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REPUBLIC OF THE PHILIPPINES
Province of Zamboanga del Sur
STATE OF THE PROVINCE ADDRESS
(SOPA)
Governor Aurora Enerio Cerilles
DELIVERED ON JULY, 2001
Honorable Members of the Sangguniang
Panlalawigan of Zamboanga del Sur,
honored guests from the daughterprovince of Zamboanga Sibugay under
the leadership of Governor George T. Hofer and with the members
of his Provincial Board, presidents, chairmen, officers and pillars
of the Civil Society- tile various religious, socio-civic and business
leaders of Zamboanga del Sur who are gathered around here, my able
economic managers, officers and men of the provincial government”
of Zamboanga del Sur, our friends in the fourth state-the media,
friends, ladies and gentlemen, good morning.
I assumed the leadership of this province bringing with me a seven-point
development agenda aimed at alleviating the socio-economic lots
of our people in Zamboanga del Sur. Foremost of this is the improvement
of the health care and medical services, especially in the province’
far-flung and marginalized communities, it also professed the agenda
of alleviating the economic conditions of our farmers and fisher
folks through the implementation of viable programs and strategies
that would restore their significant role as the backbone of the
province’ economy. The problems besetting our teachers must
be properly addressed restoring the nobleness of their profession
as the molders of our youth. Under my leadership, it is my avowed
thrusts to intensify the province’ infrastructure programs,
the maintenance of peace and order, the provision of improved social
services, especially to the less fortunate members of our society
and finally, the sustainable preservation and development of our
natural resources.
My enthusiasm to implement these programs, however, was suddenly
doused with the unexpected realities that greeted me as I set foot
on the hallowed portals of the Provincial Capitol on my first day
of office on July 2, 2001. With a partial report from the Provincial
Treasurer’s Office of an unpaid amount of Pl.8 Million as certified
to by the Provincial Treasurer Filomena Pongon to exclude claims
from other creditors like Avenue Caltex Station and APAR Petron
Super Station amounting to P2.8 Million for fuel/oil bills, some
remains outstanding for more than six months already, rendering
the provincial government’s vehicles and heavy equipment immobilized.
By phone, I called up the owners of the respective gas stations
relative to this, only to find out that the telephone I was using
ill my office is no longer working, as it was already disconnected
for non-payment of bills for quite a time from now. A throng or
well-wishers greeted me at the lobby and at the entrance of the
governor’s office. But it turned out that majority of them
were the casual employees of the previous administration asking
for the release of their unpaid salaries and wages since March 2001
and some as far back as December 2000 all amounting to P2.272.802.68
.11 so certified to by the Provincial Treasurer. Again, mistaken
to be well-wishers, were batches or food caterers/suppliers claiming
payment of the past administration’s unpaid snacks and meals
incurred during the election period, which run to millions of pesos.
It is ironic to note, that the checks issued ill some of these claims
are in the names of Romeo Vera Cruz and Lamberto Talip, as if these
personalities were established food caterers in this city. There
are even more claims of this nature. The Provincial Health Officer
called up requesting settlement of outstanding accounts with some
suppliers otherwise hospital operations Shall be jeopardized.
Then, my attention was called upon by the surprisingly unauthorized
transfer of vehicles, office equipments and supplies were brought
to the new province of Zamboanga Sibugay. Worse than this, a good
number or similar properties were already transferred without cost
to some municipalities and agencies for the simple reason, according
to them, these were no longer needed by the provincial government.
Transfer without cost-now a common expression in the Provincial
Capitol.
Indeed, the first few days were grilling moments of my leadership.
And to start doing the right thing, I issued a memorandum to all
department heads, to submit a status report and a provincial situationer
that will provide sound basis for setting directions. The economic
managers’ comprehensive review of the province’ fiscal
condition, administrative and engineering or technical positions
as contained in this report are tools by which this new leadership
will make use of as it crafts strategies to reengineer the province’
development.
In capsule, let me therefore present to you the following facts
and figures that will draw the profile of this province.
A. Zamboanga del Sur’ Fiscal Condition
The review of the provincial government’s financial status
as of June 30, 2001 yielded very disgusting revelations. During
the last six months, the provincial government of Zamboanga del
Sur incurred a whooping budget deficit of 66,193,958.72 pesos, or
in an equivalent amount of 11,032,326.45 pesos per month. In other
words, the responsible officials spent more than what the province
earned! Culled from financial reports duly certified by the Provincial
Treasurer and the Provincial Accountant, the provincial government
incurred obligations to the tune of 342,806,966.64 pesos against
its total collection of 276,613,007.92 pesos during the last six
months.
