[ Manila Bulletin Online ] July 6, 2008
By BERNIE CAHILES–MAGKILAT
The League of Cities in the Philippines (LCP) has rejected a memorandum of agreement (MoA) put forward by the Department of Trade and Industry requiring local government units not to process business permits unless the applicant has already secured business name registration saying such a bureaucratic procedure would only slowdown investment inflow into the countryside.
LCP secretary-general Mel Senen S. Sarmiento said in a speech at Friday’ss awarding of the country’s top 25 best performing cities that such imposition by the DTI could only hamper the flow of business.
"I cannot agree to this. Business growth is stunted by over regulation," Sarmiento said.
DTI has forwarded to the cities the proposed MoA two weeks ago. The requirement, however, was contained under Republic Act 3883 or the Business Name Law ordering LGUs not to process business permit until a business name has been issued already by the DTI.
"It is just fine to sign the MoA but the DTI must assure us that they have to approve the business name within a day or two to facilitate the approval of business permits by LGUs," Sarmiento told reporters later at the sidelines of the event.
But Sarmiento noted that DTI’s track record in the registration of business name has not been commendable.
At present, LGUs approved business permits based on the temporary business name submitted by the proprietor and subject to DTI approval later.
"But it takes a month for DTI to approve the business name," Sarmiento complained.
The DTI has no offices also in all cities thus DTI representatives have to collect the applications for business names filed with the LGUs and come back the following week with most proposed business names being rejected because of conflicts in the proposed business names.
Also, Sarmiento said that most DTI provincial offices are not online thus taking it longer to process the applications for business name registration.
"The LCP is fast tracking the approval of business permits but the national government agencies must also provide the right investment climate," he said.
The DTI requirement under the proposed MoA would only add to the government’s bureaucratic red tape.
Ironically, the DTI has been designated as chairman of the anti-red tape task force and co-chair of the National Competitiveness Council.
Sarmiento, however, said there is a need to also amend the Business Name Law, which was passed in 1931 and amended in 1953.
Sarmiento further complained that lawmakers have a penchant of passing laws that cannot be funded and implemented on the ground noting the LCP has 16 mayors, who were former congressmen and are now complaining of laws they cannot actually implement.
For instance, the Juvenile Justice and Welfare Act of 2006 has decriminalized the offenses of minors.
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