OnLearn Issues and Concern 2020

CARAGA Cluster

This report is the highlights of the LGU Roadshow last year, and the actions taken by
responsible agencies. It also includes summary of the issues and concerns raised in previous
stakeholder engagement activities of PH-EITI and the actions taken to respond to them.

This annual LGU roadshow which is now under the brand OnLearn or Online Learning on
Extractives, is one of the activities of PH-EITI to fulfil its objective of improving the platform of
commitment for transparency, and create a safe space for dialogue and debate on natural
resource governance.

For almost eight years, various stakeholders in the extractives have participated in the
dialogue or activities of PH-EITI. But communities directly hosting the extractive activities have
less opportunities of being involved in the dialogues. Thus, since last year, we started to
involve leaders of community groups from the host areas. For this year, thanks to the Chamber
of Mines of the Philippines, we are able to coordinate with the companies to ensure that
community organizations in the areas where they operate are involved in this dialogue.

Issues and Concerns Raised in OnLearn 2020

We have categorized the issues and concerns raised in the series of OnLearn conducted last
year. In no particular order, they are
• Systems or processes, which include
- System of informing LGU on share from national wealth;
- System of monitoring the accountability and commitment of industries, and
- System of accounting for royalty.

• Report coverage and expanse, which include

- Criteria for LGU and other entities included in the EITI annual country report; and
- Data coverage in the EITI annual country report.

• EITI Implementation, which include

- Function and Role of the MSG.

• Royalty Management, which include

- Royalty payment
- Utilization of royalty
- Capacity building for IPOs
- System of operating in an ancestral domain
- NCIP participation

• Accountability and Commitment of each Constituency

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For the CARAGA cluster of last year’s OnLearn, which included the province of Dinagat
Islands, these were the issues raised.
1. EITI Implementation
• Update on the status of establishment or institutionalization of MSG in every province
or municipal level
• Sub-nationalization of natural resource management

2. System of informing the LGU with the share from national wealth
• Clarification on the process of downloading LGU share from national wealth
• Can CSOs participate in the monitoring of LGU utilization of share from national
wealth?
• Clarification on the process of reconciliation
• Reconciliation at the local level

3. Royalty Management
• Make CRDP mandatory for all LGUs with ancestral domain
• NCIP to provide clear guidelines to the IP communities on developing CRDP or give
assistance to IP communities to develop their CRDP
• There is a need for capacity building of IP communities to develop their CRDP

4. Report coverage
• Participation of government agencies like the Bureau of Customs in the
reconciliation, how can data be accessed and the period when reconciliation should
be done.

5. Accountability and Commitment of Constituency

• How can mining companies avail of DOST’s CRADLE Program, what are the other
agencies involved in the program.
• Mechanism to allow other agencies to participate in providing technical assistance for
natural resource management

Responses or actions of the concerned agencies.

1. On the sub-nationalization of EITI
• This is being discussed by the PH-EITI MSG. A Technical Working Group or TWG
will be formed to look into the all the aspects related to sub-nationalization.
Meanwhile, The Project DATA or Deepening Access, Transparency and
Accountability of Bantay-Kita, our CSO network aims improving the natural resource
governance, particularly at the local level, by enhancing policies, strengthening
institutions, and empowering communities. It is a sort of sub-nationalization and
being pilot-tested in Dinagat Islands, Cebu and some part of CAR. That is also the
reason why Dinagat Islands is not part of the cluster since there is an intensive
project for them that also covers the purpose of this OnLearn.

2. System of informing the LGU with the share from national wealth

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 • The Chief Budget and Management Specialist of the Department of Budget and
Management joined all the clusters of OnLearn to respond to concerns regarding the
mechanism on the share from national wealth. He explained that the LGU is entitled to
40% share of the gross collection derived by the national government. This is
distributed to host communities, with 20% for the province, 45% for city/municipality,
35% for the barangay.

