Wednesday, April 22, 2009

What are we celebrating in Cordillera month?

That was 22 years ago when rebel priest Conrado Balweg signed a peace accord with then President Corazon Aquino at Mt Data Hotel in September 13, 1986. A year after, Aquino signed Executive Order 220 in July 15, 1987 which gave birth to the establishment of Cordillera Administrative Region paving the way for Cordillera autonomy. Republic Act No. 6766 followed on October 23, 1989 which provided an Organic Act for CAR and policies set for the proposed Cordillera autonomous government to exercise governmental functions including tax generation.

On the Cordillera region’s 21st anniversary and its ideals of what it purports to be, what do we see now? As we can obviously note, the dream of slain rebel priest Conrado Balweg to see a freely determining and progressive Cordillera is yet far down the road. For one, the region’s natural resources are still within the absolute control of the State.

Consider Magat River which flows in the jurisdiction of Isabela and Ifugao. While rules provide that the share of local government units in taxes which accrue from the use of respective territories will be provided to LGUs, this does not come automatically.

Ifugao Gov. Teddy Baguilat has to lobby for the release of Ifugao’s share in taxes from SN Aboitiz due the province from operations of the Magat Power Plant. The amount of P28 million share of Ifugao still awaits legal mandate from the Department of Energy for them to release the tax share of Ifugao.

As it stands, Ifugao and Isabela where Magat Dam sources hydroelectric energy from Magat River stands to profit from the company’s taxes with a 50/50 share from the 114 million transfer tax accrued from the sale of the Magat Hydro Electric Power Complex to the SN Aboitiz Power from the National Power Corporation.

And that is true with other hydro-electrical plants of the region. Benguet is still claiming for its due on taxes from Napocor and the Power Sector Assets and Liabilities Management Corporation for the use of its water resources.

Recently, P11.9 million was released by the national government for Benguet’s share in wealth taxes due operations of San Roque Dam after years of battling for this. San Roque Dam sources its hydroelectric energy from Agno River located in Benguet. But that is not all of the amount of what Benguet is claiming. Still, such taxes are claims years back which have not been given to the LGU. If not claimed, then it follows that the government will not be remitting these amounts due the province.

Benguet Gov. Nestor Fongwan and the people of Benguet are set to collect P198 million in taxes from Napocor -- P116 million in national wealth tax for the San Roque Multipurpose Dam in Pangasinan, P56 million in franchise taxes and P26 million in real estate taxes for the operation of Binga Dam. Such a big amount of money which could uplift the lives of hundreds of the province’s constituents.

Benguet suffers in Napocor’s refusal to pay franchise taxes for Binga Dam. Benguet LGU has to file a case in court to collect franchise taxes since 2001; and power sales Napocor made from 1992 to 2007.

Meantime, GMA ordered the release of P124 million national wealth tax for Benguet due the province from the operations of Philex Mines Corporation at P71 million, Lepanto Consolidated Mining Corp. worth P15 million since the last quarter of 2005.

The amount of P38 million is due from the Hydro-electric Development Corp. and the Northern Luzon Mini-Hydro Corporation since 1992.

The province’s share dates years back and the law is not facilitating an automatic share of the LGU’s share from the wealth of its own resources such that it needs the President of the State to bless the release of funds which rightfully belongs to the LGU and its respective constituents in the fist place.

In the same manner, SMART and other telecommunications facilities also are built on the towering peaks of Mountain Province. Yet, companies continue to pay their taxes straight to the national coffers as what the State’s commercial laws provide.

We still have to hear from respective local government units their shares in taxes due these giant multinational companies who continue to use the local resources at very measly arrangements.

Now comes the bill of Baguio Rep. Mauricio Domogan calling for the direct remittance of taxes of companies operating within the territories of local government units. Refiled by Domogan in the 14th Congress, these bills are pending. Control of natural resources is directly related to a region’s autonomy. Yet, income from these resources are not within the peoples’ control. That is, not within the Cordillera Administrative Region’s control.

The region abounds with rich natural resources where income could be generated. Consider rivers of hydro-electrical potential including Magat River, Agno River, Chico River, Sifu River. Consider towering mountains where giant telecommunication companies have to set up their relay towers to reach the farthest that its cell site can reach.

It is a pity that poverty in the Cordilleras is still a glaring reality. Poverty worsened in the Cordillera between 2003 and 2006. As per the latest estimates of the National Statistical Coordination Board, poverty incidence of families in CAR rose from 25.8 percent in 2003 to 28.8 percent in 2006.

Similarly, poverty incidence of population increased from 32.2 percent in 2003 to 34.5 percent in 2006. While we have the resources to get out from poverty and not let human and brain resources leave the Cordillera abroad for greener pastures, these income from natural resources remained out of our hands for years. Regional autonomy was touted as one answer to these woes but it dragged on for 22 years until now.

How serious is the government in facilitating autonomy for the Cordillera? And, how serious are the people in seeing autonomy happen? While we celebrate Cordillera Month, what are we celebrating for? Where is our passion for what Cordillera and what does autonomy mean? ]

Since two plebiscites had been rejected by the people of Cordillera on regional autonomy in 1990 and 1998 and, this move for autonomy is still vague in the minds of the people. Obviously, the survey some months back says 40 percent don’t. Yet, first the people have to do their practical part in acting out what self determination means.

Claiming for what is due is one’s right, an indication of being conscious about autonomy. Yet, I haven’t heard of tribes in the Cordillera claiming for their taxes due from Napocor or tribes from Mountain Province claiming for their taxes due from SMART. It’s only the enlightened officials who are claiming what is due their respective jurisdictions like governors Fongwan and Baguilat. The others?
Meantime, we ask: Where did the P30 million fund drive for autonomy go? It would be good for the regional development council to explain where the money went and let the public know what autonomy is all about.

Also, what did the defunct Cordillera Executive Board do? After a few years in operation, it is interesting to ask what it had done for the Cordillera and the preparations it did in paving the way for regional autonomy. Perhaps we can learn from there. Then, we can celebrate.

Reprinted from Northern Philippine Times

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