GENERAL INSTRUCTIONS AND GUIDELINES

cAsE ANALYSTS (WRTTTEN)

Introduction

1. This General Instructions and Guidelines pertain to the standard case analysis for use in
the conduct and administration of the Written and Oral Comprehensive Examinations
leading to the degree of Master in Public Management and Governance.
2. Use only the fiont-face of the paper (answer sheet) --- D0 NOT WRITE AT THE BACK 0F
THE PAPER.
3. Write legibly and observe proper margins.
4. Paginate your answer sheets accordingly. Write the page number at the bottom right-
corner of the paper using the format "Page _
of _
Pages".
5. Thankyou.

Standard Format for Case Analysis

6. Read and re-read the case carefully noting to determining the 'key character' in the case,
whose point of view you are going to take. 0nce you have decided who you are, wear the
hat of your chosen point of view and analyze the case as follows:

a. Title of the Case --- write the case title on the third line (centered) of the first page of
your answer sheet.

b. Case Brief --- this component is the summary of the case in narrative form. This
component is not required to form part of the written analysis. Leave this item blank
in your answer sheet.

However, the student is required to present a summary or synopsis of the case during
the oral defense preferably in an illustrated form (or drawing) and included as part
of student's visual aid. The student is strongly advised to do so in order to
demonstrate to the members of the panel familiarity with the case and avoid holding
the case material during the oral presentation of her/his analysis.

c. Point of View --- write the specific name, if given, and/or position title of the chosen
key character in the case you wish to portray or play the role of; the key character is
usually the manager entangled in a dilemma who needs to make a decision and take
responsibility for the consequences of such actions.

Time Context --- write the specific date, if given, else, write the generic date
mentioned in the case. This component is the take-off point of the chosen point of
view in analyzing the case. It is the exact point in time the student, having the
perspective of the key character acknowledges s/he is the manager facing a problem
that requires solving.

e. Statement of the Problem --- write one problem only either in declarative or
interrogative form. At this point, the student should keep in mind that s/he is wearing
the protagonist's hat and as such is the '.ryne.f' of the problem as presented and
described in the case.

Page 1 of3
Statement of the 0biectives --- write at least three objectives which the chosen
viewpoint wishes to attain. Adding the word 'to' to the 'statement of the Problem' is
'not eouivalent' to stating the objective[s], but rather becomes the 'goal' of the
protagonist. While both words, 'goal' and 'objective', are desired outcomes of work
done by or things a person may want to achieve or attain, what makes them different
are the time frame, characteristics they are set for, and the effect they cause. Make
sure your objectives can pass the 'S-M-A-R-T' (specific, Measurable, Attainable,
Realistic, and Time-Bound) criteria when scrutinized individually.

Areas of Consideration --- enumerate and fully explain from the perspective of the
chosen point ofview both internal and external factors or areas to be considered that
are to serve as bases in the formulation of the alternative courses of actions. These
factors are the significant points, discernable or otherwise, described in the case that
requires thorough analysis from the context of the point of view chosen.

The SWOT Matrix is the most common tool used in assessing the internal and external
environments in a given case study material. It is an evaluative tool helpful in
identifying internal and external factors to the organization that are both favorable
and unfavorable and guides in strategy formulation. Being the protagonist, the SWOT
Analysis helps the student focus on the organization's strengths, improve
weaknesses, minimize threats, and take greatest possible advantage on the
opportunities available as they are described in the case.

Assumptions. if any --- assuming means taking a position or holding an idea as true;
and usually, there is little basis or almost no evidence for such assumption. In most
instances, however, the student making an incorrect assumption complicates rather
than facilitate the analysis of a case study material. Many students are unaware and
might be surprised that most assumptions are already embedded in the case study
material.

They are usually articulated in the words and phrases of the author as well as in the
setting of the case. The main responsibiliry of the student is to discern these
assumptions by 'reading between the lines' the wordings of the case author; then,
deciding whether or not there is a need to make further assumptions to help better
understand the case to limiting or enhancing the analysis thereof.

Alternative Courses of Action --- this component is the listing of possible solutions to
the stated problem. It is strongly suggested for the student, wearing the hat of the
protagonist, to forward at least three alternatives to solving the problem. These
options should be mutually exclusive, which means they are independent [or
exclusive) of each other yet their context are the same [mutual). Thus, each
alternative when taken individually can solve the problem stated. It must be noted
that the alternative courses of actions are formulated on the bases of the significant
areas considered by the chosen point ofview as presented in Item "G" above.

Analysis of the Alternative Courses of Actions --- this component must present and
discuss the advantages and disadvantages of each alternative. The student as
protagonist should compare and contrast the different alternatives forwarded. The
parameters by which to complete a comparing and contrasting (or analysis) of these
alternatives can be taken from the areas [or bases) considered and aptly discussed in
Item "G".

The comparative analysis of the different alternatives can be summarized in a matrix

(or table) in the light of the key quantitative and/or qualitative parameters used for

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 such comparison. A realistic arbitrary ranking can follow by way of rating each
alternative course of action.

k. Conclusion --- this component is presented in one simple statement, "Based on the
foregoing analysis, ACA No. _ is chosen."

l. Plan of Actions --- this component is best presented through a Gantt Chart or Activity
Chart' The plan should delineate the series of actions/activities to be undertaken to
operationalize (or implement) the chosen ACA. The student should ensure that the
chosen point of view plays a significant role in implementing the plan of actions as
this is reflective that the activities enumerated therein are within the authorify and
responsibility of the protagonist.

7. The student can bring a (hardcopy) dictionary and/or thesaurus, calculator, correction
tape, and extra ballpoint pens (black or blue).

B. The Graduate School strongly advise student-examinees to bring packed lunch, snacks,
candies, and bottled water because NO student-examinee will be allowed to go out the
examination room when the examination has started.

9. Make sure you do not write your name or any extraneous note[s] or distinctive
marking[s] on your Answer Sheets that can serve as an identifying mi.k;r1, which may
include but are not limited to names that are not in the given essay questions, prayers or
private notes to the Corrector.

writing, leaving, or making any distinguishing or identi8ring

mark in the Answer sheets is considered cheating and can
disqualiff you for the Comprehensive Examination.

You can keep this General Instructions and Guidelines for your ready reference and
perusal. Please ensure that you have read and re-read this thoroughly.
 THE A-1UNIT1

"0ne of these days we might receive our first tongue-lashing from Cesar!" These
words disgustingly uttered by Peter Mufloz, Officer-ln-Charge (OlC) of the A-1 Unit of a
popular government agency.

The A-L Unit

The A-1 Unit is a committee composed of nine regular members under the guidance
and supervision of two department heads: Mr. Cesar Regalado and Ms. Sonia Castro. A-1 was
an answer to the frequent complaints of the public regarding the bureaucratic, red tape
system which is very typical in dealing with government agencies. A-1's main objective was
to erase this impression by offering efficient service and ready information to people
interested in engaging in small or big scale business which necessitated government
assistance and adherence in government regulations and guidelines.

