"x x x.
A pain in the neck for entrepreneurs or small business enterprises that the government seems to have overlooked is the abusive exercise of regulatory authority by some local government officials.
Under the Local Government Code, local government units, including barangays, have the power to enact ordinances that will regulate the operation of businesses within their territorial jurisdictions.
In line with this authority, they can impose fees and charges for revenue and regulatory purposes.
What was originally conceived as a means by which local government units can independently raise funds to sustain their activities has, for some governors, mayors and even barangay leaders, become an opportunity for extortion or ego trip.
It is common knowledge in highly urbanized cities that, for example, no construction or excavation permit for high rise buildings will be issued unless the developer “donates” to the mayor’s charity (himself) a substantial amount of money.
You want to put up a factory that can employ, say, 50 employees? The governor will be happy to expedite matters on condition that you engage the services of his favorite construction company or reserve one-half of the workforce to his supporters.
In the name of local autonomy, local government officials impose additional conditions on franchises or authorizations earlier issued by the national government. For the right amount of arguments, however, these conditions can be quickly waived.
Given these conditions, it should not come as a surprise that our country is hardly in the crosshairs of foreign investors.
For comments, please send your e-mail to rpalabrica@inquirer.com.ph.
x x x."
Read more: http://business.inquirer.net/158651/ease-of-doing-business-in-ph#ixzz2pLxPCIhf
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
