A Philippine government photo shows Philippines and MILF peace negotiators in Kuala Lumpur
The
Miriam Ferrer, who heads the Philippine peace panel, said they agreed on a 75-25 wealth sharing agreement basically in natural resources in favor of the MILF, but both sides also said that resources derived from energy would be on an equal sharing.
Peace negotiators ended six days of marathon talks in
Bangsamoro accord refers to the Muslim homeland agreed by the Aquino government and the MILF last year. It will replace the current five-province Autonomous region in Muslim Mindanao before presidential elections in 2016.
“In a show of true commitment, the Parties extended the meeting, originally scheduled for four days to six days to be able to overcome their concerns and reach an agreement on the Annex. The Parties believe that the Annex, which forms part of the FAB, will provide sufficient guidance for the crafting of the Bangsamoro Basic Law’s provisions on wealth sharing and revenue generation for the Bangsamoro as envisioned by the FAB,” the statement said.
Ferrer and her counterpart in the MILF, Mohagher Iqbal, thanked Filipino President Benigno Aquino for his commitment to a just and lasting peace in Mindanao and also to Malaysian Prime Minister Dato' Sri Mohd Najib Bin Tun Haji Abdul Razak for his continued support in the facilitation of the peace talks.
They also praised members of the MILF Central Committee headed by the secluded rebel chieftain Murad Ebrahim for their continued commitment to the peaceful resolution of the
“It was a close call. But both parties' persistence and goodwill bore fruit,” Ferrer said. “We have a good package, one that we believe would make fiscal autonomy in the Bangsamoro a reality.”
The Annex on Revenue Generation and Wealth Sharing is one of the four annexes that, together with the FAB, will complete the comprehensive agreement. The other annexes are on power-sharing and normalization, and are still under discussion.
The Annex on Transitional Arrangements and Modalities was signed in February.
Ferrer said the Annex on Revenue Generation and Wealth Sharing seeks to fulfill the aspirations for meaningful Muslim autonomy in
“With the insights provided by the technical experts, Cabinet secretaries and several legislators consulted by the government panel and the intense discussions we've had with our counterparts, we are confident that the Annex will withstand scrutiny and the tests of implementation,” Ferrer said, adding the peace negotiators exerted their best effort to resolve the language issues and succeeded because they exercised flexibility and worked hard to find the appropriate solutions.
In the joint statement, the Parties said the Revenue Generation and Wealth Sharing Annex will provide sufficient guidance for the crafting of the Bangsamoro Basic Law's provisions on wealth-sharing and revenue generation.
The signed annex stated that wealth creation or revenue creation and sourcing is important for the operation of the Bangsamoro, considering that the Muslim territory is among the most underdeveloped in the country due to the decades-old conflict. Moreover, the existing tax base therein is very limited.
The eight-page wealth-sharing annex has sections on 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, and additional fiscal powers, among others.
One of the highlights is the agreed sharing formula on taxing powers. The panels agreed that 25 percent of the “Central Government taxes, fees and charges collected in the Bangsamoro, other than tariff and custom duties” will go to the Central Government, while 75 percent of it, including the shares of the local government units, will go to the Bangsamoro Government.
With regard to other sources of revenue, “government income derived from the operations of Bangsamoro government-owned and -controlled corporations, financial institutions, economic zones, and freeports operating therein, shall go to the Bangsamoro Government.”
The Bangsamoro shall have authority and control over existing government-owned and -controlled corporations and financial institutions operating exclusively in the Bangsamoro territory, after determination by the intergovernmental fiscal policy board of its feasibility.
On fund transfers from Central Government, a Special Development Fund will be provided by the former to the Bangsamoro “for rehabilitation and development purposes upon the ratification of the Bangsamoro Basic Law.”
When it comes to natural resources, 75 percent of income derived from exploration, development and utilization of metallic minerals within the region will go to the Bangsamoro Government. With respect to non-metallic minerals - sand, gravel, and quarry resources - such revenues will go to the Bangsamoro government and its local governments.
On the other hand, income derived from fossil fuels - petroleum, natural gas, and coal - and uranium will be shared equally between the Central and Bangsamoro Governments.
The Lanao Peace Partnership, in a statement sent to the Mindanao Examiner, said it commends the hard work and sacrifice put up by the peace negotiators that led to the agreement.
“We note that the hoped for breakthrough came after 12 hours of session on their sixth day of meeting. Hence, it is but fitting to applaud their tenacity, which we are sure is founded on an unflinching commitment to bring lasting peace in
”Like the landmark preliminary accord, the Framework Agreement on the Bangsamoro, the wealth-sharing deal embodies the true spirit of partnership of the peace panels. With this, we look forward with confidence on the completion of the remaining Annexes to the FAB, and eventually, the comprehensive agreement,” the LPP said.
The LPP is composed of the GIZ-Civil Peace Service partner organizations Ecosystems Work for Essential Benefits, MSU-IIT Institute for Peace and Development in
The signing of the Annex on Wealth Sharing came as talks of amending the Philippine Constitution persisted since early this year. There were talks that the amendments would include important changes in the Charter that may include the issue on Muslim homeland in
But Muhammad Ameen, chairman of the MILF Secretariat, said despite the long-held belief that real solution to the Bangsamoro Question requires amending the Constitution, the rebel group “is not jumping its gun to support, at least in principle, the charter change initiative reverberating in the House of Representatives.”
“It is an internal legal process that the MILF is not supposed to participate,” Ameen said in an interview posted on the MILF website. He was commenting on reports that charter change is again up in the air, with Speaker Sonny Belmonte stating that he will file a resolution that would call for a constituent assembly.
“We are not there; let us wait for the Bangsamoro Transition Commission (BTC) to finish its job and make a stand whether amending the Constitution is required or not,” he said.
He said that to this day, the Aquino government and MILF continue to disagree on whether this amendment is necessary or not. The government said that the present Constitution has the flexibility to accommodate and entrench the Basic Law and the MILF firmly taking a contrary view that changing the status quo form of government to asymmetrical relationship (ministerial form) would require amendment of the Constitution.
According to the MILF, one of the functions of the BTC is to make proposals, if necessary, to amend the Constitution. The first function is to draft the Basic Law and the third is to coordinate socio-economic development projects, if necessary.
It said in the past, many senators and congressmen also favored charter change. Their main focus is on the economic provisions of the Constitution, which to them, are very rigid that stunted development of the country. They referred to the ownership of certain industries and those that are involved in the exploration, development and utilization of our natural resources.
Some lawmakers favored ownership of lands by foreigners, a move opposed by others especially the nationalists and leftists. They branded this move as a sell-out, it said.
http://mindanaoexaminer.blogspot.com/2013/07/philippines-agrees-on-milf-demand-signs.html
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