Issues and Concerns Gathered during PH-EITI's
Annual Dialogues with Stakeholders (FY 2015 - 2020)
FY 2015
| National Wealth Management | Collection | Full 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 Management | Utilization | Most social projects are dole-outs and therefore, not sustainable. | |
| National Wealth Management | Utilization | Barangay captains are part of company payrolls | Shares and collections of barangays should be captured in the EITI report |
| National Wealth Management | Utilization | LGUs’ 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 Management | Transfer from National to LGU | Delayed release of LGU shares in national wealth | 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 Management | Transfer from National to LGU | The 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 Management | Transfer from National to LGU | LGUs 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 Management | Transfer from National to LGU | Delayed downloading of LGUs’ shares in national wealth causing inefficient local development planning and duplication of development projects | Make 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 Management | Transfer from National to LGU | LGUs lack capacity to compute their shares and verify its correctness | There 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 Management | Transfer from National to LGU | Some LGUs do not know the process to follow to claim their share | LGUs 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 Management | Transfer from National to LGU | No disaggregation of data to determine how much of the LGU shares came from the mining companies | For 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 Management | Transfer from National to LGU | Nueva 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 Management | Transfer from National to LGU | LGUs where the principal office of mining companies is located are receiving higher collection of taxes than the host LGU | Institutionalize automatic retention of LGU share at the local level |
| Laws and Policies on Extractives | What 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 Extractives | Are LGUs willing to follow national government policies on minerals? | Consider creating a sovereign wealth fund | |
| Laws and Policies on Extractives | Head 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 Extractives | Malampaya 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 Extractives | Implementing 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 Bayan | Inclusion of non-metallic industry in the EITI report | |
| Laws and Policies on Extractives | Need for a more rational revenue sharing scheme so that revenues would most benefit the mining communities | In 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 Extractives | Should 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 Extractives | Lack of declaration on Minahang Bayan rendered all SSMs illegal. As a result, LGUs have stopped accepting payments from SSM | New IRR for SSM is too onerous for small scale miners | |
| Royalty Management | Royalty payment | Royalties are not properly given to lumads | Develop a mechanism to properly monitor royalties given to IP communities including the spending |
| Royalty Management | Utilization of royalty | Royalty funds are poorly managed and monitored | Monitor how IP royalties are being spent,strenghthen the monitoring team at the local levels |
| Royalty Management | System for operating in ancestral domain | FPIC only secured at the exploration stage | Companies at the exploration stage should be included in the report, IPs should be involved in planning SDMPs |
| Cost and Benefit of Extractive operations | Economic benefits generated from extractive industries do not compensate for its environmental impacts | Strengthen 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 operations | Benefits 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 Commitment | Government | Backlog in BIR’s and MGB’s issuance of certification to DBM | |
| Accountability and Commitment | Government | MMTs that are not functioning | Improve the capacity of Multipartite Monitoring Teams (MMTs), Review the process in selecting members of MMTs and PMRBs |
| Accountability and Commitment | Government | Access to information. LGUs would need to go to BIR central office just to access information on taxes paid by mining companies in their area | Develop a mechanism for LGUs to access information relating to tax payments of mining companies |
| Accountability and Commitment | Government | Compensation to landowners affected by mining operations | Develop a provision or guidelines regarding compensation to landowners. |
| Accountability and Commitment | Government | Davao 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 Commitment | Government | Can 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 Commitment | Government | SSM is prevalent in Davao | |
| Accountability and Commitment | Government | LGU representatives attending EITI events differ from one workshop to another; No continuity of efforts / knowledge | EITI report should be presented to local development councils, LGUs should designate an EITI point person for each LGU |
| Accountability and Commitment | Government | No DMRFP has been approved since 2010 (No idea what DMRFP is) | |
| Accountability and Commitment | Industry | A 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 Commitment | Industry | Mining companies operate private ports, there is concern on the correctness and accurateness of the volume of ores shipped by the companies | Include revenues from processing (downstream) in the next report |
| Accountability and Commitment | Industry | SDMP 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 Commitment | Industry | 7 companies in ARMM have MPSAs but the report only includes SR Languyan | Include ARMM companies in the EITI report |
