Issues and Concerns Gathered during PH-EITI's
Annual Dialogues with Stakeholders (FY 2015 - 2020)

Category
Sub-category
Issues and Concerns
Responses
National Wealth ManagementCollectionFull amount of MGB’s share in royalty collection is not released to them as constrained by the budget ceiling imposed by the DBM DBM to copy furnish MGB regional offices with the notice of advice to debit account or other documents with information on LGU shares.
National Wealth ManagementUtilizationMost social projects are dole-outs and therefore, not sustainable.
National Wealth ManagementUtilizationBarangay captains are part of company payrollsShares and collections of barangays should be captured in the EITI report
National Wealth ManagementUtilizationLGUs’ quarterly reports on income and expenditures are not detailed. Spending of shares in national wealth is not clearly reflected. The BIR regional office will assist the LGU by forwarding the request for information/data to the national office.
National Wealth ManagementTransfer from National to LGUDelayed release of LGU shares in national wealthDBM to copy furnish MGB regional offices with the notice of advice to debit account or other documents with information on LGU shares.
National Wealth ManagementTransfer from National to LGUThe Notice of Funding Check received by LGUs from DBM on their share in national wealth do not specify which came from royalties and which came from excise tax

Some LGUs do not receive Notice of Funding Check from DBM or credit advice from the bank

Delayed and irregular receipt of Notice of Funding Check (NFC)

Notice of Funding Check does not indicate the fiscal year covered by the amount received including the specific sources of the share
DBM will provide detailed NFC on the condition that collecting agencies (BIR/MGB) will indicate the same information in the joint certification that they submit
National Wealth ManagementTransfer from National to LGULGUs are not informed if deposits to their accounts were already made

Leyte has not received its share from national wealth since 2010

Siquijor also reported that it hasn’t received its share
Provide advance information to the LGUs on the running total collections of MGB so that they will be able have an initial estimate of their share. Having an estimate will help the LGUs budget and plan local development activities. DBM to consistently inform LGUs regarding actual release
National Wealth ManagementTransfer from National to LGUDelayed downloading of LGUs’ shares in national wealth causing inefficient local development planning and duplication of development projectsMake necessary changes in the local reporting system particularly the Electronic Statements of Receipts and Expenditures (eSRE). Advance information on amount of shares should be provided to the LGU
National Wealth ManagementTransfer from National to LGULGUs lack capacity to compute their shares and verify its correctnessThere should be capacity building measures for barangays to formulate local development plans; Capacity of LGUs in revenue management and expenditures should be increased
National Wealth ManagementTransfer from National to LGUSome LGUs do not know the process to follow to claim their shareLGUs to internally track the spending of shares from national wealth.Simplify the process on the release for LGU shares. Study the current process and identify steps that can be omitted or simplified
National Wealth ManagementTransfer from National to LGUNo disaggregation of data to determine how much of the LGU shares came from the mining companiesFor the DBM to be able to provide disaggregated data on national wealth, BIR and MGB should provide them with that information; Recording of LGU shares in national wealth should be revised to reflect amounts coming from each sector.
National Wealth ManagementTransfer from National to LGUNueva Vizcaya has not received its share from national wealth. They had done constant follow ups with DBM and BIR.DBM should also inform MGB and BIR the amount of released shares per LGU
National Wealth ManagementTransfer from National to LGULGUs where the principal office of mining companies is located are receiving higher collection of taxes than the host LGUInstitutionalize automatic retention of LGU share at the local level
Laws and Policies on ExtractivesWhat is the extent of the regulatory powers of LGUs on mining companies? What are the limitation on the power of local sanggunians to impose additiona fees and taxes?LGUs should have final say on whether they want mining in their areas or not. This power should be devolved to LGUs
Laws and Policies on ExtractivesAre LGUs willing to follow national government policies on minerals?Consider creating a sovereign wealth fund
Laws and Policies on ExtractivesHead offices of mining companies collecting more revenues than the host communities

Issue on the proper taxing jurisdiction. Oceana gold is registered in Kasibu but paying taxes in Quirino.

