Presentation of Atty. Naguib Sinarimbo at the Institute for Autonomy & Governance round table on May 28, 2012

1. BRINGING CLOSURE TO THE 1996
FINAL PEACE AGREEMENT
Presented by :
ATTY. NAGUIB G. SINARIMBO
IAG Conference Room, Cotabato City
May 28, 2012

2. 1. Areas of Review and Consensus Points
2. Agreements in Solo and Bandung
3. Areas of Disagreement/ No Consensus
i. Provisional Government
ii. Territory/Expansion
iii. Strategic Minerals

3. SOLO AGREEMENT
I. The Parties agreed to develop a workable Partnership in
the ARMM in nine (9) areas, to wit:
I. Participation of the MNLF in the ARMM governance
reforms
II. Hasten the completion of the drafting of a bill to amend
RA 9054, the Organic Act of the ARMM, to comply with
the FPA
III. Complete the devolution of National Agencies to the
ARMM in accordance with RA 9054

4. SOLO AGREEMENT
iv. Facilitate the implementation of the provisions on
representation in the National Government and in all Organs
of the State in accordance with items Nos. 63 to 67 of the
FPA and Sections 4, 5, 6, and 7 of Article V of RA 9054
v. Improve capacity of ARMM to ensure delivery of basic
services, including infrastructure development
vi. Enhance resource generation to support delivery
of basic services to the ARMM’s constituents
vii. Improvement of the peace and order condition on
the ground and protect human rights
viii. Jointly advocate for the ARMM to:
a. Implement a transparent and accountable governance
b. Establish mechanism on effective delivery of basic services

5. SOLO AGREEMENT
a. Legislate the following: Establishment of Darul Iftah (Advisory
Council) and Shari’ah Courts in accordance with the FPA,
Amend the ARMM Local Government Code, ARMM
Administrative Code, Establishment of ARMM Human Rights
Commission, Special Regional Security Force/PNP Regional
Command for the Autonomous Region and other priority
legislations.
viii. Identify and recommend other measures that national
government will undertake for the full implementation of
the FPA.
The GPH considers the MNLF as the principal partner to effect all of the
foregoing in the context of the full implementation of the 1996 FPA.

6. SOLO AGREEMENT
The Parties agree to an interim co-management arrangement on the strategic minerals.
To wit:
Autonomous Regional National Government
Government (ARG)
Acceptance, processing, evaluation, and Approval of application for permit
assessment of application for permit to to explore and/or utilization
explore, utilization contracts, to impose contract duly recommended by the
administrative charges and fees, ARG.
No application shall be approved without
the favorable recommendation of the ARG.
lf, after the lapse of 30 working days upon
receipt of the recommended application,
no action is taken by the national
government, the application is deemed
approved.

7. SOLO AGREEMENT
Autonomous Regional Government
(ARG)
National Government
Recommends approval of Permits, contract Approval of the permits, contracts
upon endorsement of all the respective recommended by ARG
Sanggunian (Local Government Councils)
and after securing the free and prior
informed consent in accordance with the
lndigenous Peoples Rights Act.
Co-signatory together with the GPH, of any Co-signatory together with the ARG, of any
permit, contract permit, contract
Tasked to be primarily responsible for the May at its option, monitor compliance to
monitoring of compliance to the duly the duly approved exploration permits and
approved exploration permits and utilization contracts
utilization Contracts

8. BANDUNG AGREEMENT
The Meeting of the Technical Working Group on Strategic
Minerals has arrived at the following consensus points:
1. Issuance of an Executive Order by the Office of the
President on the Interim Co-Management Arrangement, as
agreed during the 1st Formal Meeting of the Ad Hoc High
Level Group held June 2011, Solo City, Indonesia. The
complete staff work shall be done by the Department of
Environment and Natural Resources (DENR), with inputs
from the Department of Energy by 30 June 2012. The draft
Executive Order shall be furnished to the MNLF, for their
review prior to submission to the Office of the President

9. BANDUNG AGREEMENT
2. To operationalize the Co-Management
Arrangement for strategic minerals under the
DOE jurisdiction, the ARMM shall create an
office on energy concerns
3. Definition of and new sharing arrangement on
Strategic Minerals

10. BANDUNG AGREEMENT
4. The Parties discussed the matter of expansion
of the area of autonomy through a plebiscite in
accordance with the Philippine Constitution.
5. The Parties agreed to consult with each other
before the end of March 2012 to discuss the
details of the partnership for ARMM
Governance Reform, including the proposed
mechanism for communication and
consultation.

