Autonomous Region in Muslim Mindanao

Office of the Regional Governor

Peace Process Office
(APPO)

Date of Submission:________________

Notes during the conduct of drafting of position paper of ARMM Office of the Regional Government on
Purpose of Meeting
the proposed Bangsamoro Basic Law (BBL)

Submitted by:
Reymark K. Radjuli
Date
February 14, 2018
(mm/dd/yyyy):

Venue: APPO

Organization: Name: Contact #:

Meeting with:
Heads of selected offices Position: Email Add:

Notes during the conduct of drafting of position paper of ARMM Office of the Regional Government on the
proposed Bangsamoro Basic Law (BBL)
last February 14, 2018 at Office of the Regional Treasury, ORG Complex, Cotabato City

 Under R.A. 9054, there is no provision of Sultanate compared to the proposed Bangsamoro Basic Law
(BBL). However, what has been mentioned under the BBL refers only to the sultanate as traditional leaders
but not specifically tackling its historic role and its participation in governance.
 Consultation shall be made to validate on what particular role the Sultanate desires.
 Between their internal disharmony, intervention must be made by the state in proper fora.
 Institutionalization of Sultanate group shall be properly addressed.

COMPARISON OF RESERVE AND EXCLUSIVE POWERS OF THE GOVERNMENT UNDER R.A 9054 AND
ON THE PROPOSED BANGSAMORO BASIC LAW

 Common Market and Global Trade specifying as reserve power of the national government, the idea is
because of existing international treaties wherein Bangsamoro cannot be accommodated. Application is only
for national as compliance to existing national treaties.
 There is a proposed Bangsamoro Commission on Audit for the purpose of internal auditing of the
Bangsamoro Government.
 Economic and Cultural exchange, the word “exchange” refers only to the world cultural and is not applicable
to the word economic because there is no such thing as economic exchange.
 Subject to interpretation but the idea is it has full economic trade. As compared to other countries in Europe,
you can put up offices on cultural exchange not necessarily being an independent state.
 Under R.A. 9054, there is no prohibition as to the establishment of cultural exchange, although it is not
stated it is also not prohibited.
 Most of the exclusive powers under the proposed BBL are already in R.A. 9054.
 BBL addresses the issue on fiscal autonomy compared to R.A. 9054.
 Charter Change is still the best option on how to entrench powers which are contrary to existing 1987
Philippine Constitution.
 There is unclear delineation of structure of the DOTC under the proposed BBL.
 GOCC already exists under R.A. 9054, the existence of Regional Housing Authority is a proof.
 BBL can regulate power generation as long as it is not connected to the national, unlike to the existing
ARMM which has no power to generate its own power sources.
 Bangsamoro Government can have its own grid first before it can connect to the national.
 Provision concerning Education, Science and Technology, R.A. 9054 provides well elaborated provision
compared to the proposed BBL.
 Autonomous Region in Muslim Mindanao
Office of the Regional Governor
Peace Process Office
(APPO)

