Senate approves Seal of Good Local Governance bill

September 19, 2018

THE Senate has passed on third and final reading a bill institutionalizing the Seal of Good Local Governance (SGLG) that recognizes and awards exemplary local government units (LGUs).

Sonny Angara

Senator Sonny Angara, who sponsored Senate Bill 1843, thanked his colleagues for approving the measure on the incentive program by the Departmnet of the Interior and Local Government (DILG).

The bill which was co-sponsored by Senator Sherwin Gatchalian, received 19 affirmative votes, zero negative votes and zero abstention during the plenary on Monday.

The SGLG is the offspring of two pioneering programs introduced by the late DILG Secretary Jesse Robredo in 2010—the Seal of Good Housekeeping (SGH) and the Performance Challenge Fund (PCF). They were put in place to promote good public administration among LGUs and further improve the delivery basic services to their constituencies.

Under these programs, LGUs that successfully implemented “good financial housekeeping and full disclosure policies” in accordance with the rules and regulations of the Commission on Audit, are given performance-based grant which they could use to supplement funding for local development projects.

Each SGH recipient is entitled to a cash grant of P1 million for municipality, P3 million for city and P7 million for province from the PCF for a project approved by the DILG.

“This program should be enshrined as law of the land for we believe that there must always be a policy that recognizes and rewards good governance, especially when it is accomplished by our provinces, cities, municipalities and barangays,” said Angara, chair of the Senate Committee on Local Government.

“Sa SGH, hindi lang sinigurado na may tamang financial management processes ang mga LGU. Marami ring local projects ang napondohan dahil dito,” he added.

Among the projects funded through the SGH and PCF include: the fish port in San Jose, Dinagat Islands; additional classrooms in a barangay in Minalin, Pampanga; potable water in at least three villages in San Agustin, Surigao del Sur, reconstruction of roads in Calamba, Misamis Occidental; and processing center for shrimp paste in Anilao, Iloilo.

Aside from provinces, municipalities and cities, barangays will now be covered by the SGLG.

Under the proposed measure, the DILG will remain the lead implementing agency. A P1-billion SGLG Incentive Fund will be created once the proposed measure is enacted in law.  In the past three years, a total of 1,008 LGUs have been awarded the SGLG.

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