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 :: TAN OPTEAM NEWSLETTER

MONTHLY UPDATE: TAN Initiatives
LIFESTYLE CHECK SEMINAR-WORKSHOP (February 4, 2003)


The Presidential Anti-Graft Commission (PAGC) in cooperation with the Transparency and Accountability Network (TAN) and the Development Academy of the Philippines (DAP) conducted an Action Planning Seminar Workshop on Lifestyle Check last February 4, 2003. Various groups, a mix of government and non-government organizations, attended and participated in the workshop.

During the morning session, Dr. Segundo Romero of the DAP presented a menu of strategies in undertaking the lifestyle check. Experts from PCIJ, PNP, ISAFP, PAOCC, Office of the Ombudsman (OMB) and NBI also shared information on different investigation techniques and experiences. Initial commitments were made as regards the sharing and exchange of information to strengthen and develop a comprehensive and effective mechanism to undertake the lifestyle check.

In the afternoon session, a workshop was conducted with the objective of operationalizing the lifestyle check. Two break-out groups were formed – government and non-government – for the brainstorming of possible activities for 2003.

For the government side, the most urgent plan identified was the drafting of a Memoranda of Agreement with various government offices to facilitate acquisition of information and to effect closer coordination among investigative bodies. There were also plans of developing a capacity-building course on counter-intelligence. TAN was identified to mobilize civil society groups and identify potential civil society watchdogs to undergo training seminars on counter-intelligence. A Lifestyle Check Task Force will also be created with the DAP, OMB, TAN and PGEA initially identified as members. There was also mention of the need to revise the Statement of Assets and Liabilities (SAL) form to include Income Tax Return and a waiver on the investigation of bank records. Networking was also identified as an immediate need. For 2003, networking shall be effected through an e-group system for purposes of exchanging information. Eventually, a website focused on this initiative is planned to be set up. There are also plans for legislative advocacy work in support of amending the Anti-Graft and Corrupt Practices Act (RA 3019) towards becoming more effective and the passage of the Right to Information Bill, all in the spirit of making lifestyle check much easier to do.

For the non-government side, the next steps that need to be taken in 2003 as seen by civil society groups are:

· Networking through e-group for closer coordination and support among civil society groups
· Setting up of a Lifestyle Check desk or unit in each organization
· Legislative advocacy work in support of amending the Anti-Money Laundering Law and passage of the   Right to Information Bill
· Pursuit of the alleged money-laundering stint of Senator Panfilo Lacson
· Endorsement of names for lifestyle check

The seminar-workshop ended on a positive note with commitment of support from civil society groups and commitment of cooperation from government organizations.

TAN-OMBUDSMAN DIALOGUE (January 14, 2003)

Last January 14, the TAN Executive Council had a dialogue with Ombudsman Simeon Marcelo. The dialogue focused on possible areas of cooperation or collaborative partnerships between TAN and the Office of the Ombudsman.

Ombudsman Marcelo shared his priorities with the group namely monitoring of agencies, capability-building, and lifestyle check. The Executive Council shared these priorities and proposed to submit a consolidated concept paper for his consideration. The consolidated paper included proposals from Procurement Watch, Inc., Government Watch, and the Development Academy of the Philippines. It was submitted to the Office of the Ombudsman last February 4, 2003.

CITIZEN WATCH ON TAX AUTHORITY REFORM


On February 21, the La Salle Institute of Governance (LSIG) will sponsor a workshop on tax governance in partnership with the Transparency and Accountability Network (TAN) and The Asia Foundation (TAF). The broad aim of this activity is to gather support for the Bureau of Internal Revenue (BIR) reform process and to educate the people on tax governance. As such, this workshop also aims to drum up support for the National Revenue Authority bill that is being discussed at the House of Representatives, which will enable the restructuring of the BIR.

To date, LSIG is focused on the logistics of the workshop. Efforts are being made to gather a good mix of participants from youth and student groups, young professionals, civil society, government and academic institutions. While busy preparing for the activity, LSIG is also partnering with groups like the Social Weather Stations (SWS) and Walang Ku-Corrupt in educating the people and gathering public support for the National Revenue Authority legislation. SWS will provide LSIG free tax governance rider questions while possible collaborative activities are still being explored with Walang Ku-Corrupt.

Education materials on BIR reform and the bill are being gathered by the LSIG, some of which will be included in the workshop kits. The preparation for the tax governance website is on its final stage and will be uploaded in time for the activity.

Department of Education’s National Textbook Delivery Program

The Department of Education through the office of Usec. Mike Luz invited TAN, GWatch, Procurement Watch, CODE-NGO and NAMFREL to a meeting/briefing last February 7, Friday.

