Open Letter to Zambales Officials

The Honorable Members
Sangguniang Panlalawigan of Zambales
Capitol, Iba, Zambales

Dear Sanggunian Members:

I am respectfully appealing in the best interest of the people of Zambales for the Sangguniang Panlalawigan to reconsider its action last October 9, 2006 immediately approving the Annual Budget of the Province of Zambales for 2007 based on the following reasons:

1. R.A. 7160 (Local Government Code of 1991 under Sections 318-319) gives the Sanggunian from October 16 to December 31, 2006 to enact an ordinance authorizing the annual budget for next year so there is no need to rush its approval upon presentation and/or submission by the Governor;

2. Although the 2007 annual budget of the province was presented by the Governor last October 9, 2006 but I have only received my personal copy of the said budget on October 13, 2006. As Sanggunian members, you only received your respective copy of the budget on October 16, 2006. The Journal of Session last October 9, 2006 will prove that only two (2) copies of the 2007 Annual Budget of Zambales for 2007 are available when the Governor presented it to the Sanggunian – one (1) copy for the Governor and another one (1) for the Chairman of the Appropriations Committee;

3. After careful and thorough review of the 2007 annual budget upon my receipt last October 13, 2006, I have noted the following initial observations which I would like to be clarified for the sake of the people of Zambales and by virtue of my position as an elected public servant and as a taxpayer:
a. Under the Non-Office budget, what are the projects to be undertaken under the 20% Development Fund for 2007 of P70,490,951? What were the projects implemented and/or being implemented under the 20% Development Fund for 2006 of P70,490,951 and another 20% Development Fund for 2005 of P54,047,299.61? Did the Provincial Development Council already met to discuss the development plan for next year for approval of the Sanggunian? And to be funded by the 20% Development Fund?;

b. Under the Non-Office budget, what are the programs to be undertaken under the 5% Calamity Reserve for 2007 of P24,571,738? Did the Provincial Disaster Coordinating Council already met to discuss measures on how to mitigate the effects of disasters and/or calamities for approval of the Sanggunian?

c. Under the Non-Office budget, what is the difference between Aid to Barangay for 2007 of P460,000 and Aid to Local Government Units for 2007 of P8 Million. Barangays are also considered local government units so is there still a need for a separate budget as aid to barangays? What are the projects of local government units that can be provided with coming from this budget? Is this amount of P8 Million and P460,000 to be distributed equally or proportionately? What are the guidelines or requirements to be complied with by the local government units to gain access from these aids?

What were the projects and/or programs assisted or being assisted under the Aid to Barangay for 2005 of P460,000 and for 2006 of another P460,000? Did all barangays benefit from this aid for the past years and the current year?

What were the projects and/or programs assisted or being assisted under the Aid to Local Government Units for 2005 of P1,431,228.20 and for 2006 of another P7,834,400? Did all municipalities and barangays benefit from this aid for the past years and the current year?

d. Under the Non-Office budget, with P12 Million budget under the Debt Servicing to Land Bank of the Philippines for 2007, with P14 Million payment for 2006 to Landbank and with P13,169,665.10 payment for 2005 to Landbank including previous years’ payments to Landbank, how much is the amount still to be paid with Landbank out of the loan of P200 Million? What were the projects completed for the past years including this year from this loan including projects that are still to be implemented?;

e. Under the Non-Office budget, if the province is providing a Financial Counterpart to RMTU Castillejos, RMTU Masinloc and RMTU Sta. Cruz of P3 Million or at P1 Million each annually, why can’t the province also provide the same financial counterpart for the operations of Kolehiyo ng Subic?
f. Under the Non_Office budget, why is the Provincial Counterpart of P3.5 Million to Ospital ng Sta. Cruz removed? I have received information that Ospital ng Sta. Cruz will be operating with an annual budget for 2007 of P8,196,083.56 (with zero allocation for Medical, Dental and Laboratory Supplies) and this amount is way below the annual budget for 2007 of Candelaria District Hospital of P17,737,158;

g. The Budget Call (Provincial Budget Memorandum No. 1-2006) dated July 27, 2006 signed by the Governor states in the Objectives and Policy Guidelines under item no. 1 – “consistent with the approved Annual Investment Plan, the LGU shall focus its resources to the attainment of the following objectives . . .”, I can never recall any instance when the Sanggunian being presided by me ever approved an Annual Investment Plan. If this is so, why is the approved annual investment plan not submitted together with the annual budget for 2007?

h. The same Budget Call issued by the Governor, among its objectives include – “to improve the quality of life and well-being of every Zambalena through utilization and accessibility of health, education, nutrition and social welfare services”, but why is it that the annual budget for 2007 for the Provincial Nutrition Program under the Governor’s Office only amounts to P240,000?

