Tuesday, January 29, 2008 City not getting due share from national government By Grace L. Plata
THE City Government of Davao has not received its share of other monetary allocations intended for local government units (LGUs), aside from the Internal Revenue Allotment (IRA), for a number of years now.
This is according to the initial findings of the inventory undertaken by the City Council committee on finance, ways and means and appropriations, to determine whether or not these funds are being continually released and in correct amount.
Aside from the IRA, the city should have been receiving the Local Government Service Equalization Fund (LGSEF); Share in the Utilization of National Wealth; and Share in the 2 percent Special Privilege Tax (Hdyro-Electric).
Finance committee Chair Myrna Dalodo-Otriz, in Monday's phone interview, said that the city has not received its share of the LGSEF since 2004. The yearly LGSEF allocation amounts to P167,897,450.
Davao has not also been given its share in the Utilization of National Wealth; and share in the 2 percent Special Privilege Tax (Hdyro-Electric) for the past five years.
The deposed President Joseph Estrada created the LGSEF in 1998. It was intended to help poorer LGUs to cope with financial requirements of devolution like their richer counterparts.
An oversight body called the Devolution Committee was tasked to set an amount based on the devolution status appraisal surveys done by the Department of Interior and Local Government (DILG). Initial fund for this new allocation came from the savings of the national government for 2008. For the succeeding years, the fund was incorporated in the annual national budget but it was discontinued.
The city's "Share in the Utilization of National Wealth," on the other hand, is based on Sections 289 to 291 of the Local Government Code, which states that LGUs "shall have equitable share in the proceeds derived from the utilization and development of national wealth within their respective areas."
This means the LGUs have a 40 percent share in the gross collection derived from mining taxes, royalties, fisheries and forestry charges, and other fees from the utilization and development of national wealth within the LGU's jurisdiction.
In a case filed by the municipality of Sta. Cruz, Davao del Norte, several years ago, it has proven that natural wealth includes water, thus they have been forcing the national government to give them their share in the taxes paid by the giant San Miguel Corporation that operates a brewery in Darong, Sta. Cruz.
Davao City meantime has two bottling plants -- the Coca-Cola Bottlers Philippines in Ulas, and the Pepsi Cola Philippines in Dumoy. Coca-Cola has already bought the Cosmos Bottling in Bago Aplaya.
Aside from these sources, Republic Act 7156 entitles LGUs to a 2 percent share in the special privilege tax paid by mini-hydro-electric power developers. The operation of Hedcor, sister company of Davao Light, is one of the potentials being looked into.
Ortiz said the committee is expediting the inventory in order to get the funding for the city immediately especially that the city's IRA share has drastically been reduced due to the creation of new cities.
