Wednesday, January 26, 2022

Modernizing the Philippines

Is the Philippines a backward nation? Yes. Everything from infrastructure to the healthcare system to even the lottery the government admits is way behind the times and in need of modernization. Modernization is a sort of mantra of the government to justify billions of pesos in spending. Some modernization projects have been ongoing for decades. Many of them have been total failures. Of course now with the COVID-19 pandemic some of these modernization programs will likely be put on hold as the government scrounges for cash.

Let's take a look at some of these modernization projects in no particular order.

The Bureau of Fire Protection
https://www.pna.gov.ph/articles/1095912
Go said they already conducted a Senate committee hearing regarding Senate Bill 204 or the proposed Fire Protection Modernization Act of 2019. 
He added that not only the upgrading of equipment is stipulated in the bill, but also the education campaign and safety measures component. 
“President Rodrigo Duterte is in full support and he wanted to modernize the BFP in a three-year plan,” he said. 
To recall, Duterte urged Congress during his 4th State of the Nation Address in July 2019 to pass a law mandating a BFP modernization program. 
SB 204 seeks to strengthen the BFP by giving it additional functions and authorize it to establish and implement a Fire Protection Modernization Program.
Duterte wanted the Congress to pass a law in 2019 mandating a BFP modernization program but such a program has already existed since 2010. A COA report issued in January 2019, six months before Duterte's plea to Congress, laid bare this failed BFP modernization program.

https://www.rappler.com/nation/221741-bureau-fire-protection-modernization-program-audit-report
The modernization program of the Bureau of Fire Protection (BFP) is flailing, with auditors saying that the agency "failed" to upgrade its capacities despite the program already being 8 years on. 
The modernization program was launched in 2010, and it was released with a total of P13.17-billion budget from 2011 to 2017. 
The Commission on Audit (COA) was compelled to do a performance audit because despite the program, the country still registered 96,447 fire incidents from 2011 to 2017 which resulted in 1,924 deaths, 5,750 injuries, and P31.06 billion in property damage. 
"[It] thereby raise issues as to the effectiveness of the program," the COA said in its special audit released on Wednesday, January 23. 
"The BFP is not on track in accomplishing the Modernization Program's goals and objectives within its timelines," the COA said. 
For example, as of June 30, 2018, the BFP only completed 263 out of its target 945 fire stations. This equates to 308 municipalities without a fire station. 
What's worse, the COA found that some contractors have abandoned 11 out of the 44 ongoing construction of fire stations. 
The COA said the P13.7-billion budget is only 22% of the total funding requirement which is P60.29 billion. 
Because they do not have enough funding, the BFP eventually failed in utilizing the money that it has that in the end, it had to forfeit P1.91 billion to the national treasury.As for fire trucks, the BFP procured only 621 trucks out of the target 1,057. 
As of 2016, the COA found that 176 out of the 469 fire trucks delivered in 2015 already had defects. 
The COA doubts that the BFP can fulfill its deliverables under the Modernization Program by 2020. 
The COA also found that the BFP did not have a fully-functioning Bids and Awards Committee (BAC) "because no one was interested to become members of its BAC for fear of lawsuits from the losing bidders." 
Outsourcing of some of its procurements resulted in delays that only 33% of a total P526.81 million procurements were delayed, while the rest remain undelivered for 4 years now. 
The COA also found that the BFP does not track its progress. It also didn't have clear agreements with local governments. In the end, the COA found that 34% of barangays they visited have no organized fire brigades.
What a mess. In eight years time the BFP has run out of money, had contractors abandon projects, not met goals on firetrucks, delivered faulty firetrucks, does not have a Bids and Awards Committee to properly procure projects, does not track its progress, and has no clear agreements with local governments. And Bong Go thinks the BFP can be modernized under Duterte's watch in three years?

Funny enough the House has passed ANOTHER BFP modernization bill.

https://www.pna.gov.ph/articles/1122021
The House of Representatives on Monday night approved on second reading a measure seeking to strengthen and modernize the Bureau of Fire Protection.

The lower chamber passed via voice voting House Bill 7406, otherwise known as the Bureau of Fire Protection (BFP) Modernization Act.

The bill mandates the establishment and implementation of a Fire Protection Modernization Program with the following components: fire protection service, force restructuring and organizational development, capability, material, and technology development, specialized services development, and human resource development.

Surely everything will go smoothly this time, right? Almost a year later in 2021 Duterte signed what I assume is this bill into law. The most important thing about this modernization act is that it allows for the arming of firemen.

https://newsinfo.inquirer.net/1486355/duterte-signs-bfp-modernization-law-justifies-arming-firefighters

The President signed the measure and even justified the reason behind arming firefighters in a ceremony in MalacaƱang attended by some members of Congress.