Although the A-1 staff was directly under the supervision of Ms. Castro, it was an
independent unit where most decisions were left to the discretion of Peter Mufloz. Being an
experimental unit in its stage, A-1 was not a formally established staff. Its original nine
members were recruited from several departments and offices of the agency on a detail
basis. As such, each member had standing responsibilities in its mother unit aside from those
s/he received through A-1. The profile of the A-1 staff members is described in Table 1.

Table 1. Profile of A-1 Unit Staff

Tenure in
Name Age Civil Status
Government
1. Peter Mufloz z5 5 years Sinele
2. Lourdes Gatchalian 37 7 years Married
3. Ricardo Cabal 47 9 vears Married
4. Alex Marasiqan 29 1 vears Married
5. Tino Torres 24 5 vears Married
6. Roland Geronimo 23 L years Sinele
7. Nenita Gopez 31 6 years Married
8. Alfredo Velasouez 2B 5 vears Married
9. Svlvia Santillan 25 3 vears Sinsle
10. Sandv Amane 22 Less than a vear Sinsle
Suoervisors:
1,. Ms. Sonia Castro 42 15 vears Married
2. Mr. Cesar Reealado 40 17 vears Sinele

After three months of operation, A-1 conducted a training seminar aimed at recruiting
more personnel to alternate occasionally with the regular staff. Several nominees were sent
by the different bureaus of the agency. The seminar, which lasted for five days, was expected
to inform the nominees of the job they had to perform, the usual causes of problems, the
common cases they would handle and the different units they had to coordinate to
accomplish each case. The training produced 10 more members for A-1.

A-1 achieved very high visibility and popularity in the whole agency because of its
constant coordination with other units and most especially of its impressive performance in
its first eight months of operation. Their very good reputation and "no strings attached"
service received very good feedback from their established list of clients. Thus, clients kept

t By Eva Marie S. Mendoza under the supervision of Dr. Concepcion R. Martires.

Page | 1
CASE - THE A-1 UNIT
on pouring as news spread about the group's dedication and sincerity. They also gained the
respect and attention from the press as evidenced by several good reports written about
them in newspapers.

Most of the group's success could be attributed to its acting head who worked with a
very organized and systematic framework and maintained good rapport with the whole staff
and all the units that A-1 coordinated with. Because the staff was composed of men and
women who belonged to a narrow age range, there was hardly any problem in relating and
adapting to each other's personality. No prominent hierarchy of command existed and each
one was treated equally although Peter Mufloz was the recognized head.

Nature of the lob

The main bulk of the job of the A-L staff was to entertain inquiries of clients made
through the phone or during their personal visits. Cases ranged from the ordinary steps to
undertake in starting a business (domestic and foreign, but mostly foreign), being in the
business, accomplishing the necessary documents to comply with government rules and
regulations, all of which may be unique to a product that the clients were dealing with.

The staff met regularly after a day's work to discuss the following issues: [a) the
number of clients serviced during the day and the percentage of accomplishments; [b)
special cases handled; and, (c) status reports on other assignments like follow-ups of still
unaccomplished cases and on the computerization of their filing system which contained a
product-firm-owner profile. During these regular meetings, small daily problems were
sorted out and shared with each of the staff members.

Area of Concern: Group's Complaints

Currently, Peter Mufloz was concerned about the groups deteriorating efficiency due
to the presence of several urgent yet unfinished jobs which resulted mostly from the
frequent "disappearing acts" of some of A-1's staff and the bottlenecks and non-prioritization
of assignments that the staff received both from their respective home-based units and those
they received through A-1.

Problems began about four months ago when the staff was beginning to complain
about the heavy workload. Every assignment seemed urgent either from their respective
mother units or from A-1. What made it worse was the absence of an exclusive typist for the
group. Since mailed inquiries and special cases were piling up, the group needed someone to
type the reply letters, and fix their filing system. The group found it troublesome to look for
a vacant typist every now and then from B-1 or C-1 (which was the department handled by
Mr. Regalado and the home base of Peter Mufloz).

Peter Mufroz finally requested Ms. Castro through a memo for an exclusive secretary.
Sandy, a recent graduate who worked with A-1 three months ago as a trainee was formally
hired both as a receptionist and a typist. For some time, the staff was appeased because the
backlog in typing jobs was at Ieast reduced. However, the overloads in assignments have not
yet been resolved. Two of the regular and more competent staff of A-1, Alex and Roland, were
frequently being recalled by their mother unit B-L, which was currently also loaded with
urgent assignments and, worst of all, was understaffed.

A week after Sandy's hiring, the B-1 staff was also requesting Sandy to type
their rush
work. This troubled and confused the A-1 staff who could not really do anything but report
this to Peter Mufloz as B-1 was also under the supervision of Ms. Castro.

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CASE - THE A-1 UNIT
 The Case of Alex Marasigan and Tino Torres

A case that alarmed Peter Mufloz was that

of Alex Marasigan and rino Torres. The
following was related by peter Mufloz.

"Alex is a very brilliant staff. He

can write very good reports about the
which he has handled and other special assignment, special cases
dedicated when he started with A-1 about
irt. wanti to. He *r, uu.y excited and
five months ago. However, lately he has been
acting strange' You talk to him and give him
some instructions, tell him when the assignment
is due and he just nods his head to iverything
you say. Then he fails to submit the report
time no matter how many times you remina trim on
before the due date. At the start, I was very
patient with him' He has just gotten married
then and he needed to fix his house. I have been
very lenient with him. There were even times when
I allowed him to take the afternoon off.
I told him that I understood his state but I also
he makes the remaining time he
spends here productive. It is unfair to the other "*p..itt.t
members, some of whom are even chiefs in
their respective mother units' They work hard and
stay here all day. All of us regulars receive
some sort of incentive allowance for this additional
assignment and I expect each one to
serve it."

The other cause of concern of Peter Mufroz Peter

Mufroz is Tino Torres. ,,Tino, on the
other hand is the next senior man in terms of rank
here in A-1. He has a lot of good and
practical insights brought about by his many y.r.,
of experience in the government.
However' he can be a problem. Some time ago
he engaged in a lot of disappearing acts. He
was always out and did not even bother to
le"ave ,ny'tnurrrge as to where we could
him in case of emergency' It became very difficult contact
to trace him especially when it was urgent
--- either an old client needed him
to folltw up on his case or cesar (Mr. Regalado)
assignment which only he can do. pati tuloy had a new
ia amin umiinit an uloni cesar.
Tino has had a new habit lately. He has been
hanging on the phone almost all day and
they were not all business calls' Louides,
one of our .ra.. staff, was embarrassed the
day' Tino had two clients in front of him other
while he was'cooling'with somebody on the phone.
I know I do not have the right to interfere
with his p..rfnrr affairs but I just hope he knows
where to put the boundary betwe*, h_,.r_]ou
,nJ r,illurrorrt life. I have not really tried to
talk to him seriously' Dyahe rin ako;we belong,o
irr" same mother unit. Marami na rin
kaming pinagsamahan ii
rino. The least thing i*;; ,-ny staff to think about is that I
abusing the power given to me. I do not am
want them to see me as pushy and domineering
we are a team and we treat each other more head.
than officemates. we are friends above all.
In terms of material rewards, the group
could not ask for more. There seemed to
void somewhere for people to lose theiisenie be a
or aeJication every now and then. I know
have to be a good t*'mp1" and that is I
exactly what I am trying to do. I go to office
work till lunch hours, and if needed, stay past on time,
five. I have never deprived them of my time
discuss certain issues where they might to
need rnv inggi,s. Lourdes, one of our elder
members had also been a source of inspiration staff
for the [.oup. she has been like a mother to
all of us' I could not however discuss the group'r
p.ourEn with her completely because she
also had her obligations to attend to. She
is also^being u..y busy attending meetings
special assignments of interest to A-1. and