 There shall be an agency similar to securities exchange commission under the proposed BBL (limited by the
current constitution).
 Under the existing ARMM to be specifically the DOH, there is no FDA, However, this particular department
can be legislated. This is crucial and has great economic impact.
 Regional Legislative Assembly can actually create an agency to focus on Hajj and Umrah Authority.
 There is no prohibition under R.A. 9054 in creating Hajj and Umrah Authority. The gray area comes in only
because of the existing state to state agreement between the Philippines and Saudi Arabia.
 Fundamental Rights and Duties of People proviso under 9054, are considered indigenous people. However,
under proposed BBL those before the advent of Spaniards are natives or original inhabitants of Mindanao
and the Sulu archipelago and its adjacent islands including Palawan and there decedents whether of mix or
full blood shall have the right to identify themselves as Bangsamoro either by ascription or self-ascription.
 Moros are IPs under international perspective
 What is not clearly defined under BBL are the districts, if you observe there is a proposed 80 people but no
particular district mentioned. Districts are not properly identified under the proposed BBL.
 Being address as Bangsamoro is acceptable to most of the Maguindanao, Maranao, Tausug and Yakan.
However, if IPs are being identified as Moros seems like not everyone would cater or agree to the idea.
 There is a proposal to download the NCIP to ARMM.
 Status quo, the OCC caters that tiruray within ARMM are the only existing IPs, now how can other moros
(Maguindano, Maranao, Tausug, Yakan etc.) apply for certificate of ancestral domain? Can the Maranao
apply CADC for a portion of territory? We cannot!
 Outside of ARMM we are IPs but within ARMM we are not, only the Tirurays are considered as IPs
 The point of clarification is under the creation of office for IPs.
 Although, there is already an internationally accepted definition on who are IPs.
 BBL definition of Bangsamoro People is well defined compared to the existing R.A. 9054.
 It would seem that part of the proposed BBL create confusion especially on the creation of Ministry of
Indigenous People.
 NCIP CADC and CADT are covered under IPRA. If you are outside ARMM, they can apply CADC,
however, those bangsamoro within ARMM cannot file because they are not considered IPs within ARMM
 Cadastral Land Survey is specified under proposed BBL.
 Under the proposed BBL, Bangsamoro has the power to identify natural reserves and aquatic parks, forest
and water preservations and other protected areas in the Bangsamoro.
 Under ARMM, it has no same powers because all mentioned are strategic minerals.
 Bangsamoro can legislate its own Civil Service Law, Local Government Code etc.
 Registration of Birth, marriage and death now present under the proposed BBL.

FISCAL AUTONOMY

 Under R.A. 9054, there is provision of block grant which never happened.
 Sen. Legarda advocated for block grant during Misuari administration.
 Under proposed BBL, there is already absence of the phrase “Failure to audit shall empower the president or
the secretary of finance to reduce, suspend or cancel the release of funds intended for the autonomous region
to the extent that the amount which cannot be audited attributable to the official of the Autonomous region.
This was also deleted under the tripartite review.
 Under the proposed BBL there is already a Bangsamoro Commission on Audit.
 Under the proposed BBL there is already a Local Government finance. This implies that somehow, the
Bangsamoro Government has already degree of control over its LGUs.
 Autonomous Region in Muslim Mindanao
Office of the Regional Governor
Peace Process Office
(APPO)

 Although there is also a revenue office on the proposed BBL, there must also be an Office of the Treasury.
 As to sources of revenues, the proposed BBL is way advance than the existing R.A. 9054.
 Income tax is included under the proposed BBL.
 There is an annual block grant coming from the central government.
 As to IRA, according to DOF Secretary, “because Luzon and visayas will be burdened by taxes, the money
shall go to where it is intended”.
 The proposed BBL provides broader revenue base compared to R.A. 9054.
o Capital Gains;
o Documentary Tax;
o Donor’s Tax;
o Estate Tax
 Under Income Tax of Financial Institution wherein banks and financial institution which is operating under
ARMM is tax free.
 Under ARMM, standard is just the same, the difference is the region is actually the one implementing its
mandate not under LGU.
 Equal distribution, population and area are the basis of IRA.
 Revenue base is well elaborated under the proposed BBL.
 Offshore tax haven.
 There is no Sales tax, Excise tax or even Percentage taxes are not incorporated under the proposed BBL.
 VAT of Construction Companies are still being monitored by the Office of the Regional Treasury.
 Large tax payers are not being collected.
 The IRA may be lumped to LGUs.
 There is no existing arrangement between the Office of the Regional Treasury and the BIR.
 All constructions implemented under ARMM are properly being collected by the ARMM.
 Block grant, 6% plus customs, however there is no clear formula or actual computation yet.
 There are special funds which are arbitrary to the Bangsamoro Government.
 72 billion includes IRA of LGUs (24).
 If the national government will give IRA there is no accountability in the grassroots and still there is control
of the national government.
 Block grant is still unclear.
 The national government mindset over Bangsamoro is still with prejudice.
 If there are sustainable economic activities we can increase tax base.
 Even we have resources, we cannot administer.
 We cannot stand if we are not that aggressive to raise revenues.
 Funds shall be allocated to explore and generate more revenues.
 Taxing powers under the proposed BBL will not increase or make Bangsamoro Government wealthy.
 Under R.A. 9054, the Income tax sharings will be 70% will return to ARMM.
 There are still a lot to be negotiated under the proposed Block grant.
 In general, there is less improvement under the proposed BBL.
 Under train law, will override the proposed BBL.
 The problem under block grant is in case federal will succeed, what will be the basis of 6% allocations from
the central government?
 Under federal system, we have the freedom to chart our own economic development.
 Imagine under 27 years, CORDILLERA could have been the shining example in comparison to ARMM
 War from time to time delimits the development of ARMM.
 Now, there are more to be given to LGUs than to the national government.
 In terms of sharing, there is an existing scheme.
 Under the proposed BBL, it will depend upon the Bangsamoro Government in determining the share of
LGUs.
 All fiscal concerns will be covered by block grant including personal services etc.
 Autonomous Region in Muslim Mindanao
Office of the Regional Governor
Peace Process Office
(APPO)

