Management Services

Report No. 2005-07

Sectoral Performance Audit

Community-Based Forest
Management Program

Department of Environment
and Natural Resources

OVERALL REPORT
 Republic of the Philippines
Commission on Audit
MANAGEMENT SERVICES
Commonwealth Avenue, Quezon City, Philippines
Telephone Nos.: 931-9235, 931-7455
=================================================

January 26, 2007

GEN. ANGELO T. REYES

Secretary
Department of Environment and Natural Resources
Visayas Ave., Quezon City

Sir:

We are pleased to transmit the report on the sectoral performance audit

of the Community-Based Forest Management (CBFM) Program. The audit was
conducted by a team from the Management Services, this Commission,
pursuant to MS/TS Office Order No. 2005-037 and 2005-037A dated July 6,
2005 and October 17, 2005, respectively.

The results of the audit were forwarded to that Office, the Forest
Management Bureau and concerned Regional/Provincial/Community
Environment and Natural Resources Offices for comments and justifications.
All comments received by this Office were incorporated in the report, where
appropriate.

The audit was conducted to assess whether the implementation of

CBFM activities in selected CBFM projects in the provinces of Nueva Vizcaya,
Palawan, Leyte and Bukidnon have been effectively undertaken in uplifting the
socio-economic condition of the community and restoring forest cover on
sustainable basis, and the adequacy of safekeeping measures on confiscated
forest products and conveyances.

We look forward to the proper implementation of the

recommendations and we would appreciate being informed on the actions taken
thereon within one month from receipt hereof.

We acknowledge the cooperation and assistance extended to the team

during the audit.

Very truly yours,

By Authority of the Chairman:

Contents Page

Part I Executive Summary 1

Introduction 2
Audit Objective 3
Audit Scope and Methodology 3
Audit Conclusion 4
Management’s Reaction 6
Team’s Rejoinder 7

Part II Community-Based Forest Management

Program (CBFMP) 8

Introduction 9
Program Objectives/Goals 10
Program Stakeholders 10
Program Scope 11
Implementing Agencies 12
Governing Laws, Rules and
Regulations 13
Funding 15
Process Flow/Activities 16
Contracts 18
Evaluation Process 18
Processing of Payments 20
The CBFM Projects 21

Part III Provincial Environment and Natural

Resources Office (PENRO)
Provinces of Nueva Vizcaya,
Palawan, Leyte and Bukidnon 22

Introduction 23
Organizational Structure 25
Funding 27
CBFMP Accomplishments 28
Profile of Projects Audited 28
Contents Page

Part IV Audit Observations 35

Chapter 1 Effective Community

Organizing 36

Introduction 37
Observations 37

Chapter 2 Sound Implementation and

Maintenance Strategies/
Activities 50

Introduction 51
Observations 51

Chapter 3 Adequate Monitoring

Activities 82

Introduction 83
Observations 83

Chapter 4 Appropriate Safekeeping

Procedures 97

Introduction 98
Observation 98

Part IV Recommendations 108

 Part I

Executive Summary

1
EXECUTIVE SUMMARY

INTRODUCTION

Forest Management, one of the four major programs of the Department of

Environment and Natural Resources (DENR), deals with the promotion of
effective protection; development, occupancy, management and conservation of
forest lands and watersheds, including grazing and mangrove areas;
reforestation and rehabilitation of critically denuded/degraded forest
reservations; improvement of water resource use and development of ancestral
lands, wilderness area and other natural reserves; development of forest
plantations, including rattan, bamboo and other valuable non-timber forest
resources; rationalization of wood-based industries; regulation of the utilization
and exploitation of forest resources including wildlife, to ensure continued
supply of forest goods and services.

Forest Management has six (6) sub-programs namely:

• Community-Based Forestry Program;

• Plantation Establishment and Maintenance and Protection;
• Forest Management Service;
• Forest Protection;
• Soil Conservation and Watershed Management; and
• Forestland Sub-Classification.

In the late 1970’s and early 1980’s, the government, through the DENR, was
awarding three-year reforestation contracts to families, communities,
corporations or local government units to implement forest development and
rehabilitations with financial gains as the only motivating factor accorded to the
proponents. However, the influx of people to the uplands due to lack of
economic opportunities in the lowlands as well as continued denudation of
forestlands compelled the government to launch new approaches and programs
to address forest denudation.

The government adopted the community-based approach on the premise that

sustainability of managing forest resources necessitates building around
communities living within the forestlands and its adjacent barangays. This
approach recognized the capabilities of the communities as partners in upland
development. The following programs were launched employing the
community-based approach:

• Integrated Social Forestry Program (ISFP);

• Community Forestry Program (CFP);
• Forest Land Management Program (FLMP); and
• Coastal Environment Program (CEP).

2
 EXECUTIVE SUMMARY

On July 19, 1995, anchoring on the concept of “people first and sustainable
forestry will follow”, Executive Order (EO) No. 263 was issued prescribing
community-based forest management (CBFM) as the national strategy. CBFM
aims to promote the socio-economic upliftment of forest communities and
achieve sustainable development/management of forest resources.

Pursuant to EO 263, DENR issued Administrative Order No. 96-29 on October

10, 1996 setting forth the rules and regulations governing its implementation.
Under Section 5 thereof, the CBFM Program (CBFMP) shall apply to all areas
classified as forestlands including allowable zones within the protected areas. It
also integrates and unifies all people-oriented forestry programs of the
government including the ISFP, FLMP, CFP and CEP, among others, and
recognizes ancestral domain claims.

AUDIT OBJECTIVE

The audit was conducted to assess whether the implementation of CBFM

activities in the selected CBFM projects in the provinces of Nueva Vizcaya,
Palawan, Leyte and Bukidnon have been effectively undertaken to contribute in
uplifting the socio-economic condition of the community and restoring forest
cover on sustainable basis, and the adequacy of safekeeping measures on
confiscated forest products and conveyances.

AUDIT SCOPE AND METHODOLOGY

The audit covered an assessment of the CBFM activities in the implementation

of selected projects and the manner of safekeeping confiscated products using
the following evaluation criteria:

• Effective community organizing;

• Sound implementation and maintenance strategies/activities;
• Adequate monitoring activities; and
• Appropriate safekeeping procedures.

The projects evaluated follow:

Location Project
Nueva Vizcaya • Dumayop Watershed Sub-Project (DWSP)
Palawan • Sta. Lourdes, Tagburos, Bacungan and Kamuning

3
 EXECUTIVE SUMMARY

Location Project
Mangrove Rehabilitation Sub-Project (STAGBAK
MRSP)
• Brgy. San Isidro ISF Multi-Purpose Cooperative
(BSIISFMPC)
Leyte • Palompon Mangrove Rehabilitation Sub-Project (PMRSP)
• Capoocan Multi-Purpose Cooperative
Bukidnon • Pulangi Watershed Rehabilitation Sub-project (PWRS)
• Cabayugan Laligan Valencia Upland Farmers Association
(CALVUPA)

To meet the audit objective, the team applied the following audit techniques,
among others:

• Reviewed pertinent rules and regulations on forest managements; project

documents (e.g. tenurial instrument, contracts); related monitoring reports such
as Appraisal Report and Accomplishment Reports; support services extended
by various sectors to the project and its beneficiaries; and safekeeping
measures on confiscated products;
• Interviewed and administered survey questionnaires to officers and employees
of DENR, Local Government Units (LGUs), Other Government Agencies
(OGAs) and People’s Organizations (POs);
• Inspected project sites and depositories of confiscated forest products and
conveyances;
• Reviewed, analyzed and assessed data gathered.

The audit was conducted from September 1, 2005 to March 17, 2006 pursuant
to MS/TS Office Order No. 2005-37.

AUDIT CONCLUSION

The audit concluded that the implementation of CBFM activities in selected

projects in the provinces of Nueva Vizcaya, Palawan, Leyte and Bukidnon was
not effectively undertaken and that confiscated products and conveyances were
not immediately disposed and not properly protected.

The lapses in the implementation of CBFM activities adversely affected the

attainment of CBFMP goals of uplifting the socio economic condition of the
communities and restoring forest cover on sustainable basis.

These are manifested in the failure to transform the POs into viable entities
capable of managing the forest resources on a long term basis and lapses in the
execution and/or inadequacies of policies, procedures and regulations as
exemplified in the following cases:

4
 EXECUTIVE SUMMARY

• POs in all seven projects covered were not able to uplift their socio
economic condition and manage forest resources as illustrated below:

¾ Except in the case of PMRSP, majority of livelihood projects identified

and implemented during Community Organizing (CO) stage were either
suspended or terminated due to the absence of market for the products,
unavailability or high cost of needed inputs and unsuitable climate. The
failure of livelihood projects can be attributed to inadequate trainings and
feasibility studies.
¾ About 47% of household population within PWRS area were non PO
members and yet, the entire area was awarded to the PO. This hinders the
development of the area particularly those occupied by non-PO members.
¾ Protection activities were not effectively carried out despite requirements
under the CBFMA. Thus, survival rates attained during CSD
implementation were not sustained and forest fires were not prevented or
contained destroying at least 50 and 423 hectares of the established
plantations within the PWRS and DWSP coverage, respectively.

• Policies, procedures and regulations were not effectively implemented

in the following instances:

¾ Project appraisals of DWSP, STAGBAK MRSP and PWRSP were not

thoroughly undertaken. In the case of DWSP, project area contained
mineral deposit which resulted in abnormal/stunted growth of planted
trees within reforestation area and subsequent destruction of affected
portion due to mining activities. On the other hand, at STAGBAK MRSP
and PWRSP, project areas included areas unsuitable for reforestation and
with existing land claims. This adversely affected the smooth
implementation of CSD activities and the survival rates of the established
plantation which were found to be as low as 35.75% and 61.88%,
respectively, as of November 2005 despite massive replanting activities.
¾ The land use plan defined in the Feasibility Study of PWRS was not
strictly observed resulting in increased estimated soil erosion from
303,455 to 390,898.39 tons/year. A portion of the area intended for
Assisted Natural Regeneration (ANR) with estimated minimal soil erosion
was converted into agro-silvipastural plantation with estimated higher
average erosion. Moreover, inappropriate upland cultivation which
promotes soil erosion is widely practiced within the CBFMA area.
¾ The PO in DWSP was still awarded maintenance and protection contracts
during CBFMA period. Under the CBFMA, POs are obliged to maintain
the CBFMA area at their own expense.

• Inadequate coordination with other government agencies resulted in the

granting of mining permit within the DWSP areas to another PO and
improper maintenance of infrastructure projects turned-over to LGUs;

5
 EXECUTIVE SUMMARY

• Absence of policies on the standard area to be managed by the PO

considering the number of participating members and its level of
development resulted in the awarding of the entire 3,780 hectares area
within DWSP to only one PO which was later found to be physically
and financially incapable of managing such huge area.

These lapses contributed to the failure of the POs to sustain the survival rates
attained during CSD implementation. As of inspection date, the survival rates
of these projects were estimated to range only from 15 to 62%, a great reduction
from the reported survival rates of 35.75 to 82.77% during CSD
implementation.

The monitoring mechanism in place and databases maintained were not also
adequate to assess the extent of the PO’s implementation of their Community
Resource Management Framework (CRMF) and Annual Work Plan (AWP). In
the case of PWRS, the PO’s accomplishments during CSD implementation
could not be relied upon as reported accomplishments reflect double entries and
differ from one report to another.

With regard to safekeeping measures, disposal of confiscated/forfeited

logs/lumber and conveyances were not facilitated resulting in accumulation in
quantities which could no longer be protected by DENR offices. These products
were then deposited/impounded in open spaces exposed to the deteriorating
elements.

As the DENR is implementing CBFM nationwide, the team recommended

measures under Part V of the report to address these concerns.

MANAGEMENT’S REACTION

The team forwarded the audit highlights to the concerned Regional Directors,
PENROs, CENROs and the DENR Secretary on various dates, for comments.
Upon request, an exit conference with the members of the Management
Committee of the Forest Management Bureau (FMB) was conducted on
October 31, 2006.

Generally, the concerned DENR offices recognized the existence of the

problems raised in the report with some reservations. In particular, the FMB
claimed that Community Organizing is a continuing process of capability
enhancement and strengthening organizations and that failure to properly
develop the PO to manage the forest on a long term basis can be attributed to
the very limited CBFM staff and resources provided by the government. They

6
 EXECUTIVE SUMMARY

also forwarded explanations and justifications on some issues which were

incorporated in the report, where appropriate.

TEAM’S REJOINDER

While community organizing is considered to be a continuing process, training

and enhancement activities, apparently, end at the termination of Community
Organizing contract. Thus, the capabilities of the POs were not enhanced.

On the other hand, the government’s limitation in terms of providing adequate

staff and resources to oversee the implementation of the program and provide
the needed assistance should have been considered and addressed before the
implementation of the program. As it is, without adequate monitoring and
assistance to POs, the objective of the program of ensuring sustainable forest
development could not be attained. Implementing programs and projects that
could hardly be monitored and attended to would result in wastage of
government resources. It also appears that lapses in the implementation
emanates from inadequate conduct of feasibility studies.

7
 Part II

Community-Based Forest Management

Program (CBFMP)

8
COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

INTRODUCTION

Sustainable forest management (SFM) is the ultimate objective of the forestry

sector. It aims for a continuous production of the desired forest products and
services without reducing its inherent values and future productivity and
producing undesirable effects on the physical and social environment.

Sustainable forest management is guided by the following principles:

Delineation, Classification
and Demarcation of

Ho and elop eso

State Forestlands
t

lis
or

tic nte en rce

Fo
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De stry

, S gra t o s
re
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tai d
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R
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SUSTAINABLE

bl e
tit

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Ins

FOREST
an

MANAGEMENT lo va d
Pr rici urc g S

en on
ve ser ase
d es nci
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De n B
R na

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Fi

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re mu
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at

Fo om
io stry
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an st
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Incentives for Enhancing

Private Investments,
Economic Contribution and
Global Competitiveness of
Forest-Based Industries

Under the Community-Based Forest Conservation and Development principle,

the CBFM is adopted as the national strategy pursuant to Executive Order No.
263, series of 1995. The CBFM is a collaborative undertaking of the national
government, LGUs, local inhabitants, community organizations, civil society
organizations (CSOs), and private business entities.

It is applicable to all areas classified as forest lands including allowable zones

within protected areas. It also integrates and unifies all people-oriented forestry
programs of the government including Integrated Social Forestry Program
(ISFP), Upland Development Program (UDP), Forest Land Management
Program (FLMP), Community Forestry Program (CFP), Low Income Upland
Communities Project (LIUCP), Regional Resource Management Project

9
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

(RRMP), Integrated Rainforest Management Project (IRMP), Forestry Sector

Project (FSP), Coastal Environment Program (CEP); and ancestral domains.

Under this Program, the DENR entered into CBFM Agreement (CBFMA) with
Peoples Organizations (POs) for a period of 25 years. This document provides
tenurial security and incentive to develop, utilize and manage specific portions
of forest lands.

PROGRAM OBJECTIVES/GOALS

The basic principles underlying CBFM Program (CBFMP) as defined under

Section 2 of DENR CBFM Strategic Action Plan are:

• Social equity, recognition of indigenous people, and gender parity;

• Livelihood and local management of natural resources;
• Community participation, sustainable forest management and biodiversity
conservation;
• Creation of the enabling environment; and
• Partnership.

These principles are embodied in the Community Resource Management

Framework (CRMF) of every CBFM project. The CRMF expresses the
communities’ aspirations, local and indigenous knowledge, and serves as a
guide in the access, development, use and protection of resources in areas being
managed or to be managed by the communities.

PROGRAM STAKEHOLDERS

The local communities composed of either cultural/indigenous peoples or non-

cultural community represented by their organizations referred to as POs are the
principal participants in the CBFMP.

Indigenous Cultural Communities (ICCs)/Indigenous Peoples (IPs), whose

claims to ancestral domains/lands have been recognized through Certificates of
Ancestral Domain Claims (CADCs) or Certificates of Ancestral Land Claims
(CALCs), or whose domains are recognized by themselves and neighboring
communities, may, at their option, participate in the CBFMP through the
preparation and implementation of Ancestral Domain Management Plans
(ADMPs). An ADMP shall be considered the equivalent of a CRMF.

10
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

CBFMP offers the following incentives to the POs:

• To occupy, possess, utilize and develop forest lands and its resources located
within the designated CBFM area and claim ownership of introduced
improvements. ICCs/IPs shall be deemed not to have waived their rights to
ancestral lands and domains, and the right to lay claim on adjacent areas which
may, after more careful and thorough investigation, be proved to be, in fact,
part of their ancestral domain;
• To allocate to members and enforce rights to use and sustainably manage forest
lands resources within the CBFM area;
• To be exempt from paying rent for use of the CBFM areas;
• To be properly informed of and be consulted on all government projects to be
implemented in the area. A PO’s consent shall also be secured by the DENR
prior to the granting and/or renewal of contracts, leases and permits for the
extraction and utilization of natural resources within the area; provided, that an
equitable sharing agreement shall be reached with the PO prior to any grant or
renewal to an individual or legal entity that is not from or based in the affected
community;
• To be given preferential access by the DENR to all available assistance in the
development and implementation of the CRMF, Resource Use Plan (RUP), and
Annual Work Plan (AWP);
• To receive all income and proceeds from the sustainable utilization of forest
resources within the CBFM area, subject to the provisions of the National
Integrated Protected Areas System (NIPAS) law; and
• To enter into agreements or contracts with private or government entities for
the development of the whole or portion of the CBFM area; provided, that
public bidding and transparent contracting procedures are followed; provided
further, that development is consistent with the CRMF of the CBFM area.

PROGRAM SCOPE

CBFM projects may be implemented in both uplands and coastal lands of the
public domain.

upland coastal land

11
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

The following areas are, however, exempted from the CBFM project:

• Areas covered by existing Timber License Agreements (TLAs), Pasture Lease

Agreement (PLA), IFMA and other forest land contracts, leases, permits or agreements,
except in the following cases:
¾ The lessee, agreement holder executes a waiver in favor of the CBFM Agreement
(CBFMA), provided, that when any pre-existing rights expire within three years from
the issuance of a CBFMA, no waiver shall be required; or
¾ A permit is issued only for the collection or harvesting of minor forest products, in
which case no waiver from the permittee shall be required. Upon termination of any
pre-existing permit for non-timber forest products, the permit shall not be renewed and
any new permit shall be given to the CBFMA holder.

• Protected areas except multiple use zones, buffer zones and other areas where
utilization activities may be allowed pursuant to the provisions of RA 7586 and its
implementing rules and regulations;
• Forestlands which have been assigned by law under the administration and control of
other government agencies, except upon written consent of the concerned government
agency;
• Certified ancestral lands and domains, except where the ICCs/IPs opt to participate in
CBFMP; and
• Other areas occupied by ICCs that are known to be ancestral domain but are not yet
covered by CADC or CALC, unless the ICCs/IPs opt to participate in CBFMP.

IMPLEMENTING AGENCIES

The DENR, in coordination with the LGUs and OGAs, shall collaborate with
Non-Government Organizations (NGOs) and other private entities in developing
the enabling environment to support and strengthen local communities in
managing forestlands and coastal resources on a sustainable basis. It shall provide
security of tenure and technical assistance to the community.

D The specific functions and responsibilities of various DENR offices follow:

As the National Coordinating Office of CBFMP, it shall be responsible for drafting

FMB policies, monitoring implementation, liaising support and maintaining information
E system on CBFMP.

It shall be responsible for the effective implementation of CBFMP in the region. It

N Reg.
Office
shall submit periodic reports on program implementation, monitoring and
evaluation to the Secretary.

R It shall be responsible for the effective implementation of CBFMP in the province,

PENRO including submission of periodic reports and maintenance of data base for all
CBFM projects in the province.

It shall be directly responsible for the implementation of CBFMP within its

CENRO jurisdiction, in coordination with LGUs, OGAs, NGOs/private entities. It shall
submit periodic reports of CBFMP implementation to PENRO for evaluation.

12
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

In accordance with Section 8 of EO 263, a CBFM Steering Committee chaired

C by the DENR Secretary is constituted to formulate and develop policy
B guidelines that will create incentives and conditions necessary to effectively
implement CBFMP. The committee is composed of the Heads of the following
F Offices as Members:
M • Department of Agriculture
• Department of Trade and Industry
S • Department of Agrarian Reform
• Department of Finance
T • Department of Science and Technology
E • Department of Labor and Employment
E • Department of Interior and Local Government

R • Department of Budget and Management

• Department of National Defense
I • Department of Justice
N • National Economic and Development Authority
G • Philippine Commission on Countrywide Development
• Committee on Flagship Programs and Projects
• Cooperative Development Authority
C • National Commission on Indigenous Peoples
O • Philippine Chamber of Commerce
• Philippine Wood Products Association
M • NGO Coalition Group
M • Representatives of POs
I • Other public and private organizations.

