ZBB Sampler: What Trade dept will do to comply with new budgeting method

IN line with the Aquino administration’s zero-based budgeting (ZBB) thrust, the Department of Trade and Industry (DTI) is in the process of beefing up its organization by rationalizing the various agencies under it.

In a telephone interview last week, Trade Secretary Gregory Domingo said “significant major changes” would be implemented in Trade department’s organizational structure.

“For DTI’s part, rationalization will have the largest impact in our zero-based budgeting efforts,” Domingo said.

“You have to align the organization to your strategies,” Domingo said.

“You should determine what you need to do.”

For instance, Domingo said 80 percent of the functions of DTI’s National Capital Region office (DTI-NCR) is aligned with enforcement of consumer laws, but the unit is currently under the Regional Operations and Development Group (RODG).

“So one of the things we will do is to transfer DTI-NCR under the supervision of the Consumer Welfare and Trade Regulation Group [CWTRG], in order to beef up enforcement efforts,” Domingo said.

Domingo said Undersecretary for Industry and Investments Cristino Panlilio, who is also the Board of Investments’ managing head, is tasked to spearhead reorganization efforts in the Industry and Investment Group (IIG), which currently covers four agencies.

Undersecretary for Consumer Welfare and Trade Regulation Zenaida Maglaya is in charge of reviewing the CWTRG, which currently oversees seven agencies.

Undersecretary for Regional Operations Merly Cruz, meanwhile, is spearheading the review of the RODG, which has about three agencies, 16 regional offices and 81 provincial, city and area offices under its coverage. Domingo said all efforts to develop micro, small and medium enterprises will be consolidated under this group.

Assistant Secretary Ramon Vicente Kabigting, who is currently officer in charge of the International Trade Group, is leading the review of the nine agencies under the group.

Domingo said he and his people are currently conducting a review of the foreign trade offices, and he said “a couple of offices” might be closed.

There also are nine government-owned and -controlled corporations (GOCCs) attached to the Trade department, namely, the Aurora Special Economic Zone Authority, Intellectual Property Office of the Philippines, National Development Co., Optical Media Board, Philippine Economic Zone Authority, Philippine International Trading Corp., Philippine National Construction Corp., Securities and Exchange Commission, and Small Business Corp. These are being reviewed as well.

Domingo said certain domestic offices “that outlived their purposes” would also be closed down. He said a few agencies have been pre-identified, but he did not divulge which to The Manila Times.

Domingo said some Trade department units would be transferred to other government departments. He said the Build-Operate-and-Transfer (BOT) Center “will go to NEDA [the National Economic and Development Authority].”

At the same time, Domingo said there are possibilities that some government agencies currently not attached to the Trade department may also be transferred to its supervision.

Domingo said the internal review of the department organization is expected to be finished by the end of this month.

He said the Department of Budget and Management would then have to act quickly on the reorganization of the Trade department, so that it could be implemented beginning early next year.

The department currently has about 1,980 people in “plantilla” positions (with regular salaries and appointments).

Domingo said the Trade department is actually understaffed. “Since 2005, [DTI has not] been able to hire more employees,” he said.

“We need the rationalization plan approved to fill up vacancies,” Domingo said.

He said that in the department’s case, rationalization would result in “minimal layoffs, [but] a lot of transfers [of people].”

Domingo said the department is transparent in its rationalization and reorganization efforts.

No negative feedback has been received from employees, because “as long as the process is transparent and fair, employees will respect the decision,” he said. –BEN ARNOLD DE VERA REPORTER, Manila Times