Why is this so? The reason is simple. It is just but a function
of revenue versus expenses.
For revenue’, the provincial government failed to realize
its January to June 2001 revenue targets of 379,633,668 pesos. With
actual collections of only 276,613,007.92 pesos, it has a revenue
shortfall of 103,020,660.08 pesos or roughly, 17,170,110 pesos per
month. Analysis of the Statement of Income Sources submitted and
certified by the Provincial Treasurer showed collection efficiency
is only 69%. What is worse is tile portion from other revenue sources.
With a projection of 49,592,500 pesos, it only realized 988,794.81
pesos. Simply stated, there was a Clollection efficiency of only
2%.
What contributed to this dismal revenue collection performance’?
The intelligible reason is OVER PROJECTION. The revenue estimate
was virtually BLOATED! For one, the Internal Revenue Allocation
(IRA), which is the source of 86% of the provincial government’s
revenues, was overestimated by 21.2%. With the reenac+ment of Fiscal
Year 2000 Budget in view of Congress’ Failure to enact a new
appropriation for Fiscal Year 2001, the revenue target should have
been readjusted to the Fiscal Year 2000 level. Administrative Order
No.01 of President Gloria Macapagal Arroyo was issued for this purpose
mandating all government agencies, /oca/ or national, to adjust
its projections to a realizable and/or realistic level. Is this
not a patent disregard of tile President’s order?
The discouraging performance of the provincial government’s
economic enterprises aggravated this desolate revenue collection
figures. The controversial Barangay Integrated Development Cooperative
or BIDC Livelihood Program is practically a bankrupt Institutions.
For the last six months, it only generated 117,050 pesos out of
its projected income of 600,000 pesos, thus having a ridiculous
collection efficiency of only 19.5%. The BIDC’s revenue is
no match to the 6,224,019 pesos budget of the Provincial Cooperative
Office, the department directly responsible in managing its operations.
This is also true with respect to the province’ Feed Mill outfit
with only 16.8% collection efficiency. What more with the well-publicized
ZASEDCOR, and the Zambulawan Garment Factory? Managed by ZASEDCOR
is the PADAP housing compound where favored residents of the past
administration are enjoying the amenities of modern homes. Perhaps
one of the best privileges a provincial government could provide.
To date, outstanding receivables from rents add up to 1,249,981.50
pesos. Practically, favored occupants who are not paying their cost
of stay are savoring the benefits, free of charge.
Now for the Expenditure Budget.
The Fiscal Year 2001 Budget of the province was set by the previous
administration at 759,567,336 pesos. This is for the whole and undivided
Zamboanga del Sur. Of this amount, 57% or 433,825,044 pesos goes
to salaries and wages of the employees, leaving the balance of 43%
to cover for Maintenance and Other Operating Expense of 141,075,947
pesos. Capital Outlay of 11,266,714 pesos, reserves for the calamities
of 30,172,486 pesos and finally. Economic Development allocation
of 143,227,145 pesos.
As a whole, the current year’s budget of 759,567,336 pesos
is higher by 143,587,783 pesos than the preceding year’s actual
expenditures of 615,979,553 pesos.
What causes this increase?
Analysis of data provided by the Provincial Accountant, Treasurer,
Budget Officer and Human Resource Management Officer showed that
the two major components of the increase were attributed to the
59.29% augmentation of the Personal Services (PS) cost of (161,480,654
pesos) and the 107.18% expansion of the Maintenance and Other Operating
Expenses which is 72,983,747 pesos against the FY2000 level. As
indicated in the Comparative Schedule of Expenditures for FY2000
and 2001, the past administration sacrificed, through budgetary
reduction. Capital Outlay by 35.30%, and Infrastructure and Delivery
of Basic Services by 32.82%. Instead, they favored increased budget
for salaries and non-developmental expenditures.
The Comparative Schedule of Personnel Complement showed that employees
of the Province ballooned to 4024 as of end of June 30,2001 from
last year’s level of 2851, thus increasing the Capitol’s
warm bodies by 1173 or 41.14%.
How was this done?