I guess it all boils down to the group's lack of

initiar motivation and drive to work
more aggressively and I feel that it is my responsibility
to find a way to do something about
it' I know they get.bogged down by unexpeCted ,.g.nt
assignments which disable them to
schedule their tasks for the day. i was
wonderinlg whether another training seminar is
necessary to recruit more members since
the first batch we trained assumed more
demanding roles in their base units' Perhaps
also we need a refresher course to put us back
on track' I am proud of this group and all its
accomprirrr*.ntr and I want to maintain its good
image. There are actually two sides of the problem --- the unclear assignment arrangement
between the mother unit and A-1, and the group's attitude as a whole.

I could try to talk to Ms. Castro about the assignment overlaps but she might not be
able to assure me of having complete control of my staff because she also receives urgent
assignments directly from the agency head. I personally think that is more important.

I tried thinking of other activities which the group can engage in to foster more
discipline and dedication. The group has suggested activities like out-of-town trips or
weekend parties. I guess, we have just been too busy lately."
 CALOOCAN FOLK VIRTUAT HOSTAGE
TO UNRELIABLE WATER SERVICE PROVIDER T]
By: Carla Mortel- Baricaua
(lbon Foundation, lnc. and Water for the People - Philippines)

"Mahirap ang tubig dito. Dati may tubig sa maghapon pero unti-unting nawala
hanggang sa gabi na lang meron tapos madaling qraw, ngayon wala na. Nakikiligo na lang
kami sa kapatid ko [Water service here is very poor. We used to have water supply all day
but gradually, it became available only during the night, then in the daybreak, until it's totally
gone. We have to go to my sibling's place to take a bath.)," lamented 37-year old Annabelle
Malacas of Barangay 155 who have been residing in the area since she was a child.

Barangay 155 is one of the 16 barangays (village) in Bagong Barrio, Caloocan Citythat
have been suffering from a serious water supply crisis for several years now; The crisis is felt
from Barangays \42 to 757 affecting around L00,000 residents. According to barangay
captain [village chief) Patricio Carpio of Barangay L49, their woes started when private firm
Maynilad Water Services, Inc. began operating the water system in their area.

"Ang masama, patuloy pa ring naniningil ang Maynilad kahit wala naman tubig
(Worse, Maynilad continues to bill the people even if there is no water supply)," added
Carpio.

The case of Bagong Barrio adds up to the growing list of complaints against the poor
performance of the private concessionaires that took over the privatized Metropolitan
Waterworks and Sewerage System (MWSS) in August 7997. Maynilad operates the west zone
(that includes the affected barangays in Bagong Barrio) while Manila Water Company, Inc.
manages the east zone.

Water Rationing

The lack of water in the communities has resulted in frequent fighting among the
residents as they queue for hours for water being delivered by the Caloocan City government
and Maynilad. "Minsan, hindi maiwasan ang mga awayan dahil may ilan na nagmamadali at
sumisingit sa pila (Sometimes, arguments erupt because some people who are in a hurry cut
into the lineJ," one of the residents told IBON.

The Environmental and Sanitation Service [ESS) of the Caloocan City government
started rationing water in July 2004 to help the affected barangays cope with the water crisis.
ESS has employed seven water tankers, of which three trucks deliver water daily to the 16
barangays in Bagong Barrio. The rest serve other "waterless" areas in the city like 11ti,
Avenue, Talipapa, and Sta. Quiteria.

The head of the ESS, AI Sta. Maria said that the water tankers refill from a pump
station in the Poblacion market (former Plaza II) at lQttt Avenue. The 20-horsepower deep-
well pump, which is owned and operated by the local government of Caloocan City, draws
out 25,000 gallons of water for the water tankers. At times, the trucks also pump water from
public fire hydrants located in the city.

"The residents do not pay for the water [being rationed by the city government)
because expenses are covered by the city budget," Sta. Maria explained. He admitted,

t'l Tujan, Antonio lr., Ed., 2006. The people speak on corruption and governance: Water service sector. Ibon Books: Quezon City,
Philippines,

This case was contributed by Prof. Ador G. Paulino, IE, DPM, faculty at the President Ramon Magsaysay School of Government,
PLM.This case is for use in classroom discussion only. Cases are not meant to illustrate either correct or incorrect handling of
management and/or administrative affairs.

Page 1 of4
CASE - CALOOCAN FOLK VIRTUAL HOSTAGE TO UNRELIABLE WATER SERVICE PROVIDER
however, that the ESS-supplied water is not safe from drinking and must be used only for
other household purposes.

The ESS initiative aims to augment the water rationing project of Maynilad. According
to Herbert Ico, Maynilad-Caloocan officer-in-charge for water rationing, the company rations
water with seven deliveries of four times a week in Bagong Barrio. The water comes from
the public fire hydrants inside the nearby Araneta Subdivision. Maynilad water tankers can
each carry 4,000 liters of water, which Ico claims is potable.

But the ESS head clarified that their initiative is independent from the Maynilad
project. "There is only regular communication between Maynilad and the cily government
(regarding water rationing). But there is no formal agreement," said Sta. Maria.

Hostage

The water rationing, of course, does not substitute for genuine water services that
should provide 24-hour water supply. Bagong Barrio residents have to line-up for several
hours to get their water allocation from the water tankers that come usually at night. Aside
from the verbal tussles, the people in the affected area have to contend with nightly vigils to
get their share of the water. It is not uncommon that employees or students in Bagong Barrio
miss a day or two from work or school due to lack of sleep.

0nce in a while, unemployed elderly members of the households are also forced to
spend hours of queuing for water, exposing them to serious health risks. On 1B August 2005,
76 years old Agripino Samonte of Barangay 155 died due to brain aneurism. Samonte had
been suffering from hypertension, a condition, which his relatives claimed, was aggravated
by several days of lack of sleep from fetching water.

Yet, in spite of the problems caused by Maynilad's inefficiency, the water utility
continues to collect the minimum monthly charges from the residents of Bagong Barrio. In a
recent public forum organized, the Alyansa Sigaw Tubig (AST or Shout for Water Alliance), a
network of the affected barangays and cause-oriented groups in Bagong Barrio campaigning
for better water service, residents said that they continue to pay at least eirlfOb.OO pei
month even though not a single drop of water comes out from their faucets.

"Wala namQn kaming mogagawa. Baka kung hindi kami magbayad, putulan kami ng
Maynilad. At pag nagktubig na, kailangan naming magbayad ng mas mahal na reconnection
fee (We are helpless.-lf we stop paying, Maynilad might disconnect us from the system. And
when the water supply resumes, we will have to pay for a much bigger fee for reconnection),,,
said Danny Bautista of Barangay r49, an officer of the AST, during the forr-.