“Bakit mo bigyan ng baril ang mga bumbero e sunog lang ang kalaban nyan? You know, the organization itself and the individual bumbero, they are exposed to so many dangers,” Duterte said in his speech.

(Why would you give a gun to a firefighter when they are only putting out fire? You know, the organization and the firefighters themselves are exposed to so many dangers.)

(There are so many challenges in the work of a firefighter, in the day of his life which needs protection. By providing them with a gun, or even giving them a few units,  it would really be just to ward off threats and destruction of government properties.)

Fourteen firefighters for every fire regional office and city station will be authorized to carry a firearm as members of the security and protection unit.

Senator Ronald “Bato” Dela Rosa, who sponsored the measure, said there are 17 fire regional offices and 146 city fire stations, which means only 2,282 firefighters or 7.9 percent of the 32,800-strong BFP will be armed.

Dela Rosa also estimated about P80 million would be needed to purchase the firearm units.

This law is actually a ten year modernization program that will transform the BFP into a world-class institution.

President Rodrigo Duterte signed into law Republic Act (RA) 11589 that will strengthen and modernize the Bureau of Fire Protection (BFP).

During the ceremonial signing of the BFP Modernization Act on Friday, Duterte said the new law would help boost the morale, efficiency, responsiveness, and professionalism of the bureau’s personnel as they continue to fulfill their mandate to save people’s lives.

“The Bureau of Fire Protection has been instrumental in the success of our collective efforts to provide rescue and relief operations in areas hit by destructive fire and calamities,” Duterte said in a keynote speech delivered at MalacaƱang Palace’s Rizal Hall.

RA 11589, Duterte said, will enable the BFP to embark on a 10-year modernization period, transforming it into a modern and world-class institution.

The newly signed law also creates the BFP Modernization Trust Fund, which will include appropriations for BFP modernization, as well as 80 percent of the share of the BFP from all taxes, fees, and fines collected pursuant to Republic Act 9514 or the Fire Code of the Philippines.

Other sources for the modernization fund include proceeds from the disposal of excess and uneconomically repairable equipment and other movable assets of the BFP, supplemental assistance from Congress due to surpluses, loans, grants, or donations, and the fund’s interest income.

https://www.pna.gov.ph/articles/1153215 

Surely this 10-year modernization program will do the trick, right? Right?? I would not count on it.


The Bureau of Customs

https://business.inquirer.net/292034/boc-modernization-project-okd
Economic managers on Friday green-lighted the planned P5.5-billion project to mo­dernize the Bureau of Customs (BOC) which was aimed at further boosting the government’s tax revenue. 
The project was aimed at not only improving the efficiency of the country’s second biggest revenue agency, but also redu­cing trade costs in the Philippines, the World Bank had said.
This article is from March 7th, 2020 and goes on to make this program appear to be part of the Build Build Build infrastructure projects.  However in 2016 Aquino signed a bill into law providing for the modernization of the BOC.

https://www.gmanetwork.com/news/money/economy/568227/aquino-signs-cmta-into-law/story/
President Benigno Aquino III has signed into law the Customs Modernization and Tariff Act (CMTA), the Bureau of Customs said on Tuesday. 
The law - Republic Act 10863 - updates the Tariff and Customs Code, last amended in 1978, and is supposed to modernize the bureau's facilities, procedures, and overall operations. 
With the CMTA in place, several reforms will be implemented at the BOC that include full electronic processing of shipments, streamlining of export and import procedures, and simplified processes for seizure and disposition of illegal goods. 
The act will also reduce corruption and technical smuggling, as well as improve revenues, as it establishes a "cashless, faceless, and paperless environment," Lina noted. 
"Efforts are already underway to attune current BOC systems to the new provisions in the CMTA focused on business process re-engineering, computer-based systems development, organizational development, capacity building, and external communication and education," he said. 
The law likewise imposes stiffer penalties on the smuggling of goods. It slaps a minimum jail time of 31 days to six months or a fine of not less than P25,000 but not more than P75,000, or both, if the appraised value of the goods were unlawfully imported. 
With this law in place why four years later is the NEDA approving another BOC modernization program? Did this one succeed in any part?  A month and a half before Aquino signed the CMTA into law the DTI was already lauding the rollout of the BOC modernization program.
Department of Trade and Industry (DTI) Secretary Adrian S. Cristobal Jr. lauded the Bureau of Customs’ (BOC) technology modernization plan to improve customs services. 
“The use of technology solutions to ease documentation and customs procedures will allow our exporters to expeditiously move goods across borders and to capitalize on the growing benefits of our trade engagements,” said Cristobal. 
The BOC recently launched a series of information technology projects in preparation for the passage of the Customs Modernization Act (CMTA). The CMTA will amend the Tariff and Customs Code of the Philippines to comply with the World Customs Organization (WCO) – Revised Kyoto Convention that lays down international guidelines for modern and efficient customs practices in the 21st century.
http://industry.gov.ph/dti-welcomes-rollout-of-boc-modernization-plan/
Since the BOC is still modernizing it is safe to say that the CMTA has not fully succeeded yet especially since corruption in the BOC has in nowise abated.


