BUSINESS
DEMAND AND SUPPLY By Boo Chanco (The Philippine Star)
Updated September 21, 2011 12:00 AM
Apparently, our land registration system is more horrible than I imagined. I am told that only about half of the estimated 22 million land parcels in this country are titled. Much of the rest are only covered by land patents or at worse, only by property tax declarations which are not acceptable as bank collaterals for loans.
This situation is why, some economists have pointed out, our countryside is unable to benefit from the formal banking system. In a sense, there is so much wealth trapped because the land they inherited or own cannot be leveraged to produce more wealth or as capital in a business.
Not surprisingly, there is already a law that is supposed to address that problem, the Residential Free Patent Law (RA 10023) passed some years ago. The previous judicial free patent route was costly, protracted, and complex. This new law gives a faster administrative option to free patent.
According to Calixto Chikiamco, president of the Foundation for Economic Freedom (FEF), this law is about formalizing the land ownership of many residential lot owners and homeowners who only have tax declarations as proof of ownership. The purpose of the law is to “unlock dead capital” by giving formal titles to the occupants.
This law was supported by the Chamber of Thrift Banks and the Rural Bankers Association. They have been complaining about a lack of supply of titles as collateral for lending and this of course, limits their ability to grant loans and make the rural banking industry more viable.
But as with all the good intentions behind laws passed by Congress, the problem was the implementation. DENR, the agency with authority over land patents, does not have the manpower and the resources to really implement the law. Local governments on the other hand, do not have the trained manpower or the organization to do it too. Before RA 10023, the number of judicial free patents issued every year was 1,000. So it would have taken more than 6,000 years to finish the backlog.
This is how the FEF ended up doing more than expressing its collective opinion on an economic issue. If talk is cheap, getting their hands dirty in the field takes resources. With the help of the US Agency for International Development and the Asia Foundation the FEF launched a program to help in the implementation, primarily by developing the concept of LGU-led land titling.
The joint program is called “Property Rights for Economic Progress,” and technical assistance and training are now being provided to interested LGUs leading to the establishment of land offices for the implementation of the Residential Free Patent Act. In other words, the program seeks to have DENR empower LGUs (with DENR’s supervision and cooperation, of course) to implement the RFP law and move faster to erase the huge backlog of about 6 to 7 million untitled residential lands.
Chikiamco explained FEF’s involvement saying that the law will hopefully spur entrepreneurial activity through the buying and selling of lands and would give more opportunities for title holders to credit facilities of banks and other financial institutions using their land titles as collateral for loans.
“Our vision is that each LGU will have Land or Cadastral Offices which shall have complete land information using technologies like GPS and geo-tagging not only for tax purposes, but also for governance, such as crime prevention, public health, disaster management, etc. In Cebu, for example, their Land Office tracks the outbreak of dengue using these land information maps,” Chikiamco explained.
FEF started the program last year by choosing pilot areas and then develop a toolkit that can be rolled out to other LGUs. In Metro Manila, it seems that Pasig and Las Piñas still have plenty of untitled properties with only tax declarations as proof of ownership. Tanay, Rizal is also a candidate pilot area because most of the lands there are untitled. But the program got a big push in Cebu with a very cooperative LGU.
Although most of Cebu is titled (one of the first in the country to have cadastral proceedings), there are pockets of untitled but occupied public property, such as lands in Barangay Tinago and San Roque, which could yield as many as 2,000 titles. There is some initial success in Cebu City where an office had been established with a very competent team, composed of land specialist lawyers and a geodetic engineer.
But all the work in titling land will be for naught unless the integrity of our Torrens Title system is upheld by our national officials. We cannot have a parallel LRA producing authentic looking copies of land titles out of some second hand bookstores of Claro M Recto Avenue.
Customs and media
Over at Twitter last Friday evening, newly designated Customs Chief Ruffy Biazon was agonizing about what to do with the multitude of media folks covering Customs. Somebody said there are amazingly, 400 media representatives covering Customs. There are at least four tabloids that publish weekly covering only Customs.
