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Ra 7171

The document discusses Republic Act No. 7171 which allocates 15% of excise taxes from Virginia-type cigarettes to tobacco producing provinces. It notes that Ilocos Norte received over P1 billion from 2010-2016. The document then details cash advances totaling P66.45 million that Ilocos Norte's provincial government used to purchase vehicles, which representatives argue was an improper use of funds and violated bidding processes. This prompted the filing of House Resolution No. 882 to investigate.

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John Paul Garcia
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214 views3 pages

Ra 7171

The document discusses Republic Act No. 7171 which allocates 15% of excise taxes from Virginia-type cigarettes to tobacco producing provinces. It notes that Ilocos Norte received over P1 billion from 2010-2016. The document then details cash advances totaling P66.45 million that Ilocos Norte's provincial government used to purchase vehicles, which representatives argue was an improper use of funds and violated bidding processes. This prompted the filing of House Resolution No. 882 to investigate.

Uploaded by

John Paul Garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Section 1 of Republic Act No.

7171 also known as An Act to Promote the


Development of the Farmer in the Virginia Tobacco Producing Provinces declares that:
It is hereby declared to be the policy of the government to extend special support
to the farmers of the Virginia tobacco-producing provinces inasmuch as these farmers
are the nucleus of the Virginia tobacco industry which generates a sizeable income, in
terms of excise taxes from locally manufactured Virginia-type cigarettes and customs
duties on imported blending tobacco, for the National Government. For the reason stated,
it is hereby further declared that the special support for these provinces shall be in terms
of financial assistance for developmental projects to be implemented by the local
governments of the provinces concerned.

In addition, Section 3 of the said law provides that:

Financing and remittance - The financial support given by the National Government
for the beneficiary provinces shall be constituted and collected from the proceeds of
fifteen percent (15%) of the excise taxes on locally manufactured Virginia type of
cigarettes.

The funds allotted shall be divided among the beneficiary provinces pro rata according
to the volume of Virginia tobacco production.

Moreover, the share of the tobacco-producing provinces from the excise tax shall be
utilized to advance the self-reliance of the tobacco farmers through:

a. Cooperative projects that will enhance better quality of products, increase


productivity, guarantee the market and as a whole increase farmer's income;
b. Livelihood projects particularly the development of alternative farming systems to
enhance farmers income;
c. Agro-industrial projects that will enable tobacco farmers in the Virginia tobacco
producing provinces to be involved in the management and subsequent ownership
of these projects such as post-harvest and secondary processing like cigarette
manufacturing and by-product utilization; and
d. Infrastructure projects such as farm-to-market roads.

Ilocos Norte is one of the tobacco-producing provinces in the Philippines, thus, it


has share with the tobacco excise tax. Based on Commission on Audit Report, from 2010
to 2016, Ilocos Norte received P 1 155 260 000.00 (One Billion One Hundred Fifty-Five
Million Two Hundred Sixty Thousand Pesos).

On December 11, 2011, the Provincial Government of Ilocos Sur cash advance
the amount of P 18 600 000.00 (Eighteen Million Six Hundred Pesos) for 40 (Forty) units
of Mini Cab to be distributed to different barangays the said province.

On May 25, 2012, another cash advance was made amounting to P 15 300 000.00
(Fifteen Million Three Hundred Thousand Pesos) for 6 (Five) buses.
One more cash advance was on September 12, 2012 for 70 units of Foton Mini
Truck amounting to P32 550 000.00 (Thirty-Two Million Five Hundred Fifty Thousand
Pesos).

These 3 (Three) cash advances, totaling P 66 450 000.00 (Sixty Six Million Four
Hundred Fifty Thousand Pesos), were from the Ilocos Nortes share in the tobacco excise
tax as mandated by Republic Act No. 7171.

In pursuant to the 1987 Constitution, Section 27 which provides that the State
shall maintain honesty and integrity in the public service and take positive and effective
measures against graft and corruption. Representatives Rodolfo C, Farias, Juan Pablo
P. Bondoc and Aurelio D. Gonzales Jr. filed on March 14, 2017 a House Resolution No.
882, A Resolution Directing the Committee on Good Government and Public
Accountability to Conduct an Inquiry, In Aid Of Legislation, in Regard to the Use by the
Provincial Government of Ilocos Norte of its Shares From the Excise Taxes on Locally
Manufactured Virginia-Type Cigarettes or the Special Support Fund under Republic Act
No. 7171 for a Purpose Other Than Those Provided for by the said Law, in its Irregular
Purchase of Motor Vehicles Made Through Cash Advances Without the Benefit of Public
Bidding for the Total Amount of P 66 450 000.00 (Sixty Six Million Four Hundred Fifty
Thousand Pesos).
Also, the 1987 Constitution, Section 28 states that subject to reasonable
conditions prescribed by law, the State adopts and implements a policy of full public
disclosure of all its transactions involving public interest.
Basis-procurement Act
Process
Way of purchase by ilocos
Why it is wrong
Another reso;ution was filed, HR 1126
Deputy Majority Leader Juan Pablo Bondoc (4th District, Pampanga) cited irregularities on the
dates of the pre-bidding, bidding, and the issuance of the check for the said purchase of motor vehicles.
He cited an instance wherein a check was issued at an earlier date prior to the bidding.

provincial administrator Atty. Windell Chua; provincial treasurer Josephine


Calajate; provincial budget officer Evangeline Tabulog; accountant Eden Batulayan;
general services officer Joseph Castro; Encarnacion Gaor and Genedine Jambaro of the
office of the provincial treasurer; Engr. Pedro Agcaoili of the provincial planning and
development office; and others.

The six officials are provincial treasurer Josephine Calajate; Encarnacion Gaor and Genedine
Jambaro of the Office of the Provincial Treasurer; budget officer Evangeline Tabulog; Bids and Awards
Committee (BAC) chairman and Provincial Planning and Development Office head Engr. Padro Agcaoili;
and Eden Batulayan, OIC of the Provincial Accounting Office. KFA/SE

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