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...Welcome to our press briefing today March 21. President Ferdinand R. Marcos Jr. presided the sectoral meeting this morning, pinag-usapan ang status ng Executive Order 138 o ang Full Devolution of Certain Functions of the National Government to Local Governments, Creation of a Committee on Devolution and for Other Purposes.

The roadmap extending the transition to full devolution from national government to local government units was discussed during this meeting.

And to give us more details on this, kasama natin ngayon, si Department of Budget and Management Secretary Amena Pangandaman. Good afternoon, Secretary Pangandaman.

Good afternoon, Ms. Daphne, and good afternoon to everyone, our major friends.

Go ahead.

Okay, so we had a meeting this morning with the President. I'm sure you all know about the full devolution as a result of the Supreme Court decision, the Garcia-Mandanas Supreme Court decision case,

which, with that, in 2019, the previous administration prepared an Executive Order, it's Executive Order 138, which says that we have a transition period until 2024 before we fully implement the devolution of projects and programs to the local government units.

When the PBBM administration took office, meron pong mga issues na naparating po sa atin ng ating mga kaibigan sa LGUs na I think marami po sa kanila ang hindi pa po prepared para sa tinatawag nating full devolution.

So with that, meron po tayong tinatawag na, in EO 138, meron pong committee on development. The members are, it's chaired by DBM. Ang members po diyan ay DOF, we have DILG, and we have NEDA, and we usually consult with our League of Municipalities, yung mga groups natin with the governors and city mayors and our barangays.

So nung sinabi po sa atin ng ating mga LGUs na hindi pa po nila kaya, even given that we're giving them enough funding as a result of the Mandanas case nga po, hindi po nila kaya implement yung mga ibang projects po na medyo yung tinatawag po natin yung mga big ticket and high impact projects po.

So what we did po is the President asked us to study this and maybe make an amendment sa ating EO 138. So kanina na pag-usapan po namin yan together with, we have the League of Municipalities there, and we have si Governor Dax was also there present.

So with our meeting this morning, we were tasked again by the President and the President of the League of Municipalities to discuss the implementation of the EO 138.

So we asked the President to sit and study the projects and programs po na iiwan natin sa national government kasi national government lang po ang may kayang gawin nitong mga proyekto na to, at kung ano po ang mga proyekto naman na i-devolve natin sa ating mga local government units po. Yan po.

Okay. Thank you, Secretary. Are there any questions from the floor? Marise Umali, GMA 7.

Secretary, good afternoon and belated happy birthday.

Oh, thank you.

Ma'am, may we just know what exactly were the reasons of the LGUs why they cannot implement fully the programs that are supposed to be implemented by them?

As you know po, iba-iba po ang level ng capacity ng ating mga local government units. Of course, yung mga nasa cities po, medyo advanced and developed na rin po yan.

And then because they have enough funding, meron na rin po silang enough manpower to implement the projects.

But there are LGUs po that we know that are really lagging po. Hindi po nila kayang i-implement yung mga projects kasi kulang po ang kanilang technical expertise and capacity to implement those projects.

For example po, nakalagay po sa ating local government code, pati po yung kunyari, national irrigation system.

I think a small water impounding system can be implemented by an LGU, but I don't think they can implement a big irrigation system project.

Plus the fact po na ang irrigation project, it's usually transverse among different areas po.

So may mga ganun po, may mga proyekto po na sobrang laki na talagang at saka kailangan po ng technical capacity and expertise po ng mga tao sa LGUs to prepare and plan po properly and efficiently yung mga projects.

So you mentioned a while ago that since the local government units will not be able to implement these programs just yet.

So it's going to be the national government who normally implements these projects.

They'll be the ones to continue these projects.

But considering that they are expecting the LGUs, the activities or the programs and the projects will be devolved to the LGUs already.

And they are expecting that the LGUs will be focusing on these projects already.

Will this affect, will this have an impact on the national government's implementation of these programs or not at all?

Wala naman po. What's important is yung EO138 natin, binigyan po tayo ng enough time to transition until 2024 po.

To help this lagging and small LGUs to cope and para matuto sila.

May budget po ang different departments po for 2023 to help them, to capacitate them.

May budget po ang DILD to work on seminars and workshops to help them.

Meron din po capacity building ang Department of Finance on how to utilize their budgets.

Ang DBM po on procurement processes para po ma-procure nila na maaga at ma-implement po na maaga yung kanilang mga proyekto.

And NEDA din po, nandiyan din po ang NEDA to help them.

To help them, yung pag-identify mo ng projects, it's in adherence with the Philippine Development Plan.

May we know, Secretary, how many LGUs are not capable to implement these projects just yet?

And in other words po ba, parang wala rin naman magiging problema kasi for these LGUs which will not be able to implement those projects as of just yet, then it will just be status quo, tama po ba?

Yes. But there are also, you have to also think that there are also LGUs especially those who are in the higher income status, yung mga cities, na kaya naman po nila mag-implement.

Ang tututukan po sana natin dito ay yung mga 4th, 5th class municipalities. There are roughly 450 of them.

That's why in our EO 138 that was signed previously, meron po diyan sa section 8 po ng EO, meron po diyan ang tinatawag na growth equity fund.

Yung growth equity fund po is pondo na ibibigay natin sa kanila. On top po ito sa lahat ng capacity building that the national government is providing.

Yung pondo po yan para po matulungan sila kung paano po gumawa ng proyekto o paano magplano, tsaka mabigyan sila ng additional projects po para maka at least they can cope with those that are already advanced and developed.

