hckirg in ruouroce and pdrcr b govm eftcdrlely.
p. Tho dra{t Bayanlhan Federal Corufftrthn shodd rnalnhln and lrllec{ the
prorrisbns of Adde X of hs
htbrrs onstlt tlon b pmrnnt any
mleconoeptlon by locd ofildds, pertorhdy barangEy dddc. Ti*e
mhconoeptbn peftailns b tle kle on sfidrs or nd berar{8y oildals wll
bo appolnbd !y the lml ClrHEtoorthn.
q. lncorpore htho Beyanlhan dralt tfio strlrct lo of fie nstonal
gowmrmflt a0ondes ln robthn b E.O?g2 or the adminiaffivo code d
1987. lt wtl ghre assurrtco b th6 s€qdty d na0onel goremmant offichb
thelrbnue dolice.
r. Federated leglons wil slgdncanty benefit lho LGU,o. Ole of the benofitB
d ths bderabd teglar the aUlfi to managp r/vllh full dbcrdon on lts
oxm radmooo llke finaneo, revrents end tix* lt geieraioo. The
Federabd rugaom can alto uffhe ht orn prognams and prqlede nirldr
doem nmesary vdhout flo negd fur approval fiom fiio ndond
gov€rnrnont
s. Otter €lgoss€d eentlrpnb on the unertainty of tho lole of the DILG wil
peftm dudng the transfim ard pod banddm phes. mo Ore feded set
up. Tlilr corFowlth the peroee(bn tut the mandatc of the Departnent
lhe pGddanfs dbr.oe h p€.fomlng the oortlglrt funcdons d,ver af loca
r
gwomront untb will bc savudy dmlnishcd.
t Ofidab of th€ DILG are uncerhln m egerus thelr trtu'€ ln a Federal
R€puUh"

Pollcy Rocommonddon
I 0.
Seveml pollcy mconunenddou can be made besod on bdt llbmtrto rrvlou on
ffing prac{co of locd gp\omrpnt Eupervldon under a fuderd and unltary syffin, on
$e perc+ton of suppot on brlerdbm and the propced roh d thc Oit-O unO6r a
Fodord syttdn.

A. Or ft. thoordcJ brrL qf tuFrvldon rrrd coodlndoo. Contrry b

n€gdve porcapton agalnd ftderdbm. counfies that hayo Foderd lfiDm
r€ta[n oilonsiya $pervlsory poyut rr ovsr lta @Il!fitl3nt unllr. Thls b d0ddone
ttrough supdvlslon by bderal gpv€rnrrEnt orer itr rugloral govemnrents, or
eimdfanoudy supenblng leglonel gwsnmslt anO pnia*rg neUorri
stan<hrda tr lho hnplemenEton d gmmmfital programa ai trc Udt twct.

21of27 lPage
Prof. AIfred A Surcta and lhof, Erlc De Torree
 Supenddon h exercieod olther dlrscty though nsdond tnmdaias, or lndlmdly
thrcugh courtr, accountlng and atdltng EportB, or ln ad hoc fashlon tttough
nariousfurms of lnblgovEmmoltd ]eHon8. Thbdeady establhft€s he @nced
of Ar.rbnornors Gorcrnance oporabd under ltarnewort d bdl perddpalion and
Eup€rvblon. Shoe soweffiV of tre silfu emandes tom the people, thee
soverclgn poror of he natbn b v€shd on the na0onal go\romment To pld€ct
tho p6opb troflr gfaro abuge of dlecmdon end s
]Sflosenffirres d 0to p&p16.
Tho netlonel govamment must guardtbe that aubno'my d rcglmal end locd
goltgmment unib arc nd of bourds. Even the tno6t loosEty goremod bdgratod
atate b bounrled by vafulF eupervlsory medtariam that lnsur€8 lhat standerdg
and accountabllfu mehtalned. Wtrile Federdlem b aynotymous udtt
b
aubno[ty, aubnomy oporat s ln the frameupil d reutaHli'ty inqltEd through
vartous dhed and indlrret* eupavleory nredranbms hid eurn by fio F€do.al
golrEriment.