T The Steering Committee shall perform the following roles and functions:
T • Provide overall guidance and policy direction to the CBFMP and, for this
purpose, meet periodically to review and integrate, if necessary, all policies
E pertinent to the CBFMP, and resolve policy gaps and/or conflicts with other
E •
programs and projects in the Environmental and Natural Resources Sector;
Review and approve the CBFMP Comprehensive Action Plan;
• Secure inter-agency support and participation in CBFMP; and
• Identify and source funds for CBFMP.

GOVERNING LAWS, RULES AND REGULATIONS

Recent issuances governing the implementation of CBFMP follow:

Adopting Community-Based Forest Management (CBFM) as the national

strategy to ensure the sustainable development of the country’s forestland
263 resources and providing mechanisms for its implementation
EOs
72 Preparation and implementation of Local Government Code of 1991

13
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

Recognizing, protecting and promoting the rights of ICCs/IPs and creating

8371 a National Commission on Indigenous Peoples

RAs
Establishment and management of National Integrated Protected Areas
7586 System and defining its scope and coverage

PDs 705 The Revised Forestry Code of the Philippines

2002-02
Establishment and management of CBFM Program in protected areas

Guidelines in the implementation and management of mangrove

2000-57 subprojects under the Forestry Sector Program (FSP)

2000-29 Harvesting and utilization of forest products within CBFM area

2000-07 Guidelines for Environmental Impact Assessment of forestry projects

99-49 Guidelines in the identification, development and implementation of

livelihood activities and opportunities for qualified protected area occupants

99-35 Guidelines in the implementation of RUP in CBFMP

Amending DAO 98 series of 1988 to include CBFMP under the coverage of

99-11
the Program D of the Comprehensive Agrarian Reform
DAOs
98-45 Issuance and transfer of Certificate of stewardship within CBFM areas

98-44 Establishment and management of CBFM special account

98-43 Exempting CBFM projects from payment of Administrative fees

Production sharing with POs in the harvest of plantations owned by the

98-42 government inside the CBFM areas

Integrating all CBFM strategy and People-Oriented Forestry Programs and

96-30 Projects into DENR regular structure

Integrating all CBFM strategy and People-Oriented Forestry Programs and

96-29
Projects into DENR regular structure

14
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

DENR-DILG Strengthening and institutionalizing the DENR-DILG-LGU partnership on

JMC 2003-01
devolved and other Forest Management Functions

DOF-DENR Detailing the functions and responsibilities of partner agencies involved in

JMC 99-01
the implementation of CBFM

DENR- Prescribing the Procedures on Devolved and other Forest Management

DILG JMC Functions

DENR MC Providing guidelines in the conduct of Monitoring and Evaluation of

99-17 Forestry Sector Projects

DENR MC Providing guidelines and procedures in the processing of payments for

MCs 2000-18 Community Organizing (CO) and Comprehensive Site Development of
Subprojects under the FSP

DENR MC Prescribing guideline for the preparation and evaluation of Phase Out Plan
99-08 of the Assisting Organization for Forestry Sector Projects

DENR MC
99-04 Prescribing extension of CO Contract under FSP Loan

DENR MC Implementing the Project Impact Monitoring and Evaluation System

98-10 (PRIMES) as Monitoring and Evaluation Guidelines for CBFMP

DENR MC
98-08
Prescribing guidelines on contracting inside CBFM areas

DENR MC
97-01
Implementing guidelines on the conduct of CO under FSP

FUNDING

For CYs 2002 to 2004, CBFM program/projects were financed from regular
budget and proceeds of foreign loans with total appropriation of P5,165.957
million, broken down as follows:

Program/Projects 2002 2003 2004 Total

(In Millions)
Foreign Assisted:
FSP (JBIC PH 135)
Peso Counterpart P116.107 P88.328 P9.115 P213.550
Loan Proceeds 217.307 77.895 295.202
RP-German Community Forestry Proj. Peso
Counterpart 7.000 .300 7.300
Water Resources Dev’t. Proj.
(IBRD 4110)
Peso Counterpart 30.438 .500 21.958 52.896
Loan Proceeds 46.562 6.320 52.882
Forest Management 1,531.104 1,437.563 1,575.460 4,544.127
Total P1,948.518 P1,604.586 P1,612.853 P5,165.957

15
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

PROCESS FLOW/ACTIVITIES

The CBFM work is divided into four stages:

Preparatory Stage
Stage 1
• Building LGU-DENR partnership
• Identification and prioritization of potential CBFM sites
• Identification and delineation of ancestral land/domain claims

Stage2 Diagnostic and PO Formation/Strengthening Stage

• Formation of CBFM core groups, deployment and community
immersion of full-time, field based CBFM workers
• Identification of community leaders
• CBFM orientation and team building
• Training needs assessment of core groups, CBFM workers, training
for participatory rural appraisal
• PRA, community and resources profiling
• Seminars and consultations on the CBFM Agreement
• Pre-membership training
• Formulation and ratification of PO constitution and by-laws
• Registration of PO
• Preparation of CBFM application
• Issuance of CBFMA

Stage 3 Planning Stage

• PO sectoral planning
• Consolidation of sectoral plans into CRMF and RUP
• Affirmation of CRMF
• In case of CADC, preparation of Ancestral Domain Management Plan

Implementation Stage
Stage 4
• Setting-up of PO management systems and institutions
• Linkaging and networking with other POs, corporate sector, GOs, NGOs,
LGUs
• Capability-building of POs on financial management, livelihood, etc.
• Expansion of PO membership
• Conduct of regular assessment, strategizing/tactic session
• Research and Development
• Implementation of Development Activities
• Periodic assessment of PO capabilities
• Phasing-out full time DENR-CBFM workers
• Federation of CBFM PO

16
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

CBFM IMPLEMENTATION FRAMEWORK

IEC INFORMATION REFLECTION-PLAN-

DISSEMINATION PERIMETER SURVEY ACTION CYCLE

FOREST POTEN- CBFM COMM- SITE PRO- CBFMA VISION CRMF 5-YEAR IMPLEMEN-
LAND-USE TIAL CBFM MGN'T UNITY FILE ISSUANCE & PREPA- WORKPLAN TATION
PLANNING AREAS UNITS APPLICA- MISSION RATION PREPA-
TION FOR SETTING RATION
CBFM
y Community y Orientation y Livelihood &
Mapping y Sectoral enterprise
y Situation Planning dev't.
Analysis y Consolidation of y Forest area
y Participatory Sectoral Plans dev't &
rapid appraisal y Ratification management
y Public y Organizational
Consultation dev't & mag''t.
PO y Etc.
FORMATION/
STRENG-
THENING &
FORMALIZA-
TION
COMPRE-
HENSIVE PREPARATORY DIAGNOSTIC AND PO PLANNING IMPLEMENTATION
FRAME- STAGE FORMATION STAGE STAGE STAGE
WORK
PLAN

PARTNER-
SHIP &
ALLIANCE
BLDG. COMMUNITY ORGANIZING
AMONG
STAKE- STRENGTHENING CAPACITIES (PHASED TRAINING, COMPREHENSIVE AND HOLISTIC APPROACH
HOLDERS
(DENR,
LGU, OGAS,
NGOS, etc. IEC
REGULAR CBFM UPDATES (I.E. POLICY BRIEFS)
INTERAGENCY COOPERATION NETWORK
SUPPORT MONITORING AND EVALUTAION DOCUMENTATION
TO CBM OF LESSONS LEARNT PROVISIONS OF TECHNICAL
IMPLEMEN- ASSISTANCE, AND SUPPORT SERVICES
TATION INSTITUTIONAL SUPPORT MECHANISMS

ASSESSMENT OF THE ORGANIZATIONAL STABILITY

y Analyzing CBFM y Identifying major CBFM y Understanding deeper levels y Building PO members self-
stakeholders with the stakeholders at the of causes and effects of confidence through self-
LGU community level community problems reflection
y Shorrtcut to validating the y Determining when is y Identifyng relevant y Teaching the PO how to define
CBFM areas individual time versus community problems and support needed and mobilize
y Understanding the community time brainstroming possible resources
MAJOR community history and y Understanding circles of solutions y Guiding the PO to assess plans
ACTIVITIES experience influence and interaction y Facilitating the PO's vs accomplishments and initiate
/ y Mobilizing the community among community members formulation of vision and adjustments
EXPECTED to draw a community y Helping the community mission statement y Assessing the project's gain in
OUTPUTS profile assess their basic economic y Selecting appropriate terms of improved resources
y Getting to know the system features to design socio- access and control
community's way of life y Finding out who uses and culturally suitable y Collecting participants insights
controls the community's interventions from project interventions &
natural material resources y Guiding the PO's coomunity recommenadtions
action planning process y Defining the project's impact on
community life and discussing
recommendations

y Stakeholders analysis with y Stakeholders analysis with y Problem analysis y Fruits of success
LGU the community y Analysis of community y Mobilizing internal & external
USEFUL y Participatory community y Time use chart problems and potential support resources
PRA resource mapping y Venn diagram solutions y Participatory monitoring
TOOLS y Trend analysis y Livelihood analysis y PO vision and mission y Monitoring & evaluation using
y Transect walk y Community resources statements gender analysis
y Gender specific calendar access and control matrix y Intervention suitability and y Participatory feedback analysis
potential benefits analysis y Participatory project impact
y PO community action plan analysis

17
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

CONTRACTS

There were 39 CBFM projects funded under JBIC Loan PH-135 from 1997 to
June 2003. These projects were covered by 304 contracts with total contract
cost of P1,831.185 million executed by the DENR and a number of NGOs, POs
and private contractors:

No. of Contract Amount

Project Component Contracts Contractor (in Millions)
Community Organizing 57 NGOs P130.862
Comprehensive Site Development 81 POs 1,203.161
Monitoring and Evaluation 117 NGOs 113.952
Infrastructure 49 Private firms/NGOs 383.210
Total 304 P1,831.185

EVALUATION PROCESS

Contractors for each component of CBFM projects are pre-qualified and

performance evaluated based on the following criteria:

Phase Criteria

Prequalification Performance Evaluation

The NGO/AO should be DENR

• Satisfactory compliance
accredited:
with the first 2 quarters
• with proven track record in target;
community organizing/
• Good working relationship
community development
with PO, LGU, and other
works in the Region;
sub-projects actors;
• with capability to implement
• Quality performance of the
community capacitation in
C PO; and
technical, social, institutional
O • Strong linkages established
and other aspects of sub-
for PO’s livelihood.
project implementation;
• with staff willing to go full
time and immerse on the site;
and
• not blacklisted by DENR
and/or any other government
agencies, local and
international funding
institutions.

18
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

Phase Criteria

Prequalification Performance Evaluation

PO members should be Filipino • Conditions of the

citizens who are either: plantations
• Physical accomplishment
• Actually tilling portion of of PO
the area to be awarded;
C • Physical and financial
• Traditionally utilizing the
S status vis a vis expected
resource for all or substantial outputs based on fund
D portion of their livelihood; or expenditures
• Actually residing within or
adjacent to the areas to be
awarded.

• An NGO with juridical status • Satisfactory

registered under the SEC, accomplishments on:
DOLE and/or the CDA;
accredited by the DENR ¾ Baseline survey
Regional Office concerned; ¾ Site inspection to
has adequately-trained determine actual
manpower with sufficient project status
financial resources; has ¾ Assessment of the
technical capability in benefits accruing to
implementing the M & E the community
requirements; with integrity resulting from project
and commitment to activities
environmental, social and ¾ Structured surveys
M community development assessing impact of
& issues; and are classified under the project in the area
E the following:
• Review procedures were in
¾ Academe-Based accordance with DENR
Organization MC 99-17
¾ Professional Organization
¾ PO-Based Cooperatives
¾ Other non-profit
organizations

• NGOs based in the region

where the project site is
located is preferred especially
with the added good track
record as an organization in
similar or related projects.

19
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

PROCESSING OF PAYMENTS

A diagram showing the billing process for CO and CSD accomplishments

follow:

FSP Subproject Billing Process

AO / PO CENRO (SUSIMO) PENRO DENR REGION

Special Account (LP /

Implements Contract
GOP)

VBU inspects and

Submits Monthly validated monthly Prepares Record
Accomplishment accomp. first week of of
Report succeeding month (3 Disbursement
days)

Prepares billings Submits report to

based on validation CENRO/ sends a copy
report and WFP/ to AO / PO & Region
Submits to CENRO (3 days)

PENRO REVIEWS, Receives Insp./Val.

CENRO endorses to
ENDORSES TO Report / billing request for
PENRO (2days)
REGION (2 days) review

ARED Focal Person

Reviews the billings /
Prepares voucher
2 days

ARED for Operation

1 day Approves Voucher

Accounting Office
Evaluates / processes
1 day
the voucher
PREPARES
SUMMARY /
SUBMITS TO NFDO Cashier Prepares &
1 day Signs check

Approves check by
1 day RED (ASAP)

RECEIVES Releases checks by

CHECK Cashier

Prepares/Consolidates/
Monthly Submits SOEs

Submits Monthly
SOEs

NFDO

In case of M & E contracts, single payment is made upon submission and

acceptance of the Final Report. Retention fee is paid after the NGO has
submitted the comprehensive report of the over-all findings on the
implementation of the project.

20
 COMMUNITY-BASED FOREST MANAGEMENT PROGRAM

THE CBFM PROJECTS

As of December 31, 2003, the 5,503 CBFM projects covering 5,969,522

hectares were at various stages of implementation. These are located nationwide
with Region II having the biggest project in terms of project area as illustrated
in this graph.

CBFM PROJECTS

Reg XIII ARMM CAR

554970 36890 719815
Reg XII Reg I
400963 99809

Reg II
Reg XI
834245
560545

Rg III
Reg X 245810
497506
Reg IV-A
42009
Reg IX
435718
Reg IV-B
Reg VIII 803747
271236 Reg VII Reg V-
83051 203712
Reg VI
179496

21
 Part III

PROVINCIAL ENVIRONMENT AND

NATURAL RESOURCES OFFICE (PENRO)

PROVINCES OF NUEVA VIZCAYA,

PALAWAN, LEYTE AND BUKIDNON

22
PENRO

INTRODUCTION

The DENR is the primary agency responsible for the sustainable management
and development of the country’s natural resources. It has six (6) staff bureaus
and a number of field offices as shown in the chart below:

SECRETARY

FMB LMB MGB RENRO EMB PAWB ERDB

(16)

FMB – Forest Management Bureau PENRO RENRO – Reg’l Environment and

LMB – Land Management Bureau (74) Natural Resources Office
MGB – Mines & Geosciences PENRO – Prov’l Environment and
Bureau Natural Resources Office
EMB – Environmental Management CENRO CENRO – Community Environment
Bureau (170) & Natural Resources Office
PAWB – Protected Areas and
Wildlife Bureau
ERDB - Ecosystem Research and
Development Bureau

The audit covered selected projects implemented by PENROs in Nueva

Vizcaya, Palawan, Leyte and Bukidnon with offices described below:

Nueva
PENRO Vizcaya Palawan Leyte Bukidnon

Region II IV-A VIII X

Location Bayombong, Sta. Monica, Lopez Jaena Malaybalay
Nueva Puerto St., Tacloban City, Bukidnon
Vizacaya Princesa City City
No. of CENROS 3 7 3 5
Forest land (in hectares) 390,387 1,041,850 168,970 507,802
Alienable and disposable land (in 68,412 447,776 402,307 321,576
hectares)
Total land area (in hectares) 458,799 1,489,626 571,277 829,328
Covered
Municipalities 20 23 41 20
Cities 2 1 2 2

23
 PENRO

The classification and area of forest land of these Offices follow:

1% 0% Nueva Vizcaya Forestland

9%
5%

24%
Mossy & Pine Forest 1,085.66
Old Growth Forest 36,611.30
Second Growth Forest 95,154.10
Grassland/Brushland 232,458.58
Agricultural Land 20,408.49
Others 4,668.87

61%

PENRO – Palawan Forest Land

2% 7%

17%
Forest Reserves - 74,267
Timberland - 174,883
National Park - 767,320
Civil Reservation - 25,380

74%

PENRO- Leyte Timber Lands

Forest (Natural Stand) - 50970

30.17%
44.17% Mangrove Forest - 4225
Mossy Forest - 12885
Mangrove Reproduction - 179
2.50% Brushland - 26078
Others - 74633
7.63%
0.11%
15.43%

PENRO-BUKIDNON Forest Land

3% 6%
1%
24% 6%
0%
Forest Reserve 16,859
6%
Military Reserve 29,624
Communal Forest 2,796
National Park 32,447
Communal Pasture 1,628
Proclaimed Watershed 32,762
Timberland 269,208
Unclassified 122,478

54%

24
 PENRO

ORGANIZATIONAL STRUCTURE

The organizational structures of the four PENROs follow:

NUEVA VIZCAYA

PENR Officer

PENRO PENRO Exec.

Secretary Asst.

PENRO Task Planning Unit

Force

Accounting Admin. Section

Section

Bookkeeper Records HRMO I

Officer I

Acctg. Clerk Property Cashier I

Custodian

Utility/ Cashier Clerk I

Security Guard

Clerk II/
Auditor

Forest Management Protected Areas and Land Management Ecosystem Research

Section Wildlife Section Section & Devt. Section

CENRO Aritao CENRO CENRO Dupax

(63) Bayombong (63)

25
 PENRO

PALAWAN

PENR Officer

Planning Finance
Section Services

ADS FMS LMS PAWS/ ERDS EMS

CMMS

CENRO CENRO CENRO CENRO CENRO CENRO

CENRO Brooke’s Pt. Coron
PPC Narra Quezon Roxas Taytay
(31) (53) (43) (32) (35)
(61) (42)

LEGEND:
ADS – Administrative and Support Services
FMS – Forest Management Service
LMS – Land Management Service
PAWS/CMMS – Protected Areas and Wildlife Services/Coastal Marine Management Service
ERDS – Ecosystems Research and Development Service
EMS – Environmental Management Service

LEYTE

PENR OFFICER

ATTORNEY II PLANNING

ADM. OFFICER II SR.FOREST MGT.

SPECIALIST

ACCOUNTANT II LMS-ENGINEER III

MA II/BUDGET DES PROJECT MANAGER

PERSONNEL OFFICER PAWS-EMS II

CENRO PALO CENRO BAYBAY CENRO ALBUERA

ENR Station Burauen, ENR Station Abuyog, JBIC, Palompon, Leyte

Leyte ENR Station Leyte, CEP, Inopacan ENR Station
Carigara, Leyte & Hindang, Leyte Tabango, Leyte

26
 PENRO

BUKIDNON
PENR Officer

Secretary/ Bill Operations

Collector Center

Finance Admin. Land Forest Envl. IPAS/

Mgnt. Mgnt. Mngt. NIPAS

CENRO CENRO CENRO CENRO Manolo CENRO

Don Carlos Talakag Fortich Pangantukan
Malaybalay

In summary, the four (4) PENROs have personnel ranging from 16 to 204 and
service offices of 5 to 8 as shown below:

Region II Region IV Region VIII Region X

PENRO Audited Nueva Vizcaya Palawan Leyte Bukidnon
Total Personnel 16 102 204 67
No. of service offices 5 8 6 6
No. of CENROS 3 7 3 5

FUNDING

For CY 2004, allotment and obligation of Forest Management Program for

PENROs follow:

Nueva Vizcaya Palawan Leyte Bukidnon

Allotment P38, 601,557.99 P3,834,000 P31,705,000 P50,014,515
Obligation P38, 601,557.99 P3,575,500 P31,705,000 P50,014,515
Utilization Rate 100% 93% 100%. 100%

27
 PENRO

CBFMP ACCOMPLISHMENTS

As of 12-31-04 Nueva Vizcaya Palawan Leyte Bukidnon

# of CBFM Projects 21 39 78 145

No. of POs 21
Total Tenured Area 19,073.20 72,011.00 23,558.71 140,709.06
( in hectares)
Project area ( in hectares) 12,195.87
CBFMA implementation 1991 1991
Year started

In general, the implementation of CBFMP in the PENROs audited is assisted by

the following:

PENRO Assisting Office

Bukidnon Environment and Natural Resources Office
Bukidnon Environment and Natural Resources Office
Bukidnon Watershed Protection & Development Council
Local Government Units
Non-government Organizations
Other Government Agencies
Palawan Environment and Natural Resources Office
Provincial Planning Development Office
Palawan Council for Sustainable Development Staff
Non-government Organizations
Other Government Agencies
Leyte Environment and Natural Resources Office
Provincial Planning Development Office
Non-government Organizations
Other Government Agencies
Nueva Vizcaya Environment and Natural Resources Office
Provincial Planning Development Office
Non-government Organizations
Other Government Agencies

PROFILE OF PROJECTS AUDITED

The projects covered in the audit follow:

LOCATION/
PROJECT DESCRIPTION
Nueva Vizcaya
DWSP Dumayop Watershed Sub-project (DWSP) is one of the three subwatershed
components of the main Magat Watershed Rehabilitation Project.

