Press Release
August 25, 2007

Gordon says ARMM needs real fiscal autonomy

Senator Richard Gordon said yesterday that there is a pressing need to review the provisions on fiscal autonomy under the Organic Act of the Autonomous Region for Muslim Mindanao and a review of funding problems in the region.

Under the ARMM Local Government Code, local government units receive a share in the national Internal Revenue Allotment (IRA) and in taxes collected by the region itself. Sen. Gordon found out, however, that the share in the region's revenue collections is too small as a leverage for the regional government to rally LGUs to help fulfill ARMM's mandate.

"The regional government has not lost its dependence on the national government in terms of allocations," the senator said. "The fiscal autonomy granted by the Organic Act seems to be only on paper, with the regional government acting only as an implementor of the national government's programs through its retention of control over funding."

The COA follows strict auditing rules for the ARMM budget, and requires every accountable officer to furnish documents on transactions in the ARMM. Failure to do so empowers the President or the Secretary of Finance to reduce, cancel or suspend the release of funds for the autonomous region.

"I believe LGUs in other regions enjoy a higher degree of fiscal autonomy than those in the ARMM," Gordon said. "These are requirements imposed only on the autonomous region and not on ordinary local government units. So it's time we rectify this." said Gordon.

Gordon also called on the national government to modify its approach to the area and press forward in building up "the physical, social and legal infrastructure in the region, saying that Basilan and Sulu are wrongly perceived as a war zone,

"Despite the recent hostilities in Basilan and Sulu, and the many casualties sustained, neither province is a war zone, contrary to the popular impression," the senator said that "the prevailing practice has been to treat the two provinces as a war zone, whether one is calling for all-out war like the hardliners or for peace talks like the bishops. This has led to a total neglect of basic services and infrastructure in the area."

But Senator Gordon declared that the situation there is no more severe than in other areas of the country facing some insurgent or rebel activities. "Peace and order prevails and the encounters are sporadic and confined to forest areas," he said.

The Senator was reporting to the chamber on his findings following a two-day visit to Basilan and Sulu where he met with military commanders, local officials, schoolteachers, hospital administrators and civic leaders in the two provinces.

Gordon urged the government to start immediate implementation of rehabilitation and livelihood projects in ARMM. He stressed that "the focus of complaint and worry of the local people is not peace and order but poor provision of basic services, such as schools, water service and roads, the payment of salaries and teachers, and support for economic activities and livelihood."

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