The meeting focused on the National Textbooks Delivery Program of the Department of Education, which plans to involve civil society groups in its system of delivery as local monitors. The local monitors shall make sure that textbooks get delivered to district offices.

TAN, CODE-NGO and NAMFREL have been identified by DepEd as possible partners in this initiative. DepEd seeks the help of TAN in identifying local monitors. Mr. Telibert Laoc of NAMFREL has committed NAMFREL’s assistance and groundwork support to DepEd.

On February 15, DepEd will hold another meeting, this time involving the suppliers/publishers. The meeting will discuss in detail the delivery schedules and other matters relevant to exacting proper delivery of textbooks.

Government Procurement Reform Act

Last January 10, President Gloria Macapagal-Arroyo signed the Procurement Reform Bill into law as R.A. 9184.

Having succeeded in the passage of the GPRA, Procurement Watch, Inc. is now focused on the development of the Implementing Rules & Regulations (IRR). With this objective, PWI held a consultative workshop for civil society stakeholders on February 11 and will hold another workshop for local government units on February 12.

The workshop aimed to draw inputs from civil society and private sector organizations on the Implementing Rules and Regulations (IRR) of GPRA.

As soon as the IRR is finalized, PWI will hold training sessions in the regions for civil society organizations and local government units.

The major provisions of the GPRA are as follows:

Major Provisions of the Government Procurement Reform Act
GPRA
Rationale
Preference for Provincial Contractors - – Within five (5) years from the effectivity of this Act, a contractor who participates in the bidding of provincial priority programs and infrastructure projects, whose principal office is within the same province, and who submits the lowest bid among the provincial bidders which is higher than the lowest bid made by a contractor with principal office outside the said province shall be granted the privilege to match the bid made by the latter.
To spruce the local economy
Contract Prices- For the given scope of work in the contract as awarded, all bid prices shall be considered as fixed prices, and therefore not subject to price adjustments during contract implementation, except under extraordinary circumstances and upon prior approval of the GPPB.
To avoid adjustments leading to increases in the actual contract price
Establishment of the Government Procurement Policy Board with Secretary of DBM as Chairman, the Director-General of NEDA as Alternate Chairman with the Secretaries of DPWH, DOF, DTI, DOH, DND, DepEd, DILG, DOST, DOTC, DOE or their duly authorized representatives, and a representative from the private sector as Members. COA representative may serve as resource person.
To protect national interest in all matters affecting public procurement
Honoraria for BAC Members - The Procuring Entity may grant payment of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. For this purpose, the Department of Budget and Management (DBM) shall promulgate the necessary guidelines.
To provide incentives to BAC members
Reference to Brand Names - Specifications for the Procurement of Goods shall be based on relevant characteristics and/or performance requirements. Reference to brand names shall not be allowed.
To ensure a more level playing field
Requirement of a bid security and a performance security to also cover bids on consulting services.
To standardize requirements and to help ensure that bidders enter into contract and comply with their contractual obligations
Disclosure of relations - all bidding documents shall be accompanied by a sworn affidavit of the bidder that he or she or any officer of their corporation is not related to the head of the agency by consanguinity or affinity up to the third civil degree
To ensure a more level playing field
Posting of all bid opportunities in agency websites; standardization of forms; and requiring an NGO representative as an observer in the Bids and Awards Committee
To increase transparency
Shift from pre-qualification to simple eligibility check while strengthening post-qualification; use of lowest calculated responsive bid as basis for award – price and quality is no longer linked. Bids and Awards Committee members no longer have any discretion as the point/merit system has been taken out.
To limit discretion
Stiffer penalties in terms of fines and imprisonment for both government and private sector individuals who do not abide by the provisions stated by the law. Prescription of reasonable warranty periods for goods and civil works projects.
To enhance accountability
By circumscribing discretion and streamlining the procurement process, the time allotted for actual bidding of goods will be reduced from 7 months to less than 3 months, and for civil works, 12 months to less than 4 months.
To limit delays

NARA/ IRMA Bills (from Reform_BIR e-group – AGILE, AKBAYAN, CIBAC, pagbabago@Pilipinas)

The NARA and IRMA were consolidated into the National Revenue Authority bill or NRA at the House of Representatives Committee on Ways and Means. The Committee approved the consolidated bill on February 11. In the Senate, a similar bill creating a National Authority for Revenue Administration was introduced by Senator Magsaysay.

