In the absence of the busy January business season, the EOD Act could be implemented in the second quarter of 2019



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PHOTO INVESTIGATION FILE / RICHARD A. REYES

The business community could only feel the impact of the Business Convenience Act (DEEB) in the second quarter of next year, as the law still has neither the budget nor the necessary staff to implement for 2019, said a senior official.

Undersecretary of Commerce Rowel Barba said the goal on Friday, saying preparations were under way for the creation of the newly created Red Tape Authority (ARTA) implement the law.

Barba alluded to what was missing so far at the office at an EODB forum co-hosted Friday by the Philippine Chamber of Commerce.

"We start organizing [the preparations.] From now on, the [Anti-Red Tape] The authority still has no budget for next year. He still has no staff, "he said.

But these preparations on critical aspects of operations – such as funding and human resources – are done without the word of the ARTA chief executive, who is supposed to lead the agency.

In layman's terms, the law – and its rules and regulations – could not be enforced without the CEO of ARTA. Barba said that President Rodrigo Duterte has not yet named anyone to this post.

Nevertheless, the new appointee would have to do with what the trade department is preparing in the meantime, Barba told reporters on the sidelines of the forum.

"It should be [implemented] in the second quarter, hopefully. [This is] assuming that a director general is appointed as soon as possible, "he said.

However, according to Barba, the second quarter would not mark the full application of the law, but only a part of it.

This is happening while the business world is still waiting for Law 11032 on the TRI of the Republic, several weeks after a project was submitted to Malacañang for approval.

Known as the Ease of Doing Business and Effectiveness of Government Services Act, this Act is designed to meet the private sector requirements for paperwork.

Critical part probably left aside by TRI

In addition, it appears that an essential part of the law would be excluded from its IRR, after Barba stated that only ARTA could write the guidelines to that effect.

According to Barba, the TRI would not decide what type of business transaction is considered simple, complicated and highly technical – an important distinction in the law.

This is an essential part of the law because it will strictly subject the business transactions to a defined time window, depending on the complexity of the task.

Failure to comply with the prescribed time limit – for example three days for mere transactions – will incur administrative and even criminal liability.

Only ARTA could adopt the guidelines to make this distinction between commercial relations with the government, he said.

"We have not been able to do this because our employees do not have the capacity or the expertise to determine what is simple, complex or highly technical," he said in a mixture of English and Filipino.

The timing of law enforcement a bit late next year will also mean a missed opportunity to prove its value, especially as many companies apply for new licenses and renewals in January.

Even Senator Aquilino "Koko" Pimentel III, who also spoke, urged the government to implement TRI as early as January for the same reason.

Difficult to convince people to "join the government"

Barba said it was difficult to attract new employees to the office, especially lawyers. For implementation nationwide, Barba said that ARTA needed about 1,200 positions.

For next year, however, he specified that the initial number would be only about 400 workers. Even then, there was also the question of training, which is a different requirement in itself.

He added that he should also request an initial budget of 300 million pesos for next year to the Department of Budget and Management. This request should be submitted next week at the latest, he said.

It is unclear whether this could still be included in the General Appropriations Act next year.

"We all know that it takes time to recruit, especially to the government. The process is long. It is also a challenge to attract people to the government, especially lawyers, "he said, citing lower pay, with the exception of some bodies, such as the Office of the Secretary-General.

Moreover, the DIR could not be approved without the appointment of a general manager by Duterte, said Barba, noting that the Ministry of Commerce and Industry (DTI) did not have authority on the law, even though it was designated as a temporary secretariat.

It is interesting to note that the TRI project was developed even before the creation of ARTA. DTI, in consultation with other stakeholders, drafted the IRR project.

This is not the case for other newly created government agencies, such as the Philippine Competition Commission (PCC), in which its most senior officials have been appointed. These top CCP officials have in turn made the TRI of the law. / jpv

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