Granting of income tax holiday to mining companies despite LGU protests

Mining policies at the local and national level are not aligned

The LGUs want to impose real property tax on a mineral reservation area; conflict between local and national policies
Amendment of the Internal Revenue Act and Local Government Code of 1991 in relation to the taxation policy for principal office and host LGUs
Laws and Policies on ExtractivesMalampaya is located within the provincial waters of Palawan but taxes are directly paid to the national government, Palawan LGU awaiting a compromise agreement with the national government. Status of Malampaya funds should be included in the report
Laws and Policies on ExtractivesImplementing Rules and Regulations for SSM are too onerous for applicants and all the more discourage applications. Example of onerous provisions: getting individual consent from landowners, MGB has no set period for approval of applications for Minahang BayanInclusion of non-metallic industry in the EITI report
Laws and Policies on ExtractivesNeed for a more rational revenue sharing scheme so that revenues would most benefit the mining communitiesIn amending the policy on revenue sharing, include amendments pertaining to the LGU share. Most bills proposing the restructuring of revenue sharing only covers sharing between national government and companies.
Laws and Policies on ExtractivesShould LGUs also share from revenues of PMDC because the latter is a GOCC? The LGC states so.Propose amendments to the Local Government Code regarding taxation scheme between the LGUs where the mining company operated and LGUs where the principal office is located
Laws and Policies on ExtractivesLack of declaration on Minahang Bayan rendered all SSMs illegal. As a result, LGUs have stopped accepting payments from SSMNew IRR for SSM is too onerous for small scale miners
Royalty ManagementRoyalty paymentRoyalties are not properly given to lumadsDevelop a mechanism to properly monitor royalties given to IP communities including the spending
Royalty ManagementUtilization of royaltyRoyalty funds are poorly managed and monitoredMonitor how IP royalties are being spent,strenghthen the monitoring team at the local levels
Royalty ManagementSystem for operating in ancestral domain FPIC only secured at the exploration stageCompanies at the exploration stage should be included in the report, IPs should be involved in planning SDMPs
Cost and Benefit of Extractive operationsEconomic benefits generated from extractive industries do not compensate for its environmental impactsStrengthen mechanism for monitoring benefits from mining operations and focusing SDMP on building human capital; EITI process should be dovetailed with WAVES
Cost and Benefit of Extractive operationsBenefits derived from extractive industries do not translate to local development (particular attention was focused on Indigenous Peoples)MMT should regularly report to all concerned LGUs –barangay, municipal and provincial LGU
Accountability and CommitmentGovernmentBacklog in BIR’s and MGB’s issuance of certification to DBM
Accountability and CommitmentGovernmentMMTs that are not functioningImprove the capacity of Multipartite Monitoring Teams (MMTs), Review the process in selecting members of MMTs and PMRBs
Accountability and CommitmentGovernmentAccess to information. LGUs would need to go to BIR central office just to access information on taxes paid by mining companies in their areaDevelop a mechanism for LGUs to access information relating to tax payments of mining companies
Accountability and CommitmentGovernmentCompensation to landowners affected by mining operationsDevelop a provision or guidelines regarding compensation to landowners.
Accountability and CommitmentGovernmentDavao has banned open pit mining. What will be the effect of this on existing mines?Impact of mining should be discussed in the 2nd report
Accountability and CommitmentGovernmentCan companies without mayor’s permit operate on the ground that they have licenses from MGB?LGUs should have final say on whether they want mining in their areas or not. This power should be devolved to LGUs.
Accountability and CommitmentGovernmentSSM is prevalent in Davao
Accountability and CommitmentGovernmentLGU representatives attending EITI events differ from one workshop to another; No continuity of efforts / knowledgeEITI report should be presented to local development councils, LGUs should designate an EITI point person for each LGU
Accountability and CommitmentGovernmentNo DMRFP has been approved since 2010 (No idea what DMRFP is)
Accountability and CommitmentIndustryA mining company in Cantilan allegedly has no business permit but it continues to operate. Its business permit was issued by the adjoining municipality which the locals are now contesting.Propose amendments to the Local Government Code regarding taxation scheme between the LGUs where the mining company operated and LGUs where the principal office is located
Accountability and CommitmentIndustryMining companies operate private ports, there is concern on the correctness and accurateness of the volume of ores shipped by the companiesInclude revenues from processing (downstream) in the next report
Accountability and CommitmentIndustrySDMP projects of mining companies do not always cater to the needs of the community; LGUs have no idea how SDMPs are implemented. The SDMPs are not embedded in the LGU projects.

No consultation with LGUs regarding company’s social projects. Projects are just turned over to LGUs when they are finished
MGB should issue a memorandum circular requiring companies to collaborate with local development councils in planning the SDMP
Accountability and CommitmentIndustry7 companies in ARMM have MPSAs but the report only includes SR LanguyanInclude ARMM companies in the EITI report
Accountability and CommitmentIndustryExploration phase lasting up to 6 years with no collections but the company is already extracting mineralsBefore coming up with a mineral plan, national government should craft an industrialization plan
Accountability and CommitmentIndustryNot all levels of the LGU are well-informed on the progress of SDMP implementationCompanies should keep track of the impact of their social projects and submit a report to regional MGB

Other Recommendations
1Integrate SDMP to development plans of LGUs
2The report should include information on company violations
3Include non-metallic mining in the next report
4LGUs should be involved in drafting guidelines for environmental protection
5Utilization report on shares from national wealth should be included in the DILG’s open portal
6Transparency measures of EITI should be adopted by LGUs at the local level
7Examine status of PMRBs
8Increase capacity of LGUs in monitoring mining operations in their area including the sales and revenues of mining companies so that they will be have an idea on the amount shares that they should receive
9Automatic release of the LGU shares from national wealth
10Accounting of the LGU shares as trust fund
11Monitor the spending of the IP royalties to know whether these are used to improve the community
12Strengthening of monitoring teams at the local level
13Strengthen MMT monitoring
14Capacitate LGUs regarding planning and management of SDMP
15SDMP should be integrated in the local development plan of LGUs
16Bottom-up budgeting should be strengthened at the barangay level to increase participation of the community
17Before coming up with a mineral plan, national government should craft an industrialization plan
18We should have M&E on the royalties received by IPs
19LGUS should have effective monitoring tools for natural resource revenues
20EITI report should include information on mine rehabilitation programs, copies of environmental plans and status of funds
21Geothermal energy should be included in the report (recommendation from Albay)
22Jose Panganiban Municipality applied for Minahang Bayan in 2013. No action until now.
23EITI report should also include discussion on permits obtained from LGUS and the process for approval
24EITI report should include challenges in collecting payments from companies
Other Action Points
1Relay Cantilan issue to MGB
2Relay issues/recommendations to BIR, MGB, DILG
3Discuss with MSG the inclusion of barangay data
4Coordinate with RD of NCIP on the monitoring template for royalties
5Follow up designation of point person for EITI for each LGU
6Study/note recommendations on additional information in the report
7PH-EITI Secretariat to work with ULAP in making the PH-EITI findings useful relevant to local development planning
8EITI to find possible areas of integration with WAVES based on the kind of data that WAVES will produce
9Study suggestions for additional information in the next report
10EITI to further discuss with the Department of Finance the issue on accounting of the LGU shares as trust fund.
11Get list of companies from ARMM and ask them for information
12Study recommendation on inclusion of companies at the exploration stage
13Relay to NCIP the recommendation to involve IPs in SDMP planning
15Note/study recommendations on additional information for the report
16Relay to BLGF the need for monitoring tools for natural resource revenues

Category
Sub-category
Issues and Concerns
Responses
National Wealth ManagementCollectionLGUs echoed concern on the accuracy of the reported figures since BIR do not disclose the reports under claims that the documents are confidential.DILG rep agrees that there should be an audit report where collecting agencies should be furnished
National Wealth ManagementCollectionBureau of Treasury and BIR should fast-track reports as their delay affects the remittance to LGU.Suggested that and suggested that company can divide the check payment to national government and to local governent hosting extractive activity
National Wealth ManagementUtilizationLGUs cannot utilize appropriately the corresponding share from extractive to the appropriate year since there is a two year delay in the remittance from DBM
National Wealth ManagementTransfer from National to LGULGUs are dependent on audit reports to check if extractive companies are paying and if they are taxed appropriately.
National Wealth ManagementShare from national wealth should be directly remitted to LGUsGovernment and Industry agrees that there should be direct payment
National Wealth ManagementTransfer from National to LGUDelays in remittances. Share from national wealth should be directly remitted to LGUs but the problem is the collection of excise tax to BIRGovernment and Industry agrees that payments should be made, and suggested that company can divide the check payment to national government and to local governent hosting extractive activity.