There are groups that have come out, however, opposing the passage of these bills, one of which includes the BIR Employees Association (BIREA). BIREA conducted a “massive” strike last February 6 to demonstrate their stand against the dismantling of BIR. Their demands include a 6.5 months separation package requiring government to pay them P 12 billion. The other group is the Philippine Association of Revenue District Offices (PARDO). Word has it that this group is roaming the halls of Congress to gain support from legislators in trashing both bills.

TAN-PAGC-PCEG Bureau of Customs FGD (Crafting Agency-Specific Anti-Corruption Agenda)

The third focus group discussion held last January 16, 2003, at the Nolledo Hernandez Room of the Manila Peninsula served as a venue for the announcement of the action plans undertaken by Commissioner Antonio Bernardo to address the issues and concerns of the people from the business sector. The commissioner gladly reported that he already has submitted to President Arroyo several revenue enhancement measures. According to the commissioner, the first tranche of reforms to be undergone by the Bureau of Customs include the notices of closure of 320 inactive warehouses suspected of being conduits for smuggling. The Custom’s data system will no longer accept warehousing entries from warehouses with expired licenses. Another measure is the conversion of customs bonded warehouses to industry based warehouses. The commissioner also reported that there was already a study conducted at the bureau on shortening the process of Customs transactions.

There already exist a compact disc, which is a compilation of the CMOs from 1972 until the first quarter of 2002, which is also made available to the public. With regards to the review of the CMOs, the commissioner suggested to constitute a panel and appoint two or three lawyers from BOC and lawyers from the business sector to analyze which CMOs are useless and irrelevant to import-dependent exporters. In this review meeting, the Makati Business Club was asked to act as convenor.

The issues raised during the meeting include the too much restriction on the movement of goods, the tracking of consigned equipments, lacking of check and balance in post-auditing done by the bureau, but most of the problems raised during the FGD fall under the selectivity process. The commissioner promised to take further actions regarding the selectivity process as soon as he finish the issue on warehouses.

It was agreed upon that the fourth FGD on the bureau will be on February 18, 2003. The time and venue is to be announced.

Pagbabago@Pilipinas launches CD

Last February 10 pagbabago@pilipinas launched its audio compact disc called simply "pagbabago" during a modest ceremony in the Filipinas Heritage Library. The event was organized as a "trade launch", gathering the artists, producers, talent managers, and record company executives, to thank them for the time and effort they contributed to the creation of the album.

During her speech, songwriter Trina Belamide, pagbabago member and overall producer of the album, thanked the industry participants for donating their time, effort, and resources for the album. She summarized the messages of the 12 songs on the album coming from artists as varied as Regine Velasquez and Mystica, all of which speak about values and the need for change. In the opening track, "Ako Na", for example, Regine Velasquez sings to a techno-pop beat about the need for individuals to get involved. The song includes "talkies", or testimonials from individuals who talk about the need to be a part of the solution and not the problem.

On hand to sing their cuts on the album were Renz Verano ("Kadudu-duda Ka") and Radha ("Owe You Nothin'"). Renz Verano's rock-ballad questions the motives or sincerity of people who seem to treat some well but others poorly ("'Di ko kasi maintindihan/Kung paano mo nagawang saktan/Ang ibang mga tao/Mabait ka man sa tulad ko"). Radha gave a soulful performance of her cut which addresses the "utang na loob" concept. She sings about being grateful, but at the same time not pushing it too far ("How can I respect you/You've twisted the idea of gratitude/You expect too much in return"). Also present during the ceremonies were Grace Nono, Bob Aves, Jolina Magdangal, and South Border.

The album includes songs from the APO, Jolina Magdangal, South Border, The CompanY, Grace Nono, Aegis, Da Pulis (featuring Anya Santos), and Jaya and is available at all Oddysey records stores nationwide. Proceeds of the album will go to fund the various projects and initiatives of pagbabago @pilipinas. For more information you can contact pagbabago at pagbabagopilipinas@yahoo.com or visit their website at http://pagbabago.tripod.com.

Right to Information Project

Last November 2002, the ATIN bill on access to official information was finalized through a consultative process participated in by the ATIN network members, which includes pagbabago@Pilipinas, also a member of TAN.

In December 2002, ATIN had a dialogue with legislators on access to information. The dialogue-forum sought to get feedback from legislators who authored similar bills on access to information. For 2003, ATIN’s strategy will focus on a 6-month legislative advocacy and public information program. This would include meetings with possible support groups such as the Philippine Legislators’ Committee on Population and Development Foundation, Inc. The group will also meet with Senator Francisco Pangilinan’s Chief of Staff to discuss advocacy strategies geared towards the passage of a right to information bill in the Senate.

On March 2003, ATIN will hold a workshop on the international limitations on access to information.

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