Friday, August 7, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE CITY of San Fernando in Pampanga is the first local government unit to have achieved business-friendly status under a governance scorecard program administered by the Institute for Solidarity in Asia (ISA).
ISA Executive Director Christian P. Zaens said in a press briefing yesterday that the city north of Metro Manila, out of 34 local government units (LGUs) which voluntarily joined the program, had completed the last of four stages of the performance governance system.
"A governance culture that delivers results is embedded in both the bureaucracy and the private sector. It cannot be dislodged so easily. The status [of San Fernando] will definitely impact the way investors and creditors will see the city," he told BusinessWorld.
The four stages of the performance system administered by the ISA since 2005 are: the crafting of a road map by the LGU; development of a scorecard and its inclusion in the LGU’s planning and budgeting; implementation of the road map and monitoring of progress; and results.
The results of San Fernando’s goals, Mr. Zaens said, followed commitments to streamline business processes such as the grant of permits and licenses; improve tax collection through an information campaign; and create a multisectoral office to monitor programs and targets.
On streamlining the business process, "the city was able to reduce, from six weeks to two hours, the time its takes for business registration through a business one stop shop," he said in the briefing.
Regarding tax collections, the city’s income rose from P260.209 million in 2005 to P297.810 million in 2006; P319.374 million in 2007; P346.397 million in 2008; and P313.665 million as of June 15 this year against a 2009 goal of P442 million.
The city has also set up a multisectoral office composed of representatives from business associations and professionals as well as the mayor, city planning officer and city administrator. The partnership oversees the implementation of reforms.
As the first local government to have posted concrete results, Mr. Zaens said San Fernando would serve as a model for other local governments in seeking to attract investors.
Philippine Chamber of Commerce and Industry President Edgardo G. Lacson said his organization welcomed the ISA score card system.
"[I]t makes it easier to determine the business-friendly LGUs. More than attracting investments, it also empowers LGUs to be financially independent from the internal revenue allotment," he said.
Mr. Lacson, however, said there should be continuity in programs given the fact that LGU administrations change every three years.
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