B. Thc rupport of llc ULG ttd(rltoE rt on tlr prcpoerd .hilt frdn unltrry
.!/.bm io a Fodrnl .y.bm. O,Era[ ft6 oubome d the roundtaue dl$iltsk n
b caulitnary ad the bne p€ssim&ttic lf8 cautlonary dnce mirity of the
partdpanb wtrfle suppqtw of tho Fedoralbrn campaign. Th€lr support of tio
ahlt b aiwolghed by unceftelnty of tho agpnds tolo undor a lbderal rdup'
Orerdl tlo parddpente fnd tlelr cu[€ttt 6tabs of the apncy as not probbmatla
ln fad lhey take pride ln hou fi€H oficoe &ployod in theh mspective local
goyEmrnont unlts fufitded capa<iU fuXdlng programs, monfuisd and aduabd
nadmaly mand#d prc$aflu. A sgn6a of 'eEpirit de corpe' snanEH fiofil
cfiorus of repligs fiorn vados reprusentilve of vatbuc Eglond otr6 of fie
DILG. ]]r€y b€llov€d ln thdr tudliffirc mle ln LGUs and fttr lhat if Foffibm ls
sdopbd tt1ese r01es will be remored bgettor witt thclr employment l'hnoe
bderdbm aB a propoBod ehlfi le caullody sootl ft meam of reform but a
duleqe b tldr lhdlhmds. To allevtsb thls un*o and percdv€d nogdve
imfllcator, Tr8nsibnrilng lt b Btrppod atd poolhrc p€rcopton ea,ord sbps
mtrd be undedaken thirs indude thetrlowlng:
i. Condrct Natlonal ConsultaUon and Roundbbh dbalcsbn wift ail
fuglond, Protkdal and Munldpd DILG employees atd
Bupervl.Bor8. Thls wfll both sorved as lilc appropllab fun m b
Enfld6 conoqno end at fte game tme fufter capacihb f'onffio
DILG employeas on the campeign b ehlft thom a unltary sysbm b
bd€rd Bydem.
ll.Hold rcgder d*gue wltt htpaus heads and employw h fie
nalionel office on the poliqy indlcston of the pmped ehlfi b
ftderd qplem of govemmenl And artlqllab fto oertbdlty of tte
rde of tha DILG in lhe mol,s b cfialue ll1o constihrtlon.
iE.Regdady provlde leonlng matedale end updffis b al DILG
stakoholdeB on development on the hderalbn carpalgn, And
lndude lhe'n lnprlb arld Wert8e ln lhe ongolng campelgn fur
lbderdhm.

25ot27 lP age
Prof. AIfred A Sur€ta and Prof, Edc De Tores
 C. Tho tob d m. ULO on lhe ploDoe.d lhlft fhoor r Unlh.y qlfr.n to r
F.d.rrl ttr.br'tr. The gorilrnenb dttc DILG ffikehdd€r! on the rclo of ltp
DILG undoraFe<boal syttan can bo ermlltartsed hbthc6Ioxi]lg polils.
l. The DILG should conlhue b odst as a Federal Govenmflt
agenGy b asskt the PIE&bnt and Eglond govemors ln trh
afiaori goncrd supenhory pourlG over LGU'a gddttg tp ffir
lnba unlfiodtbt.gloP nf cfrfi
il. Thc rols of ho DILG b vory mudl lnbItxlnod wih tle l@l
gpr€mrnont unlts. Evcn rdtr lta lnbrlor func{ons whldl doals u,t0l
ptblb ordcr 8nd 8frry b no cxodirn. tlenco llp qta
eodrbnce of me b noceesary br the o&iene of alo0pr.
lil. A[ DILG empbys€8 holdhg camc p6iuonu or olhenrlse and
pqhaps all dler gotsnfiFltt onployeee dtodd bo $taranH b
I itre dntnuarce d thelr sanrlty d billn undq thc ffi td t p
wi[rod &o lo d rnlority rtgrtrb' lf any or dffi]tuton of rlghE and
prilIegps rE granbd.
lv. ihe aspoct dtho locd gpt ommnt tfruct 1!, poreta and csdlablc
$ele & tho ltglond srd ndond woilr and ttc ndr! of tF
rolalbnetrip ttlfi ths ftdor&d r€0brp lrr,tst bo dedy Ep# otlt
or at led mentloned.

Ttree rconrrenddom can bo taksn in lb entmty and consHeftg Uet lho

drafl Bayanhan cortrt tlon b rill undergolng onculffiotts. Th€86 polcy
Ecommenaa0on can becorne t'te oltldal pcl0on d fto Dcpatfitont of lntorbr sd
Local Gorrcmment &n lte neeasary b trth€r sp€dry the de of the DILG under a
6d€ral Estorn. The folowlng speclfic consldcrathn sfiould be Htcn inb amtnt uttt
r€gards b tht tole of the DILG undcr a mrd lyebm, they arc aa htroue:

A ln brm of euperuisi<n d natbnaNly mandalod poelams he DILG

rehfirs uperisory authodty over tho itnplerpnffion of fio.e
progmlns. Thh ls a@mCbh€d firotrgh *atly ec6X**ng ftom 0le
bookIlho fie cofllpot nd6 b bo usnsfomd end Curod bm,oql
nstonal, reglond, provlndd and locd gpvgmtrlnt udb. The lndoaft o
losson hore h lho @rilkrulng cottlUshn caued by otmnt locsl
gotllotllfit cod. and dsilhg l.trtlt$y tdtp. Wholeln tl6lD alD
mandtrd funcilonr by locd gov€.mdtt unfra whlle at thc same [me
tr6 hrdgot of variqr ndood gowmmeit agsncbe pedbm{ng slrfler
merdabs cfitnudts b hcrrc. The dellneaton of sn@nds
fiom tre onsot lrvtl seqrtE boffi aubnomy d locd golrcmme.* unlts a.d
thoir accowrhbilty b the atab and peode.

