PRESIDENT Duterte formed a new committee to initiate the “full devolution” of some functions of the national government under Republic Act 7170 or the Local Government Code.
Under Executive Order (EO) 138, signed last Tuesday but only released to the media the following day, Duterte created the Committee on Devolution (ComDev) to be chaired by the Department of Budget and Management (DBM) and cochaired by the Department of the Interior and Local Government (DILG).
Its members include the secretaries of the National Economic and Development Authority (Neda); Department of Finance (DOF); Executive Secretary; and presidents of the Leagues of Provinces, Cities, and Municipalities of the Philippines, Liga ng mga Barangay ng Pilipinas and the Union of Local Authorities of the Philippines.
Duterte issued EO 138 in response to the Mandanas ruling of the Supreme Court, which states “all collection of national taxes, except those accruing to special purpose funds and special allotments for the utilization and development of the national wealth, should be included in the computation of the base of the just share of LGUs.”
Transition plans
AMONG the salient functions of the ComDev is to evaluate the status and monitor the implementation of the Devolution Transition Plans (DTP) of the national government agencies (NGA) and all local government units (LGU). The DTPs of NGA will “identify and clarify the functions and services to be devolved to LGUs under RA 7160.”
“The DTP shall be submitted by the NGAs concerned to DBM within 120 days from the effectivity of the EO 138,” Duterte said in his new nine-page issuance.
EO 138 will take effect immediately after its publication in the Official Gazette or in a newspaper of general circulation.
The ComDev will issue additional rules and regulations and supplemental guidelines, if necessary, related to EO 138, 30 days after its effectivity.
Growth Equity Fund
THE ComDev will also propose to Congress a Growth Equity Fund (GEF) to help “poor, disadvantaged, and lagging LGUs” with the transition for the devolution process. The GEF will be included in the National Expenditure Program of DBM starting fiscal year 2022 and thereafter.
The other functions of the ComDev include implementing administrative and fiscal decentralization; resolving issues related to EO 138; ensuring the prompt release of LGU shares on national taxes; adopting mechanisms for the continuous delivery of public services during the full devolution; launching an information campaign on the new delineation of the functions between the NGAs and LGUs.
The ComDev is also mandated to submit annual reports to the President on the implementation of EO 138 and the status of implementations of DTPs.
Employment impact
Government personnel who will be affected by the devolution will be given the chance to transfer to other units/offices within the department/agency/GOCC or even to other government offices in the Executive Department without reduction in pay.
They will also be allowed to avail of retirement benefits and separation incentives. Those retired or separated in relation to the devolution will be prohibited from being reemployed in the Executive Branch of the government for a period of five years, except as teaching and medical staff of educational institutions and hospitals, respectively.
Duterte instructed DBM and DILG to coordinate with the Civil Service Commission (CSC) and LGUs to develop guidelines for workers, who will be affected by the devolution.
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