28
 PENRO

LOCATION/
PROJECT DESCRIPTION
The project is geographically located in the municipalities of Bagabag and
Quezon, Nueva Vizcaya. It is covered by a CBFMA with a total area of 3,870
hectares of which 1,710.24 hectares was developed under the CSD component of
the FSP implementation. It is composed of three parcels:

Parcel Location
I • Sitios of Sinalang, Burburnay, Dyayan & Totong of barangay Bonifacio
• Diffuncian of barangay Calaocan, within the municipality of Quezon,
Nueva Vizcaya
II • Sitios Dumayop and Amballo of barangay Baretbet, and
• Tawi-tawi of barangay Pogonsino, municipality of Bagabag
III • Sitio Tabban, Pogonsino, of Bagabag, Nueva Vizcaya

DWSP intends to improve the socio-economic conditions of the sub-watershed’s

Indigenous Cultural Communities (ICC) by generating alternative livelihood
opportunities through community-based watershed rehabilitation approach
involving forestation and agro-forestation strategies while enhancing the
environment and enriching the biodiversity of the natural forest. The project’s
specific objectives are:

• To transform the local communities into empowered entities with the capability to
manage the watershed resources for self-help and self-reliance,

• To reforest a total of 1,263.98 hectares of open and denuded areas of the

watershed for protection purposes;

• To establish a total of 116.25 hectares of agro-forestry area for fruit and fuel
wood production as major sources of community income;

• To establish a total area of 10 hectares of vegetative soil erosion control measures

in the form of bamboo clumps along stream banks;

• To establish 320 hectares of rattan plantation within the existing secondary forest;
and

• To improve the biodiversity of the remaining old growth forest and second growth
forest through enrichment planting or other forms of assisted natural regeneration
techniques.

The different project components were implemented by the following:

Project Contract
Component Contractor Date Period Cost
Community Env. Neighborhood Ass. of Tech. 03-17-97 2 years P5,297,036.30
Organizing Inc. (ENATI)

Comprehensive Biagen ti Dumayop Ken 07-O3-97 6 years 38,173,175.64

Site Development Aglawlaw a Kabakiran, Inc. (revised)
(CSD) (BDAKAI) formerly
Dumayop- Magat Agro Forest
Dev’t. Ass’n., Inc. (DMADAI)

29
 PENRO

LOCATION/
PROJECT DESCRIPTION

Project Contract
Component Contractor Date Period Cost
Monitoring and
Evaluation: Friends of the Environment for
• Physical
Development and
Sustainability, Inc. (FRENDS)
various various P 3,956,587.76

• Institutional & various various 430,000.00

Project Benefit
Assessment
Infrastructure
Farm to Market Brostan Const. and Dev. Corp. 09/05/02 9 mos. P12,684,670.68
Road

A CBFMA was issued to DMADAI on February 18, 2002 covering 3,780.06

hectares.

Palawan
STAGBAK MRSP The STAGBAK Mangrove Rehabilitation Sub-project (STAGBAK MRSP)
covers four (4) barangays of Puerto Princesa City, namely Sta. Lourdes, Tagburos,
Bacungan and Kamuning, collectively known as STAGBAK. This is one of the 59
subprojects financed by Japan Bank for International Cooperation (JBIC) PH
Loan 135, at a total contract cost of P22.504M, the details of which follow:

Project Contract
Component Contractor Date Period Cost
Community Wellspring Mgt. 12/25/00 2 years P 2,740,000.00*
Organizing Corp. (WMC)
Comprehensive Site Development
• Sta. Samahang 12/29/00 3 yrs. 1,115,216.85
Lourdes Mangingisda ng
Honda Bay (138
members)
• Tagburos Tagburos Aqua- 12/29/00 3 yrs. 2,023,837.59
Venture MPC (49
members)
• Bacungan Bacungan Coastal 12/29/00 3 yrs. 1,970,568.79
Development
Residents
Association, Inc.
(65 members)
• Kamuning Coastal Residents 12/29/00 3 yrs. 6,178,306.78
Development
Asso., Inc. (90
members)
Total P11,287,930.01
Monitoring and Evaluation
• Physical Geospatial Tech. No 66 cal
Solutions, Inc. data days P1,011,500.00

30
 PENRO

LOCATION/
PROJECT DESCRIPTION

Project Contract
Component Contractor Date Period Cost
Monitoring and Evaluation
• IPBA* Greenheart Consults available P 189,787.50
Internationale Corp.
Total P1,201,287.50
Infrastructure
• FMR** P6,685,253.44
• Banca 590,000.00
TOTAL P22,504,470.94
*IPBA - Institutional Project Benefit Assessment
**FMR - Farm to Market Road

The project implementation was awarded to four POs with an average of 80

members, majority of whom are fishermen and ordinary housewives. The sub-
project specifically aims to improve and restore the coastal environment of Honda
Bay and part of Puerto Princesa Bay through the establishment of 1,644.51
hectares of mangrove plantation.

The coastal communities within the site basically depend on the mangrove and
related aquatic resources for livelihood. Thus, decrease in mangrove forests
affected the communities. Hence, the sub-project also aims to provide livelihood
projects to the residents of coastal barangays. Infrastructure projects were also
constructed to stir economic activity in the community.
• San Isidro, The project is located at the Sitios of Mararag, Pinagtuyuan, Pinagbuduan,
Roxas Matadling, Panalsangan, Matimbang and Durian, San Isidro, Roxas, Palawan. The
CBFMP project covers an aggregate area of 782.81 hectares and was financed from the
annual regular budget of PENRO-Palawan. Project implementation was awarded
to a People’s Organization called Barangay San Isidro Integrated Social Forestry
Beneficiaries Multi-Purpose Cooperative (BSIISFBMPC) which was awarded
with Community Based Forest Management Agreement (CBFMA) on December
21, 2000. It aimed to establish forest tree plantation, maintenance and protection.

As envisioned in its Community Resource Management Framework (CRMF), the

PO was to pursue reforestation, forest protection, agro-forestry, timber stand
improvement (TSI), Assisted Natural Regeneration (ANR), etc. As provided in the
affirmed Annual Work Plan (AWP) and Resource Use Plan (RUP) for 2003, the
organization is authorized to utilize 48.16 cu. m of felled logs, standing dead and
defective trees and 647.96 cu.m. of planted trees. It is estimated that annual net
income of the PO will amount to P150,717.96 derived from the harvest of 26.27
cu.m. of premium wood and 21.89 cu.m. apitong or a total of 20,419.84 bd.ft.
Inventory conducted in August 2003 showed 332.66 cu.m. of gmelina and 183.2
cu.m. of acacia mangium inside the reforestation area and another 132.1 cu.m
outside the government reforestation due for harvest. There are also minor forest
products like rattan and honey which will provide additional income to the
cooperative.
Leyte
PMRSP The Palompon Mangrove Rehabilitation Sub-project (PMRSP), funded under
Japan Bank for International Cooperation (JBIC), aims to rehabilitate the once
fully covered by mangrove forests islets in barangays Cruz, Plaridel, Baguinbin,
and Cangcosme, all of the municipality of Palompon, Leyte. The forest cover

31
 PENRO

LOCATION/
PROJECT DESCRIPTION
dwindled as years passed by and the natural resources gradually depleted due to
the cutting of mangrove trees by nearby communities for fuel woods and
construction materials.

The sub-project also aims to provide livelihood projects to the residents who are
basically dependent on mangrove and related aquatic resources as the main source
of livelihood.

PMRSP had a total contract cost of P26.75M with the following components:

Project
Component Contractor Contract Period Contract Cost
Community EDCAI Ph. I – 11/ 20/ 00 P2,246,545.26
Organizing to 5//20/2001
Ph. II – 9/11/01
to 3/11/03
CSD BAKHAW, Inc. 2/ 22/01 to 6/30/03 20,216,000.00
M&E
• Physical TPEC-MPDAI 12/02 to 6/03 835,245.41
• IPBA VIRTUE, Inc. 12/02 to 6/03 196,300.50
Infrastructure
• Road Rehab. A & C Enterprise 12/ 8/02 to 6/30/03 3,922,829.51
• Concrete Pathway 1,586,087.23
Totals P26,756,462.65
Legend: EDCAI – Eco-Environmental Development Concern Association
BAKHAW - Bililhong Ani sa Katunggan Hangtud sa Walay Katapusan
TPEC-MPDAI - Taft People Economic Council Multi-Purpose Dev. Assoc., Inc.

The CBFMA was awarded to BAKHAW, Inc. on September 20, 2002 covering
1,396.3 hectares. The PO has 210 members, majority of whom are fishermen and
ordinary housewives.
ACUFI CBFMA was awarded to Association of Capoocan Upland Farmers, Inc. (ACUFI)
on March 8, 1999 specifically for the protection and maintenance of the project.
The project, which was formerly a Community Forestry Project (CFP) and
converted into CBFM in 1998 under Executive Order No. 96-29, is located within
the political jurisdiction of Barangays Manloy, Culasian and Sitio Salvacion,
Barangay Balucanad, Municipality of Capoocan, Province of Leyte. It covers
1,575 hectares of which 1000 hectares is already developed composed of about
705 hectares of residual dipterocarp forest, about 270 hectares brash/grass land
and 125 hectares openland, cropland and cocoland, sporadically distributed
within the CBFM project site. The remaining 575 hectares, composed of
300 hectares reforestation plantation, 150 hectares of rattan plantation and 125
hectares of agroforestry farms, is proposed to be developed under CBFM
implementation from CY 1999 until its completion.

The ACUFI is composed of 125 members from Barangays Culasian, Manloy and
Balucanad, Capoocan, Leyte.
Bukidnon
PWRS Pulangui Watershed Rehabilitation Project (PWRS) is one of the 55 projects
funded under JBIC Loan II. It covers part of the Upper Pulangui Watershed with a
project area of 5,095.72 hectares covering the following sites:

Barangay Municipality/City
Sacramento Valley
Little Baguio San Fernando
Halapitan
Concepcion Valencia City

32
 PENRO

LOCATION/
PROJECT DESCRIPTION
PWRS intends to rehabilitate the watershed’s vegetative cover, minimize soil
erosion losses and improve the water yield and quality of the tributaries and major
waterways, among which, is the Pulangui River. The river is considered one of
most important resources in the province as it irrigates highly productive rice
fields and generates 255 megawatts of electric power. PWRS also aims to improve
ecological balance and uplift the socio-economic condition of the community.

The different project components were implemented by the following:

Cost
Project (in
Component Contractor/PO Particulars million) Status
The Network Organized the following
Foundation Inc. POs: P2.099 completed
(TNFI) • PAGTUKAS
• OSA-TFAI
Community
Organizing
• SAHA-TFAI
Values, Inc.* OSA – TFAI
SAHA - TFAI .923 terminated
Blessed Phils. , CEDAMCO
Inc. 2.651 completed
Sub-total P 5.673
CSD (area in PAGTUKAS 1,002.00 19.929
hectares) OSA 810.00 16.157
SAHA 1,785.72 37.746 completed
CEDAMCO 1,498.00 34.016
Sub-total 5,095.72 has. 107.848
LEAF Foundation Physical Validation –
(LEAF) CEDAMCO 1.389 completed
Mindanao Physical Validation– OSA .550
Integrated Physical Validation- 1.392
Management SAHA
Foundation Physical Validation – 1.669
(MINMAF) OSA & SAHA
Physical Validation (Final 1.073
Pass) – OSA & SAHA
Mt. Kitanglad Physical Validation - .831
Monitoring & Community PAGTUKAS
Evaluation Development Institutional and Project .294
Foundation Inc. Benefit-OSA,
(MKCDFI) CEDAMCO,
PAGTUKAS, SAHA
Physical Validation – 1.553
CEDAMCO &PAGTUKAS
Physical Validation – 1.011
CEDAMCO &PAGTUKAS
Sub-total P9.762
Infra. ULTICON Rehab. of 11.3 kms road 34.156 completed
Development Builders and const. of 3.1 kms.
concrete foot bridge
Sub-total P34.156
Total P151.39
Legend:
PAGTUKAS - Pagpalibud Tu Kakahuyan Asso., Inc.
OSA-TFAI - Onward Savers Tree Farmers Association, Inc.
SAHA-TFAI - Sail-Halapitan Tree Farmers Asso., Inc.
CEDAMCO - Community Environmental Dev. & Mgt. of Concepcion Inc.
* - taken over by TNFI

33
 PENRO

LOCATION/
PROJECT DESCRIPTION
On account of such projects, CBFMA were issued as follows:
CBFMA Tenured Area
Number Date PO (in hectares)
55010 06.13.99 PAGTUKAS 1,435.40
55011 06.25.99 OSA 1,120.92
55012 06.24.99 CEDAMCO 4,485.02
55013 06.18.99 SAHA 7,768.43
Total 14,809.77

CALVUPA Cabayugan Laligan Valencia Upland Farmers Association (CALVUPA) is funded

by the Provincial Government of Bukidnon. It is formerly known as Laligan ISF
Project, a devolved project established in 1987, located in Laligan, Valencia City
covering an area of 213.8 hectares with a total of 116 beneficiaries.

The plantations were established in 1993 and 1994 on a 27.5 and 45 hectare areas,
financed by beneficiaries’ loans amounting to P165,000 and P275,000,
respectively, from the Provincial Government of Bukidnon.

Pursuant to EO 263, the project was converted into a CBFM project. As of audit
date, the issuance of CBFMA to the PO named CALVUPA is still in process.
CALVUPA was registered with the Department of Labor and Employment on
May 19, 2004 under registration no. 10-2968-04.

34
 Part IV

Audit Observations

35
 Chapter 1

Effective Community Organizing

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EFFECTIVE COMMUNITY ORGANIZING

INTRODUCTION

Community organizing is a process by which a community identifies its needs

and develops the confidence and the will to work and find resources to meet
such needs.

Under EO 263, CBFM is prescribed as a national strategy in the implementation

of forestry sector projects. It is based on the concept that efficient and sustained
management of forestlands and coastal areas is a result of responsible resource
utilization by organized and empowered local communities. Thus, the need for
effective Community Organizing (CO).

CO aims to mobilize the communities and develop/strengthen their capabilities

to implement subprojects activities and become long-term resource managers.

The audit, however, disclosed that community organizing was not effectively
undertaken. Core activities under the CO contracts were not implemented
contributing to the failure to transform the POs into viable entities capable of
managing the subprojects on a long-term basis.

OBSERVATIONS

1. The capability of the POs to manage the forest on a long term basis
was not fully developed during the conduct of community
organizing due to inadequate training. This contributed to the
suspension and termination of livelihood projects initiated with the
assistance of CO contractors. The absence of livelihood sources is
adversely affecting the ability of the POs to maintain the CBFM
area. In the case of PMRSP, the PO’s apparent concentration on
livelihood projects adversely affected the maintenance and
protection of the established plantation.

Recognizing the communities as partners in the development and

beneficiaries of program services under the CBFM program, community
organizing was conceptualized as one of the major project component. It is
a process of providing the communities with skills and capabilities on
technical, social and managerial aspect and transforming them into an

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 EFFECTIVE COMMUNITY ORGANIZING

organized, self reliant and self governing entities. Specifically, this activity
aims to:

• Enhance the knowledge and awareness of the community in

conducting a continuing and effective information, education and
communication (IEC) activities;
• Develop appropriate leadership and membership capabilities of the
community that will mobilize them toward the attainment of the
subproject objectives;
• Conduct training activities defined under the Subproject Appraisal
Report that are designed to socially and technically prepare the
community in undertaking subproject activities;
• Assist the community in the preparation of feasibility studies and
implementation of viable livelihood projects within the subproject
site;
• Provide technical assistance to the community on various subproject
activities; and
• Develop the community into a viable entity that is capable of
managing the subproject on a long-term basis, through the
community-based approach.

In order to ensure the success of Community Organizing, the activities

required to be undertaken as defined under MC 97-01 included the
preparation of feasibility studies for livelihood projects, conduct of training
needs assessment, development of training design and conduct of
continuing social, technical and managerial training activities intended to
strengthen and develop the local organizations into viable entities capable
of managing the sub-projects on a long term basis.

The implementation of community organizing in the four subprojects

funded under JBIC loans were contracted to Non-Government
Organizations (NGOs)/Assisting Organizations (AOs), tabulated as follows:

Contract
Name of Duration
Location Name of Project AO/Contractor Cost (years)
Nueva Vizcaya DWSP ENATI P 3,697,057.00 2
Palawan STAGBAK MRSP WMC 2,718,245.28 2
Leyte PMRSP EDCAI 1,771,524.00 1-1/2
Bukidnon PWRS TNFI 1,440,607.98 3
Values, Inc. * 1,504,683.78 2
Blessed Philippines 2,775,950.88 3
Total P13,908,068.92
* taken over by TNFI

The team noted that the Assisting Organization in the PMRSP was able to
conduct all the required activities to be undertaken during community
organizing. The organized PO then was able to establish and manage

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 EFFECTIVE COMMUNITY ORGANIZING

livelihood projects which are mostly operational at the time of inspection. It

was, however, noted that the apparent concentration on livelihood projects
adversely affected the maintenance and protection of the established
plantation with survival rate as of inspection date of only 62%.

On the other hand, in three (3) other projects, the CO activities may not be
considered satisfactory. This condition affected the POs capability to
manage the sub-project as discussed below:

• Not all required activities to be undertaken under MC 97-01 were actually

undertaken. This is best illustrated in the case of DWSP where only nine (9)
out of the twenty (20) identified training needs were conducted by ENATI.
The trainings have minimal participants who were mostly PO officers. It was
noted that only about thirty (30), out of the nine hundred sixty-five (965)
reported beneficiaries participated in these seminars. The identified training
needs not undertaken follow:

Topics Remarks/Possible Effect

Farm Appraisal and Planning The PO was not oriented on various soil and
for Soil and Water water conservation strategies. The team
Conservation Strategies observed that Kaingin system is still rampant in
the area and the Model Farm envisioned in its
2003 AWP has yet to be established.
Alley Farming with Livestock PO members verbalized during interviews that
Raising they still need trainings that could help them
Giant Bamboo and Propagule establish other livelihood projects.
Production (with feasibility
studies ) These trainings could have guided the POs in
Training on Upland Crop establishing other livelihood projects and in
Production Technology improving upland farming techniques.
Training on Women in This training could improve and strengthen
Environment and Development social interactions among DMADAI and
community members.
Trainors’ Training This training could have enhanced the skills of
the DMADAI officers in conducting meetings,
trainings and symposiums. As gathered in the
interviews, PO affairs/activities were mostly
attended by PO officers only.

• Some activities undertaken did not produce satisfactory results due to short
period of training and inadequate feasibility studies. This resulted in the
suspension and termination of a number of livelihood projects and individual
operation of others due to unsuitable climate, absence of market, high costs
of farm inputs and unavailability of raw materials as exemplified in the
following livelihood projects established in DWSP, PWRS and STAGBAK
MRSP.

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 EFFECTIVE COMMUNITY ORGANIZING

Livelihood/ Date Started/

Investments Project Status/Remarks
DWSP - DMADAI
Tilapia production/ November While training was conducted in November 1997, the
2002 / P50,000.00 livelihood project was established only on Nov 2, 2002
or two years after the CO contract expires. The project
was already terminated as of August 2004.

As reflected in the CENRO report, this project failed

due to water shortage in the area, an indication that the
feasibility study was not properly undertaken.

A number of PO members interviewed by the team

were not aware of the existence of this project further
indicating lack of transparency in financial operation
and minimal and/or lack of participation/interest of PO
members in the organization’s activities.
Sari-sari Store/1997 / P2,500 The sari-sari store did not succeed due to
mismanagement of funds and was eventually
terminated as of August 2004. Interviews disclosed that
some members did not pay the goods obtained through
credit and credit policies were not regulated. This
indicates that the concept of a cooperative was not yet
inculcated in the minds of the PO officers and
members.
Mushroom culture/ 1997/ P2000 The project was also terminated as of August 2004.
While there is a market for cultured mushroom,
interviews revealed that production stopped due to
unavailability of spawn. The difficulty of securing
spawn could have been detected during the conduct of
the feasibility study and alternative sources identified
therein and arranged properly.
PWRS
PAGTUKAS
Vegetable gardening (livelihood On-going, but on individual basis due to high
promotion) cost of farm inputs.
Banana trading

On-going, but on individual basis. PO

experienced difficulty of collecting receivables
from previous buyers.