Why is the Population Program Management Office given a very meager annual budget for 2007 for Other MOE (for programs and projects) of P122,458? The PMMO has submitted several proposed projects but no funding is assured to ensure that these are implemented for population and development.
Why is it that the annual budget for 2007 under Other MOE (for programs and projects) under the Provincial Social Welfare and Development Office only amounts to P156,000?

Why is the Indigency budget for 2007 of P17 Million in the Governor’s Office and not in the Provincial Social Welfare and Development Office? What are the mechanics for this Indigency budget? What are the programs of projects that will be undertaken from this amount of P17 Million? What social services will be given to the people of Zambales? Who are the qualified beneficiaries? Who were the beneficiaries of the Indigency budget for 2005 of P15,410,000? Who were the beneficiaries of the Indigency budget for 2006 of P15 Million?

If the delivery of health services is a priority, why it is that there is an estimated unfilled thirty-three (3) vacant positions in the three (3) hospitals of the province? I have also received information that two (2) medical doctors have already resigned. Is it true that the provincial hospital was downgraded because of the lack of personnel and equipment? I have also received information that the San Marcelino District Hospital alone needs additional eight (8) personnel.

If education is a priority, why is it that the amount of P3 Million from the Scholarship Fund for 2006 realigned to Confidential and Intelligence Fund of the Governor’s Office? Previous years’ record may also show that the Scholarship Fund is also being realigned to other expenses of the Governor’s Office. Why is it that the actual expense for Scholarship in the Governor’s Office for 2005 is only P466,230 when the Scholarship budget for that year is P4 Million?; What are the guidelines for this Scholarship Fund?

i. The same Budget Call issued by the Governor, among its objectives include – “to sustain economic development for the province, putting into optimum use of existing resources both natural and human through increased agricultural production, rehabilitation and protection of natural resources, development of tourism industry, provide a high level of accessibility to areas where economic opportunities and social services are to be conveniently located”, but why is it that only P20,000 is allocated for Other MOE (for projects and programs) for 2007 in the Provincial Agriculture Office? How can the more than forty (40) agriculture and fishery technicians extend technical assistance and provide training to farmers and fisherfolks in different communities when the Provincial Agriculture Office is only allocated a Travelling Expense of only P102,000 and an allocation for Training Expense of only P65,000 for their annual budget for 2007? The actual expense of the Provincial Agriculture Office for traveling expense for 2005 was only P18,021 while its actual expense for training for 2005 was only P6,000. Are our agriculture and fisheries technicians still going to the communities to extend assistance and conducting training/technology transfer to our farmers and fisherfolks?;

Is the amount of P200,000 or P2.6 Million which was committed by the Governor (during his State of the Province Address in January 2005) to each of the municipality for their respective agriculture and/or fisheries projects already released? Are the following allocations for agriculture development under the 20% Development Fund for 2006 already released – P1 Million for the operations and management of Agribusiness Service Center beside the Provincial Agriculture Office and P2 Million for Mango Industry Development Program?;

Because of the absence of a trading capital, the P5 Million worth Agribusiness Service Center has remained a white-elephant project for several years since it was completed in 2003;

The Provincial Agriculture Office has submitted a list of proposed projects/programs/activities that they would like to implement for 2007 amounting to P1,037,716.33, where is the funding for this list to be taken with only P20,000 allocation for other MOE for 2007?;

Why is the Provincial Veterinarian’s Office given a very meager annual budget for 2007 for Other MOE (for programs and projects) of P5,000? Where is this going in terms of developing our livestock and poultry industry? The Provincial Veterinarian has submitted a long-list of programs/projects/activities to be undertaken for 2007 but where is the funding coming from with only P5,000 allocation for Other MOE? ;

If the protection of environment is a priority, why is it that the Environment and Natural Resources Office of Zambales (ENROZ) given a very meager annual budget for 2007 of P250,000 with zero budget for Other MOE (for programs and projects)? Why is the office reduced to a mere division in the Governor’s Office with only nine (9) personnel? This office aside from protecting and preserving the environment, given the sufficient number of qualified personnel, annual budget allocation and proper authority can also generate so much income for the province from sand, gravel and other quarry operations;

The actual income from tax on Sand, Gravel and Other Quarry Operations for 2005 only amounted to P666,541.16. Other provinces generate millions of pesos from quarry operations, why can’t Zambales?;