Without complete study to back up the need for increased personnel
requirements the following year, during the last quarter of Fiscal
Year 2000 the past administration passed SP Ordinance Nos. 53, 54
and 54-A providing for the creation of additional plantiila items/positions.
Through these legislative fiats, the past administration promoted
a number of favored personnel and augmented the roster of permanent
employees by a number of 125. This was even unmindful of a COMELEC
ban on appointments and CSC directive warning against midnight appointments.
As a result, the Civil Service Commission Provincial Field Office
initially INVALIDATED 45 of these new appointments, with a considerable
number still under evaluation.
On the other hand, casual employees numbering 1073 were admitted
during tile last six months with the biggest concentration in the
months of March, April and May 2001, the election period, registering
a total of 863.
Increases in expenditures during the last six months were indeed
extraordinary and unusual. A certain account that needs a careful
scrutiny contains expenses incurred for gasoline, diesel fuel and
lubricants. Reports submitted by the Internal Control Unit of the
Office of the Provincial Governor showed that expenses for fuel
and lubricants during the past six months disclosed a staggering
level. For January 2001, it amounted 807,252.78, February, 1,253,002.63,
March-1,570,449.62, April, 2,664,254. May-2,320.,341.81, June-992,914.53,
a total of 9,608,215.47 pesos. Obviously, heavy, withdrawals covered
the months of April and May as indicated in the steeply rising lines
in the accompanying statistical chart. What is surprising is that
this amount even surpassed the fuel/oil consumption for the one
whole the year of 2000 that was only 8, 7811,371 pesos. Again, for
the one year consumption, the amount is only Ps8.780.371 while the
six months consumption reached to a total of 9,608,215.47 pesos.
By going into the details of actual expenditures during the first
six months, one can easily observe similar pattern. Sometimes, this
governorship wonders why such huge expenditures were not properly
managed by reasonable revenue estimates. Right now, the outstanding
accounts payable of the province is 32,189,381.07 pesos broken down
as follows: for the current year-Ps19,375,221.17 and for FY2000
it amounted to Ps12,814,158.9 as certified to by the provincial
Treasurer and Provincial Accountant, respectively. Although, the
treasury reported a cash balance of 13,173,790.79 pesos, only 2,755,208.86
pesos of this can be applied to meet this burgeoning obligation
as the remaining 10,418,581 pesos is tied up to the Trust Fund Account
intended to satisfy specific programs and projects.
Honorable members of this chamber, friends, ladies and gentlemen,
this explains the tight finances our province is facing. This is
the very reason why we effect all efficient control on the flow
of funds and go slow on the settlement of our obligations so as
not distort further the province’ financial position. Yes,
there may be some window dressing in the past just to show that
the province’ finances was in the pink of health. However,
we cannot afford it now. Under this current provincial leadership,
I am adopting the principle of transparency. Extravagance has no
place in the new Zamboanga del Sur! We have to spend what we can
afford. I am, therefore, appealing to our creditors to give us enough
time to financially bounce back. Giving us a moratorium or a tiered
payment term will certainly help us recover from this financial
distress, ravaged during the first half of the current year. Certainly,
with our collaborative efforts we can recover!
B. The Division of Zamboanga del Sur with the creation of Zamboanga
Sibugay
When I ran for Congress and won in the 1998 elections, I took pride
to be the first lady solon not only in the Second District of this
province but the whole of Zamboanga del Sur as well. Now, I again
take pride to be the first lady Governor of this premier province
of Region IX. And it seems I am and will always be the first, because
right now, I am the first Governor of a divided province, courtesy
of Republic Act 8973 which may good friend here, Governor George
T. Hofer, maneuvered to get a nod of Congress and the president.
While the passage of Republic Act 8973 creating the province of
Zamboanga Sibugay from the mother province of Zamboanga del Sur
is consedired a welcome development, it also unveils numerous issues
that need to be properly addressed if only to effect a smooth transition.
Technical problems in the sharing or funds, assets, obligations
and employment uncertainties among the employees of the mother province
are the birth pains and the prize we have to pay.
There are concerns that need to be ironed out. One is the formula
for the proportionare sharing as embodied in section 54 of the law.
That the funds, assets and obligations of the mother province are
the birth pains and the prize we have to pay.
In our June 11, 2001 meeting with Governor George T. Hofer before
Undersecretary Relampagos, Director Delantar of the Department of
Dudget and Management (DBM), the issue on the proportionate sharing
of the Internal Revenue Allocation (IRA) has already been settled.