Isn’t it obvious that most of those people claiming to represent media are anything but? Those from legitimate media in the Twitter discussion advised the new Customs Chief to meet with the publishers of the leading dailies and the owners of the leading networks. He should ask them to make sure their reporters covering Customs don’t become part of the corruption problem by moonlighting as fixers.
Then, the new Customs Chief should go ahead and ignore everyone else pretending to be reporters or even publishers. Biazon should not be afraid of these people even if they threaten him with nasty write-ups. Those noisy tabloids have no circulation worth their threats anyway. Throw the book at them if they try to fix anything. So long as he has nothing to hide, he shouldn’t be afraid of anyone, even those claiming to represent media.
The only reason why past Customs officials tolerated this outsized number of reporters supposedly covering Customs is because they most likely have something to hide. If Biazon keeps his nose clean, is transparent and makes himself accessible on social media, he should not be afraid of this 400 strong “press” group.
It just makes one wonder why, if there are indeed that many reporters covering Customs, why 2,000 containers could disappear without anyone knowing. Did they get scooped by smugglers while sleeping on the job? Or worse?
Cleaning up Customs is everyone’s business… specially media’s. If anyone claiming to represent media becomes part of the problem, he or she should be exposed and made to suffer the consequences. I am sure legitimate publishers and network owners will not tolerate wrong doing by their people.
Chinese and Jews
Ever wonder who is the shrewder businessman? Dr. Ernie E gives us an answer.
A Chinese guy goes to a Jew to buy black bras, size 38. The Jew, known for his business skills, says black bras are rare and he is finding it difficult to source them. Therefore, he has to charge the Chinese guy $50 each.
The Chinese guy buys 25 pairs. He returns a few days later and orders 50. The Jew said it was getting even harder to get so he charges the Chinese $60 each.
The Chinese guy returns a month later and buys the Jew’s remaining stock of 50 and this time, paid $75 each.
The Jew was somewhat puzzled by the large demand for black bras size 38 so he asks the Chinese guy “please tell me… what do you do with all those big black bras?”
“Oh,” the Chinese guy said, “I cut them in half and sell them to Jews as skull caps for $200 each.”
Boo Chanco’s e-mail address is bchanco@gmail.com. He is also on Twitter @boochanco
http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=729219
Showing posts with label LGU. Show all posts
Showing posts with label LGU. Show all posts
Wednesday, September 21, 2011
Tuesday, September 13, 2011
Land titling information pressed
Nation
Posted on September 12, 2011 10:37:44 PM
Land titling information pressed
LOCAL OFFICIALS have been asked to set up an information system on land titling in line with a directive to hasten the titling of alienable and disposable lands.
Issuance of titles to alienable and disposable lands may be fast-tracked with an information system at the local level, according to a circular of the Department of Interior and Local Government. -- AFP
In Memorandum Circular 117, signed by Interior Secretary Jesse M. Robredo dated Aug. 17 and released yesterday, the Department of Interior and Local Government told local government units (LGUs) the initiative could include the creation of a Land Information Office (LIO) and Cadastral Office.
The LIO, under the Department of Environment and Natural Resources (DENR) order, will be responsible for providing accurate and updated land information to support real property taxation, land transaction, resource management, development and conservation, zoning and land use, infrastructure, disaster management and business process and investments.
The Cadastral Office, meanwhile, will be in charge of safe-keeping land records, the order stated.
The establishment of such offices are “encouraged,” said Local Government Undersecretary Austere A. Panadero in a text message, but not required.
DENR order
The circular was issued in line with DENR Administrative Order 06 issued in July to fast-track the issuance of titles on alienable and disposable lands.
Alienable and disposable lands, which account for nearly half of the country’s total land area, are those declared as not needed for forest purposes, according to the National Mapping and Resource Information Authority. Such lands may be transferred by mortgage or by deed.
Meanwhile, local government units could nominate a local official or employee as Deputy Public Land Inspector upon proper notification by the Regional Executive Director of the DENR, the circular said.
Local authorities could submit nominees and their corresponding qualifications for land inspectors through the community or provincial environment and natural resources officers, the order further read.