Sorry ma'am, one last. How exactly will the ruling, just enlighten us, how exactly will the mandanas ruling affect the fiscal situation of the national government?

Basically po, I have the numbers here. So the LGUs will receive an increase of Php 185 billion. That's as a result of all taxes in the determination of just share of LGUs.

And the total NTA shares amounting to Php 959.04. Meaning Php 185 billion ang matatanggal sa national government at ibibigay natin sa LGUs. I think as of now naman wala naman because we expect that the DAF has been incurring a lot of revenues right now. So hindi naman ma-affect.

Good afternoon po Secretary. Before po you mentioned that more than Php 960 billion budget for LGUs this year 2023 will remain po ba na ibibigay yan sa ating LGUs under the RMTA na ngayon?

Opo. Kailangan po kasi ito po ay automatically appropriated.

With this budget po ba kakayanin na ng ating LGUs na makapagpagawa ng mga proyekto na masasabi natin hindi na po kailangan ng national government assistance? And ano po ba aside dun sa nabanggit ninyo, small water impounding na kaya po nilang ipagawa para sa kanilang mga lugar na hindi na po kailangan gastusan pa ng national government?

Kaya nga po yung meeting po kanina in consultation with our groups with the LMPs, with the governors, tinignan po natin kung kakayanin po nila. You know ang sabi po sa ating local ng LMPs it's not only about the money.

Of course they're happy that they have additional money now. But sila din po iniisip din po nila how will they use the money properly, utilize it and implement it. Siyempre pag may programa po tayo at makita po ng mga kababayan natin na nangyayari po yung mga programa at proyekto, it will be mas masaya po sila na ganoon yung mangyayari.

So I think from their end, they also welcome po yung meeting kanina, yung result ng meeting kanina that we will still again sit down and identify specifically po ano ang mga proyekto na kaya ng national government at local government units, ano ang kaya ng provinces, ano yung pwede sa provinces, ano yung pwede sa municipality, ano yung pwede sa cities, at ano yung pwede sa mga barangays.

On the barangay health center, barangay hall, mga ganoon po.

So talagang dito po kailangan mag-come in ang gobyerno para matulungan sila.

Tapos i-convene po natin ng COMDEV. And then we will report this to the President and all the leagues kung kaya na po ba nila by 2024 or kailangan po ba ito i-extend.

On 4th and 5th class municipalities, paano sila makaka-cope up? Kasi di ba parang mas kailangan nila ng dagdag na budget para makasabay sa magiging transition?

Divided po yan according to their population. May formula tayong ginagamit dyan. And then this year po for 2023 budget meron din po silang P1B.

And then yung capacity building din po na sinasabi ko kanina with DILG, DOF, NEDA and DBM and DAP. Tuloy-tuloy po ito. Magsisimula na po ito. I think ang DILG nagsimula na.

And then hanggang 2024 po hopefully by then we will be able to check kung kaya na po nila.

When can we expect the completion of that particular study on the devolution? At kung kailangan i-revise yung EO ng Duterte admin? When realistically can we come up with that?

And then mabilis na po ito. Siguro in just 2 months baka meron na po kaming study and we are able to show this to the President already. And if makapag-present na rin po tayo kung kailangan po talaga natin i-amend yung EO 138.

On one-size-fits-all, pwede kayang ganoon na hindi one-size-fits-all ang mangyayari?

Thank you. Joyce Balancho, DZMM.

Ma'am just to compare, you mentioned kanina 450 LGUs, 4th or 5th municipalities ang hindi po kaya. How many LGUs ang kaya naman? And just to follow up, how do we strike a balance? Just to follow up sa question A's. Kung i-insist po ng LGU that they can implement big ticket projects, hindi ba talaga sila pwede makapagsimula?

Pwede po kasi in fact yung funding naman po ng NTA nila, it's already provided. And sa local government code din po, nakaprovide na rin po doon lahat ng mga na-devolve nating function. So it doesn't prevent them as long as they can do it.

But we really have to take consideration po. Yan talagang laging po yung mga underdeveloped kasi maiiwan po sila. Yan lang po yung magiging I think a major issue. Maiiwan po sila.

Number lang ma'am kung meron kayo number of LGUs?

Ilan ba ang municipalities natin? 1,000?

Incapable?

I think most of the, there are provinces who can do it. And siguro there are cities na kaya din naman po. May mga munisipyo din po na very aggressive na kaya din po nila gawin.

I think we can provide you with the number in a little while.

We will provide the number.

Sir, we have room for one more question. Anybody?

Chona Yu, Inquirer Radio.

Ma'am, what are the safeguards that the government or the national government will implement to ensure na hindi siya mauuwi sa corruption kapag LGUs na humawak?

I think there are enough safeguards that we have now.

First yun sa GPRA mo, hindi ka basta-basta pwedeng makapag-procure ng mga produkto, services kung hindi yan dumaan sa competitive bidding.

Pangalawa, lahat po ng ating LGUs din po dumadaan. May COA din po. May COA auditing din po sila.

And pangatlo po, meron po yung tinatawag po ang DILG na meron po sila mga awards dyan eh. Yung seal of excellence, good conduct, and ganyan-ganyan.

So I think they have to adhere to that para po. Kasi I think may mga premyo yan eh pag meron ka mga awards na ganyan.

So I think that's enough motivation for them.

Okay. Thank you very much. I think that ends our press conference today with Secretary Mangandaman. Thank you so much.

Thank you ma'am. Thank you po.

Thank you Malacanang Press Corps. Have a good afternoon.

Thank you.

Thank you.