Indeed, Maynilad has practically held the residents of Bagong Barrio hostage to the
unreliable service of the water firm. Worse, according to AST spokeiperson Larry Canilao,
commercial establishments and businesses around the area continue to enjoy uninierrupted
water services from Maynila while the ordinary folks of Bagong Barrio have to suffer from
the supposed lack of water. "lpinapakita nitokung ano ang prayoridad ng isang pribadong
negosyong katulad ng Maynilad (This shows the priorities of a private business like
Maynilad)," Canilao declared.

Not an Isolated Case

The water supply crisis in Bagong Barrio is not an isolated case. According to Arnold
Padilla, national coordinator of the broad-based alliance Water for the People Network
[WPN), water services in Metro Manila have not improved, and in most cases, have even
deteriorated since the MWSS was privatized in l9g7.

Page 2 of 4
CASE - CALOOCAN FOLK VIRTUAL HOSTAGE TO UNRELIABLE WATER SERVICE PROVIDER
 "More than eight years since the takeover of Malmilad and Manila Water, more than
4 million people in Metro Manila are still without water supply and 11 million are without
sewerage connection," Padilla narrated. Yet, the basic water rates have increased by Zg7o/o
(Mayniladl to 501%o (Manila Water) from 1997 to 2005. "The Bagong Barrio case seriously
challenges the wisdom of water privatization. Once profits are threitened, water services,
no matter how vital, can be readily compromised by companies like Maynilad or Manila
Water," argued Padilla.

Maynilad is currently undergoing financial rehabilitation. Former majority owner

Benpres Holdings has decided to abandon Maynilad,leaving its French partner Suez and the
MWSS to operate the water firm. Benpres said that Maynilad is not making money and
consequently, it was not able to upgrade its services in areas like Bagong Barrio.

But at the heart of its bankruptcy is the gross mismanagement of Maynilad by Suez
and Benpres. From 1997 to 2001, for example, Maynilad overshot its projected expenses by
around PhPBOO million as it incurred questionable expenses. The water firm had been
outsourcing its consultancy and management development to firms associated with Benpres
and Suez. From 1999 to 2000 alone, it spent PhP1.2 billion of such services.

The WPN, of which the AST is a member, has questioned the rehabilitation plan of
Maynilad before the Branch 90 of the Quezon City regional trial court. "lt's [the
rehabilitation) actually a government bailout of an inefficient company at the consumers and
taxpayers' expense. We should not allow Benpres to simply walk out of Maynilad without
accounting for its mismanagement of the concession, and all of its obligations to the
government and its consumers including the residents of Bagong Barrio," said Padilla.

Excuses

As early as 2002, Bagong Barrio residents have already brought up the matter with
Maynilad officials. At that time, water still flows from the faucets although at a very limited
volume and only for a couple of hours a day. In the previous dialogues benareen Maynilad and
barangay officials, the company offered a number of explanations for the lack of waier supply
in Bagong Barrio: low water supply; numerous leakages in the pipelines; broken *it"i
valves; water system adjustment, etc.

Maynilad installed a booster water pump at the corner of Zapote and De

lesus streets
three years ago to address the problem of Bagong Barrio but the lack of water in the
communities has not only remained but even deteriorated. Local government officials,
including Caloocan City mayor Recom Echieverri and Representative Oscar Malapitan (First
District) have also called the attention of Maynilad and the MWSS about the iituation in
Bagong Barrio but have not produced significant results.

Some residents are even skeptical about the real motives of Mayor Echiverri.
"Mukhang di rin naman sya (Echiverri) interesadong ayusin ang problema iahil ginagawa
nyang parang campaign propagand a ang pagrarasyon ng tubig
[t seems that Mayor
Echiverri is not really serious in addressing our problem because he uses the water rationing
project as a campaign propaganda)," one of the residents told IB0N, noting that all the watei
tankers from the city government bear the name of the mayor.

People's Action

After years of fruitless waiting, the people of Bagong Barrio finally decided to take the
matter into their own hands through the formation of the AST in November this year. OnZZ
November, AST leaders and members trooped to the Caloocan office of Maynilad to protest
the neglect of the water firm and demanded an immediate resumption of water services. "We
cannot endure another dry Christmas," declared Canilao during the rally.

Page 3 of4
CASE - CALOOCAN FOLK VIRTUAL HOSTAGE TO UNRELIABLE WATER SERVICE PROVIDER
 Mayor Echiverri joined the protesters as the AST leaders, including the barangay
captains, held dialogue with Maynilad officials led by
Jaime Bartolome, technical *rrrg"i ri
the firm's South Caloocan Business Center. Bartolome explained that the water shortagi was
due to the low water level in Bagbag Dam, elevated iocation of the barangrys, and the
increasing number of consumers. Pressed for solutions, Maynilad proposed to ieadjust the
valve settings for stronger water pressure and larger coverage in Bagong Barrio.

Bartolome also declared that the long-term solution would be the rehabilitation of the
pipeline system in Bagong Barrio. Existing water pipelines are old, denigrated and riddled
with numerous illegal connections. However, according to Bartolome, "This plan, of course,
is subject to the availability of funds and feasibiliry of the project."

Lack of funds is the same old excuse of Maynilad for failing to improve the water
system, according to the WPN. "lf the MWSS had been reformed by making the state-owned
water utility more efficiently and democratically managed, the infrastructure in Bagong
Barrio and the rest of Metro Manila could have already been improved a long time igo,;
Padilla said.

A Long Struggle Lies Ahead

Nonetheless, the people of Bagong Barrio have begun to reap the initial gains of their
unity and direct action. Two days after the AST rally, Maynilad ,nroun..d in a press
statement that the water supply in Bagong Barrio had increased by 30% after "valve
manipulations" to increase the water pressure and improve water supply. Consequently,
Maynilad trimmed its water rationing in the communities from eight to two deliveii.r p..
week.

A preliminary check by IBON Features confirmed that several households in Bagong

Barrio now have water. But the people know that they could not yet afford to relax
,r tt.y
still see a long struggle ahead. " Patuloy namin itong iabantayan. Ang isinisigaw naming iy
Z4-oras na supply ng tubig sa bawat bahay [We shall continue to monitor these
developments. We remain firm in our demand for a Z4-hour individual water connection
and
supply)," Canilao declared.

But the question is: Does the present policy of water privatization allow such access
for the poor like the majority of residents in Bagong Barrio?

"The long-term solution is people's control," Padilla said. "Water belongs to the
people; it is a basic necessity, a condition for people to live. Thus, it's the
state's resp6nsibility
to ensure that everyone, with preferential consideration for the poor and marginalized,
havl
access to water. Private corporations, because of their inherent limitations such
as their
profit-orientation, simply could not perform this task.,,
 THE CASE OF RIZAL PROVINCE

Before the creation of the Metro Manila Commission, the Province of Rizal was
composed of 26 contiguous municipalities with a total population of 112,000, a land area of
1,308.9 square kilometers, and a population density of 314.8 per square kilometer.l Urban
growth has become evident as the province was becoming progressive. However, when 13
of these municipalities were integrated into the Commission, the province suffered a severe
financialblow.