| Accountability and Commitment | Industry | Exploration phase lasting up to 6 years with no collections but the company is already extracting minerals | Before coming up with a mineral plan, national government should craft an industrialization plan |
| Accountability and Commitment | Industry | Not all levels of the LGU are well-informed on the progress of SDMP implementation | Companies should keep track of the impact of their social projects and submit a report to regional MGB |
FY 2016
| National Wealth Management | Collection | LGUs 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 Management | Collection | Bureau 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 Management | Utilization | LGUs 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 Management | Transfer from National to LGU | LGUs are dependent on audit reports to check if extractive companies are paying and if they are taxed appropriately. | |
| National Wealth Management | Share from national wealth should be directly remitted to LGUs | Government and Industry agrees that there should be direct payment | |
| National Wealth Management | Transfer from National to LGU | Delays in remittances. Share from national wealth should be directly remitted to LGUs but the problem is the collection of excise tax to BIR | Government 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 Management | Transfer from National to LGU | No 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 Utilization | Government | Creation 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 Utilization | LGU | Host 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 Extractives | Pass a law that will solve the issues on share of excise tax | ||
| Laws and Policies on Extractives | ULAP should also make amendments to the Local Govt Code. | ||
| Royalty Management | Royalty payment | The 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 Management | Capacity building for IPs | ||
| Accountability and Commitment | Government | Government agencies should improve their system in the gathering of data and not wait for or in the absence of an administrative order. | |
| Accountability and Commitment | Government | MGB 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 Commitment | Government | 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. He said that it will answer a lot of question if the process will start out with a common database. |
FY 2017
| National Wealth Management | Collection | Companies are paying business tax in Makati | |
| National Wealth Management | Collection | Automatic retention of the share of the LGU before remitting to national government | |
| National Wealth Management | Collection | Fluctuating figures for the revenues of Bicol Region | |
| National Wealth Management | Collection | Big loss of funds for LGUs due to tax credit | |
| National Wealth Management | Collection | VAT exemption/tax credit given to companies resulted in loss of funds of the LGU | |
| National Wealth Management | Collection | SSMM not properly taxed by the government | |
| National Wealth Management | Utilization | LGU must also be transparent on how they spend the revenues | |
| National Wealth Management | Utilization | Data generation should shed light on the utilization of funds for local development planning | |
| National Wealth Management | Utilization | LGU should have complete control on how to use the shares from national wealth that become part of the general funds | |
| National Wealth Management | Transfer from National to LGU | Respect the autonomy of the local government and there should be direct release of shares from national wealth | |
| National Wealth Management | Transfer from National to LGU | Timely release of shares from national wealth | |
| National Wealth Management | Transfer from National to LGU | DBM unable to provide clear information on the status of funds | |
| National Wealth Management | Transfer from National to LGU | Delayed 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 Management | Transfer from National to LGU | Insufficient funds received by the LGU | |
| National Wealth Management | Transfer from National to LGU | Lack of information on how shares from national wealth are computed | |
| National Wealth Management | Transfer from National to LGU | Timing, sharing of funds between LGUs and budgeting | |
| PH-EITI Report Coverage | Data Coverage | Small scale mining companies not yet included | |
| PH-EITI Report Coverage | Data Coverage | Cement industry, sand and gravel and filling materials not yet reflected in the EITI report | |
| PH-EITI Report Coverage | Data Coverage | Include in the coverage of Beneficial Ownership people from the mining companies | |
| PH-EITI Report Coverage | Data Coverage | Transparency 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 Coverage | Data Coverage | Taxes of non-metallic mining companies like quarrying should be included in EITI reporting | |
| PH-EITI Report Coverage | Data Coverage | Production 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 Coverage | Data Coverage | Small 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 Coverage | Data Coverage | Include corresponding social obligation of companies to the affected communities in the EITI reporting | |
| PH-EITI Report Coverage | Data Coverage | Exact data on the contribution of mining to the economy | |
| PH-EITI Report Coverage | Data Coverage | EITI data focus only on economic indicators and not on the long-term impact to people | |
| PH-EITI Report Coverage | LGU participation | Lack of capacity in the barangay level | |
| PH-EITI Report Coverage | LGU participation | Need help in gathering data because the LGU lacks manpower | |
| PH-EITI Report Coverage | CSO Participation | Media not invited during local development planning and also not aware of the PH-EITI report | |
| PH-EITI Report Coverage | Community Participation | Let 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 Utilization | CSO and Community | EITI should be translated at the grassroots level. Reach out to the barangay level for discussions. | |