There should be a mechanism where host LGU and communities can know how much is produced in a quarterly basis, its value, what tax should be paid and how much is their share.
National Wealth ManagementTransfer from National to LGUNo clear instructions from government, particularly from BIR and DBM, on how to settle payment and taxation if two LGUs are claiming of payments from one company where extractive activities boarders on two municipalities (like in the case of Mankayan and Kasibu).
Data UtilizationGovernmentCreation of a common data base. In every host LGU/community, there should be a group who understands what is being produced, its volume, quantity, classification, how much the mineral costs, how much it will be sold in the market, and how much is the sharing.
Data UtilizationLGUHost municipalities to understand the flow of money: from the time the ore is extracted, processed, transported and sold. The figures may be provisional.
Laws and Policies on ExtractivesPass a law that will solve the issues on share of excise tax
Laws and Policies on ExtractivesULAP should also make amendments to the Local Govt Code.
Royalty ManagementRoyalty paymentThe Chief Administrative Officer of NCIP-CAR, highlighted that the IPs must be represented at the civic society org and that the IP Royalties should be made known at the regional offices, and not just in the central office, so that they would know what to monitor. PH-EITI National Coordinator explained that PH-EITI worked with NCIP to develop a monitoring tool that will monitor the implementation of MOAs and how royalties are being spent. This is not yet being implemented although it was already approved by the Commission En Bank last year. PH-EITI envisioned a consultation, especially in the region, with the IPs on how this can be
Royalty ManagementCapacity building for IPs
Accountability and CommitmentGovernmentGovernment agencies should improve their system in the gathering of data and not wait for or in the absence of an administrative order.
Accountability and CommitmentGovernmentMGB should come up with a uniform template on direct remittanes that will reflect the same set of questions across all agencies. One format that are answerable to all information needed by the LGU.
Accountability and CommitmentGovernmentThere should be a group who understands what is being produced, its volume, quantity, classification, how much the mineral costs, how much it will be sold in the market, and how much is the sharing. He said that it will answer a lot of question if the process will start out with a common database.

