LCP to ask SC to freeze IRA share of 16 new cities
The League of Cities of the Philippines (LCP) will file a motion with the Supreme Court (SC) to hold the Internal Revenue Allotment (IRA) share of the 16 newly created cities in "escrow account" pending the resolution of the case they filed.
The group came about with the move after the meeting they had with Pres. Gloria Macapagal-Arroyo early this week did not bear fruit.
Ninety city mayors under LCP are seeking the president's intervention on the impending reduction of their IRA as a result of the creation of new cities.
Escrow refers to a legal arrangement in which an asset like cash is deposited into an escrow account under the trust of a neutral third party (escrow agent) pending satisfaction of contractual contingency or condition. Once the condition has been met, the escrow agent will deliver the asset to the party prescribed by the contract.
Treñas said they came up with such idea since the Department of Budget and Management (DBM) has no option but to release the IRA shares of 16 cities. The league only contested the creation of 16 new cities excluding Navotas and San Juan. Both met the requirements in terms of income for three years, land area and population.
Apart from exercising legal action, the league is planning to have their flags in half-mast and wear black armbands to dramatize their demands on the IRA cut. Most local government units depend their operation on their IRA share.
The league also presented a proposal to the President for the local government units to have access in the Kilos Asenso program of the government. The approval of such proposal lays on the decision of the bicameral committee since the Kilos Asenso Program is only for fifth and sixth class municipalities.
The league also asked the President to exercise her powers on the impending creation of more cities in the country. Aside from the 18 newly created cities, there are other pending resolutions for the creation of more cities in the country, said Treñas.