| Laws and Policies on Extractives | For 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 Extractives | Push for policy that strengthen the local development council. | ||
| Laws and Policies on Extractives | Consistent with the pronouncement of the President there should be policy on processing of extracted resources. | ||
| Laws and Policies on Extractives | Local chief executives should be given power to regulate and monitor the mining companies and its operations. | ||
| Laws and Policies on Extractives | Situs 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 Extractives | Need for policy and system reform in order for the extractive industry to be better understood by the public. | ||
| Laws and Policies on Extractives | LGUs should pass ordinance on real property tax. | ||
| Laws and Policies on Extractives | Policy gaps and lack of clear guidelines on SDMP. | ||
| Royalty Management | Royalty payment | 1% IP royalties is the lowest compared to other countries getting as much as10% | |
| Royalty Management | Royalty payment | Withholding tax of the 1% IP royalties | |
| Royalty Management | capacity building for IPs | IP from CAR should be given a chance to represent them in EITI | |
| Royalty Management | System for operating in ancestral domain | system for operating in ancestral domain | |
| Cost and Benefit of Extractive operations | Region 2 is a watershed area and should be considered a protected area | ||
| Cost and Benefit of Extractive operations | The 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 operations | Hazards posed by 6 billion tonnes of lahar in Zambales | ||
| Cost and Benefit of Extractive operations | There is quarrying but SDMP fund is only P5 million per year which is not enough to cover rehabilitation | ||
| Cost and Benefit of Extractive operations | The SDMP should be able to reduce poverty level and remove Bataraza from the NAPC list | ||
| MSG Role | EITI should sponsor a consultation on IPRA and mining. | ||
| MSG Role | Dynamism of EITI must be translated into informed decision-making process. | ||
| MSG Role | ARMM 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 Role | Cultural insensitivity during the consultation meetings. | ||
| Accountability and Commitment | Government | Mistrust 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 Commitment | Government | MMT not effective in conducting their duties | |
| Accountability and Commitment | Government | MMT should also be involved in the annual EPEP to address progressive rehabilitation | |
| Accountability and Commitment | Government | Push for progressive rehabilitation of mining companies | |
| Accountability and Commitment | Government | PMRB and CMRB should discuss small scale metallic mining and have clear policies | |
| Accountability and Commitment | Government | Hold the LGU accountable for the extraction and destruction that comes from mining | |
| Accountability and Commitment | Government | Ensure that benefits from the industry are equally distributed | |
| Accountability and Commitment | Government | Ensure coordination between companies and local development councils with regard to formulation of SDMP | |
| Accountability and Commitment | Government | LGUS (barangay, municipality, province) must also follow the guidelines on SDMP | |
| Accountability and Commitment | Government | SDMP should be tied up with provincial development plan | |
| Accountability and Commitment | Government | SDMP should be aligned with national and local programs | |
| Accountability and Commitment | Government | Development planning on the side of the LGU and capacity building in order to be self sufficient | |
| Accountability and Commitment | Industry | After the operation of Carmen Copper, the LGU do not receive excise tax anymore | |
| Accountability and Commitment | Industry | Some companies pay only custom taxes | |
| Accountability and Commitment | Industry | Duplication of SDMP projects | |
| Accountability and Commitment | Industry | Due 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 Ownership | Confidentiality of mining companies | ||
| Political environment | Giving support to politicians during election |
FY 2018
| National Wealth Management | Collection | Pending resolution on the case regarding the LGU share from oil and gas activities in Palawan | |
| National Wealth Management | Transfer from National to LGU | Status of the Joint Circular 2016, DOF and DBM provides the release of LGU shares through BTr | |
| PH-EITI Report Coverage | Data Coverage | Employment 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 Coverage | Data Coverage | Include downstream industry | |
| PH-EITI Report Coverage | Data Coverage | lack of data on social impact of mining | |
| PH-EITI Report Coverage | Data Coverage | In the executive summary, some companies did not declare social and environmental expenditures | |
| Laws and Policies on Extractives | Appeal to government thru DOF to reconsider TRAIN 2 and exclude PD 87 | ||
| Laws and Policies on Extractives | Dismay on the lifting of the moratorium on mineral exploration | ||
| Cost and Benefit of Extractive operations | Assigning value to damages can help monitor benefits from mining | When 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. |
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| 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 Role | Community must be able to differentiate responsible mining from old ways of mine operation | ||
| MSG Role | Invite NCIP and most passionate environmentalist NGOs to join MMT | ||
| Accountability and Commitment | Government | minahang bayan application is taking a long time be approved | |
| Accountability and Commitment | Government | Pending proposal for Mining Industry Tripartite Council | |
| Accountability and Commitment | Government | suggestion that SDMP’s be anchored in the development of plan of the LGU | |