Officials of the League of Cities of the Philippines and League of Provinces of the Philippines were not immediately available for comment. -- ASOA
Sunday, August 14, 2011
Renewable Energy Act suspension sought
Saturday, July 30, 2011
LOCAL government units (LGUs) and the Association of Geothermal Energy Producing LGUs (AGEPL) are pushing for the suspension of the implementation of Republic Act 9513 or the Renewable Energy Act of 2008.
Ormoc City Mayor Eric Codilla, president of AGEPL, said Section 15c of the law, which provides that power generator or developer using renewable energy should only be subjected to a maximum realty tax rate of 1.5 percent, would greatly affect the operation of the geothermal-host LGU, especially on their Special Education Fund (SEF).
The SEF gets 40 percent of the Real Property Tax (RPT) while the rest is divided between the LGU (70 percent) and barangays (30 percent).
Among the barangays, the host community gets the lion's share of 50 percent while the other half is divided by the rest of the villages.
"The slashing of one percent of the existing 2.5 percent realty tax from the developers would mean a reduction of our SEF that takes 40 percent of the city's real property taxes," Codilla said.
Ormoc City is host to Energy Development Corp. (ECDC), the city's highest real property taxpayer.
EDC's RPT is expected to drop to P60 million if the law is implemented which will impact on the SEF. Expected to be hit first are the teachers' allowances, hiring of city-paid job order teachers, and participation to provincial, regional and national sports events.
Codilla said AGEPL has already submitted open letters to President Benigno Aquino III asking for the deferment of the implementation of the law. Similar letters were also sent to the Department of Education and Department of Energy for their support.
Codilla said the alliance composed of the cities of Ormoc, Kidapawan (North Cotabato), Sorsogon (Sorsogon), and the towns of Kananga (Leyte), Valencia (Negros Oriental), Sto. Tomas (Batangas), Manito and Tiwi (Albay) have joined the call and would submit a manifesto to the Senate asking to exempt the existing developers from being covered by RA 9513.
"Since RA 9513 is already enacted, the best thing they can do is to weak the law's applicability so that the RPT reduction will be applied to host communities of newly developed renewable energy sources. Applying the law on existing resources is unfair considering the RPT is already part of the developers' production cost," Codilla said.
According to him, power rates of existing plants are based on present tariffs but reducing the RPT will not necessarily redound to lower power rates because RA 9513 does not compel power plant owners to do so and that makes the law advantageous only to investors, and not the government and consumers.
"In the case of Ormoc City, since EDC already existed before the enactment of the law, it should be exempted from this special realty tax rate provided in RA 9513," Codilla said.
Ormoc City currently collects P100 million real property tax from EDC. As of May this year, the city has been utilizing EDC's 1 percent SEF amounting to P40 million to build 186 classrooms and school perimeter fences, to distribute school supplies, to open new high schools and to cover the salaries of 52 job order teachers.
Codilla said that in 2004, the city has collected only P20 million and insisted for the provision in the Local Government Code to collect the actual taxes due for the city.
Since 2006 when Ormoc began collecting RPT from EDC, it has spent more than P237 million to build 183 classrooms, 32 two-unit comfort rooms, 66 perimeter fences, four covered courts, three stages, etc. in different schools. When before, Ormoc classrooms accommodated 85-115 students each, the ratio has gone down to 1:60.
The city has also established the country's first e-learning center and plans to build 10 more similar facilities this year. It allotted P1 million in 2010 to finance 44 scholars and P1.2 million in 2011 for 37 scholars. It also provides school supplies to all elementary pupils in public schools every school year consisting of four notebooks, two pad papers and two pencils.
Meanwhile, the mayor admitted the move against RA 9513 implementation is expected to be difficult but he said he is hopeful of this to succeed to protect the future of education in his city and the rest of the geothermal-host LGUs in the country.
Ormoc is still reeling from the P40 million reduction of its Internal Revenue Allotment after the Supreme Court upheld the conversion of eight new cities.