In 1956, when Hon. Rodriguez was first elected governor, the province was faced with
acute financial problems. With its operating budget of only PhP1.5 Million, it had to rely on
National government subsidies to augment its income. It also depended on the agencies of
the national government to initiate socio-economic development projects. It could only lend
non-fiscal support. However, even the efforts of the national government and its agencies
were affected by financial constraints so that many projects failed or were discontinued.

To stabilize the financial condition of the provincialgovernment Governor Rodriguez

undertook the following:

1. Save and invested 15 percent of the income of the province and carefully budgeted
the balance;
Z. Utilized the earnings of the investment to fund specific projects;
3. Intensified the promotion of industry in the province by opening it to industries
that were spilling over from the congested sites in Manila; and,
4. Reorganized the offices of the provincial government and streamlined their
operations to improve the delivery of services to the people.

As a result, by the mid-1960's, the province was already an important industrial and
commercial center. Factories, commercial establishments, and even sub-urban residential
subdivisions were sprawling up all over the province. The revenues of the province
increased. With the cooperation of the private sector through the Rizal Economic
Development Commission,2 a provincial agency charged with the promotion and
encouragement of the economic and social development of Rizal, the province was then
taking off.

Assured of the financial stability of the province, the governor defined the following
policy objectives:

1. To strengthen the effective delivery of public services;

Z. To continue to create favorable business climate and encourage the establishment
of more industries;
3. To continue existing socio-economic development projects to promote and
improve health and sanitation; and,
4. To support the national government in the development projects especially in
solving public education problems by initiating and educational system relevant
to the needs of the province.

THE PROGMMS

Consistent with the above objectives, the Government pursued the following
development programs: (1) infrastructure, [2) education, [3) health, (4) cottage and small-
scale industry development, (5) youth development, and [6) others.
(1) Infrastructure

To facilitate the flow of business and industry, the governor directed the provincial
engineer to hasten the construction and maintenance of all roads and bridges within the
province whether national or local. A total of PhP20 Million was allocated for roads and
bridges every year and PhP15 Million for other public works such as school buildings,
irrigation systems, and others. As a result, the province paved a total of 165 kilometers of
roads from the different municipalities of the province to the Manila periphery. From the
period L97l-75, a total of 86.L1 kilometers were paved and asphalted and 77 .03 kilometers
concreted of the whole national, provincial, and municipal roads. (The summary of
infrastructure improvements is shown in Table l below.) By 1976,the province boasted of
having the most extensive road network in the whole country.

Table 1. Summary of Infrastructure Improvements

Province of Rizal (1,977-7975
Total Kilometers Length of Roads
PARTICULARS (Construction and Improvementl
Asphalted Concreted
Municipal roads intesrated with Metro Manila 2.056 3.367
Municipal roads not integrated with Metro Manila 7.579 8.339
Provincial roads intesrated with Metro Manila 0.933 L2.561
Provincial roads outside Metro Manila undertaken within Rizal
9.540 0.875
Province
National road intesrated with Metro Manila 72.973 77.479
National road not integrated with Metro Manila 52.930 34.404

Total Kilometers Lengtl of Roads

PARTICULARS fPavedl
Asphalted Concreted
National Roads 65.903 51.883
Provincial Roads 10.573 13.436
Municipal Roads 9.535 r1,706
85.111 77.025
Source: Ofice of the Provincial Engineer, 7976

(2) Education

Along with the government's efforts to improve the country's educational system, the
Governor initiated the putting up of school buildings (dubbed as the "Rodriguez-type school
houses"); granted salary increases to teachers; provided textbooks and other learning
materials; and, undertook the repair and maintenance of school facilities. Schools were also
established. In addition to the existing Rizal Provincial High School, the province established
the Morong High School and the Marikina High School which later became the Marikina
School of Arts and Trade. It also helped put up and ran the Muntinlupa High School.

(3) Health

ln L969, the Governor entered into an agreement with the UP Institute of Public
Health and the Department of Health to design a health program for the province in
consonance with the WHO general health services development project which chose the
Province of Rizal as the pilot area. The design or the Macro Health Plan was immediately
implemented when it was completed in1973.ln accordance with such plan which aimed to
lower the mortality and morbidity rates in the province, the Governor launched a disease
prevention drive by mass vaccination (or immunization) of the people; improvement of the
health and sanitation facilities; better solid waste management; and, promotion of health
consciousness. This resulted in improvement of health of the people and reduction in
mortality and morbidity rates.
(4) Agriculture

Through the Agriculture Development Council of Rizal, the Governor launched in

1976 a two-pronged agricultural program to develop the agricultural sector; the extension
of credit for irrigation and the campaign for increase of rice production through the use of
high-yieldi ng palay varieties IHYVs).

It was noted that of the 13,000 hectares of rice fields under cultivation only 2,000
were irrigated by earth dams and canals. To solve this problem, extension of credit for
irrigation, farm equipment and production was granted by the provincial government. This
provided financing for the construction of concrete dams and canals. As a result, 40
kilometers of concrete irrigation canals were constructed and maintained by 56 farmers
associations.

The Governor then launched the increase of production campaign by introducing

high-yielding palay varieties (HYV's) to the farmers. Through an integrated information
campaign, the farmers ultimately adopted the HYV's and with the application of modern farm
techniques, the province was able to produce the rice varieties in commercial scale.

The credit extension, however, suffered some serious problems when some farmers
failed to pay their loans. But the province immediately reversed the credit scheme by
coursing loan applications through the banks with the Provincial Government itself as a
guarantor.

As a result of the agricultural program, the irrigated areas increased to 4,000 hectares
in L976. Thus, an additional 2,500 hectares previously utilized for single cropping were
planted twice a year.

Aside from the rice production program, other agricultural extension projects like
Gulayan sa Kalusugan, improvement of carabao stock and reforestation were undertaken.
Corollary to these were the home extension projects wherein housewives were taught
nutrition and other income-generating industries.

(s) Youth Development

In view of the increasing number of out-of-school youth in the province and the need
for trained manpower to carry-out the province's agro-industrial development programs,
the Governor launched in 1966 the Rizal Youth Development Programr which mobilized the
socio-economic profile of their respective municipalities.0n the basis of the results of their
survey, the youth groups undertook projects [with the financial assistance of the province)
beneficial to their communities. The youth groups later developed into a province-wide
movement --- the united Movement of the youth for Development.

(6) )thers

Another relevant project initiated by the Governor was the establishment of the
Laguna Lake Development Authority. It aimed to harness the waters of Laguna to accelerate
the development areas around the lake, including the Metro Manila area. This is still in
progress.

In view of the programs initiated by the Governor, the province was fast taking-off as
"The Premier Province of the Country." According to the Governor, the Province of Rizal
contributed 43 of the GNP of the entire country and that 60 of the national income taxes paid
came from the province. The provincial sub-urban areas became refuge of the rich from the
congestion of Manila. The province boasted of its bustling shopping centers, residential
villages, sports clubs, and high-rise office buildings.
 The economic growth was fast though uneven. Understandably, only the 12
municipalitiesa were Class "A" and their combined income accounted for almost 90% of the
total income of the whole province. The municipality of Makati accounted for 2So/o of this.