Fishpond

Only few members continued the project but on

individual basis due to limited knowledge on
fishpond management.

Corn-cassava relay

Suspended due to wet climate.

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 EFFECTIVE COMMUNITY ORGANIZING

Livelihood/ Date Started/

Investments Project Status/Remarks
SAHA
Rattan furniture Suspended. Services of PO members terminated
when permitee experienced documentary
problems.
Canteen Suspended as these were envisioned to co-exist
Micro-agro lending with the CSD acitivities.
Computer/photocopier Suspended, machine under repair.

Banana trading On-going but on individual basis

Fresh water fish production Only few members continued the project but on
individual basis due to limited knowledge on
fishpond management
Vegetable production On-going, but on individual basis due to high
cost of farm inputs.
CEDAMCO
Vegetable production On-going, but on individual basis due to high cost of
farm inputs.
Corn-cassava-peanut relay Suspended due to limited market.

Catfish production Suspended due to limited knowledge on fishpond

management.
OSA
Banana Trading On-going but on individual basis. The PO experienced
difficulty of collecting receivables from previous
buyers.

Vegetable Production On-going, but on individual basis due to high cost of

farm inputs.

Canteen Suspended as this was envisioned to co-exist with the

CSD activities.
Rice Pawning Suspended. Birds attack the farm.
Micro-lending Suspended due to difficulties of collecting receivables.
Coffee Production Suspended alledgedly due to inappropriate spacing
which affected the growth and quality of produce.

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 EFFECTIVE COMMUNITY ORGANIZING

Livelihood/ Date Started/

Investments Project Status/Remarks
Suspended. Variety of abaca chosen did not thrive in
Abaca Production the area.
Fishpond Only few members continued the project on individual
basis due to limited knowledge on fishpond mngt.
STAGBAK MRSP
TAVEMCO
Mud Crab Fattening Non operational since Oct. 2003. Contact buyer no
P10,000 longer interested
Fishing Boat Compressor fishing banned by the City Government.
SAMAHOBA
Micro Lending Non operational as of June 30, 2005. Operation
temporarily stopped in preparation for the election of
new officers.
BCRDAI
Mud Crab Fattening Non operational since April 2003. Labor cost exceeded
income generated.
Sari-sari store Non operational since April 2003. Income generated
minimal & not enough to defray labor cost.
KCRDAI
Mud Crab Fattening Discontinued as members are busy attending to their
individual livelihood activities.

There were, however, livelihood projects that are still operating as of

inspection date though experiencing some difficulties on collection such as:

PO Livelihood Project
PWRS
PAGTUKAS Cattle dispersal, transport services
SAHA Cattle dispersal, chairs rental, solar dryer and transport services
CEDAMCO Banana trading, lending to banana traders, hog dispersal and
transport operation
OSA Cow dispersal
STAGBAK MRSP
TAVEMCO Micro lending
SAMAHOBA Water system
BCRDAI Nipa plantation and micro-lending

At the DWSP, it was noted that the trainings conducted to strengthen the
PO’s capability to manage was limited to only three (3) trainings for 1-2
days each while at the PWRS, total training days was only between 16 to 30
per PO. These periods may not be considered adequate to develop and
strengthen the managerial skills/capability of the POs as manifested by the
reported fund mismanagement, lack of cooperation and concerns by PO
members.

The establishment of livelihood project is an important component of the

CBFM strategy in ensuring the success of any CBFM project as this would
provide financial support to PO members while waiting for harvesting of
forest products.

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 EFFECTIVE COMMUNITY ORGANIZING

The failure of the CO to attain its ultimate objective of transforming the

community into viable entities capable of maintaining the forest were
manifested in the present condition of the CBFM areas which are not being
adequately protected and maintained. The absence of protection and
maintenance activities adversely affected the sustenance of the survival
rates attained upon CSD termination.

On the other hand, the apparent concentration of the organized PO at the

PMRSP in managing its livelihood projects adversely affected the
maintenance and protection of the established plantation. The DENR
claimed that its low survival rate of 61.88% as of February 2006 was partly
attributed to the PO’s failure to conduct maintenance and protection
activities as they refocused their budget to livelihood projects.

Management’s Comments Team’s Rejoinder

Provided by FMB

Community organizing (CO) is The team recognized that capability

designed to encourage community enhancement of POs is supposed to be
participation and later evolved into a continuing activity. However, as it
community development and is, after community organizing, the
empowerment. It is a continuing training and assistance given to the
process of capability enhancement and POs were very limited. Thus, their
strengthening organizations. capability was not enhanced which
adversely affected their capability to
manage the forest in a long term basis.

As cited in the report, while it is true On the other hand, government

that the capability of the POs to limitations in terms of providing
manage the forest on a long time basis adequate staff and resources to
was not fully developed during the oversee the implementation of the
conduct of community organizing, it program and provide the needed
can be attributed to the very limited assistance should have been
number of CBFM staff working with considered even before the program
the communities and the resources was carried out. If these are being
provided by the government. There is considered by the DENR as some of
really a need to strengthen the conduct the stumbling blocks in the success of
of CO and capability enhancement. the program, then representations with
Thus, instead of dealing on the the Department of Budget and
negative side of the report, we will Management and all sectors concerned
appreciate it very much if you will should be made.
consider in your final report the
limitations of the government in
providing the needed support to
empower and make viable entities out
of POs.

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 EFFECTIVE COMMUNITY ORGANIZING

2. Communities within PWRS area were not fully transformed into

POs capable of managing the forest in a long term basis. About
47% of the total households were non-PO members. There were
also forest protection activities which were not undertaken by the
POs after termination of CSD contracts. As a result, forest fires
were not prevented nor contained destroying at least 50 hectares of
plantations established under CSD contracts.

The communities within PWRS area were developed into four (4) POs
organized to maintain the entire area. It was, however, disclosed in the
Terminal Report that 979 households representing 47.11% of the total
households within the PWRS were not PO members. This is contrary to
CBFM principle of complete community participation.

The profile of households in the CBFM area follows:

CBFM Area Households

2500

2000

1500

1000

500

0
CEDAMCO PAGTUKAS OSA-TFA SAHA TOTAL
Non-m embers 208 127 406 238 979
PO members 352 232 162 353 1,099

Despite this condition, the entire area was awarded to the four (4) POs
including the areas occupied and being tilled by non-PO members. The
presence of non-PO members in the area not only hinder the attainment of
CBFM principle of community participation in forest management and
biodiversity conservation but resulted in non-development of vast tracks of
land under their claim.

Ocular inspections conducted by the team within the CBFM area disclosed
that the areas left open / idle and without any traces of improvement were
mostly occupied by non-PO members. The team further observed that
massive upland cultivation is being practiced by non-PO members in their
occupied area. Open areas as reflected in the respective CRMF of the POs
is equivalent to 3,981.29 hectares or 25.81% of the total CBFM area as
presented in the next page:

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 EFFECTIVE COMMUNITY ORGANIZING

CBFM Area

20,000.00

15,000.00

10,000.00

5,000.00

-
CEDAMCO OSA-TFA PAGTUKAS SAHA-TFA TOTAL
W/ DEV'T. AREA 3,361.75 1,017.05 1,379.00 5,684.10 11,441.90
OPEN 1,123.27 717.69 56.00 2,084.33 3,981.29

The POs, however, committed in their work plans to develop the open area
as shown below:

PO Planned Utilization/Activities

To develop the uncultivated land area of 976.76

CEDAMCO hectares within the CBFMA area for abaca, tree
plantation and agro-forestry plantation.

OSA-TFA
No planned activities relative to open areas.

PAGTUKAS
Expansion of production forest by 300 hectares
composed of 50 hectares abaca, 50 hectares coffee and
SAHA-TFA 200 hectares banana plantations.

Inquiry from PO officers disclosed that development of the open areas is

hindered not only by lack of funds but also by legitimate rights of the
claimants who are non-PO members.

Under the CBFMA, the POs are also responsible to protect the entire forest
lands within the CBFM area against illegal logging and other unauthorized
extraction of forest products, slash and burn agriculture (kaingin), forest and
grassland fires and other forms of forest destruction. This function is thus
incorporated in the POs’ CRMF and Annual Work Plan (AWP). This is
precisely the very reason why the POs were being organized during
community organizing into a viable institution capable of managing the
CBFM area on a long term basis.

Records, however, revealed that apparently, the required protection and

maintenance activities were also not undertaken. Interviews with POs

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 EFFECTIVE COMMUNITY ORGANIZING

revealed that, in a number of instances, forest fires were found to emanate

from cigarette butts thrown to tall grasses (talahib) destroying plantations
established, some of which were already replanted.

This manifests that strip brushing, one of the protection activities required
under the CBFMA was not undertaken. It must be noted that strip brushing
is a suggested maintenance strategy to ensure fast growth of plantations
aging from 1 to 3 years and a good mitigating measure to prevent forest fire.
The team was informed that the activity was discontinued upon the
termination of CSD contract as funds were no longer provided for the
purpose. Continuous strip brushing is required to be undertaken until the
grasses have been dominated/suppressed by planted trees.

It was also noted that forest fire that occurred on February 28, 2005
destroying about 50 hectares of plantations established by SAHA-TFA was
not contained as firelines/firebreaks were not established or maintained. The
fast spreading of fire also manifests that the designated forest fire brigade
consisting of PO members was not capable of protecting/ containing forest
fire.

CSD areas previously damaged by fire

Ocular inspections of the CBFMA area disclosed that banana plantations

which can serve as firebreaks were established in agro-forestry as source of
livelihood but not established along boundaries to serve as firebreaks.

Banana plantations established in parcels

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 EFFECTIVE COMMUNITY ORGANIZING

CENRO-Malaybalay explained that the effort of the POs to establish

firebreaks such as banana to save plantation from forest fire was affected
by budgetary constraints. The establishment of firebreaks was, however,
part of project design prescribed in the feasibility study. As such, these
should have been established in the proper places during CSD
implementation when funds were still available.

It was also observed that during the team’s inspection, firelines established
during CSD implementation were not maintained. Thus, strong winds
make fires almost unstoppable as it could easily cross the established
firelines.

It would appear then that the following activities reportedly performed by

CENRO-Malaybalay to prevent occurrence of forest fire were not
sufficient to protect the forest.

• Training on forest fire preparedness.

• Reminders to all CBFMA PO-Presidents of their responsibilities
stipulated in the CBFM agreement to be vigilant in the protection of
CBFMA area and to report to authorities any forest destruction detected.
• Radio broadcast addressing forest protection.
• Strip brushing.
• Requiring identified culprits of burned areas to replant and augment
affected areas at their own expense.

They further claimed that a number of situations actually affected their

efforts such as:

• Not all CBFM residents are participants to CSD implementation.

• Distance from their residences as most of the members are living in the
poblacion.
• The culture of Indigenous People (IPs) as part of their tradition in
agricultural farming which is slash and burn cultivation.

To address these concerns, CENRO- Malaybalay intends to implement the

following forest protection mechanisms to minimize if not totally prevent
occurrence of forest fire:

• Conduct IEC to be undertaken jointly by the DENR and concerned LGU.

• Give incentives in coordination with LGUs.
• Work out for the transfer of responsibility over CBFM area to the LGUs.
• Replant burned CSD areas.
• Conduct culture enhancement.

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 EFFECTIVE COMMUNITY ORGANIZING

Management’s Comments Team’s Rejoinder

Provided by CENRO-Malaybalay

Non PO members within CBFM areas While the team agrees with the
can not be driven out even they do not CENRO that non PO members could
join the organization as per our not be driven out, the presence of 47%
existing laws (RAs 8371, 7586 and non PO members is affecting the
7160). We cannot also suspend the development of the area. Considering
issuance of CBFMA to those that the PO and the DENR could not
interested farmers due to non- totally disregard the rights of non PO
cooperation of some of the minority members and development on such
farmers within the watershed/ areas could not be undertaken, there is
community. As a compromise, work a need to establish a minimum
and collaboration should already start percentage of membership before
to those interested farmers and awarding CBFMA.
overtime, we are confident that the
course of nature will force them to
join the organization and practice
sustainable upland farming system
principles, advocated by the CBFM
community. Some of the compelling
indicators which will ultimately force
them to join includes low production
due to poor soil management,
exclusion in the financial assistance
channeled through the organization
and the non issuance of a tree cutting
permit. On the other hand there are
cases where farmers do not want to
join the organization because of their
personal indifference with some of the
organizers/leaders which is already
beyond our control. On the other
hand, those who were not given the
priority to receive assistance from the
government, tend to distance
themselves from the organization.
Momentarily, non-participation by
some members of the community may
still be an issue but this is very
temporary in nature.

Per our assessment, the four (4) PO’s While it maybe true that only one
have already attained a certain degree major fire occurrence was noted by
of responsibility and commitment of the team, this could have been
protecting natural resources entrusted prevented had the required protection
to them contrary to the audit activities been undertaken by the PO.
observation. This is, if we compare It was reported that the fire occurrence
them before the project implementa- destroyed about 50 hectares of the

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 EFFECTIVE COMMUNITY ORGANIZING

Management’s Comments Team’s Rejoinder

tion where all the grass land areas are established plantation. Besides, with
razed down by fire every year after duly established firelines, even if
year during summer. The fact that communities adopted traditional
only one (1) PO has fire occurrence practice in farming, the established
out of the four (4) is already a strong plantations could not have been
manifestation that our efforts are greatly affected.
impacting on the ground. Fire
occurrences during summer can be
traced to the traditional practices of
our upland communities and
Indigenous Peoples of preparing their
land for the incoming cropping season
after summer. Accepted principle is
that we can not win their hearts and
change their practices overnight, as
this is even respected and recognized
under the IPRA law. Transformation
is a long lonely road and a painstaking
process.

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 Chapter 2

Sound Implementation and Maintenance

Strategies/Activities

50
SOUND IMPLEMENTATION AND MAINTENANCE
STRATEGIES/ACTIVITIES

INTRODUCTION

Plans are prepared to increase the rate of success of any endeavor. It is in the
planning stage when the needed resources, strategies and specific activities
necessary to be undertaken to attain the desired results are identified.

The implementation of reforestation projects funded from foreign loans using

the CBFM strategy is guided by the feasibility studies and influenced by
policies of the national and local governments. Relative thereto, in order to
ensure success, feasibility studies incorporating a thorough project appraisal
should be properly undertaken and close coordination between and among the
different CBFM implementers should be ensured.

The audit disclosed that lapses in the preparation of project appraisal,

community profiling, project execution, policies and procedures and
coordination of activities among DENR offices and LGUs are adversely
affecting the attainment of the desired survival rate of the established
plantation.

OBSERVATIONS

1. The project appraisals were not thoroughly undertaken. Thus,

projects included areas located within marine parks, birds and fish
sanctuaries, with mineral deposits and with existing claims. These
conditions adversely affected the normal growth of trees and
sustainability of the survival rates attained upon project
termination.

As a matter of procedure and as required under existing regulations, the

National Forestation Development Office (NFDO), DENR prepared
appraisal report before implementing any reforestation project funded from
Japan Bank for International Cooperation (JBIC).

While this requirement was complied with, the team noted that apparently,
the project appraisals were not thoroughly conducted as manifested by
inclusion of areas unsuitable for planting and with mineral deposits and

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

existing claims. These conditions adversely affected the growth of trees

planted and sustainability of the Weighted Average Survival Rate (WASR)
attained upon project termination as discussed below:

• Inclusion of areas with mineral deposits at the Dumayop Watershed

Sub-project, Nueva Vizcaya which resulted in the destruction of the
established plantation in the affected area.

One of the requirements in the conduct of appraisal as indicated in the

community profiling is gathering of data on mineral resources which
could be secured from the Mines and Geosciences Bureau (MGB), the
National Mapping Resource Inventory Authority (NAMRIA) and
LGUs.

Review of the DENR documents and inquiry with the MGB, however,
disclosed that DENR did not request information or conduct site
verification on potential mineral deposits within Magat Watershed
Project or Dumayop Watershed Sub-project located at the towns of
Bagabag and Quezon in Nueva Vizcaya.

The team was further informed by MGB that they were ready with
Mineral Resource Profile of the different provinces in Region 2 as early
as 1995 and a listing of metallic and non-metallic prospects of Nueva
Vizcaya where Bagabag was found to be endowed with gold and sand
and gravel while Quezon is rich with gold and copper. As such, these
information were not captured in the appraisal of Dumayop Watershed
Sub-project conducted in 1996.

In view of the failure of DENR to consider the mineral resources, the

subproject area covered a portion containing manganese mineral
deposits which were subsequently mined damaging 7.69 hectares of the
established plantation as of November 14, 2005. The damaged area was
estimated by the team to be P255, 826.54 of which only P99, 801 was
recovered from the mining operator as of November 2005.

Interviews with DENR personnel revealed that, and as observed during

project inspections, the growth of trees planted in adjacent/near mineral
deposits are stunted. Thus, in the terminal report of the sub-project, it
was disclosed that the PO did not attain the minimum survival rate of
80% with only 59.34% Weighted Average Survival Rate upon
termination.

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

• Inclusion of areas with existing claims and unsuitable for

reforestation at STAGBAK MRSP, Palawan which resulted in
survival rate of as low as 35.75% as of November 2005 despite
massive replanting activities.

The project appraisal for STAGBAK MRSP did not indicate any
information on the biophysical characteristics of the area particularly
on soil types, weather patterns, land resource use and management
practices. It merely disclosed that the project was delineated on the
topographic maps and that ground verification is required before
implementation. The required ground verification was apparently not
undertaken before implementation. This then resulted in inclusion of
areas with existing claims which adversely affected the CSD
implementation, as illustrated below:

Sub-project
Site Remarks
Sta. • The enrichment component of CSD contract included
Lourdes about 3 hectares covered by foreshore lease of DYPR.
Interviews with the PO disclosed that the permit for
installation of transmitter of DYPR was secured from the
barangay and that the foreshore lease agreement was
executed between ABS-CBN and DENR-Manila Office.
DYPR is a provincial radio station of ABS-CBN.
• A certain Mr. Palanca has allegedly land claims over
portion of CBFM area.
Tagburos • The 2 hectares Mud Crab Fattening project established
through the assistance of Center for Renewable Resources
and Energy Efficiency (CRREE) is situated within the
boundaries of Foreshore Lease Agreement (FLA) No.
3230 entered into between BFAR and a certain Mr.
Manuel Felarca. The FLA of Mr. Felarca was uncovered
when the Mud Crab project at Tagburos was established.
Interviews disclosed that Mr. Felarca emphasized during
the establishment of the livelihood project that the Mud
Crab area should not be expanded and that established
structures should be removed as soon as the crabs are
harvested. Unfortunately, the mud crab project of the PO
with total project cost of P393,840 reflected in the
feasibility study did not succeed. The members of the PO
accounted the failure of the project to the Felarca Case as
this hindered access to the project site causing loss of
members’ interest to pursue the project.

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Sub-project
Site Remarks
Bacungan • A certain Umali family has allegedly land claim over
portion of the CBFM area. The area covered was not
disclosed and no formal claim was filed.
Kamuning • A certain Basco family has allegedly land claim over
portion of CBFM area. The area covered was not disclosed
and no formal claim was filed.

Interviews with the concerned DENR personnel on the foregoing issues

disclosed that conflicts over the CBFM areas arose during the
implementation stage since no actual mapping and delineation of
project boundaries were made before the projects were undertaken.
Thus, issues on existing claims were not settled before the project
implementation.
The affected areas were eventually excluded in the final boundaries of
CBFMA area to give way to prior claimants. It may be noted that these
areas were already enriched by the POs and accomplishments paid by
the DENR before the same were excluded.

Meanwhile, GTSI report showed a weighted average survival rate of

only 35.75% as of July 4, 2003 on reforestation component. This
condition further deteriorated as report of the SUSIMO as of November
2, 2005 reflected only 15.22% survival rate.

The team’s ocular inspections of the sites confirmed the failure of

reforestation in areas within Sta. Lourdes and Bacungan. In Tagburos,
only about 51 hectares out of the total reforestation areas of 160.16
hectares established in Cowrie Island thrive with current survival rate
estimated at 50%. The condition of reforestation at the time of
inspection is reflected in the following photos:

Reforestation area – Sta. Lourdes Reforestation area – Bacungan

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Reforestation area – Cowrie Island

Interviews with the POs disclosed that plantation in the reforestation

area did not thrive despite employment of various strategies such as
change of specie, potting, fencing, replanting undertaken to as much as
four times and as recommended by the DENR.

