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PIA Press Release
Monday, January 09, 2012


3 Davao towns, Samal City benefit from incentive fund

by Carina L. Cayon

DAVAO CITY, Jan. 09 (PIA) --Three municipalities and a city in Davao Region benefited last year from the Performance Challenge Fund (PCF) subsidy, an incentive fund given to local government units for passing the Seal of Good Housekeeping (SGH).

The PCF recipients were 4th class municipalities of Braulio E. Dujali, San Isidro, and the Island Garden City of Samal, all of Davao del Norte; and Sarangani town of Davao del Sur.

In an annual report 2011 of the Department of Interior and Local Government (DILG) in the region, each of the three town-beneficiaries received P1 million, while IGACOS received P3 million.

Braulio E. Dujali utilized its PCF in developing its public market. Dujali was the only town in the region to be bestowed of the SGH in 2010, and got a P1 million PCF.

San Isidro undertook several projects such as the construction of three solar dryers, rehabilitation of farm-to-market road, installation of pre-painted roofing of multi-purpose building and construction of multi-purpose building.

Sarangani, also a 4th class municipality, used its incentive for road maintenance. IGACOS’ funding was spent for the construction of access road and drainage outfall.

DILG-XI’s annual report also noted that 3rd class municipalities of Don Marcelino, Davao del Sur and Tarragona of Davao Oriental qualified for the PCF subsidy in 2011, however, documents were still on process.

According to DILG, the said LGU recipients that were granted the PCF last year complied with the eligibility criteria set in passing the SGH.

The SGH conditions anchor on the LGU’s sound fiscal management citing the absence of adverse Commission on Audit (COA) opinion on the LGU’s financial statements.

The other major criterion is based on transparent and accountable governance that puts value on full disclosure.

As an incentive fund, the PCF is given to the LGU as a counterpart funding for local development projects which are incorporated in the Annual Investment Program (AIP) and should consistent with the national goals and priorities.

The development project should also have funding from the 20 percent Local Development Fund (LDF).

DILG-XI reported that the remaining 49 LGUs covering four provinces, five cities and 40 municipalities of Davao Region, all belonging to the 1st to 3rd class, also passed the SGH in 2011.

However, it said that some of the LGUs did not qualify for the PCF subsidy according to the SGH assessment for the 2nd round.

Awarding the SGH and providing incentive to deserving LGUs is a commitment of DILG to “aggressively scale up interventions in elevating the practice of governance that values transparency, accountability, participation and performance into an institutionalized status.”

The priority LGUs for this undertaking are those with low income and with high poverty incidence. (PIA-11/Carina L. Cayon)

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