The country's major factories and plants were located in the towns of pasig,
Mandaluyong Marikina, and Malabon. Marikina was the "Shoe Capital of the philippinesJ'
The Navotas-Malabon area was the fish trading center of Luzon.

0n 1|uly 1976, however, these 12 out of 26 municipalities of the Province of Rizal

were integrated into the Metro Manila Commission.s

POST.INTEGMTION AND ITS IMPLICATIONS

The Province of Rizal suffered heavily as a result of the integration. The remaining
146 municipalities were not as productive as the other L2. Although some manufacturing
industries were set up in some of the towns, the main source of livelihood were farming and
fishing, with small-scale livestock-raising and cottage industries as secondary sources of
income.

As planned out by Governor Rodriguez, the integration dealt a severe blow to the
financial resources of the province. As noted, the 12 municipalities which constituted the
urban-industrial area of Rizal accounted for around 90%o of the province's annual income. As
shown in Table 2, revenue collection from taxes amounting to PhP70 Million was reduced to
PhPT Million a year or by 90o/o ayear after the integration. Similarly, the incidental revenue
was reduced by 680/o, operation of public enterprise by 62o/o,and other receipts by 92o/o. Aids
from National/Municipal Government likewise decreased by 260/o. On the whoie, the total
reduction to the province's annual income is 760/o.lt was a blessing the province had some
savings from previous year's operation in the amount of more than Php133 Million.
However, despite the big surplus, it was feared that in the succeeding years, the funds will
certainly run dry.

Because of the decrease in the province's income, the Governor was forced to cut back
on expenditures. He also had to lay-off 75o/o of the provincial government's personnel and
curtailed many activities. As a result, many programs and projects both ongoing and planned
were suspended. For example, the road building program was reduced to th; point where
only routine and maintenance operations could be carried out. One project --- the proposed
transfer of the Provincial Hospital to a new building equipped with the latest facilities had to
be cancelled for Iack of funds.

Table 2, Summary of Income

Province of Rizal
PARTICULARS 1976 7977 DECREASE
Gross Fund Balance Beginning 137,929.769.33 133,520,110.09
Income[-]
1. Revenue from Taxation 70,525.015.43 7,046,262.84 900/o
2.
Incidental Revenue 2,365,165.80 754,4L3.96 680/o
3,
Receipts from Operations ofPublic 1,360.00 525.30 620/o
Enterprise
4. Aids from National/Municipal Government 20,077,430.77 t4,666.669.00 920/o
Sub-Total 95.315.148.04 22,650,076.10 750/o
Total Funds Available for Expenditure 227,245.977.37 755.L70.206.79
l'1 Source: lntegrated Report on the Province of Rlzal, Local Goverlment eudtttng OlJice, Commission on euait a
tlgZA 977t.

Page | 4
CASE - THE CASE OF RIZAL PROVINCE
 Integration, furthermore, had left the province with 14 basically rural and
agricultural but backward municipalities. Governor Rodriguez described them as the
depressed areas of what was formerly "the premier province of the Philippines."

Faced with these problems, the Governor felt it imperative to reassess the provincial
government programs and consider only those programs which could be funded by the local
government. He reviewed its budgetary operations:

7. Like the other local government units, the sources of income of the Province of
Rizal are from taxation, allotment from the national tax collection and borrowings
are provided under the Revised Administrative Code and its various amendments.
2. The Province has the power of taxation under the Local Tax Code (PD No. 231) as
amended by PD No. 426. The Code transferred to local government the authority
to collect some national taxes to a certain extent.
3. Under the Real Property Tax Code (PD No. 46), the local government can tap the
revenue potentials of the realty tax by the introduction of reforms in the appraisal
and assessment of real property.
4. Under PD No.436 and PD No. 744,the local government shares in the national
taxes in the form of internal revenue allotments. They also receive national
allotment and aid from sources like the Highways Special Fund, Sweepstakes
Allotment, Police Subsidy, and aid from the Special Education Stabilization Fund.
5' Local governments can also borrow from certain credit sources under pD No. 752.
The decree also authorized local governments to issue bonds and other long-term
securities to finance self-liquidating and income producing ventures.
6. The province, aside from its regular income, has a "special income" in the form of
interest from investment in the money market. It has investments amounting to
PhP9B Million in the money market. These generate an average monthly inteiest
income of PhPl Million which was not, however, included in the regular budget of
the province. This was set aside as a reserve from which the province could draw
in order to finance future programs and projects.

In view of the above, the governor wanted to proceeding with its socio-economic
development on certain priority areas. He thought of a program that would equip the people
with the necessary skills and abilities to deal with the demands of industriri piog.r*r. H.
knew that to be certain ofthe progress ofthe province, the infrastructure pro;ects had to
be
continued. Roads had to be built on the depressed areas to open up possible avenues for
more industries.

Governor Rodriguez wondered if this was the right direction towards which the
provincial government should focus its resources to further the development of the
province; or were there other alternatives or policy measures which had to be considered?

He hoped there could be many ways.

 Figure 1. Map of Rizal Province

ffi
City of San
Jose del Monte

Rodriguez

Sfflla lrlsi.r

tlrht*c r33ry
$ir*oan
p{fi#
P4Il
' PaBte

Da$marifras
City -
?ernet* ' .. .:. ,:, .
Lt'drbfo
Cabuy*o': Prg*mler
f.t{r,BFo rd*n Santa.
Ro$a City Calamha

1
National Census & Statistics Center, NEDA (1975).
2
0rganized in 1963.
3
The Rizal Youth Development Foundation was later organized to take charge ofthe program.
4 These municipalities consisted ofLas Pifras, Makati, Malabon, Mandaluyon!, Marikina, Muntinlupa,
Navotas, parafraque, pasig, pateros,
San fuan, and Taguig. Please refer to map (Figure tl.
It was noted that the purpose of the integration was to accommodate the spill of urban
development in Greater Manila. please refer to
PD No.824 which created the Metro Manila Commission.
These municipalities consisted of Cainta, Antipolo, Taytan Angono, Binangonan, Cardona,
Morong, Teresa, Baras, Tanay, pililia, and
Jala-jala.
 BINANGONAN, RIZAL: ,,Nasa Buwis Mo Ang Ating progreso,,

lntroduction

one of the 14 nrunicipalities of the province of Rizal, Binangonan is composed of the

mainland and half of Talim istand. lt lies between the foothills of Sierra Madre Mountain anrl
the northeastern portion of Laguna de Bay, The mainland part of the nrunicipality is on tle
western side of Sierra Madre extending to the portion of Laguna de Bay while Talim island is
divided between Cardona on the eastern side and Binangonan on the western side. The
Navotas Strait separates the island from the mainlarrd. The municipality is 24 kilorneters away
from Angono, the Provincial Capitol of Rizal.

ln tertns of area, the municipality ranks the.fifth biggest in the province with a total land
area of 7,27o hectares. The mainland covers an area of 5,820.55 lrectares while Talim lsland is
about L,449.45 hectares.

Based on the 1995 census, the town had a population count of 140,700 with 28,129
houselrolils located in 39 barangays. The estimated population density was 2,241. inhabitants
per square kilometer. The most populated areas are the poblacion and the northern ,
approaches to tlre municipality near Metro Manila.