11. BANDUNG AGREEMENT
6. The Meeting of the Technical Working Group on
Strategic Minerals has arrived at the following
consensus points:
a. Issuance of an Executive Order by the Office of the President on
the Interim Co-Management Arrangement, as agreed during the
1st Formal Meeting of the Ad Hoc High Level Group held June
2011, Solo City, Indonesia. The complete staff work shall be
done by the Department of Environment and Natural Resources
(DENR), with inputs from the Department of Energy by 30 June
2012. The draft Executive Order shall be furnished to the
MNLF, for their review prior to submission to the Office of the
President
b. To operationalize the Co-Management Arrangement for
strategic minerals under the DOE jurisdiction, the ARMM shall
create an office on energy concerns

12. BANDUNG AGREEMENT
c. Definition of and new sharing arrangement on
Strategic Minerals
i. The Parties are not foreclosing the possibility of
congressional redefinition and sharing arrangement; if
no consensus is reached; separate recommendations
may be submitted to Congress
ii. The MNLF does not waive its right to assert that
strategic minerals shall be limited to uranium only and
other minerals of the same class

13. BANDUNG AGREEMENT
d. Studies in aid of legislation and execution action
at the regional and local level
i. NAPOCOR (OPAPP)
ii. Lake Lanao hydroenergy (NEDA)
iii. Preferential Rights (ARMM-TWG)
iv. Telecom Revenues (OPAPP)
e. Review of regulatory and revenue collection frameworks,
in order to enhance the fiscal and financial management
of the ARMM:
i. Joint DBM-DOF Circular 2004-1 as against Sec. 9 Art 9 of RA
9054 retention clause on revenue collection

14. ii. Harmonization of the provisions of RA 7646 (An Act authorizing the
Commissioner of the BIR to prescribe the place of payment for large
taxpayers operating in the ARMM are correspondingly recorded in the
account of the ARG
iii. Electricity Power Industry Reform Act (EPIRA) guideline on the share of
host communities from power generation
f. Jointly advocate and lobby for enactment of bills in the
Regional Legislative Assembly and Congress: on direct
remittance of the region’s share on the excise tax from
mining, RLA bills on the Regional Development Corporation
and Investment Code
g. The monitoring of the agreed points shall be undertaken
by the Tripartite Implementation Monitoring Committee

15. 4. CLOSURE ?
A. Submit to the President the Draft Bill containing
the consensus points
B. Submit to RLA the areas where there is no
consensus for enactment or recommendation to
Congress
C. Provide temporary mechanism in the interim to
address the consensus with the MNLF (Agreement
on the Strategic Minerals)

16. 5. WAY FORWARD
A. A comprehensive review to evolve a viable and
enhanced Autonomous Region
B. Executive Doables
i. Completion of ARMM Devolution
 20 Agencies for devolution
 10 other agencies partially devolved
ii. Convene the Oversight Committee as against EO 273
 Article 18, Sec 3 complete Devolution in 6 years

17. 5. WAY FORWARD
B. Executive Doables (continuation)
iii. National Representation of ARMM (items 65 to 68 of
the FPA and Article 5, Sec. 4 of RA 9054)
iv. Extension of the 5 year period of Allotment of Central
Government Share to ARMM Article 9, Sec 15
v. Policy Review and Change

18. 5. WAY FORWARD
C. Understanding RA 9054 Provisions
a) Self-Executing Provisions
b) Provisions mandating the RLA to create offices
c) Provisions mandating the RLA to operationalize created offices, i.e.
Article 3
Sec. 16. Human Rights Commission. – there is hereby created a Regional
Human Rights Commission. The chair and two commissioners of the
commission shall be appointed by the President upon recommendation of the
Regional Governor. The composition of the commission shall reflect the ethnic
distribution of the population of the region. The chair shall be a lawyer and
shall be a resident of the autonomous region. The two commissioners
shall, preferably, be lawyers or, at least, holders of bachelor degrees from
collages and universities recognized by the Department of Education, Culture
and Sports of the central government or national government.

19. 5. WAY FORWARD
Article 8
Sec. 19 Tribal Courts. There is hereby created a system of tribal
courts, which may include a Tribal Appelate Court, for the
indigenous cultural communities in the autonomous region. This
court shall determine, settle, and deside controversies and enforce
decisions involving personal and family and property rights of
members of the indigenous cultural community concerned in
accordance with the tribal codes of these communities. XXXXX
C. Areas of Improvement
i. Self-governance
ii. Fiscal Autonomy - Resource Generation and Resource
Allocation/Expenditure
iii. Control and Management of Resources
iv. Territory