Why is it that the Environment and Natural Resources Office of Zambales (ENROZ) did not submit its Functional Statement, Objectives and Expected Results for 2007? What are the programs/projects and activities to be undertaken for 2007 to protect and preserve the environment from illegal activities – fish fishing, cutting of trees, kaingin, mining, quarrying, among many others; to increase the income from mining and quarry activities as well as enforcement of laws on environment?;

If tourism development is truly a priority, why is it that only P75,000 is allocated for Other MOE (for programs and projects) for 2007 of the Tourism and Investment Promotions Office?
j. The same Budget Call issued by the Governor, provides among its objectives and policy guidelines for “enhanced tax collection efficiency by a vigorous tax information campaign supported by an intensified tax collection effort and the implementation of the new Revised Revenue Code of the Province”, but why is it that the province in too dependent on its Internal Revenue Allotment? If we remove the estimates for Grants and Aids amounting to P37,950,000, the total estimated locally generated revenue is P133,480,000 while the IRA is P352,454,755 which is about 72% of the Estimated Income (without the Grants and Aids which is also considered as Imaginary Income);

Actual income generated for 2005 amounted to P379,767,083.97 while the Internal Revenue Allotment received for that year amounted to P352,454,755.00 or 92.8% of the total actual income generated for 2005. Why is the locally generated revenue only amounted to P27,312,328.97 or about 7.2% only of the actual revenue generated for 2005?

What are the programs/projects/activities to be undertaken by the province through the income generating offices to improve the tax collection and increase the percentage of locally generated revenue to at least 50% of the actual income of the province for 2007? The more income will be the more resources to deliver more services, projects, programs and activities for the people of Zambales;

k. Under the Governor’s Office, the following observations were noted –

Why is there a budget of P4 Million for Scholarship when during the last session (October 23, 2006) the amount of P3 Million was realigned to Intelligence Expense and Confidential? Realignments of previous years’ budget under Scholarship may also be verified;

Why is the budget for Gasoline, Oil & Lubricants of P1,900,000 increased to P2.1 Million?;

Why is the annual budget for Representation Expense amounts to P3.7 Million or about P308,333.33 per month or P10,277.77 per day?;

Why is the budget for Confidential increased from P5 Million to P7.5 Million and the Intelligence Expense increased from P5.5 Million to P7.5 Million or a total increase of P4.5 Million? Is this where the supposedly subsidy of P3.5 Million to Ospital ng Sta. Cruz for 2007 went?;

Why is the Other MOE increased from P6,133,000 to P8,773,000 or a total increase of P2,640,000?;

Why is the Indigency Fund increased from P15 Million to P17 Million or an increase of P2 Million? What are the guidelines for the release of indigency assistance? What are the programs to be undertaken to alleviate the indigent families from poverty to be taken from this amount?;

What were the programs and projects undertaken during the past years and for the coming year from the annual budget of P2 Million for Youth & Sports Development? Realignments of this budget for youth and sports development during the previous years maybe verified;

l. Under the Office of the Provincial Administrator, why is there an allocation of P506,803.00 when no one is being appointed to this position eversince?;

m. Under the Provincial Legal Office, why is there an allocation of P498,803.00 when no one is being appointed to this position eversince?;

n. Under the Sangguniang Panlalawigan Office, why did the Provincial Accountant signed in the prepared by portion of its annual budget for 2007 when the Vice Governor was the one who submitted the proposed budget? By what authority did the Provincial Accountant reduce the submitted proposed budget by the Vice Governor from P36,155,898 (which is in compliance with the Budget Call - Provincial Budget Memorandum No. 1-2006 issued on July 27, 2006 by the Governor) of the Sangguniang Panlalawigan to P1,874,960?;

o. Under the Vice Governor’s Office, why did the Provincial Accountant signed in the prepared by portion of its annual budget for 2007 when the budget was prepared by and submitted by the Vice Governor in accordance with the Budget Call of the Governor? Why is it that the stated budget of the Office of the Vice Governor for 2006 is still presented at P3.5 Million when P2,672,864.75 of this amount was already transferred to the Office of the Governor? Is the budget of the Vice Governor still a component of the whole budget of the Office of the Sanggunian or is it independent from the Sanggunian? Who will sign now the vouchers and checks of the Vice Governor’s Office? What is the assurance that the budget of the Office of the Vice Governor for next year will no longer be transferred by the Sanggunian to the Office of the Governor?


