Monday, July 15, 2013

Palace bares wealth sharing deal with MILF

From the Philippine News Agency (Jul 15): Palace bares wealth sharing deal with MILF

With the signing of the Annex on wealth sharing to the Framework Agreement on the Bangsamoro, Malacanang on Monday detailed its deal with the Moro Islamic Liberation Front.

Government of the Philippines (GPH) peace panel Chief Negotiator Miriam Coronel-Ferrer, in a press briefing, said the wealth sharing annex comprised 12 sections -- taxation, other sources of revenue, fees and charges, grants and donations, fund transfers from central government, contracting of loans and overseas development assistance, natural resources, additional fiscal powers, auditing body, intergovernmental fiscal policy board, Bangsamoro development plan, and on gender and development.

On the section of taxation, Ferrer said, both parties have agreed that 25 percent of the central government taxes, fees, and charges collected in the Bangsamoro, except for tariff and custom duties, will go to the central government, while 75 percent of it, including the shares of the local government units(LGUs), will go the Bangsamoro government.

"This is an improvement in the current system in the ARMM (Autonomous Government in Muslim Mindanao) where sharing is at 70-30," she noted.

On fund transfers from central government, Ferrer said, the government agreed that a "special development fund" will be provided to the Bangsamoro for rehabilitation and development purposes upon the ratification of the Bangsamoro Basic Law.

"This special development fund will take into account the ARMM provinces that will eventually be asked to join the Bangsamoro, as well as the other territories (that) are coming from a disadvantage position because of the years of -- the decades of conflict that has affected development in the area. This special development fund will ensure that the jumpstart mechanisms will be put in place, in order for these poorest regions in the poorest provinces in the country to be able to catch up with the rest of the country," she said.

On the matter of natural resources, Ferrer said, 75 percent of government income derived from the exploration, development, and utilization of metallic minerals within the region will go to the Bangsamoro government.

On the other hand, government revenues from non-metallic minerals like sand, gravel, and quarry resources will go to the Bangsamoro government and its local government units.

"Government income derived from fossil fuels like petroleum, natural gas, and coal, and uranium will be shared equally between the central and Bangsamoro governments," she noted.

With respect to metallic minerals within the Bangsamoro, 75 percent of such revenues shall pertain to the Bangsamoro, while fossil fuels (petroleum, natural gas, and coal) and uranium, the same shall be shared equally between the central government and Bangsamoro.

Of all the provisions, Ferrer said, "the jewel in the crown is the provision that the Bangsamoro will enjoy automatic appropriation and regular release of its budget."

"This allocation will be in the form of an annual block grant from the central government similar to the internal revenue allotment or the IRA received by LGUs," she stressed.

Ferrer explained that the formula for the automatic appropriation of block grant will be provided in the Bangsamoro Basic Law.

At the same time, the annex on wealth sharing provides that revenues collected by the Bangsamoro from additional taxes and their share in government income from natural resources shall be deducted from the annual block grants on the fourth year of the operation of the regular Bangsamoro government.

"This provision came from the MILF. It indicated that behind the haggling for more shares is the intent to be less and less dependent on the national government," said Ferrer.

"It indicated that the intention is not to get the 'lion’s share' for its own sake but to be able, in the future, to stand tall as a progressive and peaceful region; an equal partner of the central government in an equally peaceful and progressive country," she said.

"This, indeed, is the true meaning of partnership -- a partnership that is not based on dependency and patronage, but on the strength and capacities introduced by both for the benefit of the whole," she added.

Under the wealth sharing agreement, the Bangsamoro will also have the power to levy fees and charges in connection with the powers and functions that it shall exercise.

The Bangsamoro may also receive grants from donors, and such grants will be received by it directly.

"The signing of the second annex is, indeed, a breakthrough. We expect the discussions on the power sharing and normalization annexes to be just as intense. But, when you’re halfway through, there is no reason to turn back. The only way to go is forward," said Ferrer.

http://www.pna.gov.ph/index.php?idn=&sid=&nid=&rid=544328

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