20. 6. IMPORTANT PROVISIONS FOR REVIEW
A. On Budget and Resource Allocation
Article XI
Sec. 2. Fiscal Autonomy. — The Regional Government shall enjoy fiscal autonomy in generating and budgeting its own
sources of revenue, its share of the internal revenue taxes and block grants and subsidies remitted to it by the central
government or national government or any donor.
The utilization of its share of the internal revenue taxes and block grants or subsidies from the central government or
national government shall be subject to a semi-annual and annual audits by the Commission on Audit and to the rules and
regulations of the Department of Budget and Management. All accountable officials of the Regional Government shall, upon
demand, furnish the Commission on Audit all documents, papers, and effects necessary for the completion of the audit.
Failure to do so shall empower the President or the Secretary of Finance to reduce, suspend, or cancel the release of funds
intended for the autonomous region to the extent of the amounts that cannot be audited for reasons attributable to the
officials of the autonomous region or are unaccounted for after audit.
If more than half of the funds released to the autonomous region by the central government or national government remain
unaccounted for six (6) months after the audit mentioned above, the Secretary of Finance may also suspend or cancel the
release of any or all funds allocated by the central government or national government for the autonomous region. Officials
of the Regional Government who fail to submit the documents, papers and effects demanded by the Commission on Audit
within the period specified herein may be suspended or removed from office by the President upon recommendation of the
Secretary of Finance.
The utilization of the revenue generated by the Regional Government and block grants or subsidies remitted to it by foreign
or domestic donors shall be subject to the rules and regulations of the Regional Government Department of the Budget and
Management if any, and to audit by regional government auditors. In the absence of such rules and regulations, the audit of
the said funds, block grants or subsidies shall be done by the Commission on Audit and the use thereof shall be in
accordance with the rules and regulations of the Department of the Budget and Management of the central government or
national government.
The results of the audit mentioned in this Sec. shall be published in national newspapers of general circulation and in
newspapers of regional circulation. The results shall also be announced over government-owned radio and television
stations.

21. 6. IMPORTANT PROVISIONS FOR REVIEW
B. Ecozone and Freeport operation concerns on customs and tariff and quarantine for
its effective operation.
Article XII
Sec. 2. Economic Zones, Centers and Ports. — The Regional Government shall
encourage, promote, and support the establishment of economic zones, industrial centers, ports
in strategic areas, and growth centers to attract local and foreign investments and business
enterprises.
Sec. 4. Regional Economic Zone Authority; Freeports. — The Regional Government may establish a
regional economic zone authority in the autonomous region. The Regional Economic Zone
Authority shall have similar powers as the Philippine Economic Zone Authority and consistent with
the Special Economic Zone Act of 1995. The Regional Assembly may provide such additional
powers and functions to the Regional Economic Zone Authority as may be necessary to meet the
special circumstances of the autonomous region.
Once the Regional Economic Zone Authority is created by a Regional Assembly legislation, the
Philippine Export Zone Authority shall no longer authorize any other economic zone within the
autonomous region. Any corporation, firm, or entity established within the autonomous region, by
authority of the Philippine Export Zone Authority, shall be placed under the jurisdiction of the
Regional Economic Zone Authority and shall continue to enjoy the benefits granted to it by the
Philippine Export Zone Authority.

22. 6. IMPORTANT PROVISIONS FOR REVIEW
C. Taxes and Revenue collection and Retention by the Regional Government.
Sec. 9. Sharing of Internal Revenue, Natural Resources Taxes, Fees and
Charges. — The collections of a province or city from national internal revenue
taxes, fees and charges, and taxes imposed on natural resources, shall be
distributed as follows: XXXX
The remittances of the share of the central government or national
government of the internal revenue taxes, fees and charges and on the
taxes, fees, and charges on the use, development, and operation of the
natural resources within the autonomous region shall be governed by the
rules and regulations promulgated by the Department of Finance of the
central government or national government.

23. 6. IMPORTANT PROVISIONS FOR REVIEW
D. On grants and access to foreign funds, no need for NEDA.
Article IX
Sec. 10. Treasury Bills, Notes and Other Debt Papers. — The Regional
Government may issue treasury bills, bonds, promissory notes, and other debt
papers or documents pursuant to law enacted by the Regional Assembly.
Sec. 14. Foreign or Domestic Loans. — The Regional Governor may be authorized
by the Regional Assembly to contract foreign or domestic loans in accordance
with the provisions of the Constitution. The loans so contracted may take effect
upon approval by a majority of all the members of the Regional Assembly.
D. On franchises for air, sea and land transportation and communications.

24. 6. IMPORTANT PROVISIONS FOR REVIEW
E. Establishment of Islamic Banks and or allow the operation of Islamic Banks in ARMM.
Article XII
Sec. 29. Islamic Banks. — The Bangko Sentral ng Pilipinas shall establish an Islamic Bank and authorize
the establishment of its branches in the autonomous region. The members of the board of directors or
trustees of the Islamic Bank shall be appointed by the President upon recommendation of the Regional
Governor. The persons recommended by the Regional Governor shall possess educational qualifications
and sufficient experience in the management and operation of Islamic banking and shall be subject to
confirmation by the Regional Assembly before they are recommended to the President. The board of
directors or trustees of the bank shall elect from among their members the chair, the vice chair and the
president of the bank. Other bank officials and employees shall be appointed by the president of the
bank.
F. GSIS, SSS and Pag-Ibig
Article XVIII
Sec. 5. Notwithstanding the provisions of the preceding Sec., the Government Service Insurance System
(GSIS), the Social Security System (SSS), the Pagtutulungan-Ikaw, Bangko, Industriya't Gobyerno (PAG-
IBIG), and other funds of similar trust or fiduciary nature shall be exempt from the coverage of this Organic
Act.

25. Areas of Review and Consensus Points