| Accountability and Commitment | Government | status of the decommissioning and rehabilitation fund | |
| Accountability and Commitment | Government | lack in rehabilitation cash fund | |
| Accountability and Commitment | Industry | recommendation to capacitate the CRO | |
| Accountability and Commitment | Industry | several quarries operating as one entity | Engr. 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 Commitment | Industry | overlapping SDMPs | |
| Accountability and Commitment | Industry | increase the allocation for social and environmental fund | Atty. 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 Environment | Impact of Federalism on LGU (whether it can gain more from the industry or monitor the companies closely) |
FY 2019
| National Wealth Management | Collection | Mayor Arturo Virtucio of Aroroy raised the issue on excise tax by Filminera. | |
| National Wealth Management | Utilization | Utilization of revenues from extractive industry, and if these issues are addressed, the trust of the community will increase. | |
| PH-EITI Report Coverage | Data Coverage | Ms. 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 Coverage | Data Coverage | Inclusion of sand and gravel in the regions in future reporting. | |
| PH-EITI Report Coverage | Data Coverage | Inclusivity, particularly in the SSM and what needs to be done. | |
| PH-EITI Report Coverage | Data Coverage | Convince Semirara to participate in the EITI. | |
| PH-EITI Report Coverage | Data Coverage | Highlight impact, challenges and value of the fifth report. | |
| Royalty Management | Mechanism for royalty payment | Challenge of transparency among the indigenous people (IP) | |
| Royalty Management | Mechanism for royalty payment | Mr. 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 IPs | Director 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 Management | Role of NCIP | A 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 Management | Role of NCIP | CSO 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 Role | Oversight in the implementation of PH-EITI | ||
| Accountability and Commitment | Government | LGU 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 Commitment | Government | SSM 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 Commitment | Government | Aroroy 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 Commitment | Government | From 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 Commitment | Government | Mr. 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 Commitment | Government | Mr. 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 Commitment | Government | Ms. 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 Commitment | Government | Ms. 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 Commitment | Government | Ms. 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 Commitment | Government | As a last question, Ms. Antonio asked the panel how to make EITI more relevant | Director 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. . |
| Accountability and Commitment | Industries | How are you using the natural resources extracted? Are you extracting it efficiently? | |
| Accountability and Commitment | Industries | Some mining companies do not complete rehabilitation | On 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 Commitment | CSO | struggle 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 Commitment | CSO | What 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 Ownership | Challenge in beneficial ownership / challenge of transparency among the indigenous people (IP) |
FY 2020
| National Wealth Management | Transfer from National to LGU | Information on how shares from national wealth are computed | DBM 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 Management | Transfer from National to LGU | On 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 Management | Transfer from National to LGU | Data 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 Management | Transfer from National to LGU | Clarification on the process of downloading LGU share from national wealth | |
| National Wealth Management | Transfer from National to LGU | Clarification on the process of reconciliation | |
| National Wealth Management | Transfer from National to LGU | Reconciliation at the local level | |
| National Wealth Management | Transfer from National to LGU | PLGU of Nueva Vizcaya has not received the collected amount reported in PH-EITI | DBM will send the process to the provincial government of NV, thru the PH-EITI Secretariat |
| PH-EITI Report Coverage | Data Coverage | Include the Cost of Mining, specifically the social and environmental costs in the report. | |
| PH-EITI Report Coverage | Data Coverage | Detailed breakdown of the report, per province | There is provincial data in the report . |
| PH-EITI Report Coverage | Data Coverage | Do 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 Coverage | Data Coverage | Update on the operation of TVI in Bayug, Zamboanga del Sur | |
| PH-EITI Report Coverage | Data Coverage | Information on carbon taxes | This should be included under the TRAIN law, but it is not explicitly discussed in the report. |
| PH-EITI Report Coverage | Data Coverage | Why Tawi-tawi is not included in the report, how can BARMM provinces access data from MGB | PH-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 Coverage | Data Coverage | If there is part of the report where to support the data on expenses | This is not part of the report. |
| PH-EITI Report Coverage | Data Coverage | Including gender and development | There 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 Coverage | Data Coverage | In 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 Coverage | Reporting Agencies | Participation 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 Coverage | Reporting Agencies | How 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 Coverage | Reporting Agencies | MGB-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 Coverage | Reporting Agencies | DOE – EITI is a platform of the Oil and Gas industry to be transparent in their transactions | |