Category
Sub-category
Issues and Concerns
Responses
National Wealth ManagementCollectionCompanies are paying business tax in Makati
National Wealth ManagementCollectionAutomatic retention of the share of the LGU before remitting to national government
National Wealth ManagementCollectionFluctuating figures for the revenues of Bicol Region
National Wealth ManagementCollectionBig loss of funds for LGUs due to tax credit
National Wealth ManagementCollectionVAT exemption/tax credit given to companies resulted in loss of funds of the LGU
National Wealth ManagementCollectionSSMM not properly taxed by the government
National Wealth ManagementUtilizationLGU must also be transparent on how they spend the revenues
National Wealth ManagementUtilizationData generation should shed light on the utilization of funds for local development planning
National Wealth ManagementUtilizationLGU should have complete control on how to use the shares from national wealth that become part of the general funds
National Wealth ManagementTransfer from National to LGURespect the autonomy of the local government and there should be direct release of shares from national wealth
National Wealth ManagementTransfer from National to LGUTimely release of shares from national wealth
National Wealth ManagementTransfer from National to LGUDBM unable to provide clear information on the status of funds
National Wealth ManagementTransfer from National to LGUDelayed release of funds, i.e. estimated excise taxes from 2009 to 2013 was more than P10 million but the LGU only received P1.2 million
National Wealth ManagementTransfer from National to LGUInsufficient funds received by the LGU
National Wealth ManagementTransfer from National to LGULack of information on how shares from national wealth are computed
National Wealth ManagementTransfer from National to LGUTiming, sharing of funds between LGUs and budgeting
PH-EITI Report CoverageData CoverageSmall scale mining companies not yet included
PH-EITI Report CoverageData CoverageCement industry, sand and gravel and filling materials not yet reflected in the EITI report
PH-EITI Report CoverageData CoverageInclude in the coverage of Beneficial Ownership people from the mining companies
PH-EITI Report CoverageData CoverageTransparency should not be limited to revenue generation but on the entire natural resource management system. EITI should move forward in building transformation in resource governance
PH-EITI Report CoverageData CoverageTaxes of non-metallic mining companies like quarrying should be included in EITI reporting
PH-EITI Report CoverageData CoverageProduction of gold from SSMM is even larger then LSMM but they are not included in the EITI report. Figure of gold extraction from large scale is only 80 tons per year but small scale mining has 130 tons per year
PH-EITI Report CoverageData CoverageSmall scale and non-metallic mines should be included in the EITI initiatives / coverage because these sectors notably have hefty production (in both volume and value
PH-EITI Report CoverageData CoverageInclude corresponding social obligation of companies to the affected communities in the EITI reporting
PH-EITI Report CoverageData CoverageExact data on the contribution of mining to the economy
PH-EITI Report CoverageData CoverageEITI data focus only on economic indicators and not on the long-term impact to people
PH-EITI Report CoverageLGU participationLack of capacity in the barangay level
PH-EITI Report CoverageLGU participationNeed help in gathering data because the LGU lacks manpower
PH-EITI Report CoverageCSO ParticipationMedia not invited during local development planning and also not aware of the PH-EITI report
PH-EITI Report CoverageCommunity ParticipationLet the PH-EITI report be a tool for letting the people know what the companies are doing in the communities, both good and bad.
Data UtilizationCSO and CommunityEITI should be translated at the grassroots level. Reach out to the barangay level for discussions.
Laws and Policies on ExtractivesFor almost 6 quarters, Aroroy did not receive excise tax. The tax credit should have been credited in the 60% and not on the 40% share of the LGU. Matter was brought to DBM and BIR but no received no information.
Laws and Policies on ExtractivesPush for policy that strengthen the local development council.
Laws and Policies on ExtractivesConsistent with the pronouncement of the President there should be policy on processing of extracted resources.
Laws and Policies on ExtractivesLocal chief executives should be given power to regulate and monitor the mining companies and its operations.
Laws and Policies on ExtractivesSitus of business tax is being lobbied in Congress, together with another issue for LGC amendment regarding direct release of shares to LGU.
Laws and Policies on ExtractivesNeed for policy and system reform in order for the extractive industry to be better understood by the public.
Laws and Policies on ExtractivesLGUs should pass ordinance on real property tax.
Laws and Policies on ExtractivesPolicy gaps and lack of clear guidelines on SDMP.
Royalty ManagementRoyalty payment1% IP royalties is the lowest compared to other countries getting as much as10%
Royalty ManagementRoyalty paymentWithholding tax of the 1% IP royalties
Royalty Managementcapacity building for IPsIP from CAR should be given a chance to represent them in EITI
Royalty ManagementSystem for operating in ancestral domainsystem for operating in ancestral domain
Cost and Benefit of Extractive operationsRegion 2 is a watershed area and should be considered a protected area
Cost and Benefit of Extractive operationsThe 3-5% allotment by company for rehabilitation is only good for underground mining. It is very small when used for open pit mining
Cost and Benefit of Extractive operationsHazards posed by 6 billion tonnes of lahar in Zambales
Cost and Benefit of Extractive operationsThere is quarrying but SDMP fund is only P5 million per year which is not enough to cover rehabilitation
Cost and Benefit of Extractive operationsThe SDMP should be able to reduce poverty level and remove Bataraza from the NAPC list
MSG RoleEITI should sponsor a consultation on IPRA and mining.
MSG RoleDynamism of EITI must be translated into informed decision-making process.
MSG RoleARMM impose 5% revenue tax which is not yet included in the EITI reporting. Help the ARMM institutionalize this mechanism at the regional level and integrate EITI because ARMM can pass a regional law on mining.
MSG RoleCultural insensitivity during the consultation meetings.
Accountability and CommitmentGovernmentMistrust of the DILG in Nueva Vizcaya during the meeting for the MOA and not agreeing to sign as a witness in the MOA despite being the one who facilitated the meeting
Accountability and CommitmentGovernmentMMT not effective in conducting their duties
Accountability and CommitmentGovernmentMMT should also be involved in the annual EPEP to address progressive rehabilitation
Accountability and CommitmentGovernmentPush for progressive rehabilitation of mining companies
Accountability and CommitmentGovernmentPMRB and CMRB should discuss small scale metallic mining and have clear policies
Accountability and CommitmentGovernmentHold the LGU accountable for the extraction and destruction that comes from mining
Accountability and CommitmentGovernmentEnsure that benefits from the industry are equally distributed
Accountability and CommitmentGovernmentEnsure coordination between companies and local development councils with regard to formulation of SDMP
Accountability and CommitmentGovernmentLGUS (barangay, municipality, province) must also follow the guidelines on SDMP
Accountability and CommitmentGovernmentSDMP should be tied up with provincial development plan
Accountability and CommitmentGovernmentSDMP should be aligned with national and local programs
Accountability and CommitmentGovernmentDevelopment planning on the side of the LGU and capacity building in order to be self sufficient
Accountability and CommitmentIndustryAfter the operation of Carmen Copper, the LGU do not receive excise tax anymore
Accountability and CommitmentIndustrySome companies pay only custom taxes
Accountability and CommitmentIndustryDuplication of SDMP projects
Accountability and CommitmentIndustryDue to inconsistency of funds from the extractive industry, LGUs use funds for projects that look good but are not sustainable, e.g. basketball courts, hog raising and coffee farming with no direct market income Tax Holiday (ITH) of TVI
Beneficial OwnershipConfidentiality of mining companies
Political environmentGiving support to politicians during election

