Mayor Erap says DILG memo-circular allows LGUs to issue provisional business permits

Manila Mayor Joseph Ejercito Estrada said yesterday that local government units (LGUs) are allowed to issue provisional business permits under the memorandum circulars issued by the Department of Trade and Industry (DTI), Department of Interior and Local Government (DILG) and Bureau of Fire Protection (BFP).

Estrada issued the statement in support of the local government of Valenzuela City which was specially mentioned by President Aquino as among those to be charged in connection with the May 13 fire that destroyed the Kentex slipper factory in Barangay Ugong, Valenzuela and resulted in the deaths of 72 people, mostly workers.

"It has been the practice of LGUs all over the country to issue provisional permits to ensure that the operation of business establishments will not be hampered. And this practice has its legal basis on the memorandum circulars issued by the DTI, DILG and BFP," said Estrada.

Estrada said it is still the responsibility of the BFP to make sure the establishments followed fire safety codes by conducting inspections and reporting to the LGU what establishments have violations and hence, recommend the revocation of their business permits.

Under Republic Act 9154 or the Revised Fire Code of the Philippines, the Fire Safety Inspection Certificate being issued by the BFP is a prerequisite for the issuance of a business permit by the Office of the Mayor.

But complaints from businessmen on the slow inspection of BFP personnel resulted in the issuance of the memo-circulars from the DTI, DILG, and BFP to address the concern of the business sector. These agencies authorized the LGUs to issue provisional business permits while the BFP conducts its inspection and recommends to the LGU the revocation of such permits if there are violations of the Fire Code.

Estrada said he cannot understand why the DILG seemed oblivious of its own memorandum circulars, which were issued during the time of DILG Secretary Jesse Robredo, and would not want to penalize officials of Valenzuela City who were merely following such circulars.

"What will we do? Will we just wait for this FSIC (fire safety inspection certificate) to be released? What will happen to our economy? What will happen to the businesses? What will happen to the local economy and local employees?" he said.

Estrada cited the following memorandum-circulars:

1. Joint DILG-DTI Memorandum Circular No. 01, Series of 2010 dated August 26, 2010.

2. Secretary Robredo's DILG Memorandum Circular No. 2011-05 dated Jan. 4, 2011.

3. BFP Memorandum dated Sept. 24, 2012

Estrada said it would be the height of irony that LGUs like Valenzuela are now being penalized for following ther orders of the DILG and BFP which authorized LGUs to issue provisional business permits pending issuance of the FSIC by the local fire marshal.

"It is now up to the DILG, which has administrative and operational control on the BFP, to assert the efficacy of its Memo Circular No. 2011-05 since failure to do so will severely damage the credibility of the department. And what will happen now to the other LGUs which has followed the DILG-BFP memo circularls?" Estrada concluded.

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