On removing bureaucratic red tape

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    The Subic-Clark Alliance for Development Council (SCADC), in accord with its mandate to harmonize strategies, policies, systems, processes and procedures of, in particular, the Subic Bay Metropolitan Authority (SBMA), Clark Development Corporation (CDC), and Clark International Airport Corporation (CIAC), and in compliance with Republic Act No. 9485 otherwise known as the ANTI-RED TAPE ACT OF 2007, has taken very serious and determined efforts to devise systems and procedures that will “improve efficiency in the delivery of government service to the public by reducing bureaucratic red tape and preventing graft and corruption” in the Subic-Clark Corridor which covers the Subic and Clark Freeport and Special Economic Zones.

    I am happy to say that before the end of this day (I am writing this article today at nine o’clock in the morning of June 3, 2009), the SCAD Council will have hopefully approved the MEMORANDUM OF AGREEMENT between and amongst SCADC, SBMA, CDC, and CIAC wherein these agencies of government have agreed to adopt and implement a simplified and harmonized set of rules and procedures governing BUSINESS REGISTRATION PROCESS FOR NEW LOCATORS AT THE SUBIC-CLARK CORRDIOR.

    The new system will take just fourteen (14) days to process and approve applications for registration of new business in the Corridor, briefly described as follows:

    DAY  1. – The Applicant shall submit a Letter of Intent, Business Proposal and other necessary documents to the Business Group/Marketing Department.

    DAY 2, 3, 4, 5. – The Business Group/Marketing Department (BGMD), in coordination with other concerned departments, shall evaluate documents. The BGMD  shall facilitate the signing of the Letter of Conformity (LOC) between the Applicant and the Freeport Zone Authority. The LOC shall contain the area, location, lease rate and terms and conditions agreed upon. The BGMD shall submit its recommendation to the CEO based on existing policies, rules, and regulations.  In case of disapproval, the BGMD shall state the specific reason/s for the same and the Applicant may filefor reconsideration.

    DAY 6, 7, 8. – Upon the approval of the proposal by the CEO based on the favorable recommendation of the BGMD, a Temporary Business Permit (TBP) may be issued which shall be valid for 30 calendar days.  In case of disapproval, the same shall be stated in writing, and the applicant shall be allowed to re-submit appropriate requirements for consideration and approval. 

    DAY 9, 10, 11. – The Applicant shall submit other documentary requirements and clearances necessary for the issuance of CRTE, PTO and other business permits.

    DAY 12, 13, 14. – The Applicant shall pay the necessary fees including, but not limited to, security deposit and advance rental.  The Applicant and the Freeport Zone Authority shall sign the Lease Agreement.  The Freeport Zone Authority shall issue the CRTE, PTO, or other appropriate business permits.



    The MOA provides for the formation of a Technical Working Group (TWG), composed of the authorized representatives from the BGMDs of SBMA, CDC and CIAC and the SCADC Secretariat, to prepare IMPLEMENTING RULES AND REGULATIONS for the proper implementation of the MOA

    As drafted and submitted for approval by the SCAD Council this afternoon, the MOA substantially complies with the directives of the ANTI-RED TAPE ACT OF 2007, to state in specific details the standard to be observed in rendering the required services to the public, as follows:

    • The procedure to obtain a particular service;

    • The person/s responsible for each step;

    • The maximum time to conclude the process;

    • The document/s to be presented by the customer, if necessary;

    • The amount of fees, if necessary;

    • The procedure for filing complaints.

    Also, as Section 7 of RA 9485 requires, the MOA pinpointed the accountable officer/s in the agency who are primarily responsible and accountable/answerable in case of failure to implement the law; and these are: the Administrator/CEO of SBMA, President/CEO of CDC, and President/CEO of CIAC.

    Per Section 1 of Rule V of Resolution No. O81471 Re: IMPLEMENTING RULES AND REGULATIONS (IRR) implementing RA 9485, “The head of the office or agency shall be primarily responsible for the implementation of these Rules and shall be held accountable to the public in rendering fast, efficient, convenient and reliable service.  All transactions and processes are deemed to have been made with the permission or clearance from the highest authority having jurisdiction over the government office or agency concerned. In case of failure to comply with these Rules, appropriate charges may be filed against the head of office or agency under existing law and rules, before the appropriate forum.

    It is not the Board of Directors nor the Chairman thereof who is the head of the SBMA, CDC, or CIAC but, respectively, the Administrator/CEO and the President/CEO who is the officer primarily responsible and accountable, as defined by the law.



    I have no doubt that the SCAD Council will unanimously approve the MOA since intensive and extensive consultations between and amongst the representatives of SBMA, CDC, CIAC and the SCADC Office of the Chairman/CEO/Secretariat have been made for more than eight (8) months to study and prepare the final draft of MOA.

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