Category
Sub-category
Issues and Concerns
Responses
National Wealth ManagementCollectionPending resolution on the case regarding the LGU share from oil and gas activities in Palawan
National Wealth ManagementTransfer from National to LGUStatus of the Joint Circular 2016, DOF and DBM provides the release of LGU shares through BTr
PH-EITI Report CoverageData CoverageEmployment and workforce data
-Availability
-Gaps
-Identify who is responsible for gathering data
-System to capture direct and indirect hires
PMRB has a partnership with DOLE to monitor how many people are employed by mining industry and jobs created through residual businesses.
MGB has a data on how many workers are directly hired by the mining company. Rule of thumb, for every direct labor = 5 indirect labor.
PH-EITI Report CoverageData CoverageInclude downstream industry
PH-EITI Report CoverageData Coveragelack of data on social impact of mining
PH-EITI Report CoverageData CoverageIn the executive summary, some companies did not declare social and environmental expenditures
Laws and Policies on ExtractivesAppeal to government thru DOF to reconsider TRAIN 2 and exclude PD 87
Laws and Policies on ExtractivesDismay on the lifting of the moratorium on mineral exploration
Cost and Benefit of Extractive operationsAssigning value to damages can help monitor benefits from miningWhen can we say that an extractive operation is already excessive or destructive?
Engr. Malicse said that there is a legal remedy and a technical remedy. The government through the BMB has the power to evaluate. It could also be actual evaluation with the help of technical experts. They may not have the same figures as EMB.
Cost and Benefit of Extractive operations On the economic contribution of the mining industry
– delineation between the revenue from mining and the general fund
– how much the industry can expand, how much liberty do mining companies have in the pricing of ore, where can mining companies play a bigger role?
MSG RoleCommunity must be able to differentiate responsible mining from old ways of mine operation
MSG RoleInvite NCIP and most passionate environmentalist NGOs to join MMT
Accountability and CommitmentGovernmentminahang bayan application is taking a long time be approved
Accountability and CommitmentGovernmentPending proposal for Mining Industry Tripartite Council
Accountability and CommitmentGovernmentsuggestion that SDMP’s be anchored in the development of plan of the LGU
Accountability and CommitmentGovernmentstatus of the decommissioning and rehabilitation fund
Accountability and CommitmentGovernmentlack in rehabilitation cash fund
Accountability and CommitmentIndustryrecommendation to capacitate the CRO
Accountability and CommitmentIndustryseveral quarries operating as one entityEngr. Cruz explained that under the law an operator could actually be given several permits. He committed though to look into the case of Norzagaray, where, allegedly, 17 quarries operate as one.
Accountability and CommitmentIndustryoverlapping SDMPs
Accountability and CommitmentIndustryincrease the allocation for social and environmental fundAtty. Recidoro did not agree though that it is a matter of increasing funds for social and environmental expenditures; rather, it is matter of planning where to put the revenues from mining. He lamented that some projects are pursued only for compliance purposes. He said there should be inclusive consultation. Secondly, he encouraged that the SDMP be linked to bigger projects of the municipality. He also urged better planning, and for community members to be capacitated so they themselves could decide on how their fund would be utilized, and pursue projects that will ensure sustainability of benefits
• Engr. Cruz explained that the guidelines provide for a minimum percentage/amount for the social and environment fund. He said that companies may give more
Political EnvironmentImpact of Federalism on LGU (whether it can gain more from the industry or monitor the companies closely)

Category
Sub-category
Issues and Concerns
Responses
National Wealth ManagementCollectionMayor Arturo Virtucio of Aroroy raised the issue on excise tax by Filminera.
National Wealth ManagementUtilizationUtilization of revenues from extractive industry, and if these issues are addressed, the trust of the community will increase.
PH-EITI Report CoverageData CoverageMs. Mangada attributed this to the increased coverage and participation of the non-metallic mining sector.Asec. Habitan affirmed this and noted that the report expanded the coverage of the non-metallic sector from the top 5 companies for the 4th Report to the top 20 companies for the 5th Report, representing an increased coverage from 43% of total sales in 2016 to 91% of total sales in 2017.

It was also mentioned that the enforcement of DENR Administrative Order No. 2017-07 by the MGB, also contributed to attaining the practically-100% participation of the targeted mining sector.
PH-EITI Report CoverageData CoverageInclusion of sand and gravel in the regions in future reporting.
PH-EITI Report CoverageData CoverageInclusivity, particularly in the SSM and what needs to be done.
PH-EITI Report CoverageData CoverageConvince Semirara to participate in the EITI.
PH-EITI Report CoverageData CoverageHighlight impact, challenges and value of the fifth report.
Royalty ManagementMechanism for royalty paymentChallenge of transparency among the indigenous people (IP)
Royalty ManagementMechanism for royalty paymentMr. Chito Trillanes directed the question on NCIP and MGB regarding existing policy of NCIP for comprehensive royalty development plan (CRDP) and whether CRDP is mandatory for CADTI application. He noted that IPs do not have a clear guide on royalty utilization. Government cannot do anything about because it’s a private transaction between IPs and the company. Companies report huge amount, but it does not reflect from the ground. He noted that MGB can help with this since MGB is a regulating agency, but there are IPsDirector Mamukid affirmed that CRDP is mandatory. In the formulation of the CRDP, there should be the lookout of the community. He emphasized that royalty is given to the community directly. But NCIP can help in monitoring that. That’s a common problem across the country. He assured that the agency is trying to closely monitor that.
Royalty ManagementRole of NCIPA lady from Ateneo de Davao asked Director Mamukid on steps done to address the large variance in NCIP as presented in the report earlier.Director Mamukid noted the concern and said that he will check with the regional office. After the process, NCIP will issue corresponding memorandum for the regional office.
Royalty ManagementRole of NCIPCSO from TVI asked NCIP on the status of the rehabilitation of TVI and NCIPs participation.Director Mamukid said that presently there are about 240 CADTIs covering more than 5 million hectares. All of the extractive activities are done within the Ancestral Domains (AD) of IPs. The NCIP is an agency promoting the protection of the IPs. The NCIP comes in when when an activity is conducted in the ADs. Any entity who wish to enter an AD, need free prior informed consent (FPIC). Regulated agencies cannot conduct any activity without certification that FPIC is done. Any activity without FPIC is illegal.
MSG RoleOversight in the implementation of PH-EITI
Accountability and CommitmentGovernmentLGU Rosario, Agusan del Sur related the struggle of Cossma (Co-o Small Scale Mining Association of Bunawan) in processing their Minahang Bayan permit for almost 30 years now. She mentioned two primary challenges of small scale miners
Accountability and CommitmentGovernmentSSM is governed by ordinary people. They do not have lawyers, accountants and technical people. They are dependent on assistance from the government but she said that they have not received any formal support.
Accountability and CommitmentGovernmentAroroy Mayor Arturo Virtusio asked a question for MGB, on mine rehabilitation fund. He said that the mayor is not a member of the Mine Rehabilitation Fund Committee (MRFC), only the governor.Director Monanco said that membership of the mayor on MRFC, as per DENR guideline specific agency, only the governor sits; But the mayor can sit but not as a voting member.
Accountability and CommitmentGovernmentFrom a CSO in Panay, the question is directed to SEC. She said that they help SSM and IPs in strengthening their organization to be registered in order to benefit from the royalty fees. Other organizations have a hard time registering in the SEC online registration, especially in uploading documents and filling up data. Ms. Antonio noted that it seemed to be a technical issue and asked what actions are being done by SEC to address this. Asst. Director Leonardo committed that he will personally help them.