Department of Agriculture

https://businessmirror.com.ph/2020/02/19/da-p3-billion-to-fuel-farm-fishery-modernization/
THE government has initially allotted P3 billion to fuel the modernization and industrialization of the country’s agriculture and fishery sector, the Department of Agriculture (DA) said. 
Agriculture Secretary William Dar said the DA has been pursuing innovative approaches across all agri-fishery programs, making use of the advances in science and technology (S&T) and inclusive market-oriented development (IMOD). 
“We are allotting an initial P3 billion to fund various innovative agri-fishery projects and agribusiness incubation enterprises for millennials, hobbyists, FCAs, and agri-preneurs,” said Dar following a technical meeting on the Global Innovation Index (GII) in the Philippines last February 17. 
Dar said the DA will implement a management internship program, where it will hire top graduates —particularly those with Latin honors‚from SUCs and private academic institutions to work at any of the DA family agencies that fit their field of interest and academic attainment. He said the DA’s Agricultural Training Institute (ATI) is establishing a Young Farmers’ Academy that integrates under one roof all their programs and initiatives for the youth. 
P3 billion to fund millennials, hobbyists, and agri-preneurs? The modernization of the Philippines agricultural system has been going on since 1999.

https://www.philstar.com/business/2003/12/21/232419/senate-body-wants-5-year-extension-afma-funding-support
AFMA was enacted in 1997 and implemented in 1999. As mandated by law, funding for the modernization of the agriculture and fisheries sector should be provided until 2005.  
Magsaysay, who chairs both the Senate committee on agriculture and the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM), said the lack of government resources and minimal private sector investments in agriculture have hampered the full implementation of the law.  
"AFMA’s implementation was hampered by serious funding constraints. When its implementation was commenced in 1999, two years after its enactment, a meager P9.95 billion was granted; P11.68 billion in 2000; P11.38 billion in 2001 and P11.057 billion in 2002," Magsaysay said.  
As of August this year, funding for AFMA totaled only P4.02 billion, he said. "AFMA, as mandated by law, was supposed to get an initial budget appropriation of P20 billion in the first year of its implementation and P17 billion yearly thereafter for six years," Magsaysay said.  
The DA has also been seeking for the extension of the funding support for AFMA.  
The DA and the farmers view AFMA as a "safety net" which could help farmers cope with trade liberalization caused by the country’s entry to the World Trade Organization (WTO).  
Among the salient provisions of the law include the improvement of credit delivery for farmers and fisherfolks, improvement of research and development and funding for the acquisition of modern farm equipment.
In 1997 the Agricultural and Fisheries Modernization Act was signed into law to modernize the farm and fishery sectors yet it was underfunded! What's the point of passing a law to modernize the agricultural and fishery sectors if it's not going to be funded? If this program had been funded and food production improved the country would be better off today.

Agriculture Secretary William Dar led Thursday the harvesting of the different varieties of hybrid rice inside the 100-hectare demonstration farm of the Department of Agriculture in Caraga (DA-13) in Barangay Lemon here on Thursday.

The highlight of the 11th National Rice Technology Forum (NRTF), the ceremonial harvesting is part of DA's effort to promote farm modernization among the rice farmers in the region, whom Dar encouraged to go into hybrid rice farming.

“This activity (NRTF) aims to show you the available types of machinery for efficient farming as this is the time to modernize and adapt proper technologies and equipment to enable the agriculture sector to survive the pandemic,” Dar told the farmers.

Agriculture Secretary William Dar is wrong. Now is not the time to modernize the agricultural sector. Now should be the time the Philippines is reaping the benefits of modernization but instead they are playing catch-up.


Those are only three of the many sectors of the government that are in need of modernization. I shall explore more in a future article. If we examine these plans we will begin to see a pattern which is a law for modernization is passed and funds are not properly allocated. If they are then programs are not properly implemented such as in the case of the BFP. It seems to be less a problem of corruption and more a problem of incompetence.

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