The POs claimed that the selected project areas may not be suitable for
planting/reforestation due to the following:
• Human destruction as the project area is a regular boat route besides
being near the communities, susceptible to picking of sea shells;
• Strong waves; and
• Soil condition as the area is a former mining dump site.

Total cost allocated for reforestation component of CSD contracts for

Sta. Lourdes, Tagburos and Bacungan sites amounted to P2,236,642.17.

• Inclusion of areas found to be unsuitable for planting and within the

marine park, bird and fish sanctuaries at Palompon MRSP, Leyte
which were eventually replaced by areas likewise not suitable. As a
result, the survival rate attained during CSD implementation was not
sustained.

As a matter of procedure and in compliance with existing DENR

regulations, the PO, with the assistance of the Assisting
Organization/Subproject Site Management Office (AO/SUSIMO) and
the DENR, prepares a CSD plan with accompanying cost
requirements. This plan is basically lifted from the annual site
development strategies prescribed in the approved appraisal report,
subject to certain modifications or revisions as a result of validation
conducted by the AO/SUSIMO.

55
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

As defined in the Updated Appraisal Report for the project, the

identified plantable mudflat areas is composed of 1,396.3 hectares
located at the barangays of Cruz, Plaridel, Baguinbin and Cangcosme
including areas surrounding the islands of Tabuk, Gumalac, and
Cabgan, locally known as the Tres Marias Islets.

Under Section 3 of DENR Administrative Order No. 96-29, the

identification and selection of CBFM area should be jointly undertaken
by the DENR and the concerned LGU in consultation with local
communities. It should take into consideration the forestlands use plan
to ensure that the CBFMP is consistent with the overall watershed
conservation strategy and with the Municipality’s Land Use and
Development Plan. The general procedures in selecting CBFMP areas
follow:

• Each CENRO and duly designated representatives of the concerned

municipal government shall identify potential CBFMP areas with the
aid of a Forestland Use Plan, latest available information and/or
updated forest management map, and other baseline data. The
CENRO and LGU representatives shall then validate the identified
areas on the ground to determine their suitability.
• The validated areas, endorsed by the concerned Legislative Councils
of LGUs, shall then be indicated in a map of appropriate scale, which
map, together with pertinent data and information, shall be forwarded
through channels to the Regional Executive Director (RED) for
approval.
• The approved map and all other documents shall be furnished to the
Director of the FMB, for data base management and monitoring
purposes.
• Upon approval of the CBFMP areas, the CENRO within fifteen days,
shall inform in writing the concerned LGUs and together with the
latter, shall conduct an information campaign to inform the public
about the program. Copies of CBFMP guidelines and site map shall
be posted in the municipality and barangays where the site is located.

The CSD contract for this project was awarded to BAKHAW, Inc. on
December 29, 2000 for a contract price of P20,216,000 covering the
entire area of 1,396.3 hectares identified in the Updated Appraisal
Report. The team was, however, not furnished with a copy of the map
identifying the contracted areas to BAKHAW, Inc., despite repeated
written and verbal request from concerned DENR personnel. The
plantation establishment immediately started upon the issuance of the
Notice to Proceed on February 22, 2001.

56
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

The team noted that apparently, the suitable areas for planting were not
accurately identified by DENR and LGUs. This was manifested in the
PO’s request for reduction of the CSD’s contracted area due to the
following:

• Establishment of boat ways 10-meters width, existing canals with

varying width of 20-400 meters, and non-plantable area (water
logged) in almost all parcels;
• The plantable area at Brgy. Duljugan is only 63 hectares and not 300
hectares as projected, 70% of the entire mudflat is a coralline
substrate. This is also true in the entire area of Barangay Cantuhaon
with a projected area of 320. As described by the SUSIMO assigned
in the project, coralline substrate areas are layers with coral formation
one foot below the mud or sand mixed with mud. Mangroves thrive
in these areas for only 1 to 3 years then die.
• The people of Brgy. Cantuhaon rejected the development of the area
as this is their fishing ground supporting their livelihood activities.
• Included in the original project area of 1,396.3 hectares is about 222
hectares at Tabuk Islet. Tabuk Island was declared as Marine Park,
Fish and Bird Sanctuary under Municipal Ordinance No. 228-021095
dated October 2, 1995, and development projects such as mangrove
reforestation is not allowed within the area. The approximate area in
Tabuk Islet was verbally provided by the SUSIMO presently assigned
in the project area as the DENR failed to furnish the team with the
maps depicting the 1,396.30 hectares originally projected and
contracted to BAKHAW, Inc.

In view of the PO’s requests and upon recommendation of the

SUSIMO, CENRO and PENRO, a revised Work and Financial Plan
was approved by the Acting RED reducing the total plantable area to
only 850 hectares for a total contract cost of P13,811,619.60. After
accomplishing the 850 hectares, a Revised Work and Financial Plan
(RWFP) was prepared to meet the original target of 1,396.3 hectares.
The team noted that the RWFP was approved without any justification
and assessment report on the newly identified area of 546.30 hectares.
The RWFP was prepared by the PO President with the assistance of
EDCAI (the Assisting Organization) President and endorsed by the
SUSIMO to the RED thru the CENRO and PENRO on July 8, 2002.

Interviews with the PO officials revealed that the total area of 546.30
hectares was identified by SUSIMO-DENR as replacement/expansion
for the shortage in plantable area within the original projected project
area. The Regional Office (RO) claimed that the RWFP was a result of

57
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

a series of dialogue and that the areas were found suitable for planting
based on the assessment of the RO – Research and Development
Section (RDS). A copy of assessment report could not be furnished to
the team.

The identified replacement/expansion area included 296.30 hectares

located within the Community Based Resource Management Program
(CBRMP) implemented by the Local Government of Palompon, Leyte
and 250 hectares located in Brgys. Cantuhaon and Duljugan.

As reported in the Monitoring and Evaluation Report, the project

attained a survival rate of 82.78% for the original area and 83.43% for
the replacement area or an overall average of 82.77%. These
accomplishments were within the acceptable level of 80% survival rate.

As of February 17, 2006, however, the PO and the SUSIMO estimated

that the survival rate went down to about 62% from 82.77% weighted
average survival rate (WASR) attained upon project completion. The
survival rate was computed as follows:

Est. Number of
No. of Hectares Hectares Survived
Planted Based on based On
Ref. No. Location Per Brgy Progress Map of the PO/SUSIMO’s Ocular Survival
per Map Boundaries SUSIMO Inspection Rate (%)
1 Cantandoy to Cambinoy 76.20 3 3.94
2 Cambinoy to Cangcosme 350.10 163 46.56
3 Cangcosme to Parilla 270.78 186 68.70
4 Parilla to Cruz 255.30 180 70.50
5 Cruz to Plaridel 272.78 248 90.91
6 Plaridel to Duljugan 171.14 84 49.10
Average Survival
Rate 1,396.30 864 61.88

The team observed the conduct of project assessment by the PO and

the SUSIMO and noted that the reported survival rate of 49% within
the stretch of Plaridel and Duljugan may not be considered realistic.
The team’s assessment of survival rate within this stretch was only
between 5-10%. Still, the Regional Office questioned the reported
survival rate of about 62% adopted by the PO and SUSIMO.

This is an indication that the identified areas were not suitable for
replanting/reforestation. This view was shared by the PO itself, who
claimed that the areas were not suitable for planting/reforestation due
to the following:

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

• Waves in the area is strong especially those facing seaward;

• Destructive human activities such as fishing using sud-sud and
tapsay;
• Cases of illegal sand extraction.

The project status as of inspection date can be readily assessed in these

pictures:

Cambinoy Cangcosme

Parilla Cruz

Plaridel Duljugan

Cantohaon (in between Plaridel and Duljugan)

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

It was further noted that at the CBFMP area, the survival rate of
parcels near the existing forest plantation was higher, estimated to be
90-95%, than those along the shore which was estimated to be only
about 2 to 5%.

Parcels within the CBRMP Area Parcels along the shores of CBRMP

Despite existing condition at the time of inspection, the Regional Office

still claimed that the areas are suitable for planting and that the low
survival rates were due to the failure of the POs to maintain and protect the
areas.

Management’s Comments Team’s Rejoinder

Provided by FMB

Area profiling and appraisals are The team agrees that appraisal was
being conducted prior to the start of conducted before the start of the
the project. project. However, as discussed in the
report, the same may not be
considered adequate as areas with
mineral deposits, existing claims, and
unsuitable for reforestation were
included as part of the contracted
project area. Including areas such as
these eventually resulted in low
survival percentage in these areas.
Gathering of data on mineral
resources which could be secured
from the MGB and the NAMRIA is
one of the requirements in the conduct
of appraisal.

However, there are also instances that The team understands that
instead of managing the forest management of mineral resources is
resources alone, there are other also part of CBFMA. However, the

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

resources like minerals found in the area containing mineral resources
area which are being managed also but should not have formed part of
have not been included or part of the established plantation. As it is, the
appraisal report. Issue like this is site area, after having been planted, was
specific and had already been nonetheless destroyed due to mining
discussed with the concerned offices activities.
of DENR and other stakeholders.

2. Implementation of CBFM projects were either affected by non

compliance with existing policies and procedures and designed
feasibility studies or inadequate policies and procedures. These
lapses consequently increased project cost and adversely affected
the attainment of the desired survival rate.

Evaluation of 4 projects revealed that the attainment of the projects’

objectives was either adversely affected by the failure of the POs and
DENR to comply with the contracts, feasibility studies and existing policies
or inadequacy of the same as discussed below:

• The DMADAI was still awarded maintenance and protection

contracts of the Dumayop Watershed Sub-project covering the period
February 2004 to October 2004 when the CBFM agreement was
already effective as of February 18, 2002. Under the CBFMA, the PO
is obliged to maintain the plantation at its own expense. Moreover,
the maintenance contracts were awarded despite apparent
incapability of the DMADAI to comply with its previous agreement.

During the implementation of Comprehensive Site Development (CSD)

contract by DMADAI, a CBFM Agreement (CBFMA) covering
3,708.5 hectares was perfected on February 18, 2002 awarding the
project area to DMADAI. The CSD was implemented from June 1997
to June 2003.

Under the CBFMA, DMADAI is obliged to improve the status of the

established plantations (reforestation, agroforestry, bamboo and rattan)
within the CBFM area at its own expense within the standard plantation
quality, two (2) years from the termination of the CSD contract or from
July 2003 to June 2005. The failure of the PO to comply with this

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

condition will be sufficient ground for the DENR to cancel the CBFMA
and the PO to face civil or criminal liabilities.

It was also stipulated in the CBFMA that the DMADAI is responsible

for the protection of the entire forestlands within the CBFMA area
against illegal logging and other unauthorized extraction of forest
products, slash and burn agriculture (Kaingin), forest and grassland
fires, and other forms of forest destruction, and assist the DENR in the
prosecution of violators of forestry and environmental laws.

This responsibility was, however, not properly discharged by

DMADAI. Records maintained at the CENRO revealed that forest fires
occurred within the DMADAI area from 1998 to 2004 damaging at
least 423 hectares of the established plantation as tabulated below:

Cause Estimated Area Damaged/Burned (has.) Estimated Cost of

Date of Fire Description Location Area Damaged Area
01-15-98 Ricefield Grassland Dumayop, Baretbet .25 Not stated
cleaning Plantation 46.00
06-13-00 Not stated Gmelina and Tabban, Pogonsino, 67.5 P 786,204.56
Acacia Bagabag
06-20-00 Refo Amballo South, Duma- 60.00 563,310.00
agroforestry yop, Baretbet, Bagabag 8.00 22,936.00
03-21-01 Dumayop, Baretbet 35.00 1,267,483.00
05-15-01 Ant Egg Plantation Tawi-tawi-, Pogonsino 15.00 166,608.00
05-23-01 collection forest Tabban, Pogonsino 2.30 25,415.00
06-03-01 Amballo, Baretbet 12.00 182,520.00
12/ 02 to Personal PO Bunk house, Baretbet, Bagabag 320,000.00
03 01 grudge & Tools & eqpt. 50,000.00
Spite Gmelina plant’n 2.4 14,034.24
03-29 & 30- Pogonsino, Bagabag 318,839.70
Kaingin
2002
04-07-02 Ant Egg Baretbet, Bagabag 16.5 218,707.34
collection Gmelina
02-17-03 Kaingin/ plantation Diayon, Bonifacio, 7.00 92,994.83
Combust- Quezon
ible
material
03-20-03 Gmelina & Amballo & Dumayop,
40.00
Kaingin Mango Baretbet, Bagabag 44,707.40
2.00
Plantation
03-13-04 Baretbet 28.00 303,239.72
Gmelina
03-17-04 Tabban, Pogonsino 25.50 339,532.25
Plantation
Adjacent
06-20-04 Kaingin Gmelina and Dumayop, Baretbet 55.98 930,867.07
Agro
Plantation
Total 423.43 P2,248,888.31

It may be noted from the above tabulation that forest fires were
frequent in the Dumayop Watershed Subproject during the CSD

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

implementation and after the awarding of the CBFMA damaging at

least 423.43 hectares of the established plantation with damage cost
estimated at P2,248,888.21. This manifests the PO’s incapability to
protect the project from forest fires due, among others, from slash and
burn agriculture or kaingin system and ant egg collection.

Despite the PO’s apparent incapability to protect the project from forest
fires, maintenance and protection contract costing P750,000 was still
awarded to DMADAI on February 18, 2004. The maintenance contract
should not have been awarded in the first place as the area is covered
by a CBFMA. As discussed earlier, under the CBFMA, the PO is
responsible in maintaining and protecting the area at its own expense
after two years upon completion of CSD contract.

As reflected in the Work and Financial Plan, the contracted activities

were supposed to be undertaken from February to June 2004.
Evaluation of the POs accomplishments from June to August 2004,
however, revealed that several contracted activities were not undertaken
as illustrated below:

Accom-
plishments
Physical /
Activities Target Cost Amount Remarks
Nursery Operation– 303,120 P227,340.00 0 Due to long drought
seedling production seedlings
Plantation Protection
& maintenance
Banana sucker 1,200 24,000.00 1,200/ Delayed implementation. Implemented
P24,000 from July to August 2004 only.
Fireline maintenance 407 172,975.00 0
Patrol works 1,263 285,564.30 2,037.02 / Fire occurred on the following dates
P249,939.50 caused by adjacent kaingin damaging
Gmelina Plantation at site:

Date Site Value

3/13/04 Dumayop P 303,239.72
3/17/04 Tabban 339,532.25
6/20/04 Dumayop & 930,867.07
Baretet
Total P1,573,639.04
Proj. Mngt Cost 1,710 40,000.00 0
Total P749,879.30 P301,517.44

Despite the PO’s delay and failure to accomplish some activities under
this contract, the contract was still extended until December 30, 2004
with additional funding of P448,325 to cover additional activities. The
implementation of additional activities which were supposed to be
completed by December 2004 was also delayed as tabulated in the next
page:

63
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Accom-
plishment
Physical/
Activities Target Cost Amount Remarks
Replanting Oct. –Dec. , 2004
Procurement of seedlings (bare root) P50,000
Replanting 50,000 P 50,000 50,000
Establishment of greenbelt
Procurement of banana suckers 4,000 100,000 100,000
Planting of suckers 4,000 20,000 20,000
Fireline establishment Jan. – Mar. 2005
Amballo 114 has. 48,450 48,450
Dumayop 27 has. 11,475 0
Diffuncian 10 has. 4,250 0
Sinalang 62 has. 26,350 26,350
Tabban 0 0 15,725
Foot Patrol 489 days 97,800 97,800
PMS 40,000 40,000 Oct. 2004-Mar..2005
Total P448,325 P 448,325

During site visits by the team in November and December 2005,

kaingin is still being practiced and continues to be a threat to the
established plantation as shown in these pictures:

Kaingin at Sitio Sinalang, Bonifacio, Quezon, Nueva Vizcaya

Charcoal-making at Sitio Sinalang Kaingin at Sitio Dumayop

Kaingin at Sitio Burburnai

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

• The CSD implementation of the PWRS was not in accordance with

the land use plan defined in the Feasibility Study resulting in
increased estimated soil erosion from 303,455.92 tons/year to
390,898.39 tons/year. Moreover, inappropriate upland cultivation
which promotes soil erosion is widely practiced.

As disclosed in the following documents, PWRS project was designed

to prevent soil erosion as the site and watershed areas are generally
susceptible to soil erosion:

Document Provision
Paragraphs 52,176,181 Soil erosion poses a serious threat to most of the present and
and 182 of Bukidnon potential agricultural areas of the Province. Almost 110,000 ha
Watershed Management (13%) is already classified as moderately to severely eroded. Despite
Plan Framework the very serious threat soil erosion poses xxx it is not given adequate
(BWMPF). attention. xxx As such, there is a need to promote indigenous and
introduced soil and water conservation technologies to combat the
linked problem of rainfall runoff/soil erosion. xxx
PWRS Feasibility • The subproject aims to rehabilitate the watershed’s vegetative cover,
Study/ Appraisal Report minimize soil erosion losses and improve the water yield and quality
of tributaries and major waterway of Pulangi and Tigua Rivers.
• Specifically, the subproject aims, among others, to introduce proper
farming techniques to minimize soil erosion.
• Estimated average loss of soil is placed at 80.55 tons/ha/year,
however, with the implementation of the subproject, the soil loss will
reduce to 51.62 tons/ha/year or a 36% reduction.
DAO 98-41 dealt with • Section 2.1 – Enhance the conservation, protection and
objectives and strategies rehabilitation of watershed reservations to reduce soil erosion and
to address soil erosion in sedimentation, improve water yield and quality and promote
watershed reservation biological diversity.
• Section 4.1.4 – Promotion of land uses and practices that increase
productivity and conserve soil, water and other forest resources.

Thus, under the feasibility study (FS) for PWRS, agro-forestry and
other farming activities shall be confined only in moderate slopes to
prevent and minimize occurrence of soil erosion. It was proposed that
the PWRS development be undertaken as follows:

SLOPE CATEGORY (%)

LAND USE 0-15 15-30 30-50 Above 50 TOTAL %
Reforestation 48.10 645.12 851.46 348.87 1893.55 32.29
ANR 6.00 481.42 150.09 25.03 662.54 11.30
Rattan Plantation 101.96 475.26 149.94 57.01 784.17 13.37
Agroforestry 600.00 800.00 600.00 200.00 2200.00 37.52
Agro-silvipastoral 76.96 90.94 92.05 23.46 283.41 4.83
Bamboo Plantation 17.57 14.31 4.69 3.25 39.82 0.68
TOTAL 850.59 2507.05 1848.23 657.62 5863.49 100.00

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Actual development of the area as reflected in the Terminal Report of

the POs, however, revealed that the land use plan was not strictly
followed as illustrated below:

Development CSD Accom-

Land Use Plan plishment Variance Pictures
Reforestation 1,893.55 1,894.00 -

ANR 662.54 140.00 (522.54)

Rattan 784.17 914.00 129.83

Plantation

Agro-forestry 2,200.00 1,496.61 800 has.

excluded
in CSD
allotted
to cash
crops

Agro- 283.41 500.11 216.70

silvipastural

Bamboo 39.82 151.00 111.18

Plantation

Totals 5,863.49 5,095.72 (767.77)

It may be noted that the POs converted the ANR into agro-silvipastural
and bamboo plantations as these, unlike ANR, could eventually be
harvested and utilized by the POs. The conversion of land use,
however, affected the project objective of restoring/establishing at least

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

2,500 hectares of land as permanent forest cover. Furthermore, in view

of deviation per land use plan, the estimated soil erosion increased from
303,455.92 tons/year to 390,898.39 tons/year as computed below:

AVERAGE TOTAL EROSION

LAND USE AREA EROSION (tons/year)
Reforestation
Production Forest 1,545.00 32.50 50,212.99
Protection Forest 349.00 83.9 29,281.11
---------------- -------------------
Total 1,894.00 79,494.10
ANR 140.00 7.72 1,080.80
Rattan Plantation 914.00 7.72 7,056.08
Agro-forestry 2,296.61 108.02 248,079.81
Agro-silvipastoral 500.11 108.02 54,021.88
Bamboo 151.00 7.72 1,165.72
TOTAL 390,898.39

The CENRO–Malaybalay claimed that this action was supported with

PO resolutions and that claimants, despite slope category, prefer agro-
forestry component than any other component since they could still
utilize vacant spaces for root crops or seasonal crops to sustain their
livelihood. They also claimed that POs were encouraged to implement
Natural Vegetative Strips (NVS) in agro-forestry component as one of
the mitigating measures from soil erosion.

