IFPB okays rules on Bangsamoro grants, donations

Image credits: AP/Wong Maye-E

The Intergovernmental Fiscal Policy Board (IFPB) has approved the guidelines on the acceptance of foreign grants and donations by the Bangsamoro government.

Co-chaired by Finance Secretary Carlos G. Dominguez III and Bangsamoro Autonomous Region in Muslim Mindanao (Barmm) Chief Minister Ahod Ebrahim, the IFPB greenlighted the set of guidelines during its second meeting on February 5.

Finance Undersecretary Bayani Agabin said the guidelines issued by the IFPB are similar to the protocols provided under the law that other government agencies have to follow when receiving grants or donations.

“The IFPB’s goal in issuing the guidelines was to streamline the process for the Bangsamoro government in receiving grants and make it more efficient,” Agabin said in a news statement sent through the Department of Finance (DOF).

Under Republic Act 11054, or the Bangsamoro Organic Law (BOL), the IFPB is tasked to deal with revenue imbalances and fluctuations in regional financial needs and revenue-raising capacity of the Bangsamoro government.

Dominguez and Barmm Public Works Minister Eduard Guerra, who was Minister Ebrahim’s representative, also agreed during the February 5 meeting that the Bangsamoro government should inform DOF when initiating talks with potential foreign donors so that processing of grants can be done simultaneously with the national government.

Under the approved guidelines, Bangsamoro government shall coordinate closely with DOF before the negotiation and signing of foreign grants “to facilitate issuances of request for Office of the President Approval or Special Authority.”

The guidelines on foreign grants to the BARMM shall take effect 15 days following the filing of its three copies with the Office of the National Administrative Register of the University of the Philippines Law Center.

Under BOL, the BARMM shall enjoy fiscal autonomy and have the power to create its sources of revenues as provided under this law. The BOL also provides that the Bangsamoro government shall exercise authority over grants and loans, without prejudice to the general supervision of the President of the Philippines, and that its acceptance of foreign grants shall be subject to the prior clearance and approval by the President or his authorized representative.

In the same meeting, the IFPB also discussed the ongoing work being done by the Barmm Tax Study Group (TSG) and the establishment of the Shari’ah Supervisory Board in the Barmm, along with the creation of a regional office of the DOF-attached Bureau of Local Government Finance (BLGF) in the autonomous region.

Dominguez told Guerra to start digitalizing the tax processes of the Barmm to ensure efficient revenue-generating operations and funding for its priority projects.

“If there’s any more help you need from us on taxation, please let us know because this is so important. Without good taxation and a good collection agency, you cannot get anything done. Nice engine, but no gasoline,” Dominguez told Guerra.

The finance chief also ordered Finance Assistant Secretary Dakila Napao to track the timeline of the studies being done by the TSG and to align this task with the timeline of the parliamentary approval of the Barmm Revenue Code.

Barmm Deputy Minister Ubaida Pacasem, who is also the Minister of Finance and Budget and Management, informed the IFPB that the Bangsamoro government expects the proposed Revenue Code to be presented to its Cabinet in May and to the Parliament by the third quarter of this year.

Representatives from the Bangsamoro government and the Bangko Sentral ng Pilipinas held their first meeting last January 26 to discuss the framework for the Shari’ah Supervisory Board.

The BOL provides for the establishment of the Shari’ah Supervisory Board and the promotion and development of Shari’ah compliant financial institutions in the Barmm.

As for the establishment of the BLGF regional office in the Barmm, Agabin said the creation of 18 staff positions for this office was already approved by the Department of Budget and Management.

Image credits: AP/Wong Maye-E