Asst. Director Leonardo commented on a previous question about SEC registration. He said that for company registration, there are three ways that applicants may avail: 1. LEAP process,this applies only to companies that do not require a secondary license. There are tick boxes that you can check. Under LEAP, you can get registration in a day; 2. those who have secondary license, manually upload signed articles of incorporation; and 3. the regular lane, this relies on stable internet connection. Also, on the revision on GIS, SEC MC 2019-15 took effect in July 31, now requiring all corporation to disclose beneficial ownership. Asst. Director Leonardo said that they have a mechanism through LEAP program. There are various ways to help them even through manual registration.
Accountability and CommitmentGovernmentMr. Trillanes probed on the matter of policy and guidelines for extension of MPSAs and contract renewals.
Director Moncano explained that the MPSA and FTAA has a life of 25 years, renewable for another 25 years. Mining companies with near expiry should file for renewal prior to the expiry date, until there is a determination for the agency concerned. There are also instances of the term for the first 25 years, force majeure cases if there are peace and order issues, the MGB will determine the extension. If the mining company can prove that due to peace and order issues, they could not operate for four years after certifications from AFP, PNP, it can be extended. If there are adverse policies for mining companies are suspended, no due process, can be a reason for MPSA and FTAAs extension. There are policies and guidelines. If the mining has been issued with ECC, not changed, no requirement for another ECC if you are working on the same area and production not changed.
Accountability and CommitmentGovernmentMr. Chadwick Llanos inquired with MGB about the dynamics of the Provincial Mine Regulatory Board (PMRB). He asked about the health of the PMRB being assessed particularly since no uniform practice for PMRBs. He also directed the question to DILG since this is a governance issue.Director Moncano said that the PMRB is composed of the MGB regional director, the governor, IP rep, NGO, AFP, large and SSM representatives, as a policy, reconstituted for PMRB and CMRB. They don’t have special order from MGB. Right now, reconstituting updates for membership. They only put office designation such as Office of the Governor, name of the CSO, but no specific names.

Director Bonagua also pointed out that DILG always conduct orientation for new officials. On PMRB reconsititution, the DILG has yet to orient the LCEs on rules and responsibilities. They will coordinate with DENR.
Accountability and CommitmentGovernmentMs. Antonio asked the panel on the topic of each agency’s readiness and receptiveness regarding interfacing and interconnecting data.Director Moncano said that the MGB is amenable for this interfacing. He cited the new law from BSP on SSM, exempting SSM from payment of excise tax. There is a need to interface with BSP on the issuance of guidelines on the new law. However, BSP could not be part of this interfacing because BSP data is confidential. BSP said that on volume, data can be provided but for identity of sellers and buyers, these are confidential. MGB wants SSM to be mainstreamed and part of the industry based on EO 79. However, SSM production is not captured. MGB is working on process to fast tracking declaration on Minahang Bayan.

Director Bonagua mentioned that for DILG is very open for interfacing. Since 2010, the DILG already imposed full disclosure of LGUs 14 financial bids and procurement docs in their websites. DILG initiated full disclosure policy portal where LGU can upload data. The public can access data, as well as any other agency. DILG also uploads projects with resources coming from national government, specifically resources from national wealth. DILG worked with BLGF on ENRDMT. LGUs are required to submit information on local taxes, national revenues and how they used it (utilization). ENRDRMT module is under ESRE which are submitted quarterly and annually. This can be accessed by the public.

Director Soluta said that the DOE welcomes changes and they are amenable to changes. DOE puts updated data on their website, all available online.

Asst. Director Leonardo also affirmed that SEC is full support for interfacing. There is an existing partnership with BIR on TIN issuance and with DTI on business registry. However, on revised GIS, the beneficial ownership declaration is not public viewing yet, but law agencies can access it. SEC’s full disclosure complies with international standards.

Director Mamukid noted that good governance, transparency and accountability are essential. NCIP is working to partner and interconnect with other regulating agencies. However, he also recognized the challenge since several information are coming from entities operating in ADs.
Accountability and CommitmentGovernmentMs. Antonio followed up with a question on how EITI help each agency fulfill its mandate.Director Soluta said that the compliance division of MGB monitor shares to the LGU. Most of them did not respond. This is not new to her. EITI has a greater scope now. As a member of EITI, DOE has a better knowledge of what’s happening on the ground.

Director Bonagua said that EITI blends well with the policy of DILG. Full disclosure policy to get seal of good governance and translates to monertary rewards for LGU projects. DILG requires LGU to disclose and post on their website. EITI encourages LGUs to disclose revenue from extractive industries and from national wealth as utilization of this fund. It furthers DILG’s advocacy on transparency mandate.

Director MOncano said that this resulted to MGB to issue policies, standardized scoring.

Asst. Director Leonardo said that thrust in transpareny in line with SEC mandate to protect investor. Encourage investors. The SEC GIS revision, volunteers SEC to support the beneficial ownership disclosure. This is a paradigm that SEC has to comply with to keep abreast with international standards. One of the records to be kept is the list of beneficial owners aside from stockholders.

Director Mamukid said that EITI has been a great help for NCIP because it allows for free flow of information. If there is a problem, NCIP created a wider group to address this Now, NCIP has 50 viber groups, constant communication with people in the ground. This initiative will greatly help the office.

Asst. Director Ocampo said that EITI complemented the bureau’s transparency mandate and convinced service contract holders to join EITI.

Accountability and CommitmentGovernmentMs. Tess Tabada probed the DOE on steps undertaken to convince Semirara to participate in PH-EITI.Asst. Director Ocampo said that DOE will draft a circular to enjoin coal service contract holders to participate in EITI disclosure on revenue and taxes and any earnings they have.

Accountability and CommitmentGovernmentAs a last question, Ms. Antonio asked the panel how to make EITI more relevantDirector Moncano emphasized that MGB requires transparency. MGB can call mining company transparent other than compliant. Transparency is one of the parameters for responsible mining.