B. The tesk of ldeffifylrU compeiend€s b sheFd and bans&rl€d b lhe

r€glonal, Eovindal and locd gorr$tment ghould bc done ln
con$Ibtion 'r,ttr dl stakoholdors lndudlng local govarnrnnt unlts,

26 of27lP age
Prof, AIfred A Sueta and Prof, Erlc De Torres
 rdond g,t eriln''t €g.rdes wllh $o Dops.tnent of lnbrior and Locd
co,ornrncnt-tBlfig fri naa_ In prwldi, El*tfr"-da; ;"gr;A
capeo'tv of rocal groormenta ait oar
b* bre on crallhrg kbrgovem,nonbl 6
*,ruy and e-d;"n ;"
rrarUsirent fr popinUoirior''
a at*ft thom a unlEry sldem O a lbdorfqpb; of
Codilrdr---"
C. ln brm of lgtanton d omplq,$s d*rtlh"ru rHlt b a new Dollthat
3y,ffirn shoutd pttrpnt mcsMd Osfcemri or.innptqnc-
fii'rffi;"
of uto sreb d ARMM cmCqreeo aflor IiARMU
ce80 h poirr uhe'rr huriareoe ron
;;-hfi;ffi
a+racJo-ffi-"ifrifr''il,
fii
gorcmmont pU! O: fudrrEl sl€bn CrouH'hdudc pr_,r"fioiid.;
hrtd,-;r,,;rffi;i,6;
lob seqfity of notonly-DILG an'ployeo
frcted by tte. etuaral lhlfi. Ttis ir amadranlsn of nd only
proiectng
rrcf [vomoo.t hrt af ffirmrrg tro,rl b fidb;;fr:
Jrlftbhdcrdkn
'f l.Colriudlne nrnrrkr

_llro\,fgeilEld lhb peper rwJnrh ctrl€hok s! thc ptopcet b sffi ba lbdcrat

systom rhar b mbeoded ln the brerbr
s"", ;-fi;t b- frJ 1 st C;;fr;;; :
conErilbhrs pro@s8 anderbJecr b d,",iJos il;;;c,etq
whet r/yr rqnarn con€tant ts-the pr*d6-; G ti,pffi.t contscr.ton. FlorGEr
of rm.ric and locd
ggpTq"nr. A"nrh.s t"ppd h il;;*, tutun brnrdr tu"."l
slaffin r.e oqnpebnchc "..tt{r.y.n
rhEt rvil be bd,isfroi b-,*i*d-c.;_rilr"il"
on tho cap€ories of ol" rqronB o
*ipsbncros.
dffi
lmporbnil itnc0qrr tr Oe Oopertncni Thb ro6ds b t*o
itr4 d; ffirm"rrt of lnbrbrend Local
"teoo-urea"
Gw1iln€nt acilrB ae tro.ahe1-ego of Er"E;d;[ conlrrue
b luper,,be locd
untb tnca@b of tu?,ctonhg i,""".* ;,ad.e;.pa;U;ildT
HrffiI

-ffifl"ffi,wimimmffi
Second and m*t irEotbnt funcillon of ho D€partnent of ln*or and local
Govemmat unoer a ooii iffi't'ti"-i"iicffiftmu rre n,,,pasnenbrbn d

iffiL-,,
progrem, the Deparrnrni ot trraln'd"i
anbnoory a,todsod ov rcu.!,
iHi rnro,od prqudbe b ,ne
can-J-d-,t ,ilera srpor,rilory fincdon ow
Hih",ffi"#il i" ii6; s;"ffid;ffifr[re-*; ffidxil"ff,
d,e pmcecs of rogrqEriEdon antt
---9*nFy.
and nil be cutded bv da;enE;fu"tJltddr. ril be uneton
banrrbr of pox'r!
rrnd, fie qrranv-ot""r.a r,y,h fih o,,,6u" tn
ho..r;boi rh" D,G;a"? u"ra E!,!bm
cannd be
ffi8frfi#*"9'_&i#E*,Fffi
tucceod wt0put lho urtnrhg
fril'o&r*"n, Pgltdeatt",t
gwemmett in rhe campeign u *rttt
tidr;irJb0;;-#d"rd d lnbrbr and locd
sysbm

Prof, Alfted A Surgta and h,of. Er{c De Torns 27d27lP age