The team understands that the DENR has also to consider the demands
of the POs. However, such actions should not be to the extent of
sacrificing the very objective of the project.

Under the DENR’s Primer on Soil and Water Conservation (SWC), the
ways of controlling soil erosions include cultural, physical and
biological methods while the factors promoting soil erosion are:

• Kaingin farming
• One-crop system
• Kind of farming
• Intensity of rainfall
• Slope steepness and length
• Soil erodibility

Ocular inspections of CBFMA areas disclosed that inappropriate

upland cultivation is widely practiced regardless of slope gradient and
that even newly planted trees were cut allegedly to give way to upland
farming as shown in the following pictures:

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

CEDAMCO- CBFMA area OSA – CBFMA area

SAHA-CBFMA area PAGTUKAS-CBFMA area

Slash and burn farming at CBFMA Gmelina trees were cut allegedly to give
area of OSA way to corn plantation

Moreover, ridge tops and slopes exceeding 50% were not spared from
the practice. As mentioned in the feasibility study, PWRS area is
susceptible to soil erosion, which if aggravated by inappropriate
farming may cause disaster to the community.

CENRO-Malaybalay agrees that for sustainability, SWC practices

should be part of management practices.

• Absence of policy on the maximum area to be awarded to a PO

resulted in the awarding of a relatively large area to a PO which
could hardly maintain, sustain and manage such an area.

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

In Dumayop Watershed Subproject, a CBFMA covering 3,780.056

hectares was awarded to DMADAI on March 18, 2002. This is the
same PO that implemented the CSD from July 3, 1997 to March 2002.

The Chief, CBFM Unit, however, did not endorse the issuance of
CBFMA to DMADAI due to:

• Although the CSD implementation was substantially funded from establishment

to protection and maintenance, the DMADAI experienced difficulty in carrying
out this responsibility.
• The DENR does not have enough competent people to be assigned in the
communities to assist the single CBFMA holder who is tasked to manage a vast
and sporadic tract of land.
• The geographical attributes of the proposed CBFMA do not guarantee effective
management by a single and wavering local entity;
• The PO has not yet reached the ideal maturity to handle such big responsibility
and accountability despite the very long and expensive empowerment processes
it has gone through;
• The PO president is not open to criticism for improvement particularly on
handling finances of the projects;
• The declining participation of the small number of participating community
members as project implementation progresses.

He then recommended that each sitio should have individual CBFMA

and that a sweeping change in the leadership of the PO Federation be
undertaken. Despite such observations and recommendation, a CBFMA
dated February 22, 2002 covering the entire area of 3,780.056 hectares
was awarded to DMADAI.

The awarding of the entire area to one PO may have been due to the
absence of policy defining the standard area that can be effectively
managed and sustained by a PO taking into consideration the project
location, POs membership and level of management skills. It was
noted that the need to consider the number, capabilities and availability
of field implementer in awarding the project area was already
recognized in the handbook on community profiling for people-oriented
forestry projects. However, the methods and criteria for setting the
project limit that can be effectively and sustainably managed by a
household/PO member under a given condition were not defined.

As observed, the capability of the DMADAI to manage the entire area

was indeed questionable. It failed to sustain the 59.34% average
survival rate attained upon CSD termination. Inspection by the team in
November and December 2005 revealed that the survival rate went
down to about 35%, as presented in the next page:

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

CSD Area Inspected WASR

Component (has.) Area (Density)
Reforestation 1,263.98 851.26 .352
Agroforest 116.25 16.97 .405
Rattan 320.00 11.65 .200
Bamboo 10.00 10.00 0
Total 1,710.23 889.88 .347

The 59.34% rate was even reported to have increased to 61% as of

September 2004 due to maintenance activities undertaken per contract
dated February 18, 2004 involving patrol works, fireline establishment
and maintenance and replantation activities.

Other observations noted by the team during inspection manifesting

DMADAI’s incapability to manage follow:

• the presence of kaingin and charcoal making activities, thick and tall
grasses within and adjacent to CBFM areas, absence of suppression
plan and fire protection measures such as foot trail, graded trail and
fireline in most CSD areas and unreplaced broken look out towers;
and

• the expected height of the trees upon reaching certain age was not
attained as tabulated below:

Height (m )
Per
Ocular Prescribed
Year/ inspect- Height Per
Age Location (Parcel Code) Has. ion ERDB Remarks

Reforestation
2001/4 Burburnai – 1 47.12 3-5 4.2-11.9 Stunted
growth, thick
grasses
underneath

reforestation
1999/6 Sinalang- 1 148.21 4-6 8.6-15.2 Dominated
by thick
cogon/
talahib, no
fireline
reforestation established
1999/6 Diffuncian – 1 10.73 4-6 8.6-15.2 Dominated
by thick
cogon/runo,
traces of
kaingin

reforestation

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Height (m )
Per
Ocular Prescribed
Year/ inspect- Height Per
Age Location (Parcel Code) Has. ion ERDB Remarks

1999/6 11.65 2-3 8.6 – 15.2 Stunted

growth, most
shoots cut
and utilized
for food
consumpt-
ion
rattan
1997/8 Dumayop (2) 78.86 5-7 9.3 - 18.4 Thick
grasses
underneath,
no replanting
done
1997/8 51.47 5-7 9.3 - 18.4 Stunted
growth, thick
grasses
reforestation underneath
1997/8 10.00 - 9.3 – 18.4 No traces of
bamboos
found,
allegedly
eroded by
flood.
bamboo
1997 (8) Amballo (2) 150.63 5-6 9.3 - 18.4 Stunted
growth, no
visible
fireline,
some blocks
have no
plants
1997/8 74.99 6-8 9.3 - 18.4 Thick
1997/8 36.41 6-8 9.3 - 8.4 grasses
underneath,
no fireline
reforestation visible.
2001/4 Amballo (2) 7.64 2.5 4.2 – 11.9 Dominated
by thick
grasses and
trees were
surrounded
by vines
agro-forest
1997/8 Tabban (3) 9.33 4-5 9.3 – 18.4 Dominated
by thick
grasses and
trees were
surrounded
by vines

agro-forest

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Height (m )
Per
Ocular Prescribed
Year/ inspect- Height Per
Age Location (Parcel Code) Has. ion ERDB Remarks

1997/8 Tabban (3) 154.33 3-4 9.3 - 18.4 Stunted

1999/6 reforestation 8.6 - 15.2 growth, thick
2001/4 27.4 2.-2 4.2 - 11.9 grasses
underneath
1999/6 71.07 5-7 8.6 - 15.2 Dominated
Tawi-tawi (3)
by cogon
reforestation
underneath
Total CSD area inspected 889.88

Management’s Comments Team’s Rejoinder

Provided by CENRO-Bayombong
Under DENR Administrative Order The team recognized that one of the
#2004-29 Section 6, entitled benefits under CBFM is preferential
Incentives of the POs, letters E and F access by the POs to all available
states that: assistance in the development and
implementation of the CRMF, RUP
E. To be given preferential access by and AWP. However, such assistance
the DENR to all available assistance should be extended in the light of the
in the development and provisions of the CBFMA. It was
implementation of the CRMF, RUP & noted that under the CBFMA, the
AWP and; POs were responsible for maintaining
and protecting the CBFM area at
F. To enter into agreements or their own expense. Moreover, despite
contract with government entities; apparent incapability of the PO to
provided, that existing COA implement previously awarded
regulations and pertinent guidelines contracts, new contracts were
are adhered to. awarded which were likewise not
The Office believed that the awarding effectively implemented.
of contract in the protection and
maintenance of the established
plantation was an assistance given by
the DENR to the P.O. Moreso, this
also gave the P.O. members
alternative livelihood which is one of
the basic policy of CBFMP. Please be
informed further that the cost of
contract was not a regular fund of the
CENRO Office but a funding
assistance allotted directly to the P.O.
by the NFDO (National Forestation
and Development Office, Manila).

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SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

Provided by RED - Region 10

The big increase in estimated soil The team considered the

erosion from 303,455.92 MT/Yr. to management’s representations on the
470,310.89 MT/yr. was due to the computation of average erosion rate.
computation using the average erosion Hence, the original computation of
rate and not based on slope category. 470,310.89 MT/year was reduced to
For reforestation alone, the whole area 390,898.39 MT/year. This volume is
of 1,894.0 hectares was computed nonetheless still significant
using 83.90 MT/Ha/yr. (erosion rate considering the present condition of
of reforestation area with slope 51% our forests.
and above). If we compute based on
slope category, the estimated soil
erosion for reforestation is only
79,494.10 MT/yr. and not 158,906.60
MT/yr. The conversion of 522.54
hectares ANR to other components
had caused only a minimal increase in
soil erosion affecting agroforestry and
agro-silvipastoral components.

Provided by CENRO-Malaybalay

The audit observation is an issue of The team agrees that feasibility study
what is ideal and practical base on may just be a mere framework of
actual on site situation. The feasibility action plan in some cases. However,
study with all its scientific inputs and such framework should be seriously
the ideal envision conditions to make considered as this is a result of rigid
it more attractive, may not necessarily studies. Thus, deviations from such
always be the best option during framework should only be undertaken
project implementation, but in some if the same is found to be beneficial to
cases a mere framework of action the project. In this case, the very
plan. objective of the project of restoring
2,500 hectares of land as permanent
forest cover and minimize soil erosion
was compromised.

The proposed ANR areas for example This should have been considered in
was interpreted by the actual the preparation of feasibility study. It
occupants and the land claimant as a maybe noted that out of the proposed
way of driving them out from their development plan of 5,863.49 has.,
ancestral areas, as this will become a only 2,556.09 or 43.59% was
permanent forest. Thus, no more proposed as permanent cover.
economic activities is being allowed.

73
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

For the upland people, land is life and
therefore seldom they compromise if
we tend to deprive them of their
traditional land use. The win-win
solution therefore, is for them to plant
permanent crops with economic value
for survival. In this case, we still have
permanent forest and at the same time
addressed their survival. The increase
in soil erosion should not be
interpreted as a negative impact and a
long term scenario. This condition
will usually occur in the site
development stage where soil tillage is
inevitable, but the moment permanent
crops get establish on the ground and
effectively sustained local economic
activities, slope stabilization is a long
term scenario. Unless we will be
more sensitive to their culture and
survival, then there will be less fire
occurrences in our natural forest.

Kaingin farming is considered as one The kaingin noted by the team could
of the practices promoting soil not be that of Fallow Method as the
erosion, but it is widely practiced in trees cut off were the newly
the CBFMA (PWRS) area. Traditional established plantation under the CSD
farming system is regarded worldwide contract and not the fast growing
as sustainable farming system due to native species that have attained the
their unique way of preserving their required height and diameter.
fertile soil. Research showed that one
of these practices is the so called
FALLOW method. This is method
allows planting area to rest for five (5)
years or more and thereafter cleared
again. In the case of the OSA CBFMA
where soil are fertile, most of the fast
growing native species already attain
the height and diameter which when
cut for the follow period can already
be construed as kaingin. While we do
not advocate this practice of cutting
miscellaneous trees, but there is a
difficulty in transforming their
practices overnight. This can be

74
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

equated as transforming Islam to
Christian. During the audit period,
what is seemingly evident is the
clearing for Fallow of approximately
three hectares area which is equivalent
to 0.17 percent of the total CBFMA
area of OSA. Kaingin making as
widely practice in the CBFMA areas
as mention in the audit observation
may no longer be appropriate at this
point in time. This is so considering
that the natural residual forest lift is
only 4.4 percent of the total area, and
these are already located within more
than 50 percent slope. Farming in
these areas is already in misery. What
is widely practiced however is the
Fallow method.

Momentarily, non-participation by
some members of the community may
still be an issue but these are
temporary in nature.

3. Inadequate coordination with other government agencies resulted

in the granting of mining permit within the CBFM area to another
PO and improper maintenance of infrastructure projects turned-
over to LGUs.

In order to establish institutional linkages, the DENR shall work with local
governments, other government agencies, people’s organizations, non-
government organizations, tribal councils, and other concerned
organizations to ensure that communities are empowered to initiate and
achieve the objectives of CBFMP. The DENR shall promote and support
the active participation of the agencies and organizations and shall assist
them in enhancing their capacities to actively participate in and support the
program.

The team, however, noted that apparently, DENR failed to establish proper
institutional linkages as discussed in the next page:

75
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

• A mining permit for the extraction of manganese within the DWSP area
was issued on December 9, 2004 by the Provincial Government of Nueva
Vizcaya to a PO other than the one awarded the CBFMA. As provided in
the CBFMA, the holder has the right to be given priority in obtaining
privilege to extract and dispose any mineral resources found within the
CBFMA area, subject to existing laws, rules and regulations.

The Provincial Government, under RA 7076, is vested with the right to

grant small-scale mining permit. The mining permit was granted without
Environmental Clearance Certificate (ECC) required to be secured and
presented by the applicant. The ECC was eventually issued by the
Environmental Management Bureau (EMB), Regional Office No. 2 to
KMAI on December 22, 2004.

Apparently, the Provincial Government of Nueva Vizcaya and the

officials of the Municipalities of Bagabag and Quezon were not properly
informed by PENRO of the existing CBFMA. Thus, the Provincial
Government of Nueva Vizcaya issued mining permit to a PO other than
the CBFMA holder.

Pursuant to DENR Administrative Order No. 99-29 dated July 23, 1999,
the DENR should provide the concerned LGUs and other government
agencies copies of the CBFMA, CRMF, AWPs and RUPs for their
reference in assisting the DENR and concerned PO in the implementation
of the CBFM Program.

Likewise, the EMB was not properly informed and was not among those
required to be informed or be furnished with CBFMA and other related
documents.

The issuance of the mining permit to another PO resulted in conflict

between the two POs and loss of trust by the beneficiaries on the project.

• The DENR’s lack of coordination with LGUs was also manifested in the
absence of maintenance in two (2) infrastructure projects turned-over to
LGUs.

At the PMRSP, inspection conducted by the team on February 9, 2006,

revealed that of the three projects turned over to the LGUs, one was not
properly maintained resulting in roadway scouring as depicted in the
pictures shown below.

• Not properly maintained,

specifically, the portion near
Cangcosme

San Pedro-Cangcosme (lower portion)

76
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

• Presence of grasses within the

drainage canal
• Eroded soil deposited to the
drainage canal, hence run off
water flows directly in the
roadway resulting in scouring.
San Pedro-Cangcosme (upper portion)

It was provided in the MOA dated July 29, 2003 between the DENR and
the Municipality of Palompon that the DENR shall, from time to time,
inspect the conditions of the structure turned over to the LGU to ensure
regular maintenance. Apparently, this was not undertaken by the DENR as
the turned over roads were not properly maintained. The DENR could not
also provide the team with monitoring reports.

This is also true in the case of PENRO-Palawan wherein both Kamuning

and Tagburos Causeways turned unstable due to erosions at the sides of
the structures caused by movements of primary and secondary rocks. The
movement of rocks in Tagburos was caused by sandbagging between
primary and secondary rocks, which was approved by the DENR while
that in Kamuning can be attributed to strong waves.

The foregoing defects, if not rectified, will impair the stability of the
structure as movement of primary stones will create voids between rocks
and erosion of slope protection. The destruction of the structure will affect
economic activity in the area.

It was also noted that accumulated debris and sands on top of the
causeway pavement in Kamuning were left unattended.

Eroded portion of causeway in Accumulated debris and sand at the

Kamuning top of the causeway in Kamuning

77
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

Provided by FMB
Regarding the coordination with The team acknowledged the existence
other government agencies which is of various memoranda identifying the
perceived to be inadequate, the roles and needed coordination
DENR has started working together between and among various CBFM
with other government agencies like stakeholders. However, as disclosed
the Department of Agriculture, and in the report, the supposed
the Department of Agrarian Reform coordination was wanting as different
to address rural development efforts stakeholders have different policies
of the government. This Convergence which at times are contradictory.
towards Sustainable Rural
Development was formalized thru a
Joint Memorandum Circular No. 01
series of 1999 signed by the three
Secretaries and approved by then
President Joseph Estrada. The
Convergence initiative provides
assistance to the CBFM communities.

In addition, we have our partnership It would appear then that the existing
with the Local Government Units linkages among the different
(LGUs) to implement CBFM thru the implementing agencies is not yet
issuance of a Joint memorandum enough to ensure adoption of common
Circular signed by DENR and DILG policies. As discussed in the report,
and witnessed by the different the Provincial Government of Nueva
Leagues of LGUs in 2003 and as Vizcaya issued permit to a PO other
early as 1998. Not only do we have than the PO granted by the DENR
this partnership with the LGUs, but in with CBFMA.
some projects, we have their direct
involvement in upland development
thru the co-management concept.
While these initiatives have already
started, there is still a long way to go
in order to realize our common
objective of rural and upland
development. We hope that these
concerns will be considered in the
audit report.
Provided by CENRO -
Bayombong
The awarding ceremony of the CBFM The mining permit was issued by the
Agreement to the DMADAI by the Provincial Government and not by the
DENR last February 22, 2002 as per Municipal Government, where

78
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

record was attended by personnel representatives were alledgedly
from the Mayor’s Office of the present during CBFM Agreement
Municipality of Bagabag in the awarding ceremony. Besides, mere
persons of Mr. Colcol and Mr. Nivial, presence in the ceremony would not
SB Kagawad Revelita L. Jallorina and provide adequate information on the
the Barangay Council of Baretbet, privileges and responsibilites of both
Bagabag headed by its Barangay parties including the scope and
Captain, Honorable Julie Santiago. coverage of the Agreement.
The LGU representatives from
Municipality of Quezon were not able
to attend, however, CENRO
Bayombong and members of the P.O.
conducted constant coordination with
them regarding the CBFM Project.

Although our CENRO Office failed to The extent of alleged coordination

furnish the Provincial Government a between CENRO and ENRO was not
copy of the CBFMA awarded to the disclosed in the comments. Moreover,
DMADAI the Office had a regular the issuance of the mining permit by
coordination with the ENRO which is the Provincial Government to a PO
under the Office of the Provincial other than the CBFMA holder is a
Governor. Please take note also that manifestation of inadequate, if not
the CBFMA had been notarized by total absence of coordination.
Atty. Jose V. Gambito now the Vice-
Governor of the Province.

The mining issue started when this It would appear then that the issuance
Office received a resolution from the of CBFMA is not an assurance that
P.O. embodying a petition for the the POs would have the sole right over
discontinuance of the mining the area. This only manifests that
operation of the KMAI within their CBFMA could not be enforced
CBFMA area at Sitio Burburnay, without the support and coordination
Bonifacio, Quezon, Nueva Vizcaya…. of the concerned LGUs.
The Office issued Memo in the
conduct of investigation and found out
that the Provincial Government issued
to Kablaaw Manganese Association,
Inc. (KMAI), an organization with no
records in the Office, a special permit
to haul/dispose manganese ore at
Burburnay, Bonifacio, Quezon, Nueva
Vizcaya and valid from December 9,
2004 to February 6, 2005…. Result of
Investigation .

79
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

From January 5 to February 20, 2005
series of meetings, dialogues,
legislative inquiries participated in by
the LGUs (Barangay, Municipal,
Provincial), DENR, NGOs, Religious
Sectors, Communities affected have
been conducted to discuss the issue.
As a result of these actions, a letter-
dated January 24, 2005 of the
Provincial Governor to Mr. Erickson
Alvarez, the permittee furnished to our
Office was issued advising him
(Alvarez) to stop his operation
pending the submission of Necessary
requirements and resolution of current
issues and concerns.

On March 25, 2005, our P.O.

(DMADAI) reported that KMAI has
secured their mining operation within
their CBFMA area. The Office
immediately sent a letter to the
Provincial Governor inquiring if there
was a new permit issued to KMAI by
her Office.

Despite of all efforts exerted to

resolve the problem it was found out
that another permit dated February 21,
2005 was again issued to KMAI to
extract/remove and dispose/transport
100,000 metric tons per year from
February 21, 2005 to February 20,
2007.

With regards to the issuance of the It would appear then that even offices
ECC by the EMB Regional Office, under the DENR were not enforcing
based on the EIA report made by the the CBFMA as the ECC was
Provincial Environment Office (PEO) nonetheless issued even if the subject
of Nueva Vizcaya, it was indicated area was already covered by a
therein that the area applied for CBFMA.
mining is within the CBFMA area
awarded to DMADAI, hence, EMB
Regional Office was aware of the
status of the area applied by the

80
SOUND IMPLEMENTATION AND MAINTENANCE STRATEGIES/ACTIVITIES

Management’s Comments Team’s Rejoinder

KMAI prior to the issuance of the
ECC.

