A letter from ARTA

Malacañang, through Senior PCO Undersecretary Honey Rose V. Mercado, sent on Oct. 9, 2023 a follow-up letter to the Oct. 3, 2023 letter of Secretary Ernesto V. Perez, director general of the Anti-Red Tape Authority (ARTA), clarifying certain points in my Oct. 3, 2023 column “Ten minutes for business permits mean government means business.”

Now, I am convinced government is indeed serious – about writing letters.

In my Oct. 3 column, I wrote:

“Department of the Interior and Local Government (DILG) BenHur Abalos should order his 1,500 town and city mayors to process business permits in 10 minutes or less. A business permit in 10 minutes is the best proof that the government means business.

“Ten minutes is the global standard for processing business permits. That is how it is done in countries like New Zealand, Canada and Singapore.   These are much smaller countries than the Philippines in population, although infinitely richer. Yet, they set the global standard in the efficiency, competence and honesty of their government.”

Here are excerpts from Secretary Perez’s letter. Seriously, why does being an anti-red tape czar require a Cabinet rank? Is the problem that serious?

Sec Perez’s letter:

“First and foremost, we would like to clarify that the 2020 World Bank Ease of Doing Business Survey assessed the country’s performance on this matter for the year 2019, just a year after the signing and implementation of Republic Act 11032, also known as the Ease of Doing Business and Efficient Government Services Delivery Act. Unfortunately, the World Bank discontinued the report in 2020 due to data irregularities. Consequently, there has been no international index or survey to measure the progress made by the government in providing easy, fast and reliable government services to the public.

“Regarding the feasibility of LGUS issuing business permits in just 10 minutes, it’s important to note that RA 11032 mandates LGUs to implement an electronic Business One-Stop Shop (EBOSS) with specific features, including:

• Accepting online or electronic application submissions

• Providing a gateway facility linked to courier services for those preferring hard copies

• Accepting online payments

• Electronically issuing tax bills/orders of payment

• Providing electronic versions of permits, licenses and clearances

“The Authority, the Department of the Interior and Local Government (DILG) and the Department of Information and Communications Technology (DICT), have been tasked by RA11032 to monitor and oversee the implementation of the EBOSS. To date, 518 out of 1,634 LGUs have reported the automation of their Business One-Stop Shops. While no LGU currently achieves the 10-minute benchmark, it is worth noting that businesses can apply for or renew a business permit within 20 minutes in Navotas and 30 minutes in Valenzuela and Marikina City through their EBOSS portals.

“ARTA and DILG are currently in the process of inspecting and verifying the 518 LGUs that have reported automation across the country. The agencies are also monitoring the compliances of LGUs in other aspects of Ease of Doing Business such as the implementation of streamlined permitting and licensing procedures in the issuance of building permits, the presence of citizen’s charters and other efforts to streamline and digitalize government services.

“Additionally, the Department of Information and Communications Technology, in coordination with the Authority and the Department of Trade and Industry, has developed and implemented the Philippine Business Hub. Through the portal accessible at  business.gov.ph, the number of steps involved in the registration process has been significantly reduced from 13 to 6, and what previously took an average of 33 days can now be accomplished in just 3 days. As of May 2023, 22,534 corporations and 10,115 individuals have processed their registrations through the system.

“However, we acknowledge that not all LGUs have access to a stable internet connection, which hinders their full implementation of EBOSS. For this reason, the Authority, in coordination with DICT, NTC, DILG and DPWH, have implemented reforms within the telecommunications sector, expediting the permitting process for the construction of shared passive telecommunications towers and fiber ducts:

• For towers, the permit requirements have been streamlined, reducing the number of permits from 13 to 8. Documentary requirements have decreased from 86 to 35, and the processing time has been significantly reduced from 241 working days to just 16 working days.

• For Fiber poles and facilities, the permit requirements have been simplified from 11 to 5. The number of documentary requirements has been reduced from 62 to 26, and the processing time has been drastically shortened from 888 working days to only 74 working days

“These reforms have been made permanent through the issuance of Executive Order 32 by the Office of the President. Through these efforts, we aim to enhance internet connectivity coverage in the country, enabling LGUs to implement digital solutions more effectively.

“Should you encounter issues or difficulties in transacting with government agencies, you may file a complaint with ARTA through our email: [email protected] or our hotline 1-2782 (1-ARTA) and the Presidential Complaints Center through their hotline 8888.

“We appreciate your attention to these matters and thank you for your commitment to fostering informed discussions on critical issues. Again, we value your opinion and appreciate it for providing an avenue for us to clarify the issues raised that will be of help in informing the public of the reform initiatives of the Authority.

“Furthermore, this will also contribute to the efforts in promoting bureaucratic efficiency for ease of doing business in the country for a better business landscape that will attract much needed investors.

“Should you have further questions, you may reach my office at [email protected]. We look forward to working with you to improve the ease of doing business in the Philippines.”

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Email: [email protected]