Press Release
October 6, 2009

GIVE LGUs FULL DISCRETION IN SPENDING CALAMITY FUNDS - CHIZ

Opposition Sen. Chiz Escudero yesterday said local government units should be given full discretion in spending calamity funds in their areas to allow them to respond quickly to disasters and other emergencies.

"But I will make sure that local officials are made accountable for any abuses in the use of the fund," the 39-year old lawmaker told a forum with 100 local government officials at the Asian Institute of Management (AIM).

Escudero said that it is not right for any president to "micro-manage" local government concerns particularly when dealing with calamities and crisis situations in their areas.

Under current budgetary rules, releases from the calamity fund have to be approved by the president and in accordance with the "favorable recommendation of the National Disaster Coordinating Council (NDCC)."

Quick response funds, which are taken from the P1.150 billion allocation for aid, relief and rehabilitation services to affected communities, have to be coursed through the Department of Social Welfare and Development (DSWD) and the Office of Civil Defense (OCD).

While quick response funds taken from the P800 million intended for repair and reconstruction of permanent structures, including capital expenditures, are released through the Department of Public Works and Highways (DPWH) and Department of National Defense (DND).

"The tragic consequences of Ondoy shows why local governments must have the resources at their disposal at the soonest possible time. Lives and property are irreversibly lost by delays unnecessarily caused by bureaucratic red tape," Escudero said.

"Give our local officials the responsibility to use these resources for their constituents. They will have no one to blame but themselves when they fail to do so," he said. Local governments can also avail of five percent of their budget for calamities in their areas when these placed under a state of calamity.

The national government appropriates P2 billion every year for the calamity fund.

It is be used for aid, relief and rehabilitation services to communities/areas affected by man-made and natural calamities, and repair and reconstruction of permanent structures.

The Congress has filed a joint resolution for the release of a P10-billion supplementary budget as rehabilitation funds for those affected by Ondoy.

Escudero was one of four presidentiables invited to a dialogue on his local governance reform agenda, which capped the two-day conference sponsored by the Synergeia Foundation, Galing Pook Foundation, Ateneo School of Government, and Local Government Support Program in ARMM (Autonomous Region for Muslim Mindanao).

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