Good governance must be felt at the grassroots, so the role of local governments is crucial. When the country is going to the dogs, part of the blame goes to local governments. Through effective governance, local executives can create pockets of prosperity even when other parts of the country are suffering from mismanagement. Local governments play a key role in promoting tourism, business and industrial growth. The competent ones provide decent education and health care to their constituents, and see to it that communities at all income levels are kept clean and relatively safe.
Competent local executives are aware that they are accountable to the people, and have no problem with efforts to promote transparency particularly in their utilization of public funds. The Department of the Interior and Local Government, in an effort to promote transparency, created a so-called Performance Challenge Fund, which is awarded to local government units that perform well. LGUs are also required by law to fully disclose all financial activities to their constituents, with the information posted on websites, displayed on posters in conspicuous spots within the locality, and published in newspapers of general circulation.
Last year, 1,551 of the 1,713 LGUs complied with the full disclosure requirement. This week the DILG ordered the remaining 162 to explain their failure to comply, which could warrant the filing of both administrative and criminal charges against local executives. The DILG is withholding the names of the governors and mayors in the 162 LGUs, but they will be identified if their explanations are not satisfactory or if they continue to ignore the full disclosure requirement.
The public disclosure of financial activities is expected to make auditing easier, and allow close scrutiny of the way public funds are utilized. A mechanism must be in place for receiving and assessing public challenges to the disclosures, which could be as inaccurate as the statements of assets, liabilities and net worth filed by many top public officials. If local executives have nothing to hide, they should have no problem with the disclosure requirement.