Director Bonagua said that EITI is significant in making sure LGUs have a role to play such as ddvocating for mine rehabilitation, inclusion of LGU in planning and SDMP and utilization. The interest of LGUs to be heard and get their rightful share.

Director Soluta said that EITI helped them have a MOA with DILG. Now, there are many participants in EITI. It’s easier to reconcile our figures. Good platform for all of us to be on the same page.

Asst. Director Leonardo cited that EITI is relevant to SEC, since all of these extractive industries are our stakeholders, whether listed or not, they need to comply with SEC requirements.
Director Mamukid emphasized that there are 245 CADTIs issued by NCIP. It has an enormous task to play with EITI, with interconnectivity, EITI can greatly help NCIP monitor on FPIC.
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Accountability and CommitmentIndustriesHow are you using the natural resources extracted? Are you extracting it efficiently?
Accountability and CommitmentIndustriesSome mining companies do not complete rehabilitationOn rehabilitation fund, if the area is already mined out, fund to be used is Final Mine Rehabilitation Development Fund (FMRDF). Other fund like Rehabilitation Cash Fund, if you are mining a part of the area, the RCF can be used for that and the other area will be used later
Accountability and CommitmentCSOstruggle in the local area because most of the people are unaware of the rules and regulations. Most of them are uneducated. She hoped that EITI can help them.
Accountability and CommitmentCSOWhat is suggested is to plant high valued trees. The people do not have resources so after mine life they could have sustained resources and sustained livelihood and the place is rehabilitated.On planting of high value fruit trees, every year there is a workshop for MMT to identify what programs to be done for the year. It will be implemented in the program. It is only a matter of bringing the idea/suggestion on the workshop and have it approved by the body.
Beneficial OwnershipChallenge in beneficial ownership / challenge of transparency among the indigenous people (IP)

