Philippine LGUs still stuck in dinosaur age

Philippine LGUs still stuck in dinosaur age

Summary: Despite the millions of public funds that have been poured into the modernization of local government units (LGUs) in the Philippines, it's a shame that not much has changed in the way municipalities conduct their transactions with the public.Last January, I tried to renew the business permit of Newsbytes.

TOPICS: Government

Despite the millions of public funds that have been poured into the modernization of local government units (LGUs) in the Philippines, it's a shame that not much has changed in the way municipalities conduct their transactions with the public.

Last January, I tried to renew the business permit of, the IT news Web site which I co-founded, at the City Hall of Pasig. For those not familiar with Pasig, the city is one of the wealthiest cities in Metro Manila.

Sadly, however, the city hasn't put in place an electronic system worthy of its vision as city looking out to the future.

Even if I wasn't applying for a new permit, I had to go through an insane number of steps and pay a ridiculous renewal fee (more than 12,000 pesos for a mere Web site). It's no wonder several multi-lateral agencies have complained about the difficulty of doing business here in the Philippines.

As it was two days before the deadline for the permit, I had to waste precious hours with a thousand other souls. It was not smart at all.

I had to go back the following day just to make the payment when I could have it done in a bank near our house--if only the city had a payment tie-up with the local banks.

Although I have paid the required fee, I still wasn't able to get the document since I have yet to fulfill a few more requirements, which--again--could have been done easily via the Internet if only the city had implemented an automated business permit renewal system.

Last February, the national government hailed the launch of its Philippine Business Registry System (PBRS). The PBRS, according to the government, serves as a one-stop shop for entrepreneurs who need to transact with several agencies to be able to start operating a business.

The agencies included in the initiative are the Department of Trade and Industry (DTI), Bureau of Internal Revenue (BIR), Social Security System (SSS), Home Development Mutual Fund (PAG-IBIG), Philippine Health and Insurance (PhilHealth) and Securities and Exchange Commission (SEC).

While undoubtedly a good project, the problem with this is that the agencies were merely linked and does not go down to the root of the problem--the LGUs. Until and unless the government is able to bring the benefit of modernization to this level, frustration and disappointment will continue to persist.

But, there is still a glimmer of hope. In a chance meeting at a recent Senate hearing, I was told by the Information and Communications Technology Office's executive director, Louis Casambre, that the government is now on the verge of putting out a new version of the e-LGU template system that was previously--but dismally--rolled out by the National Computer Center.

The government should and must it get right this time around.

Topic: Government

Melvin G. Calimag

About Melvin G. Calimag

Melvin G. Calimag is currently the executive editor of an IT news website in the Philippines. Melvin has been covering the local IT beat for the last 13 years. He is currently a board member at the IT Journalists Association of the Philippines (CyberPress), and also serves as a charter member with the Philippine Science Journalists Association.

Joel D. Pinaroc

About Joel D. Pinaroc

Joel has been a media practitioner since 1996, starting off as a reporter and eventually becoming editor of a pioneering IT trade newspaper in Manila. He is currently one of the content producers of a Manila-based developmental website.

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  • Many of the LGU have had the money allocated for various computer upgrades, the problem is most of the money has been siphoned off by the various politicians, before the purchase, and what has been bought is not used, as they do not know how to use it.
  • Sadly, having just renewed our business permit here in Inabanga, and having recently started a company in Mandau, Cebu I can only completely agree with the writer.

    LGU's are years behind the rest of the world in these types of transactions.

    Some examples, forming a company in Singapore, a maximum of one day and can largely be done on line, no mayors permit or other stuff. In the Philippines, 3 weeks at SEC, 4 weeks with the LGU and various extra gratis payments to speed the process up...hahahaha

    No wonder Singapore takes 25 to 30 billion FDI per year, and the Philippines struggles to take in 1.7 billion.

    We won't even discuss the negative list for business's that foreigners (called alien's here) cannot operate. This list is supposed to protect the local Filipinos, but in reality just stops companies being formed and jobs being created.

    The Philippines has the goal of being a developed country by 2020. Guess what with the current systems and official mentality, maybe come back in 2099.

    Its really a very sad reflection on a country that has lovely people, plenty of good resources, plenty of creative people, but LGU's and government are just not good enough for the people.

    Just a private view....