But despite these facts, the PLGU This only manifests that the principles
issued the Small Scale Mining Permit and objectives of CBFMA were not
disregarding the proper process such totally embraced by the LGUs.
as securing first area clearance from
the DENR and proper consultation
with the affected stakeholders and
others, as a requirement before issuing
the Small Scale Mining Permit. This
issue was later cleared after the
issuance by DENR-USEC Ramon JP.
Paje of the Environment and Forestry
of Memo dated April 17, 2006 in
response to the query of the CENRO.

81
 Chapter 3

Adequate Monitoring Activities

82
ADEQUATE MONITORING ACTIVITIES

INTRODUCTION

Effective management of any program or organization requires periodic

monitoring and evaluation to ensure achievement of predetermined goals and
objectives.

Monitoring is defined as the continuous periodic surveillance (oversight,

review) over the implementation of an activity (and its various components) to
ensure that input deliveries, work schedules, targeted outputs and other required
actions are proceeding as planned. It includes the regular tracking of activities
through reports of the implementation process.

On the other hand, evaluation is defined as the process, which attempts to

determine as systematically and objectively as possible, the relevance,
effectiveness and impact of activities in the light of their objectives. It aims to
examine reports and performances to verify the achievement of the stated
objectives and identify reasons for delays or inability of the program to attain
the same.

The audit, however, disclosed that the monitoring and reporting mechanism by
DENR is inadequate. The actual physical status of the CBFM project and the
infrastructure projects were not captured in the reports. Likewise, the database
maintained by PENRO and CENROs in the province of Bukidnon could not
also be considered adequate for evaluation purposes.

OBSERVATIONS

1. The monitoring and evaluation processes adopted by the DENR are

not yet adequate to ensure sufficient information in assessing the
attainment of the CBFM objectives. The reports did not capture the
extent of implementation of the PO’s CRMF and AWP and identify
causes of deficiencies in the attainment of the project’s objective.
Likewise, the database maintained by CENROs and PENROs were
also inadequate to be used as basis for decision making.

To assess the progress of a project or an activity, a monitoring mechanism

should be in place. The monitoring mechanisms or activities should ensure

83
 ADEQUATE MONITORING ACTIVITIES

that all relevant issues and concerns affecting the attainment of the project
goals and objectives are captured.

Realizing the importance of a monitoring mechanism, the DENR issued the

following guidelines dealing on this subject:

Guidelines Particulars Responsible Office/s

MC 98-10 Test implementation of Project Impact RTD for Forestry,
Monitoring and Evaluation System (PIMES) as RENRO, PENRO,
M&E for CBFMP CENRO
Sec. 3.6 of Monitoring of implementation of CRMF/AWP CENRO, PASu, LGU,
DAO 98-41 of CBFM projects within watershed areas PAWB
DAO 99-38 Standard Operating Procedures for Performance Sectoral bureau,
Monitoring of all programs/projects outputs RENRO, PENRO,
based on identified Key Result Areas (KRAs) CENRO
MC 2001-04 Guidelines prescribing the conduct of physical Contracted NGO
validation of POs’ accomplishment on CSD
activities and their institutional development.
MC 2001-07 Use of Progress Report Form in monitoring FSP SUSIMO
Sec. 30 of DAO Annual participatory mode of M&E through RENRO, PENRO,
2004-29 composite team based on critical activities to CENRO, LGU,
assess various issues, problems and constraints AO/NGO
in relation to the development and
strengthening of the CBFM implementation

Review of the monitoring activities adopted by the DENR offices in the

provinces visited by the team, however, revealed that the information
reported were not adequate to assess the attainment of the CBFM objective
and extent of implementation by the POs of the CRMF and AWP. The
lapses are evident in the following instances:

Province Deficiency in Monitoring Activities

Bukidnon Both PENRO and CENROs submit Accomplishment Reports for CYs 2003 and
2004 as required under DAO 99-38. The CENROs’ accomplishments are supported
with CBFM Assessment Tool Forms prepared by CBFM coordinator. The
information reported was gathered through interviews of PO officers. In some
cases, M & E report were extracted from the Assessment Tool.

The team, however, noted that a number of Assessment Tool Forms were hardly
filled-up and the covering M & E reports were inadequate to assess the attainment
of the CBFM objective as illustrated below:

• The analysis in the M & E Reports were not clearly linked to the objectives of
the activities being evaluated and did not indicate whether such objective
supports the attainment of the CBFMP goal;
• Several recommendations were being offered without identifying the causes of
deficiencies and/ or conditions that should be remedied or corrected; and
• Responsible officials and time-frame for taking actions were not established.

The reports submitted to the team indicating the status of identified milestones
were not also evaluated and assessed in line with the attainment of CBFM goals
and objectives and to identify issues and concerns that needs immediate

84
 ADEQUATE MONITORING ACTIVITIES

Province Deficiency in Monitoring Activities

actions. This may have been due to inadequate training of DENR personnel tasked
to conduct monitoring, evaluation and reporting of CBFM activites.
Inappropriate data gathered and inaccurate reports may result in inappropriate
decision.
It was also noted that the database being maintained by PENRO and CENROs were
not adequate as it does not capture a number of information needed to assess the
CBFM objective. The information not included in the database follow:

• Number of Households
• Fund Source
• Existing and planned protection forest
• Developed and existing Second Growth or Residual Forest
• Existing and planned agro forest areas
• Existing Open/Grasslands/Brushlands
• No. of hectares per slope category

The PENRO report also reflected that 94 out of 145 POs do not have affirmed
CRMFs. This only indicates that the POs’ plan for managing the CBFM area was
not yet defined. It must be noted that Section 18 of DAO 2004-29 provides that
CRMF shall be prepared within 30 days upon approval of CBFMA. The affected
CBFMAs were approved and issued from 1999 to 2004, manifesting that the
prescribed period has long expired.
Leyte Verification of available reports filed with the CENRO revealed that aside from the
annual report based on KRA, there are no other reports prepared after the CSD
implementation. Interviews disclosed that monthly accomplishment reports were
prepared only during project implementation to support the billing in compliance
with the requirements under MC 2001-04 and 2001-07. All other monitoring and
evaluation activities required under MC No. 98-10, DAO No. 98-41, and DAO
2004-29 are yet to be conducted. In effect then, the DENR has yet to evaluate and
report the physical status of the projects and assess the level of performance of
CBFMA holders in terms of its compliance with the approved Annual Work Plan
(AWP) and Community Resource Management Framework (CRMF).
Palawan The DENR offices (PENRO and CENROs) submitted accomplishment reports
covering CYs 2003 and 2004 and monthly progress report in compliance with
DAO 99-38 and MC 2001-07. The monthly reports reflected the current estimated
average survival rate of plantations established under CSD contracts and status of
POs’ livelihood projects. It did not, however, provide information on the
implementation of other activities reflected in the CRMF.
Inspection conducted by the team revealed that activities under the CRMF and
Annual Work Plan were actually not undertaken as manifested in the following
conditions:

Project Conditions
STAGBAK • Watch over towers constructed during CSD implementation
Mangrove were not maintained, thus, no longer existing;
Rehabilitation • Plantation protection issues brought to the attention of the
Subproject officials of Tagburos were not acted upon;
• Removal of barnacles not undertaken as POs gave priority to
activities that would provide them income to sustain their daily
needs;
• Accounting reports were not generated due to lack of funds to
pay for the services of an accountant. The financial status of
the PO could not therefore be determined;
• No trainings conducted after CSD implementation;

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 ADEQUATE MONITORING ACTIVITIES

Province Deficiency in Monitoring Activities

Project Conditions
• Funders of the proposed livelihood projects of POs has yet to
be tapped;
• Members could not pay their monthly dues and capital shares
due to financial constraints; and
• Marketing outlets were not yet established due to lack of
funders for the proposed project.
Brgy. San The following were reported but not quantified in the
Isidro Accomplishment Report:
Integrated
Social Forestry ƒ Livestock raising to augment individual income of members;
Multi-purpose ƒ Patrolling of CBFM area; and
Cooperative ƒ Cross visits to other successful POs.
(BSIISFMPC)
Nueva The DMADAI submitted to DENR in March 2005 its accomplishment on CY 2003
Vizcaya AWP. The report was apparently not evaluated by the DENR. The team’s
evaluation revealed that a number of activities in the AWP were actually not
undertaken:
Per approved 2003
AWP Accomp.
Target As of
Activities Target Date 3/2005 * Remarks
Conversion of PO into 1 July - PO did not apply for
Cooperative CDA registration.
Membership not Dec - No reported activity
development and quantified
continuing education and
training
Plantation and protection
maintenance
Foot patrol 1,710 has 1,710 has
Construction and 213 has. 213 has.
maintenance of
fireline
Implementation of FS 2 - No reported activity.
Per team’s interview,
the PO is not capable
of conducting
feasibility studies.
Implementation of 2 - No reported activities.
Livelihood projects No
Establishment of Demo 1 - Reason provided to the
Farm team.
Conduct of training on 2 Dec. -
leadership and project
management for PO
Officers.
Conduct of inventory of 28.0 cu.m. -
stumps, branches and Not No reported activities
roots indicated
Conduct Monthly BOD
meetings 3 3
Submit periodic reports 3 3
* Per PO’s Capsule Report covering January to March 2005

The PENRO, however, reported in its 2004 Annual Report that compliance by 17
POs, including DMADAI, with CBFMA was monitored. The extent of monitoring
actually undertaken and POs’ compliance with the CBFMAs were, however, not
discussed.

The team also noted that DENR- Region II developed a simplified tool in

86
 ADEQUATE MONITORING ACTIVITIES

Province Deficiency in Monitoring Activities

conducting comprehensive assessment and evaluation of CBFM projects within the
region. As of audit date, 28 out of 116 CBFM projects regionwide, have been
subjected to such evaluation. The frequency of conducting the evaluation and
assessment and the persons/offices responsible in conducting the evaluation were
not clearly specified. The team was informed that the tool was intended for CBFM
projects with Resource Use Plan only. Evaluation of the developed tool also
revealed that the same is still not adequate. It did not include assessment of the
physical condition of the project.

The requirements under DAO 2004-29 (Revised Rules and Regulations for
the Implementation of Executive Order 263, otherwise known as the
CBFM Strategy) for a participatory mode of monitoring and evaluation
through a composite team composed of the RENRO, PENRO, CENRO,
LGU, AOs/NGOs and other concerned sectors were also not yet
implemented as of audit date. The joint monitoring was required to be
conducted annually to assess various issues, problems and constraints on
critical activities related to the development and strengthening of the CBFM
implementation.

The inadequacy of DENR’s monitoring mechanism made it difficult to

assess the physical conditions of the project and the POs capability to
continuously maintain and protect the CBFM areas. Problems and
deficiencies therefore could not immediately be addressed.

Management’s Comments Team’s Rejoinder

Provided by FMB

On monitoring and evaluation process, The limitation on manpower and

this is one area which is very vital but resources to monitor progress of
the limited manpower and resources CBFM project should have been
have caused our projects to suffer in considered and addressed since project
terms of monitoring the progress as inception. Implementing programs
well as the deficiencies of the POs. that could hardly be monitored and
Although we have already developed assessed may result in wastage of
the necessary monitoring and government resources.
evaluation tools, these have not been
implemented in all our projects. In the
case of data base maintained by the
CENROs, the information contained is
inadequate due to insufficient
manpower, limited equipment and
resources to conduct accurate baseline
survey, updating information and for
monitoring purposes.

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 ADEQUATE MONITORING ACTIVITIES

Management’s Comments Team’s Rejoinder

Provided by CENRO-Malaybalay

Data base maintained by CENROs The team appreciates the desire to

and PENROs were not adequate - this automate and improve the CENRO’s
is true on the premise that most of the database. As discussed above, the
CENROs are just starting to procure present manual database was not
their units and training personnel to adequate as a number of information
handle the same. In the absence of the needed to assess the attainment of
data base however, the office have CBFM objectives were not captured.
maintain the traditional way of Even if the same was then automated,
keeping hard file which can readily be the success of the program could still
made available upon demand in a bit not be easily assessed.
longer time compared to data base.
The CRMF and a five-year
development plan are no longer an
issue as there has been ultimatum
issued to cancel all CBFMA issued
without the affirmed CRMF.

Provided by PENRO-Bukidnon

This management partly concurs with The success and failure of a project is
the findings that some training is greatly influenced by the effectiveness
needed to equip the personnel tasked or ineffectiveness of monitoring and
to undertake the monitoring and evaluation mechanism. Thus, PENRO
evaluation of CBFM Project should ensure that sufficient and
Implementation. Only that during the relevant information are gathered at
actual conduct of survey/monitoring, any point in time by responsible and
it was not only them who facilitated duly authorized and trained personnel.
filling-up the assessment forms but
also other DENR employees who Likewise, as discussed earlier, the
assisted them without the proper difficiency in resources should have
guidance or the benefit of the training. been resolved even before the
The bottom line is that CBFM Unit in implementation of the program. The
the CENRO and even in the PENRO adequacy of DENR personnel to run
level is undermanned. Structurally, not and manage the program should have
enough manpower can run the entire been assessed.
program of activities under the
CBFMP. Presently, a CENR Office
caters an average of 20 CBFM-POs as
against one (1) CBFM Officer. Some
of which had already implemented
socio-economic and development
programs which the lone CENRO
CBFM Officer had to monitor.

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 ADEQUATE MONITORING ACTIVITIES

Management’s Comments Team’s Rejoinder

The new guidelines issued by the PENRO should make representation
higher Offices prescribing the conduct with the DENR officials on this regard
of monitoring require a lot of and devise an applicable monitoring
paperworks to comply which the system. Apparently, continuous
CBFM Officers find difficulties. The issuance of CBFMA even to POs
accumulation of tasks under the deemed not yet prepared and capable
CBFMP can be partly attributed on the to assume all related obligations is not
planning and programming system serving the purpose and wasting
where a subordinate Office (PENRO government resources.
and CENRO) had to issue a CBFMA
in compliance of the target given by
the higher office without the benefit of
making assessment if previous
CBFMA issuances had been well
assisted technically and financially.
Should the target had been moderately
considered by making assessment
first, it might not have reached to
point where many activities had to be
done hastily resulting to many
deficiencies.

We concur with the observations and The team appreciates the DENR’s
recommendations of the audit team effort to enhance the existing system.
with regards to the enhancement and
maintenance of all relevant CBFM
databases. In fact, the Office is
currently doubling its effort in
coming-up with a comprehensive
statistical data not only confined with
the CBFMP but also other forestry
developmental programs. With the
installation of the Forestry
Information System (FIS), it is hoped
that all relevant data will soon be
captured in this one pack database
management program. The CBFMP
matrix which the audit team might
have scanned only features general
information of a particular CBFMA.
While there is a separate CBFM
Profile being maintained by the
management, it is more convenient to
have them in a capsule under one
integrated program to provide an
immediate picture of a project.

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 ADEQUATE MONITORING ACTIVITIES

Management’s Comments Team’s Rejoinder

With regards to CRMF compliance of DENR should closely monitor
the 92 identified CBFM-POs, they submission of CRMF on the
were given until June 2006 of the prescribed deadline.
current year to submit their
Comprehensive Resource
Management Framework.

The delay is attributed to the limited This only manifests that the trainings
time of CBFM Officer to handle all conducted to prepare the POs were not
programs outlined under the CBFMP. yet adequate to enable them to manage
Added to that, the Peoples their responsibilities with least
Organization are too dependent with supervision and assistance.
the DENR technical and financial
supports which cannot be
accommodated also given the very
limited budget.
Provided by CENRO -
Bayombong

Although this Office did not follow The team agrees that the management
the outline/format in reporting CBFM- is preparing monthly reports.
PO accomplishment, monthly reports However, these reports were not
had been submitted from the time the compared with the approved Annual
project was converted from Work Plan. Thus, unimplemented
Reforestation into CBFM Project. As activities were not noted and given
gleaned in the attached monthly report remedial actions.
specifically in the issues and concerns,
actions taken to improve PO
performance by the DENR-SUSIMO
have been reflected.

Attached also is the report of The conduct of this activity was only
inventory of the stumps, branches, one of the activities identified in the
roots conducted by our personnel in 2003 AWP of the PO. The PO did not
response to the resolution # 02 of the even include this in the report.
PO. Apparently, the inventory was
undertaken by the DENR itself. The
PO’s performance should be
monitored and assessed in the light of
its compliance with its AWP and
CRMF.

2. In PWRS, the POs’ accomplishments during CSD implementation

could not be relied upon as accomplishment reports reflect double
entries affecting the total area accomplished while some reported

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 ADEQUATE MONITORING ACTIVITIES

accomplishment differs from one report to another. Thus, actual

accomplishment of the POs could not be determined. The team’s
validation disclosed further discrepancies affecting the accuracy of
reports.

Under Section 6.2 of DAO 2001-01, the release of retention fee is subject
to compliance with the following requirements, among others:

• Approved final subproject area is fully planted and developed;

• The weighted average survival rate of seedlings planted in the whole subproject
should be at least eighty percent (80%). Individual component’s computation
shall be based on the planting density of each component’s target;
• For the reforestation component, the average height of seedlings shall be at least
one (1) meter except for rattan, bamboo and other non-timber components whose
quality shall be based on the technical judgment of expert evaluators;
• All structural improvements specified in the latest approved contract have been
completed; and
• Terminal report with updated maps and dated photographs duly certified by the
CENRO as recommended by SUSIMO. The photographs should be composed of
close-ups and panoramic views of the subproject’s accomplishments.

As maybe noted, the PO is required to submit terminal report. The

validations of physical accomplishment were contracted by the DENR to an
NGO whose responsibilities are embodied under MC 2001-04. The NGO’s
validation activities are documented in the Monitoring and Evaluation (M
& E) Report required to be submitted upon expiration of the contract. The
NGO’s report is still subjected to final validation by the DENR Composite
Team which is required to submit Validation report.