That based on the population and land area, IRA shall be shared
on a 64:36 ratio, with Zamboanga del Sur getting the bigger slice
owing to its larger population and land area. Thus, of the remaining
268,005,155 peos IRA for the next six months, that is, July to December
2001, originally intended for the undivided province, Zamboanga
del Sur shall get 172,867,617 pesos while Zamboanga Sibugay, 95,137,540
pesos.
l. Zamboanga Sibugay’s Position
While the IRA sharing is already ironed out, what remains to be
resolved is the sharing of properties, obligations and personnel.
As to the sharing of the properties, information advanced to us
by the province of Zamboanga Sibugay representatives indicate that
they want to have it shared based on fair market value. That all
equipment presently assigned and/or located in the Zamboanga Sibugay
area shall now from part of the devolved properties.
As to the sharing of personnel complement, Zamboanga Sibugay’s
position, according to the term of reference they provided us in
advance, is only to accept five (5%) percent of the permanent employees
from the mother province.
2. Zamboanga del Sur’s Position
We understand Zamboanga Sibugay’s eagerness to start its operation.
We also take note of their position in the sharing of properties,
obligations and personnel. We are, however, presenting our own position
which we believe is consistent with the tenets of Republic Act 8973
and those of existing rules of tile Commission on Audit (COA), the
Civil Service Commission (CSC) and such other applicable laws.
While Section 54 of R.A. 8973 provides that the sharing shall be
approved by the President of the Philippines upon the recommendation
of the Commission on Audit (COA), experience shows that the matter
takes considerable length of time. The case of the divided province
of Compostela Valley that was slashed from the mother province of
Davao Oriental was a glaring example. It took them two years to
finally come to its shape. It may take us that long. or more. Certainly,
we cannot sacrifice the delivery of basic services to our respective
provincial constituents. We, therefore, have to move fast! A joint
committee to sit down on this matter is highly commendable.
C. The 7-Point Agenda of the Current Leadership
My friends, the separation of Zamboanga del Sur really adds up
to the challenges this new leadership is facing. The transition
of provincial leadership after that gruelling electoral intramurals
may not be that difficult had it not been for this division issue.
Nevertheless, it is my ardent belief that with your collaborative
support, we will be able to effectively implement the following
agenda under my administration.
First, Effective Delivery of Health and Medical Services
Under this agendum, I professed for the effective delivery of quality
health and medical services to our people. This can be accomplished
through the modernization of our public hospitals, the establishment
of emergency clinics, the continuing program to provide the needed
skills training for our medical and health workers, free medical
services in our public hospitals and clinics coupled with free-of-charge
medicines. In order to heighten the morale of our health workers,
especially those in the far-flung barangays, we have to provide
them the right incentives and benefits they deserved.
Second, Poverty Alleviation Program
This has long been the cry of our people, especially the farmers
and the fisherfolks. It is this administration’s thrust to
implement a viable livelihood program for our economically marginalized
constituents. In the agricultural sector, there is the urgency of
providing them the needed technical and financial assistance. Standby
credit facilities must therefore be established. Together with a
revolutionized agricultural modernization program, provision of
adequate irrigation facilities and farm to market roads must be
given emphasis. Marketing assistance and post harvest facilities
must be provided and improved.
For our fisherfolks, the problem of sea piracy must be addressed
through increased visibility of Bantay Dagat patrols. Civilian volunteers
and Bantay Dagat members must be provided with increased incentives.
To augment their income, we have to provide them alternative income
generating ventures such as seaweeds fanning, fish processing, and
the like. Finally, we have to implement a sustainable preservation
and development program for the province’ mangrove areas and
other fish sanctuaries.
For the youth sector, an effective skills training program must
be implemented in preparation for their future employment. A provincial
government livelihood program must be established catering to such
skills in the field of small cottage industries ventures, dressmaking,
electronics and similar callings.
The existing barangay cooperatives must be strengthened. We must
make these cooperatives catalyst of economic boom in the countryside.
We must then uphold the true spirit of cooperativism. Above all,
let us open and explore avenues for the establishment of more business
outfits in the province. The establishment of a Provincial Economic
Zone will surely be a mechanism for economic progress and stability.