"Another P40 million loss from the RPT will greatly affect our delivery of social services," Codi la said. (Leyte Samar Daily Express)
Friday, July 15, 2011
FEF, DENR IV-A commit to advocate property rights in CALABARZON
07/06/11
Calamba City, Philippines. Foundation for Economic Freedom (FEF) President Calixto V. Chikiamco and Department of Environment and Natural Resources Region IV-A (DENR-RIV-A) Executive Director Nilo B. Tamoria sign a memorandum of cooperation to advocate the implementation of the Residential Free Patent Act (RA 10023) among the local government units within the jurisdiction of DENR-RIV-A.
Witnessing the signing are: (L-R) Atty. Reynante Orceo, FEF Local Government Adviser; Engr. Edgar Barraca, DENR-RIV-A Chief, Regional Surveys Division; Atty. Marlou Alutaya, DENR-RIV-A OIC Chief, Land Management Division; Atty. George Katigbak, FEF Legal Adviser; and Atty. Erwin Tiamson, FEF Land Administration Consultant.
Through FEF's Property Rights for Economic Progress program, an initiative supported by the United Sates Agency for International Development (USAID) and The Asia Foundation (TAF), the partnership seeks to improve land administration and land titling under the said act.
DENR-RIV-A covers the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon.
Tuesday, June 28, 2011
DENR IMPLEMENTS LAND TITLING IN PARTNERSHIP WITH LGUS
The Department of Environment and Natural Resources (DENR) is partnering with local government units (LGUs) in the conduct of land titling in an effort to fast track the processing and issuance of land titles over inalienable and disposable lands.
DENR Secretary Ramon J. P. Paje said the move will also provide an opportunity for the LGUs to take an active role in the agency’s programs. “Local government units have critical role to play in the implementation of national programs and projects as provided by the Local Government Code, and one of these is land titling where their help is important particularly in resolving boundary conflicts,” Paje said.
Paje said the LGU-DENR partnership calls for the creation of a composite land adjudication team composed of at least one deputy public land inspector (DPLI) who will work under the supervision of the DENR land management officer (LMO) assigned to the LG. The team will help the DENR in the titling of alienable and disposable lands in cities and municipalities, according to Paje.
“The team is expected to function in its municipality of jurisdiction to assist in land adjudication, dispute resolution and other steps to facilitate and fast tract the land titling,” Paje said.
Under the DENR Administrative Order No. 2011-06 entitled “Prescribing the guidelines for the implementation of public land titling in partnership with local government units”, all the regional executive directors (REDs) of the DENR are authorized to deputize permanent LGU officials that may be assigned to the titling program as Deputy Public Land Inspectors (DPLI).
The order also provides the following procedures in the deputation of DPLIs: a) submission of list of nominees and their corresponding qualifications by the LGU to the RED through the community environment and natural resources officer (CENRO) and provincial environment and natural resources officer (PENRO); b) the CENRO and the PENRO to conduct their respectivetive review of the list of nominees and then submit their respective recommendations within 15 days; and c) upon submission of the list and recommendations to the RED, the RED in turn will authorize the conduct of necessary training related to DPLIs’ functions, mandates, authorities, duties and responsibilities.
Paje said that the responsibilities and authority of the DPLI only apply in their respective cities and municipalities of their jurisdiction.
Under the Order, the composite land adjudication team has the following roles to play in the titling procedure: liaise with, orient and mobilize the community to participate in the LGU titling program; coordinate with barangay officials of the area under the titling program; process applications by undertaking adjudication activities such as conduct interviews of land titling applicants, conduct of ocular inspection, evaluation of land claims and the pieces of evidence presented; assistance in the amicable resolution of disputes, among others.
The DENR also has the following roles: assignment of land management officers (LMOs) from the CENROs, PENROs or DENR regional office concerned to the LGU initiated titling program and the titling office created; provide all the necessary and pertinent land records, surveys maps and other pertinent data; provide technical assistance in the conduct of surveys, land adjudication, training and capacity building on public land administration and management; and provide general control and supervision over the LGU titling program where the DENR field offices shall maintain approval and signing authorities in all phases of the patent application and adjudication process.
The land information office created under the Order will be responsible for the provision of accurate and updated land information to support real property taxation, land transactions, resource management, development and conservation, zoning and land use, infrastructure, disaster management and business process and investments.
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