p. Under the Provincial Engineer’s Office, why is it given a Capital Outlay budget for 2007 of P40 Million? What is the relation of this amount to the 20% Development Fund of P70,490,951? What are the infrastructure projects to be undertaken from the P40 Million capital outlay and what are the projects to be undertaken from the P70.4 Million 20% Development Fund for 2007? What are the accomplishments of the Provincial Engineer’s Office for 2005 with P53.2 Million actual capital outlay expense for infrastructure projects and another P40 Million for the current year? We need to get a summary of all infrastructure projects undertaken by the Provincial Engineer’s Office from 2004 to the current year from funds derived from different sources – continuing loan from Landbank of the Philippines amounting to P200 Million, MOA with Department of Public Works and Highways, Capital Outlay of the Provincial Engineer’s Office, 20% Development Fund, Calamity Fund, among many others;

q. Under the Provincial Health Office, why is the allocation for Drugs and Medicines increased from P1.5 Million for 2006 to P9 Million for 2007? What are the policies of the provincial government with regards to indigent patients? Does it mean that with P9 Million budget for medicines that all medicines will now be free in the Provincial Health Office or the Pres. Ramon Magsaysay Memorial Hospital?;

Why is the allocation for Medical, Dental and Laboratory Supplies increased from P4.5 Million for 2006 to P11,902,000? What are the justifications for the increase? Is this amount intended for the purchase of supplies or equipments? What are these supplies and/or equipments to be purchased for 2007? What supplies and/or equipments have been purchased for 2005 from the P4,434,302.79 actual expense and another P4.5 Million budget for 2006?;

r. Under San Marcelino District Hospital, why is the allocation for Drugs and Medicines increased from P720,000.00 for 2006 to P8,554,500.00 for 2007? What are the policies for the disposition of drugs and medicines to indigent patients? Are medicines now for free in the hospital because of this huge increase?;

Why is the allocation for Medical, Dental and Laboratory Supplies increased from P1 Million for 2006 to P8,760,000.00 for 2007? What are the supplies and/or equipment to be purchased? What were the supplies and/or equipment purchased in 2005 from P844,737,25 actual expense and from the P1 Million budget for 2006?;

s. Under Candelaria District Hospital, with the Provincial Hospital and Candelaria District Hospital enjoying huge increase for their respective annual budget for 2007, why it is that Candelaria District Hospital given a very meager increase from P400,000.00 for Drugs and Medicines for 2006 to P 1 Million for 2007? What were those supplies purchased in 2005 and 2006 from their budget and what are to be purchased for next year from their budget?

Why is the increase also very meager for Medical, Dental and Laboratory Supplies of P700,000.00 for 2006 and P1.9 Million for 2007? What are the supplies to be purchased for next year and what were those supplies purchased last year and this year from this allocated budget?; and
t. Is the provincial government really serious in providing support for the delivery of justice to the people of Zambales with the kind of financial assistance that it extends to the national government agencies that are tasks with providing prosecution service, probation and parole service, free legal assistance as well as in the administration of justice by the different courts with the following budget allocation for 2007 – Office of the Provincial Prosecutor with P34,000, Clerk of Court with P20,000, Public Attorneys’ Office with P35,500, Parole and Probation Office with P8,500, RTC-BR 69 with P20,000, RTC-BR 70 with P20,000, RTC-BR 71 with P20,000, RTC-BR 72 with P11,000, RTC-BR 73 with P11,000, RTC-BR 74 with P11,000 and RTC-BR 75 with P11,000? All combined it only amounted to P181,000. Is this all that the provincial government can afford to extend as support for the delivery of justice system?

These are just my initial observations on our annual budget for 2007 that I wish to be clarified for the sake of the people of Zambales and when necessary appropriate revisions and/or amendments must be undertaken on the annual budget for 2007.

In accordance with the Local Government Code of 1991 and in accordance with our Internal Rules in the Sanggunian which I am under obligation to uphold as your regular Presiding Officer, I hereby appeal for your consideration to open the discussion on the annual budget for 2007 of the Province of Zambales so that all issues and concerns that I have raised in this letter be properly addressed.

In the spirit of transparency I believe we owe it to the people of Zambales to open our discussions on the annual budget for 2007 to the public and also to conduct public hearings so that concerned officials of local government units and other sectors of our society maybe involved in the budget process.

Very truly yours,



RAMON G. LACBAIN II
Regular Presiding Officer

CC: Governor’s Office
The Department of Budget and Management
The Department of Finance
The Department of Interior and Local Government
The Commission on Audit
All Heads of Provincial Offices
All Heads of National Government Agencies in Zambales
All Municipal Mayors
All Sangguning Bayan thru the Municipal Vice Mayors
All Sangguniang Barangay thru Barangay Chairmen