3. On the issue on Royalty Management, particularly on CRDP

• The Regional Coordinator of Bantay Kita shared that communities are required to craft
their own CRDP, and state where they will use the royalty and the development in the
communities where the royalty will be allotted. The NCIP then assess if the plan is
indeed helpful to the community. It was also emphasized in the discussion that the
CRDP is a safeguard for the community that the royalty will not be subject to corruption.

4. Report coverage and the participation of Government Agencies like the Bureau of
Customs
• The Bureau of Customs collects taxes and duties from the imported goods. On the
slide you can see the various types of taxes imposed by the BOC and the calculated
rate. In the same manner, the Philippine Ports Authority collects wharfage fee for the
use of wharf and is assess for every cargo and container.

• In terms of reconciling the data from various agencies, PH-EITI hires an Independent
Administrator to review and ensure that data are accurate

5. On the Accountability and Commitment of Constituency

• The Executive Director of the Chamber of Mines of the Philippines, shared their
partnership with DOST entitled CRADLE Program. If the companies are interested to
avail or participate in the program you may communicate with COMP.

Issues and Concerns Raised in Previous PH-EITI Stakeholder Engagement

The PH-EITI also documented issues and concerns raised in previous stakeholder
engagements and organized them.

1. National Wealth Management, these are Issues pertaining to process, system,

mechanism in the collection and transfer of revenue from extractive operations to the
National Treasury and back to the LGU, and where and how LGUs utilize the revenue
for community/municipal projects and programs.

This year, the Department of Budget and Management launched a national wealth
share portal in order for the Local Government Units to track the revenue that went to
their coffer for a particular fiscal year. It was shared in our National Conference last
July 29, then we will have another round of learning session on this during the
Extractive Transparency Week in November.

2. PH-EITI Report Coverage, issues on the content and coverage of EITI report, the
sector that should be included in the report, reporting agencies, expanse of data and
information, participation of LGU, community and civil society.

The PH-EITI Secretariat is pleased to inform you that the 7th Country Report includes
contains contextual information on the rationale of the content of the whole report,
reconciled revenue data from mining, oil, and gas industries. It also includes a portion

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 on the impact of the COVID-19 pandemic on the extractives and the consequent
outlook for the sector. It also presents the industries’ response to COVID-19, including
the realignment of Social Development and Management Program (SDMP) funds, and
assesses the efficacy of SDMP as a development mechanism for mining host
communities.
The whole data and information in the 7th Report and all other country reports of PH-
EITI are aimed at crafting policies and legislative measures towards better natural
resource governance, and inclusive and resilient economic growth.

3. Data Utilization, issues include how data from EITI are utilized by various stakeholders.

4. Laws and Policies on Extractives, issues pertain to policy reforms in natural resource
management.

5. Royalty Management, issues include mechanism and process of collection and

distribution, system of monitoring the utilization of royalty fee from extractives
operations within the IP areas, system for operating in an ancestral domain land, and
process to build the capacity of IP groups, and the role of NCIP in the whole system
and process affecting IP groups in extractive affected areas.

6. Cost and Benefit of Extractive Operations, issues include the social, economic and
environmental effect of extractive operations, whether advantageous or
disadvantageous to the community.

7. MSG Role, issues include the function of the MSG as a governing body, how they
oversee the implementation of EITI, ensure that objectives are met, and activities are
carried out according to the work plan, and other functions within the mandate of the
MSG.

This year the PH-EITI Multi-stakeholder Group or MSG is in the process of reviewing
its internal rules, based on the experiences, and to be attuned to the changes in the
extractives environment.

8. Accountability and Commitment, issues include the role of government agencies in

implementing the laws and penalizing those who break the law, including issuance of
license and permits, also include how companies abide by the existing laws and fulfill
their commitment to the communities affected by extractive operations, and the role of
the CSO in monitoring the implementation of the laws.

9. Beneficial Ownership, issues include laws and system in relation to transparency in

the ownership of an extractive company.

10. Political Environment, issues on how political environment affects or affected by EITI.

All these issues and concerns are available at PH-EITI website

https://pheiti.dof.gov.ph/2021validation/.

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