 LGUs might be included compared to the existing IRA.

 In no less than the last budget received by the ARMM.
 Block Grant may be treated as lump sum as it brings element of distrust to the Bangsamoro.
 ARMM has its innovation such as the determining the allocated money.
 The parliament shall already have a formula especially on automatic appropriation.
 There shall be an office which will focus on oil exploration and the like.

SHARING IN EXPLORATION, DEVELOPMENT AND UTILIZATION OF NATURAL RESOURCES

 Government revenues generated from the exploration, development and utilization of all natural resources in
the Bangsamoro Government, inclusive of mines and minerals shall pertain fully to the Bangsamoro
government.
 In the case of fossil fuels and uranium, the same shall be co-managed and the revenues shared equally
between the central and bangsamoro government. However…
 There is a need to put clarity on the abovementioned provision. A loophole provision.
 Needs to be litigated which will consume more time and it will always be favorable to the government.

INTERGOVERNMENTAL RELATIONS
 Favorable under proposed BBL compared to the existing 9054.
 Council of Leaders
 Sultanate as Traditional Leaders
 Uninstitutionalize, they shall be given symbolic value as to what particular sultanate they represent.
 More appropriate If it will be under the proposed Federal.
 If the state itself will intervene, then clashes within will be resolved.
 BTC as pre-interim body will be one of the hot topic under the proposed BBL. This is not part of the
agreement.
 If there are only remaining 6 months, let the term be finished so that it will be appropriately transferred to the
interim authority such as the BTA.
 If ARMM will still be controlled by the national government there will still be no real transition.
 Section on continuity of government
 The Bangsamoro Transition Commission (BTC) as an independent body created by E.O. 08 shall
continue to exist to wind up and care take the administration of the region until the Bangsamoro
Transition Authority (BTA) is constituted.
 This particular provision is a power grabber.
 BTC as Pre-interim body and BTA as interim body.
 This shall be proposed to be eliminated.
 ARMM shall propose the continuity of services and governance because there will still be an adjustment of
the new authority which clearly disrupt the delivery of services.
 There will be gradual mode of transition.
 The phasing of new offices will and shall clearly be defined.
 To the offices which are not included under the proposed BBL, shall clearly be enumerated.
 The interim offices enumerated shall and will still be legislated.
 The provision on 80 members of parliament is at large and not by districts
 40% appointed for the areas and in the manner provided of the Basic Law.
 50% Party Representatives.
 Danger may arise, if the outcome of the proposed BBL is less than the existing ARMM.

-Nothing follows-
 Autonomous Region in Muslim Mindanao
Office of the Regional Governor
Peace Process Office
(APPO)

-Nothing follows-

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