Out of the 39 barangays, 33 are. coastal with fislring as one of the major occupations,
engaged in by small and marginal fisherfolk and by medium and big fish farming operators. lrr
1995, there were 17 registered fishpens covering a totar area of 543,000 hectares.

Tlre town's proxirnity to Metro Manila has its advantages for economic growth. For
nrore than five years now, the municipality's econonlic landscape has been noted to have
shifted from agriculture'based to employment-based. About 60% of the total work force are
employed in consumer and service-oriented businesses, construction firms, manufacturing
companies, and cottage industries like furniturernaking.

There are variotrs commercial establishments in the area consisting of banks,

pawnshops, retail stores, groceries, and other service-oriented establishments. Sonre big
ntanufacturing firms are located in the municlpality such as Grandspan Corporation, steel
fabrication; Ford Truck, truck assembly; lsland Gas, LPG manufacturer; RS Batching Plant,
concrete aggregate; and Coca-Cola Bottler Phil., lnc., Pepsi-Cola Products, lnc., and Jean Valerie
General Merchandise, soft drinks. The Rizal Cement Company used to operate in the area" 8ut
due to bperational losses, the company had closed shop.

The town has some tourist attractions. There are three beautiful islets on the eastern
tip of Talirn island and hot springs in three barangays. There are also eight resorts within the
mainland, the most popular of which is the Lake lsland Resort.
 Classified as first class municipality, it had an annual an income of p g1,7g1",079.16
1999. irr

The Conceptuqlization of the progrom on

"Nasa Buwis Mo Ang Ating progreso,,

when Mayor lsidro Pacis took overthe reins of government

in 1992, Binangonan was a
third class municipality with an income of P77,445,090.64.
As a neophyte local executive with a
private sector background, he had to
examine the financial resources of the municipality in
order to match them with a number of projects that
he wanted to implernent. To his dismay,
the annual income was not sufficient to meet the financial
requirements of the projects he harl
in mind' His analysis of revenues derived from business
taxes and licenses convinced him that
the municipal governtnent was not collecting the right amount
of taxes. Aware of the fact that
commercial and trading activities were so brisk considering
that the town ir ro n".1. rur"iro
Manila, he was fully convinced that an intensified
tax collection campaign had to be
undertaken as the first program in his development agenda.
Thus, the ,,Nasa Buwis Mo Ang
Ating Progreso" program was launched by the municipai government
in January L993.

Progrom Strotegies ond Approoches

The program was focused on the collection of business

taxes. ln this regard, a survey
was conducted by the municipal staff to identify business
establishments operat;g in the area
and to determine various entrepreneurial activities in all the barangays. This
was done in
coordination with the barangay officials who assisted
in providing information regarding
unregistered establishments operating in the area
and in aisessing business volumes being
conducted by the establishments.

The results of the survey were fed into the computers.and

were analyzed. The survey
data were then compared with existing data from
the Treasury office. For instance, declared
itlcome based on existing records was compared
with the data gathered. Cross-checking of
data was also done with suppliers of business establishme"tr
vendors, etc. to determine business volumes
rr.r, as slaughterhouse, meat
of the estabrishments.

' Based on the new data and information, the

Mayor and his staff held dialogues with the
delinquent taxpayers especially those did not
declare their real income. what is noteworthy in
the process was the personal touch of the Mayor
where he personally talked with sonre of the
owners of the commercial and business establishments
in assessing their business volumes or
in determining their average sales per day. For
example, he visited a drug store and inquired
into its daily average sale. He found out that the
drug store was not declaring its real income.
He then asked the owner of the drug store
to increase the store's declared income.

The Mayor's personal touch was also evident in approaching certain professionals
and
prominent citizens, and some officials of the big firms located
in the area to pay their taxes in
Binangonan. The Rizal Cement. Company is a case in point. when the
company was still
operating in Binangonan in L993, the Mayor approached the Manager of phinma wlrich
was
based in Makati and in-charge of selling cement produced by the company
to its distributors.
He was able to convince the management of the company to register its main office
in
Binangonan and Makati as its branch office. As a result, Phinma started paying sales
tax in the
municipality

The bolster the nrunicipality's tax collection campaign, the local government touched
base with the community throlgh the church. The church groups called on their congregations
to support the municipality's effort in collecting more taxes for socio-economic development
of
the locality.
 The Mechonism for Tax Collection

The municipal government did not cieate any

special body to interrsify its tax collectio,
effort' lt relied on the existing structures
invotved ;r;;;;";;;nsible for tax assess,nent and
collection such as the section on Permits and
Licenses, the Treasuryoffice, the Engineering
office' and Health office. The Mayor specifically assigned
two staff members to assess the
taxes levied on the sales and incomes declared
by business establishments. The collection
function had been assigned to two personnel from
the Treasury office, one from Engineering
office' and two from the Health office. Meanwhile, ,*o p"rronnel
were designated to take
charge of the issuance of licenses and permits.

To facilitate
data processing and retrieval, one (1.) staff member was assigned
to feed
into the computer information rJative to business taxes
collected as well as license and
permits issued.

A follow-up team was organized composed of an inspector

and a barangay official to
visit business establishments which had been pinpointed to
be tax delinquent based on the
computerized records.

Progromfiesults

The program had some positive results in terms of (L) increased

nrunicipal income, (2)
development of tax consciousness among the residents,
and (3) execution of certain
socioeconomic development projects financed out
of the taxes coilected.

ON INCREASED MUNICIPAL INCOME

The more immediate effect of the program lies on the

revised list of registered business
establishments' From 1,459 in 1.992, the number increased
to 3,343 in 1999. The data below
show the increasing trend in the number of registered
business units.

Colendor Year No. of Estohlishments

1992 ).,459
1993 1,880
1994 2,0L4
1995 2,355
L996 2,648
L997 2,461.
1998 2,662
1999 3,343
Source: Permits and License Section, Mayor,s Office.

As gleaned from the above table, there is an increasing trend in the number of
registered business units except in 1997 where there is a slight decrease. But this increased
again in 1998 and in j.999.
 with the increased number of business units,
corresponding increase in the payment it follows that there would be a
and collection of business taxes and licenses.
succeeding table shows an increasing The
income fronr the' sai; ,;;; from cy 1992 tocy
'999.
Cdlendor year
lncreose/(Decreose)
1992 Pt,676,624.99
1993 P3,683,242.73 LL9.68
1994 P3,943,639.g6 7.O7
1995 P4,599,324.81_ 1.9.16
1996 P5,455,019.42 1.6.08
1997 P7,t25,582.48 30.62
1998 P8,398,519.39 L7.a6
1999 P5,907,483.95
Source: Municipal Accountant,s Office 17.7s)

It can be noted from the above table

that the biggest percentaEe increase of 119.6g was
registered in 1993 when the tax collection
campaign started. This suggests that there is great
impact of the approaches and strategies a
used in the implementation of the program.
Nonetheless' the trend was not
sustainel in 1999 when there was a decrease of
could be traced to the closing of 17.75%. This
operationt orttre nizai;;;;;; Company, which
the Mayor, had been a substantiar payer according to
of sares tax to the municiparity.

