Press Release
September 18, 2018


Senator Sonny Angara has thanked his colleagues in the Senate for approving on third and final reading a measure institutionalizing the Seal of Good Local Governance (SGLG), an incentive program of the Department of the Interior and Local Government (DILG) that recognizes and rewards local government units (LGUs) for their excellent service and high standards of governance.

Senate Bill 1843, which was sponsored by Angara and co-sponsored by Senator Sherwin Gatchalian, received 19 affirmative votes, zero negative votes and zero abstention during the plenary on Monday.

The SGLG is the offspring of two pioneering programs introduced by the late DILG Secretary Jesse Robredo in 2010--the Seal of Good Housekeeping (SGH) and the Performance Challenge Fund (PCF). They were put in place to promote good public administration among LGUs and further improve the delivery basic services to their constituencies.

Under these programs, LGUs that successfully implemented "good financial housekeeping and full disclosure policies" in accordance with the rules and regulations of the Commission on Audit, are given performance-based grant which they could use to supplement funding for local development projects.

Each SGH recipient is entitled to a cash grant of P1 million for municipality, P3 million for city and P7 million for province from the PCF for a project approved by the DILG.

"This program should be enshrined as law of the land for we believe that there must always be a policy that recognizes and rewards good governance, especially when it is accomplished by our provinces, cities, municipalities and barangays," said Angara, chair of the Senate Committee on Local Government.

"Sa SGH, hindi lang sinigurado na may tamang financial management processes ang mga LGU. Marami ring local projects ang napondohan dahil dito," he added.

Among the projects funded through the SGH and PCF include: the fish port in San Jose, Dinagat Islands; additional classrooms in a barangay in Minalin, Pampanga; potable water in at least three villages in San Agustin, Surigao del Sur, reconstruction of roads in Calamba, Misamis Occidental; and processing center for shrimp paste in Anilao, Iloilo.

From good financial housekeeping and financial administration, the assessment criteria for SGLG were expanded to nine core areas: 1) disaster preparedness, 2) social protection, 3) peace and order, 4) business-friendliness and competitiveness, 5) environmental protection, 6) tourism, 7) culture and the arts, 8) health, and 9) education.

Aside from provinces, municipalities and cities, barangays will now be covered by the SGLG.

Under the proposed measure, the DILG will remain the lead implementing agency.

A P1-billion SGLG Incentive Fund will be created once the proposed measure is enacted in law.

During the past three years, a total of 1,008 LGUs have been awarded the SGLG.

"Ito ay simbolo sa patuloy na nagpupursige ng mga LGU para pagandahin pa lalo ang kanilang pamamalakad. At dahil padami nang padami ang mga nabibigyan ng SGLG, padami nang padami rin ang mga LGU na gumaganda ang serbisyo nila sa publiko," Angara said.

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