Category
Sub-category
Issues and Concerns
Responses
National Wealth ManagementTransfer from National to LGUInformation on how shares from national wealth are computedDBM representative explained that the LGU is entitled to 40% share of the grosss collection dervied by the national government. In terms of distribution: 20% for the province, 45% for city/municipality, 35% for the barangay.
National Wealth ManagementTransfer from National to LGUOn sub-national transfer: how would the LGU know the exact rate it should received from the national wealth, what is the legal basis and how it is calculated.
National Wealth ManagementTransfer from National to LGUData on the production volume of other mined out minerals in some areas in Palawan, usually only one mineral is being reported. Are affected communities been given what is due them?
National Wealth ManagementTransfer from National to LGUClarification on the process of downloading LGU share from national wealth
National Wealth ManagementTransfer from National to LGUClarification on the process of reconciliation
National Wealth ManagementTransfer from National to LGUReconciliation at the local level
National Wealth ManagementTransfer from National to LGUPLGU of Nueva Vizcaya has not received the collected amount reported in PH-EITIDBM will send the process to the provincial government of NV, thru the PH-EITI Secretariat
PH-EITI Report CoverageData CoverageInclude the Cost of Mining, specifically the social and environmental costs in the report.
PH-EITI Report CoverageData CoverageDetailed breakdown of the report, per provinceThere is provincial data in the report .
PH-EITI Report CoverageData CoverageDo we have a disaggregated data on royalty payments and SDMP per impact area in Palawan?No disaggregated data yet on SDMP impact.
PH-EITI Report CoverageData CoverageUpdate on the operation of TVI in Bayug, Zamboanga del Sur
PH-EITI Report CoverageData CoverageInformation on carbon taxesThis should be included under the TRAIN law, but it is not explicitly discussed in the report.
PH-EITI Report CoverageData CoverageWhy Tawi-tawi is not included in the report, how can BARMM provinces access data from MGBPH-EITI report does not cover any project in BARMM area, at the moment.Although it was recommended in the 2017 EITI Validation.
PH-EITI Report CoverageData CoverageIf there is part of the report where to support the data on expensesThis is not part of the report.
PH-EITI Report CoverageData CoverageIncluding gender and developmentThere is an initial study, although not yet published, and there is still a need to upscale the framework for gender and development in the extractives.
PH-EITI Report CoverageData CoverageIn the social and environmental section of the 6th Report, there are companies with no data or zero figures on EPEP/SDMP, is it due to non-availability of data/information from the mining & government, or zero (0) expenditure for EPEP/SDMP?
PH-EITI Report CoverageReporting AgenciesParticipation of government agencies like the Bureau of Customs in the reconciliation, how can data be accessed and the period when reconciliation should be done. Agencies like the BoC submits report to PH-EITI, the data from various agencies are reconciled by an Independent Administrator. The data are from the previous fiscal year operation and transactions, collected after the financial statement has been audited.
PH-EITI Report CoverageReporting AgenciesHow can EITI contribute to the fulfillment of the mission of our office (NGA regional office in Region 7)DILG – data from EITI as a means or reference to validate the share of the LGU from the national wealth; use the information as reference to plan for development projects in the municipality, province
PH-EITI Report CoverageReporting AgenciesMGB-DENR – data from EITI becomes a reference for transparent and accountable transactions in the mining industries; EITI is a reference for companies to follow what is stipulated in DAO 2017 of MGB; participation of companies to EITI allowed MGB to monitor those who do not comply with DAO 2017 and enforce the penalties stipulated under this department order.
PH-EITI Report CoverageReporting AgenciesDOE – EITI is a platform of the Oil and Gas industry to be transparent in their transactions
PH-EITI Report CoverageReporting AgenciesDBM – EITI is a reference of DBM to validate the amount that should be shared to the LGU from the national wealth
PH-EITI Report CoverageReporting AgenciesDOF – The improvement in the automated system of local government reporting of tax collection from the extractives, and monitoring of the utilization of the share of LGU from the national wealth
PH-EITI Report CoverageReporting AgenciesULAP – Platform to monitor the trasactions of extractive industries operating in the province or municipalityof ULAP member- LCEs
PH-EITI Report CoverageCommunity Participation“Dapat ang report ng EITI gawing pang-masa, naiintindihan ng lahat, para maiwasan na ang pagtatalo-talo, at magamit ang mga venue kagaya nito para mapaabot sa lahat kung may mga IP royalties na dapat na ayusin”.
Laws and Policies on ExtractivesUpdate on the implementation of EO 79, issued in July 2012, which provides for, among others, the identification of NoGo zones, WAVES, etc. On EO 79, where is the final No-Go Zones Map, what is the timeline for its availability?
Laws and Policies on ExtractivesBasis for suspending and re-opening of some mining companies in Zambales.
Royalty ManagementRoyalty PaymentVariance in the royalty paymentAdmittedly, there are still lags in the process of data management (NCIP CAR Office Representative)
Royalty ManagementCapacity building for IPsThe need for capacity building of IP communities in order to come up with sustainable plan (CRDP)The communties are required to craft their own CRDP, and state where they will use the royalty and the development in the communities where the royalty will be allotted. The Commission assess if the plan is indeed helpful to the community.
Royalty ManagementCapacity building for IPsInvolve ang IP communities in all initiatives
Royalty ManagementSystem for operating in ancestral domainMake CRDP mandatory for all LGUs with ancestral domainCRDP is a safeguard for the community that the royalty will not be subject to corruption.
Royalty ManagementSystem for operating in ancestral domainStrictly observe and follow the FPIC (Free, Prior and Informed Consent) rules even for small-scale mining for Ancestral Domain areasNCIP ensures that FPIC rules are implemented.
Royalty ManagementSystem for operating in ancestral domainAmendment or reform of FPIC or assessment of implementation system by NCIP
Royalty ManagementRole of NCIPClarification on the participation of NCIP in the 6th reportThe function of NCIP is to monitor the royalty. It is also the function of NCIP to make sure that the programs in the CRDP are delivered to the communities.
Royalty ManagementRole of NCIPDoes NCIP earn from Mining as reported. How can Ancestral Domain areas ensure that they get royalty from the mining operations.NCIP to provide clear guidelines to the IP communities on developing CRDP or give assistance to IP communities to develop their CRDP.
Royalty ManagementRole of NCIPNCIP shall make the CRDP (Community Royalty Development Plan) available at the regional office, or even at the community level, online or hard copy
Cost and Benefit of Extractive OperationsCost benefit analysis on the effect of mining in a locality, include the social and environmental costs
Cost and Benefit of Extractive OperationsReport on the cost to climate risk and hazard assessment.
Cost and Benefit of Extractive OperationsHow does the PHEITI and the government view the strategic nature of the minerals which are necessary for our own industrialization, but is simply exported in raw form? Could it be more beneficial to reserve them for our own use instead of selling them as raw materials?
Cost and Benefit of Extractive OperationsNo rehabilitation and payment given to communities for damages brought about by 20 metallic mining companies which permit was cancelled in 2017.
MSG RoleWill localization of PH-EITI help in resolving concerns and issues of the local stakeholderLocalization and sub-nationalization will allow the local stakeholders
MSG RoleExpand the gender and development component of EITI to the community through the CROsThis will be part of the program of PH-EITI in the coming years.
MSG RolePresent disaggregated data on gender and development
MSG RoleChallenges of EITI implementation amid pandemic.Delimit the opportunity to share the data from EITI report with sub-national stakeholders
MSG RoleRole of the MSG if there are variances or deficiencies in the reconciled report.
MSG RoleUpdate on the status of establishment or institutionalization of MSG in every provinceThe details of sub-nationalization is still being discussed by the MSG.
MSG RoleHave an MSG at the provincial or municipal level
MSG RoleFormula for sub-nationalization of natural resource management
Accountability and CommitmentGovernmentCompel other mining companies to join PHEITI.
Accountability and CommitmentGovernmentReport on Mining Governance is also called for, how effective is its monitoring systems.
Accountability and CommitmentGovernmentAvailable platform for full disclosure and transparency on extractives at the local level, and CSO engagementPresence of website, social media where the reports are shared
Accountability and CommitmentGovernmentMechanism to allow other agencies to participate in providing technical assistance for natural resource management
Accountability and CommitmentGovernmentStatus of Lami BNMI EMI at ZDMC and ORE Asia DRT in Zambales
Accountability and CommitmentGovernmentClassification conversion system for lots acquired by mining companies, as basis for calculating real property tax.
Accountability and CommitmentGovernmentProposed to the Local Government Units (LGUs) with mining operation to come up with local ordinance in order to strengthen EITI implementation at the local level, have a representative in the Regional Development Council, in CAR and in other regions
Accountability and CommitmentGovernmentIf companies will note be able to comply with what they committed, what are the penalties?In case the company is not able to comply, MGB calls its attention.
Accountability and CommitmentIndustryHow to ensure that companies are accountable to their commitment written in their EPEP and SDMP, are there penalties?The SDMP is a 5-year program which the company plans out together with the communities. In case, the compnay is not able to fulfill its commitment, it can go to MGB. Then MGB should require the company to provide what it had committed under the SDMP. The MGB monitors the project of the company, using a scorecard, so far none of the companies have failed in its scorecard.
Accountability and CommitmentIndustryHow can mining companies avail of DOST’s CRADLE Program, what are the other agencies involved in the program. The CRADLE Program is a partnership between COMP and DOST. Mechanism to reach the companies and match mining technology of DOST
Accountability and CommitmentIndustryHow can mining activities be sustainable in these times of pandemic and worsening climatic and ecological crisis.
Accountability and CommitmentIndustryOn projects for the communities, why are companies utilizing the taxes they paid for to the communities for their projects.
Accountability and CommitmentIndustryRehabilitation for mined areas in Antipolo should be started
Accountability and CommitmentCSOCan CSOs participate in the monitoring of LGU utilization of share from national wealth?
Accountability and CommitmentCSOIncrease participation of civil society in the EITI and natural resource governance discussion