on the whole, there was an increasing trend

of municipal income from 1gg3 to l.ggg as
depicted from the table trelow

CY IRA Percentage of
Locol Sources
I Totsl lncome
Local to Totol
1992 P10,492,806.00 P 6,962,2g4.54 PL7,445,O90.54
L993 PL4,629,732.OO 39.91
P77,765,42_4.73 P32,394,!56.73
1994 P2O,657,174.OO 54.84
P20,649,192.97 P41.,305,366.97
1995 P23,933,999.00 49.99
P23,205,459.24 P47,I39,448.24
1996 P2g,ggg,01g.50 49.23
P24,190,453.g7 P53,179,473.37
L997 P39,790,921.g3 45.49
P20,479,949.06 P6A,270,77A.99
1998 P43,093,473.00 33.98
P23,591,093.6g P66,674,556.69
1999 P55,497,711.00 35.37
* P26,293,369.16 P81.781.07e.16 32.1,4
unicipal Accountant,s Offica

I can be gleaned l'rom the above

table that the increase
"*'"-r*n",ess,
in increase in income could be
largely attributed to the IRA share
of the .uni.ipuiity. the table shows that in
1993' about 55% of the total income
come from local sources. Again, this strongly indicates
positive effect of the tax campaign the
waged by the municipal government although this
decreased to around 5076 in 199a slightly
and lbout cg% in 1gg5 in ielation to the big increase
IRA. of the

It can also be seen from the same tdble that income

from local sources has reached the
P20 million level in 1994 and up
to P26 million in 1999 from a low level ol about p7 million in
1992' The iump from P7 million to P20 million
could be traced to
the effort of the municipal
government to collect more taxes
with the support of and in coordination with the community
through the barangay captains and the
church readers.
 ON THE IMPTEMENTATION
OF SOCIO.ECONOMIC DEVELOPMENT
PROJECTS

with the increased income from the collection

of taxes, the nrunicipal government was
able to implement projects that have
improved, to a large extent, the socioeconomic
of the communities' ln 1994, about P1o4 million conditior.rs
from municipal income was spent for
community projects which included
the following:

L' lnfrastructure projects such as the repair, leveling,

concreting and constructlon
of roads, pathways and bridges. These facilitated
the flow of loods and services
to and from the barangays.

2' Construction and repair of artesian wells in the barangays.

This provided water
supply to the residents most especially to the poor
families.

3' Maintenance and repair of the public market and slaughterhouse

which
facilitated trading activities. This benefited both
the market vendors and the
consumers.

4. Provision of financial support to shoulder hospital bills'of

indigents through the
Municipal lndigent program estabrished by ttu municipar
allocation of around p200,000.00 was made for
fovernnrent.
- An
this program.

5. Establishnrent of the Municipal Hall Annex at Barangay

Gulod, Talim lsland. This
brought a strong presence of the municipar government in
the isrand by
delivering regular services to the L7 barangays located in
the lsland. These local
units can only be reached by boat. ln fact, the Mayor
then herd office at the
Annex every Wednesday of the week.

6. Repair and construction of some facilities such as

schools, health centers and
barangay halls.

7. Provision of some funds for the municiparity's "sakay sa programang

Pangkabuhayan," a liverihood program designed
for extending roans to the
communities through the cooperatives.

ON THE DEVELOPMENT OF TAX

CONSCIOUSNESS

As mentioned earlier, the tax collection canrpaign

was done in collaboration with the
barangay captains and church leaders. The
campaign process made the citizens aware of their
duty to pay their taxes on time as well as to pay
the correct amount. The process also instilled
in them the value of paying the correct taxes through
the benefits that they would receive in
terms of improved services.

The implementation of the above socio-economic programs and projects

made the
communities fully aware of the benefits derived from the collection
of more taxes. As such, the
payment and collection of taxes were lnade a lot easier.

The campaign process made the barangay captains a major stakeholder in the tax
consciousness program by having access to funds out of the collected
taxes in their respective
barangays for the implententation of community projects such
as concreting of pathways and
the installation of artesian wells. Their involvement in the projects
also enabled them to hone
their skills in communicating and negotiating with the municipal government
officials as tSey
held frequent dialogues and meetings with the local government officials and
staff.
 lssues, problems qnd Concerns

Attendant to the increase in municipal

revenues and income is the issue on the financial
operations of the local government
unit. How sound are the locar gover.ment unit,s
operations? Has the increased inconre
necessarily led to positive financial operations?
case of Binangonan, it appears that ln the
financial operations have not been sound due to
incurred from 1996 to 1999. The table deficits
below depicts the financial operations of the municipal
government from 1992 to 1999.

Colendor yeor lncome Cumulative Results of

Expenditures
* Operotion
1992 P17,445.090.64 P77,340,995.17 P2,833,369.02
1993 P32,394,L58.73 P31,528,530.59 P3,936,245.64
1994 P41,305,366.97 P44,594,766.72 P57,383.O1
1995 P47,139,449.24 P46,929658.O2 P31"6,435.11
1996 P53,178,473.37 P56,945,799.75 (P509,177.96)
1997 P6O,27A,77O.gg P77,61,g,563.54 {.P13,704,17O.36)
L998 P66,674,556.69 P59,649,906.42 (16,699,957.44)
1999 P8:t,781.079.16 P82,949.271.61 (2,306,628,23)
Source: Municipal Accountant,s Office

The above table shows that the municipal government

had been financially operating
negatively from 1996 to L999. This situation
could f," .ttribut"d to a number of reasons. First,
the municipal government obtained a loan
of P20 million from Land Bank for infrastructure
projects in 1996' The loan was payable
within seven (7) years with an interest of j.6%in 1997,
17%in 1998, and L8.95Yo in 1999. The payment
of loan amortizations could have contributed
to the deficits of the local unit. second, the municipal government
provincial government of Rizal had to remit to the
the amount of about p7 million which it had failed to renrit
L992' The municipal government started since
remitting the collected transfer taxes in 1997 which
could have constrained the cash outflow
of the local unit. Third, it was believed by the
municipal officials then that the Municipal
Treasurer's office was not able to meet its target
collection which resulted in deficit
spending bythe municipality.

The attitudinal problem of employees

appears to have affected to a certain degree the
implementation of the program.
According to Mayor pacis, the employees particularly
involved in assessment and collection those
did not have the initiative to campaign for payment of
taxes' lnstead of going out to entice the taxpaye.,
to pry, they waited in their office for
taxpayers to come and pay. ln other
words, they were not results-oriented.

Part of the success of the progranl are the systems

and procedures regarding tax
assessment and collection' lf such are in place, documentation and reporting" on
collection and disbursenrent would promote actual
transparency in municipal transactions which
would in turn promote mutual trust between the
local government and the citizens.
Unfortunately, such systenls and procedures are not yet
in place in Binangonan. Although
some data and information about business establishments
had been computerized, not all tax
records and files had been encoded. Presently,
there are only a few computer units that can be
used by staff. Besides, not all personnel are computer literate.

Source: Legaspi, perla E.-

State: Some Cases in philippine LocalGovernment