| PH-EITI Report Coverage | Reporting Agencies | DBM – EITI is a reference of DBM to validate the amount that should be shared to the LGU from the national wealth | |
| PH-EITI Report Coverage | Reporting Agencies | DOF – 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 Coverage | Reporting Agencies | ULAP – Platform to monitor the trasactions of extractive industries operating in the province or municipalityof ULAP member- LCEs | |
| PH-EITI Report Coverage | Community 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 Extractives | Update 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 Extractives | Basis for suspending and re-opening of some mining companies in Zambales. | ||
| Royalty Management | Royalty Payment | Variance in the royalty payment | Admittedly, there are still lags in the process of data management (NCIP CAR Office Representative) |
| Royalty Management | Capacity building for IPs | The 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 Management | Capacity building for IPs | Involve ang IP communities in all initiatives | |
| Royalty Management | System for operating in ancestral domain | Make CRDP mandatory for all LGUs with ancestral domain | CRDP is a safeguard for the community that the royalty will not be subject to corruption. |
| Royalty Management | System for operating in ancestral domain | Strictly observe and follow the FPIC (Free, Prior and Informed Consent) rules even for small-scale mining for Ancestral Domain areas | NCIP ensures that FPIC rules are implemented. |
| Royalty Management | System for operating in ancestral domain | Amendment or reform of FPIC or assessment of implementation system by NCIP | |
| Royalty Management | Role of NCIP | Clarification on the participation of NCIP in the 6th report | The 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 Management | Role of NCIP | Does 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 Management | Role of NCIP | NCIP 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 Operations | Cost benefit analysis on the effect of mining in a locality, include the social and environmental costs | ||
| Cost and Benefit of Extractive Operations | Report on the cost to climate risk and hazard assessment. | ||
| Cost and Benefit of Extractive Operations | How 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 Operations | No rehabilitation and payment given to communities for damages brought about by 20 metallic mining companies which permit was cancelled in 2017. | ||
| MSG Role | Will localization of PH-EITI help in resolving concerns and issues of the local stakeholder | Localization and sub-nationalization will allow the local stakeholders | |
| MSG Role | Expand the gender and development component of EITI to the community through the CROs | This will be part of the program of PH-EITI in the coming years. | |
| MSG Role | Present disaggregated data on gender and development | ||
| MSG Role | Challenges of EITI implementation amid pandemic. | Delimit the opportunity to share the data from EITI report with sub-national stakeholders | |
| MSG Role | Role of the MSG if there are variances or deficiencies in the reconciled report. | ||
| MSG Role | Update on the status of establishment or institutionalization of MSG in every province | The details of sub-nationalization is still being discussed by the MSG. | |
| MSG Role | Have an MSG at the provincial or municipal level | ||
| MSG Role | Formula for sub-nationalization of natural resource management | ||
| Accountability and Commitment | Government | Compel other mining companies to join PHEITI. | |
| Accountability and Commitment | Government | Report on Mining Governance is also called for, how effective is its monitoring systems. | |
| Accountability and Commitment | Government | Available platform for full disclosure and transparency on extractives at the local level, and CSO engagement | Presence of website, social media where the reports are shared |
| Accountability and Commitment | Government | Mechanism to allow other agencies to participate in providing technical assistance for natural resource management | |
| Accountability and Commitment | Government | Status of Lami BNMI EMI at ZDMC and ORE Asia DRT in Zambales | |
| Accountability and Commitment | Government | Classification conversion system for lots acquired by mining companies, as basis for calculating real property tax. | |
| Accountability and Commitment | Government | Proposed 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 Commitment | Government | If 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 Commitment | Industry | How 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 Commitment | Industry | How 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 Commitment | Industry | How can mining activities be sustainable in these times of pandemic and worsening climatic and ecological crisis. | |
| Accountability and Commitment | Industry | On projects for the communities, why are companies utilizing the taxes they paid for to the communities for their projects. | |
| Accountability and Commitment | Industry | Rehabilitation for mined areas in Antipolo should be started | |
| Accountability and Commitment | CSO | Can CSOs participate in the monitoring of LGU utilization of share from national wealth? | |
| Accountability and Commitment | CSO | Increase participation of civil society in the EITI and natural resource governance discussion |
A government-led, multi-stakeholder initiative implementing EITI, the global standard that promotes the open, accountable management, and good governance of oil, gas, and mineral resources. PH-EITI was created on 26 November 2013 through EO No. 147, s. of 2013. It is a government commitment first announced through EO No. 79, s. of 2012.