By Jaime Pilapil
Members of the 1,500-strong League of Municipalities of the Philippines have received a P3.4 billion loan package facilitated by three major financial entities recently through a program called Monetization of the Internal Revenue Allotment (Mira).
LMP president Ramon Guico Jr, mayor of Binalonan, Pangasinan, said the P3.2 billion was actually their share of internal revenue allotment, which the administration of former President Joseph Ejercito Estrada failed to release.
“At that time our IRAs were not released because our government then was cash-strapped. Under President Gloria Macapagal Arroyo’s administration, we were able to device a scheme wherein we could make use of our unrealesed IRAs through bank rediscounting. Last March 14 and April 18, P1.6 billion each were released to our participating municipalities,” Guico told a press conference held at Intercontinental Hotel in Makati City yesterday.
Guico explained that the P3.2 billion was actually part of the P17.5 billion unreleased IRA the government had to pay them through Mira-accredited financial entities—Veterans Bank, RCBC Capital Corp. and the Government Service Insurance System.
The Department of Budget and Management will release the P17.5 billion in seven installments to the participating financial firms, an assurance given by no less than President Arroyo.
“For towns under the categories of third, fourth, fifth, and sixth classes, their IRAs are their life blood. They can’t exist without this money from the national government. Through this monetization program, they could withdraw their share from these financial institutions provided the Department of Budget and Management has issued their notice of payment schedules, which were the basis of the rediscounting and assurance that they could repay the banks,” Guico added.
Guico said Binalonan had a receivable of P3 million in IRA, but only P2.6 million was released due to the rediscounting last March 14. “We lost P400,000 due to rediscounting, but we were able to use the money ahead of the time of their release from DBM. Where it not for this program, where do we get the money to finance our projects?”
“Ask not what the national government can do for you but rather ask what you can do for the national government, which is just the tip of the whole pyramid of governance of which we at the local level are the base,” Guico said paraphasing a well-known remark made by the late US President John F. Kennedy.
http://www.manilastandardtoday.com/?page=politics01_april29_2006
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