Review of the M & E, Validation and Terminal reports, however, revealed

discrepancies rendering the reported total area developed and computation
of the Weighted Average Survival Rates inaccurate as illustrated below:

• 10 parcels were counted twice in both M & E and DENR tally sheets
resulting in increased reported developed area by 13.20 hectares. It may
even be noted that in some cases, the location and plant species in the 1st
entry is not the same in the 2nd entry while the reported WASR differ in
almost all cases, as illustrated below:

1st entry 2nd Entry

PO/Member Area Parcel No. WASR/ Area Parcel No. WASR/
/Location Specie /Location Specie

OSA IR1 97-98 96.50 1.01 IR1 97-98 95.00

Capio, E. 1.01 Malungon Mn Malungon Mn
IR9 1996 86.00 1.38 IR9 1996 85.84
Yambagon, F. 1.00 Palocpoc Gm Palocpoc Mn
IIAF10 97-98 96.20 0.84 IIAF10 97-98 96.20
Guimba, T. 0.84 Saging Du,Bn Saging Du,Bn
Palha, J./ IAF19 97-98 90.00 2.37 IAF19 97-98 92.50

Tamunan M 2.37 Malungon Mg,Bn Malungon Du,Cf

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 ADEQUATE MONITORING ACTIVITIES

1st entry 2nd Entry

PO/Member Area Parcel No. WASR/ Area Parcel No. WASR/
Location Specie /Location Specie

CEDAMCO IIR6 98 85.57 1.23 IIR6 98 94.41

Dalomatao, P. 1.23 Sinanglayan Gm Sinanglayan Ba
IIR17 98 81.33 1.79 IIR17 98 83.89
Pansoy, J. 1.79 Car. Village Ba,Gm,Mn Car. Village Gm
IR2 76 01 94.78 1.20 IR2 76 01 86.96
Parojinog 1.20 Tagulanao Ba,Mn Tagulanao Ba
IR1 06 99 83.12 1.23 IR1 06 99 94.51
Perez, A. 1.23 Bulacao Ba,Gm,Ma Bulacao Ba,Gm,Ma
IVAF3-06 99 95.78 1.61 IVAF3-06 99 89.44
Atilano, B. 1.61 Mahayahay Ma,Bn Mahayahay Ma,Bn
IIAF1 66-99 91.50 0.92 IIAF1 66-99 97.85
Dalomatao, A. 0.92 Sinanglayan Cf Sinanglayan Cf
Totals 13.20 13.58
Legend: Ba Bagras Du Durian Mg Mango
Bn Banana Gm Gmelina Mn Mangium
Cf Coffee Ma Mahogany Na Narra

• 10 parcels included in the M & E report were not included in the DENR
validated report, 5 of which were not included in the Terminal Report as
illustrated below:

Parcel Code
PO Terminal
PO M&E Area M&E DENR Report
PAGTUKAS Terre, A. 0.72 IR5 97 x IR5 97
Cabalida, N. 1.46 IR 23 98 x IR 23 98
Lumambas, T. 1.85 IR 14 98 x IR 14 98
Barquio, V. 2.50 IIR 898 x IIR 898
Amahoy, S. 1.70 IIIR11 98 x IIIR11 98
PAGTUKAS Tusoy, V. 1.23 IR 997 x x
SAHA Lasponia, L. 1.07 IIIR24 96 x x
Akiatan, R. 0.82 IIIR29 96 x x
Baguio, V. 2.85 IIR8 96 x x
Baguio, V. 1.51 IIR7 96 x x
Grand Total 15.71

• All three (3) reports reflected different sizes in the following parcels :

Area (has.)
PO Component Claimant Parcel No. Location M&E DENR PO TR

OSA Agro Tamunan, M. IAF19 97-98 Malungon 0.91 2.37 2.37

IAF19 97-98 Malungon 0.39 2.37 2.37
IVR103 97
CEDAMCO Refo Cuñado, J. or IVR 40 98 B. Silang 1.26 1.26 3.01

Totals 2.56 6.00 7.75

Note: TR – Terminal Report

The team’s ocular inspections of CSD areas further uncovered a number of

discrepancies in reporting affecting the validity of the reports:

• Six (6) parcels equivalent to 19.08 hectares undertaken by PAGTUKAS

were found to be in another site other than the site identified by the DENR
as illustrated in the next page:

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 ADEQUATE MONITORING ACTIVITIES

Parcel Area Location

Component Claimant No. has.) Species DENR COA-TEAM
Refo Ramos, A. IR2198 1.61 Ba,Mn Dayag Mawe-i
IR2298 1.21
Agro IAF1698 1.23 Du,Bn
Refo Suico, H. IR898 4.11 Gm,Ma,Mn,Na Mauswagon Kauswagan
Rofernando, M. IIR398 9.06 Gm,na Mawe-i Bayting
Agro De Asis, A. IIAF798 1.86 Du,Bn
19.08

• Reported species on 10 parcels equivalent to 15.46 hectares were different

from the actual species planted in the area as tabulated below:
Area
Compo- (has.) Species
PO nent Claimant Parcel No. Location
DENR DENR COA

OSA Refo Villaflores, C. IIIRx8-02 Sn Isidro 2.31 Mn Gm, Mg

Butanas, E. IIRx5 2002 0.85 Mh Gm,Ba
IIIR14 96 0.98 Mh Gm, Mg,Mh
IIIAFx30
Agro Delapenia, C. 2002 P3 1.1 Ma,Bn Du,Cf
Seray, S. IAF19 97-98 Malungon 1.08 Po,Cf Mn,Bn
Palha, J. 2.37 Ma,Bn Po,Sn
OSA Agro Tamunan, M. 2.37 Du,Cf Mn
Refo Villahermosa, C. IRx3 2002 1.84 Mn Gm, Mh
CEDAMCO Refo Apol, L. IIIR3-90 01 Kaangayan 1.07 Ba,Gm, Mn,Na Mn only
Agro Naicatuna, L. IVAF13 98 1.49 Po,Bn Du,Bn
Total 15.46

Sample photos follow:

Main crop per report is durian while Main crop is not visible within the
main crop per ocular inspection is CSD area
mango

• Of the 45 parcels inspected by the team with an area of 82.23 hectares,

five parcels reported by the DENR to have achieved 77 to 100% WASR
have now zero to only about 20% WASR as tabulated below:

Area per Survival

DENR Rate
Tally
PO Name Sheet Parcel# DENR COA Pictures

OSA Pasatiempo, A. 1.04 IIIAF29 97-98 100% 0%

OSA Pasatiempo, A. 1.74 IIIAF30 97-98 77% 0%

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 ADEQUATE MONITORING ACTIVITIES

Area per Survival

DENR Rate
Tally
PO Name Sheet Parcel# DENR COA Pictures

OSA Palha, J. 2.37 IAF19 97-98 90% 15%

OSA Canete, I. 1.05 IAF4 97-98 89.52% 0%

SAHA Magale, S. 5.25 IIAS2 97-98 92.80% 20%

The erroneous reporting would have a great impact on the payment of CSD
accomplishments and release of retention fee. Consider:

• The reported double entry connotes double counting which consequently increased the actual
developed area. It must be noted that CSD accomplishments on established plantations were
paid on a per hectare basis, thus, double reporting also results in double payment;

• Inconsistent reporting of project size also connotes excess payment on CSD contract since as
mentioned, payment is on a per hectare basis, hence, the bigger the size, the bigger the
payment;

• Fictitious areas as manifested by their absence in other reports connotes excess payment as
this means payment for something that were not really accomplished;

• Any unreasonable increase in project area will affect WASR as bigger areas contribute much
in the weighted average rate computation; and

• Overstated survival rate in some parcels contributed to the attainment of survival rate
benchmark.

The inconsistencies of data maintained by DENR manifest unreliable

reporting system. As long as these reports remain unreconciled, the actual
accomplishments of the POs could not be determined.

Management’s Comments Team’s Rejoinder

Provided by CENRO- Malaybalay

While it is true that there were double The double entries in the M & E
entries of recording in both M report were not corrected but were
& E and DENR tally sheet of certain also reflected in the DENR
PO developer in Reforestation and validation report. As explained by the
Agro-forestry component of POs, we CENRO, the validation report was

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 ADEQUATE MONITORING ACTIVITIES

Management’s Comments Team’s Rejoinder

acknowledged that the same was an used as the basis for payment. It
honest mistake in the recording could therefore not be claimed that
process especially in the Plantation there was no double payment.
Register of POs like PO-OSA & PO-
SAHA. However, despite this honest
lapses there had been no reported
increase in areas developed because
of validation as basis for payment
these areas has not been doubly
paid/validated.
Provided by CENRO-Malaybalay

One parcel located at PO-

CEDAMCO under the name of Such errors should have been
Jacinto Cuñado certainly is only 1.26 accordingly corrected.
hectares under Refo component
instead of the alleged 3.01 hectares
per Terminal Report of PO-
CEDAMCO….On one hand the two
parcels at PO-OSA area were indeed
an honest mistake.

The six parcels of PO-PAGTUKAS

with an equivalent area of 19.08 This manifests inaccuracy in
hectares as recorded in the DENR reporting. The correct location should
tally sheet, M & E report, Plantation be indicated in the report.
Register were really established in the
area as stated therein and these was
confirmed by the PO during the
verification/dialogue conducted. The
PO acknowledge that the plantation
exist only that the location was in
another site.

The reported species on 10 parcels do

not match with the actual species It may be noted that replanting
planted in the area due to replanting undertaken after final validation were
activity by the PO that the seedling done only in parcels. Hence,
species replanted were not the same as surviving original species should be
originally planted due to scarcity of visible within the area inspected by
seedlings. the team which was not so.

On three parcels equivalent to 3.83 The consequences of the action should

hectares found to have no plantations be adequately explained to the owner
at all. The three mentioned parcels and that repetition of the act would

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 ADEQUATE MONITORING ACTIVITIES

Management’s Comments Team’s Rejoinder

were part of the CSD of the PO mean imprisonment and forfeiture of
however it was plowed cleared and benefits inherent in the CBFMA.
converted by the owner to corn land as
source of living. The PO concerned
has already an agreement with the
developer to replant the area.

96
 Chapter 4

Appropriate Safekeeping Procedures

97
APPROPRIATE SAFEKEEPING PROCEDURES

INTRODUCTION

Among the activities undertaken by the DENR is confiscation of illegal logs

and conveyances. These confiscated forest products could only be of use to the
government if the same is properly protected, preserved and eventually
disposed of.

Proper protection and preservation of physical and economic value of

confiscated products would entail sound safekeeping measures which cover
provision of adequate storage facilities and accurate recording system.

The audit disclosed that confiscated forest products were not immediately
disposed and deposited at various places exposed to deterioration. The total
value of these products could not be immediately determined due to the
DENR’s failure to record some forfeitures and disposals.

OBSERVATION

Forfeiture of confiscated abandoned/no claimant forest products were

not facilitated due to the failure of the CENROs to conduct
administrative summary proceedings and delayed issuance of forfeiture
order. This resulted in accumulation in quantities which could no
longer be protected by DENR Offices. These then were stored in open
spaces exposed to deterioration and loss. There were also forfeiture
orders which were not booked up.

Executive Order No. 277 dated July 25, 1987 provides that forest resources may
be effectively conserved and protected through the vigilant enforcement and
implementation of forestry laws, rules and regulations. For this purpose, the
Head of the DENR or his duly authorized representative is authorized to order
the confiscation of any forest products illegally cut, gathered, removed,
possessed or abandoned, and all conveyances used either by land, water or air in
the commission of the offense and to dispose of the same in accordance with
pertinent laws, regulations or policies on the matter.

Disposition of confiscated forest products of the DENR is governed by

Administrative Order (AO) No. 50 which provides, among others, that these
can be disposed of through donation to LGUs and other government agencies to

98
 APPROPRIATE SAFEKEEPING PROCEDURES

be utilized, particularly for their rehabilitation projects. The products subject to

disposition are:

• Those which are not subject of a pending case in court or with other
appropriate offices;
• Those without claimants or offenders against whom the case could be filed;
• Those found abandoned within forest areas, the ownership of which could
not be ascertained and without claimants.

Despite directives to all Regional Executive Directors (RED) to fast track

issuance of Forfeiture Orders on all confiscated forest product, disposal was
nonetheless delayed resulting in accumulation of confiscated items which could
no longer be protected by DENR Offices. As of December 31, 2005,
confiscated conveyances and forest products in selected PENROs & CENROs
of the four DENR Regional Offices visited by the team were valued at
P12,375,316.96 as summarized below:

PENRO/ Conveyances Chainsaw Forest Products Total

CENRO Pcs Amount Pcs Amount Bd. Ft. Amount Amount
PENRO Palawan 4 P570,000 5 P143,690 135,948.31 P 3,355,889.05 P4,069,579.05
PENRO Leyte 10 1,630,000 1 data 89,907.00 2,818,570.11 4,448,570.11
CENRO Bayombong 12 No data 12,946.00 31,688.00 31,688.00
PENRO Bukidnon 12 1,628,000 3 100,000 119,289.39 2,097,479.80 3,825,479.80
Total 38 P3,828,000 9 P243,690 358,090.70 P8,303,626.96 P12,375,316.96
Note: The volume and no. of pieces included those items without estimated values.

The delayed disposal may be due to delayed issuance of forfeiture orders which
took 56 to 2,163 days from the date of apprehension as illustrated below:

Date of Date of Lag time

Province Apprehension Forfeiture (days)
Palawan 03-04-99 04-13-00 405
08-23-98 10-10-02 1,508
09-25-01 11-20-01 56
06-07-01 07-02-04 1,058
Leyte 06-03-99 01-29-03 1,331
02-21-97 01-29-03 2,163
02-14-00 01-29-03 1,075
07-22-00 03-20-03 603
09-02-01 12-10-01 98
07-25-00 02-21-01 206
Bukidnon 07-18-03 06-21-04 333
01-21-04 07-26-04 185
01-21-04 07-16-04 175
03-16-04 07-16-04 120
02-02-04 06-02-04 120
04-13-04 07-26-04 103
02-26-04 06-02-04 96

This condition may have been influenced by the absence of timeline within
which to issue forfeiture orders. The prolonged processing of forfeiture orders

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 APPROPRIATE SAFEKEEPING PROCEDURES

hindered the immediate disposition of forest products. Forest products not

immediately disposed of, losses its maximum usage/economic value as they
were deposited in various premises without adequate storage exposed to various
elements posing risk of being stolen and rotten.

Inspection conducted by the team revealed that most of the confiscated forest
products, conveyances and chainsaws were stored in open spaces exposed to
deterioration, a huge volume of which were already in their deteriorating state
as shown below:

Place of
storage Particulars Status Cost
Nueva Vizcaya
CENRO-
Bayombong

Unserviceable Not
available

Various conveyances

Deteriorated/ At least
deteriorating P6,757
Various logs
Bukidnon
CENRO -
Talakag

20 pcs. Mixed species Deteriorating Not

CENRO- available
Malaybalay

4 units chainsaws inside bodega

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 APPROPRIATE SAFEKEEPING PROCEDURES

Place of
storage Particulars Status Cost

Deteriorating

Impasug-
ong PC Chain sawn lauan inside Isuzu
compound forward truck

Not
available
Dilapidated

Isuzu truck
CENRO-
Manolo
Fortich

Antipolo
PNP-
Manolo
Fortich

Deteriorating 200,000.00

Isuzu ELF
Quezon
Municipal
Hall Motor-
pool Not
available

Confiscated lumber used as heavy

equipment ground support

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 APPROPRIATE SAFEKEEPING PROCEDURES

Place of
storage Particulars Status Cost
Quezon
Municipal
Hall Motor-
pool
Deteriorating

Confiscated lumber used as ground Not

cover of bags of cement available
Quezon
market area

Rotten

Mixed specie
Bukidnon
Forest
Incorporated
(BFI)
Dilapidated 100,000.00

Nissan 10 wheeler truck

rotten

Not
Macaasim available
Bukidnon
Forest
Incorporated
(BFI) Under court
litigation,
dilapidated

Isuzu Forward

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 APPROPRIATE SAFEKEEPING PROCEDURES

Place of
storage Particulars Status Cost
Bukidnon
Forest
Incorporated
(BFI)

Nissan With pending Not

case, dilapidated available

Isuzu Elf
DENR-R10
Compound
Under court
litigation, 200,000.00
dilapidated

Jeepney
Leyte
Camp
Kangleon,
PNP RO Abandoned,
No. 8 deteriorating

Not
Abandoned logs /lumber
available

Unserviceable

conveyances

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 APPROPRIATE SAFEKEEPING PROCEDURES

Place of
storage Particulars Status Cost
CENRO-
Palo

Anay-infested

lumber

Unserviceable

conveyances

Not
In good available
condition lying
on muddy
ground

Three piles of lumber

PNP -
Palompon

In good
condition lying
in open spaces

Palawan
DENR
compound

Exposed to sun
2,887,406.19
and rain

Logs and lumber

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 APPROPRIATE SAFEKEEPING PROCEDURES

Place of
storage Particulars Status Cost
City Hall Photo not available Left in open
Compound Lumber space
(Bantay
Gubat)
PCSD

Not
available
Stored in an
unlocked space

Chainsaws
ELAC Photo not available
Chainsaws

The team also noted that forfeited and disposed products were not recorded at
the PENRO’s books. This was due to the failure of the Regional Offices (ROs)
to furnish PENROs copies of final forfeiture order issued by the RED and
PENROs/CENROs failure to furnish the Accounting Department copies of
disposed/donated products. At PENRO Palawan, the accounting office failed to
reconcile Forfeiture Order with pertinent documents and therefore, could not
take up in the books, the value of the forfeited products.

The absence of proper accounting and recording made it difficult for the ROs to
monitor the completeness of confiscated items reported by PENROs/CENROs.
The team was informed that the RED issued Memorandum to PENRO-Palawan
on September 1, 2004 with instruction to conduct inventory of confiscated
forest products in all CENROs as reports from mayors of Palawan disclosed
that some of the confiscated products were already missing. However, as of
audit date, the required inventory was apparently not yet undertaken as no copy
of the report could be forwarded to the team despite repeated requests.

Management’s Comments Team’s Rejoinder

Provided by FMB

Please refer to DAO 97-32 on As discussed in the report, despite

confiscation procedures and that existing regulations requiring the turn–
confiscated products should be turned over of confiscated products to the
over to the Natural Resources NRDC, a great volume remained in the

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 APPROPRIATE SAFEKEEPING PROCEDURES

Management’s Comments Team’s Rejoinder

Development Corporation (NRDC), custody of the confiscating officer.
which is the business arm of DENR. Worst, these were left unprotected and
already in its deteriorating stage, if not
yet deteriorated.
Provided by CENRO-Bayombong

Please be informed that the Chief, Forest With or without record of seizures, all
Protection and Law Enforcement Unit at confiscated logs/lumber and
the time of evaluation was designated conveyances stored at the PENRO/
only on May 2004. Records of CENRO compound should be properly
seizure/confiscation and apprehension of protected. As discussed in the report,
forest product and conveyances prior to these were left exposed to element
be his designation are nowhere to be accelerating their deterioration.
found. The fact is, the now CENRO was Moreover, effort should be exerted to
only reactivated as such in January 2002 retrieve confiscation records to facilitate
after being relegated by the PENRO as a their disposal.
mere PENRO extension office. Hence,
all records of confiscation were with the
Legal Officer at the PENRO. The
predicament was aggravated when the
PENRO Legal Officer retired from the
Government Service at the middle part
last year (2005) and the untimely death
of the Legal Aide (Secretary) without
them turning over to the Office the
records/case folders of all those brought
to the Office compound (both vehicles
and lumber) for impoundment.
Provided by PENRO Bukidnon

On storage for confiscated logs/lumber

It is true that indeed some of this The team calls the attention of DENR
confiscated forest products are in the higher offices on this concern taking into
process of deterioration. Under the forest account the best interest of the
protection activity, no activity or government.
allotment is given for the construction of
shed houses….Even if we do, very little
amount is set aside for forest protection
activities and this will further be drained
if used in the construction of shed
houses.

With regards to the disposition through

donation or public auction of those no
identified claimant confiscated forest
products, there had been in fact some

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 APPROPRIATE SAFEKEEPING PROCEDURES

Management’s Comments Team’s Rejoinder

donations made at a time the authority to
dispose is delegated to the REDS,
PENROs and CENROs under the
operation of DENR Administrative
Order No. 36, series of 1988. The
dynamism of forestry laws, rules and
regulations changes overtime and this
brought about the changes in the
delegation of authority from the field
offices to the Secretary, from the
Secretary to NRDC, from NRDC to field
offices and the cycles goes on. The latest
issuance is the memorandum of
Secretary Defensor dated May 19, 2005
transferring the authority to the NRDC.

Much of this Office desire to dispose

this confiscated forest products to
recover its economic value, same is
constraint by the changes in DENR
policies.

On confiscated conveyances

While section 3 of Administrative Order DENR should make representations with

No. 59 Series of 1990 provides the the Land Transportation Office and other
requirements in the transport of forest concerned offices regarding the matter.
products, apprehended forest products
and the conveyance usually do no bear
the required transport documents, thus
the confiscation. Even after criminal
proceedings the conveyance is forfeited
in favor of the government, same had
difficulty in registering in the name of
the government since no OR and CR is
ever provided by the owner. In fact it
would be unlikely for them to provide
the same if this will be used against
them.

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 Part V

Recommendations

108
RECOMMENDATIONS

RECOMMENDATIONS

In order to address the noted observations and improve the implementation of

the CBFM projects, the team recommends that the:

• RED, PENRO and CENRO should ensure

- POs’ compliance with the CBFMA, CRMF and AWP, particularly, in

undertaking forest protection activities. They should also be required
to submit complete information sufficient to assess the extent of
implementation of the POs’ planned activities.

- That coordination with LGUs and other enforcement agencies are

made in dealing appropriately with forest fire culprits.

- That all activities under Community Organizing are executed and

provide satisfactory results, and that POs are continuously trained
until they attained the capability to manage CBFMA area and
promote appropriate upland cultivation with minimal supervision and
assistance.

- That activities of all CBFM participants are synchcronized and that

all necessary clearances and information are provided to other
sectors.

- That representations with LGUs are made to consider seeking

clearance/recommendations from the DENR field offices before
issuing any permit affecting the CBFM area.

- That only those livelihood projects that are within the financial and
managerial capabilities of POs are introduced and that as much as
possible, feasibility studies containing basic information such as
availability of raw materials and existing market for the product are
conducted.

- That plantation areas exclude unsuitable area to minimize, if not

totally avoid, losses of scarce government resources.

- That deviations from the feasibility studies are made only after
determining that the same would be more advantageous both to the
government and the PO.

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 RECOMMENDATIONS

- That only trained personnel will conduct monitoring and evaluation

to ensure adequacy and reliability of data gathered.

- That confiscated items are disposed within the timeframes to be set by

the FMB and that forfeitures are accordingly recorded in the books of
the PENROs.

• FMB should

- Establish minimum percentage of household population to be

mandatory members of the organized PO and minimum percentage of
the CBFM area to be covered by CBFM Agreement. The established
minimum percentages of area and households may also be used as
criteria in assessing the success of community organizing and the
performance of assisting organization.

- Establish criteria within which to dispose confiscated items.

110
Submitted in compliance with COA Mnagement Services and Technical
Services Sector Office Order No. 2005-037 and 2005-037A dated July 6, 2005
and October 17, 2005, respectively.

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