Third, A Program for the Education Sector
It has always been the Cerilleses’ vision of putting education
to its highest pedestal. To realize this, efforts to improve the
education sector have been crafted such as: creating a financial
assistance program to liberate our teachers from the bonds of Joan
sharks thus uplifting their socio-economic condition, provision
of highly advanced instructional materials and technology to upgrade
our basic and tertiary educational services, and granting of varied
scholarship programs for the poor but deserving students.
Fourth, Infrastructure Programs
Infrastructure programs always get a preferential attention of
this leadership especially our provincial roads. We cannot discount
the serious lack of school buildings and classrooms in the entire
province.
The rural electrification program has to be intensified by fully
energizing the barangays within the province. All of these are priority
agenda under tile infrastructure program of this administration.
Fifth, Program On Peace and Order
As to this concern, this leadership strongly supports the National
Unification and Development Program of the national government by
creating provincial offices for the Muslims, Indigenous people,
Christians and other Interfaith Sectors that shall serve as their
coordinates in achieving harmonious relationship among the constituents
of the province. We have to strengthen the existing Civilian Volunteers
Organizations, BPLK and the Bantay Dagat by providing all deserving
members increased benefits.. We must always remember that there
can be no progress and development without peace and unity within
our midst.
Agendum No.6. Social Services
This administration has designed social services programs that
will address to the basic needs of our people. These programs include
varied livelihood projects for the youth, women, adult and indigenous
people of our society so that these less privileged brethren may
become our active partners in our continuing pursuit for progress
and advancement. It is also our immediate concern to intensify campaign
against illegal drugs to save our people from this social malady.
Lastly, the existing barangay health workers and Day Care workers
must be revitalized with the end view of improving the standard
of living by providing increased benefits and other incentives.
Seventh, Environmental Programs
We are no longer living in an environmentally safe zone. There
is so much damage and degradation to our environment. This, too,
is our immediate concern. Appropriate measures need to be carried
out. We have to implement sustainable environmental and eco-forest
programs to conserve Mother Nature. These include massive tree planting,
rehabilitation and development of our fish sanctuaries. We must
vigorously push through with the USUFRUCT and Community Based Forest
Management Programs. Finally, we have to implement an effective
Solid Waste Management Program in all barangays, utilizing biodegradable
waste as organic fertilizer.
Attaining these goals in the midst of current financial distress
of the provincial government and the tremendous impact resulting
from the division of Zamboanga del Sur and Zamboanga Sibugay is
a herculean task this leadership cannot hurdle without the able
support of the legislative branch of this provincial government-the
Sangguniang Pcinialawjgan. I am, therefore, proposing the following
legislative agenda:,
1. Enactment of an Appropriation Ordinance for the province”
July to December 2001 operations.
The FY200 I Budget spells out the revenue targets and expenditure
measures of the undivided province of Zamboanga del Sur. With the
commencement of the corporate existence of Zamboanga Sibugay effective
July 1, 2001, the said appropriation measure ceased to be applicable.
Revenue targets must therefore be revised to its realistic level.
Expenditure programs must be attuned to actual needs, given special
emphasis to the effective implementation of earlier mentioned 7-point
development agenda. This must be in place while taking into consideration
the austerity measures outlined in the national leadership’s
Administrative Order No. 01.
2. Legislation of a Reorganization Ordinance
With the reduction of revenues brought about by the implementation
of Republic Act 8973, there is an urgent need to pass a legislative
measure for a total reorganization of the province’ manpower
structure. The legislative enactment shall call for a lean but a
more effective, efficient and economical organization.
3. Privatization of Some of the Province’ Economic Enterprises.
The ZASEDCOR, Zambulawan and Feed mill ventures are already too
heavy for the provincial government to handle. Efforts to rehabilitate
these enterprises would only further deplete the province’
scarce resources. Proceeds from this initiative can help sustain
our fiscal recovery efforts.
4. Legislation to Explore Possibility of Adopting New Revenue
Measures
New tax measures must be explored. There is a need to review the
existing Local Revenue Code. Various departments must be empowered
to adopt means by which revenue potentials can be tapped.As I reiterate,
these gargantuan task of rebuilding Zamboanga del Sur restoring
it to its glory is not mine and mine alone. It is a shared effort
for everyone-the Sangguniang Panlalawigan, the officers and employees
of the province, the Civil Society, our media friends, the church
and all our constituents. Together, we build with synergy as we
advance our battle cry:
“Bangon Zamboanga del Sur!”
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