REFOCUSING DEVELOPMENT IN THE

ANCESTRAL DOMAINS OF BUKIDNON

Atty. Burt M. Estrada
Atty. Arbie S. Llesis

INTRODUCTION

Bukidnon is known as the food basket of Mindanao. It is the heart of Min-

danao not only because it is geographically found at the centre of the Is-
land or that it is the source of water for most of the Island, but also be-
cause it is home to the keepers of the Indigenous culture of Mindanao
which gives it its own identity. Bukidnon is renowned for its very fertile soil.
It is said that you can grow almost anything in Bukidnon. Today, Bukidnon
is the producer of many commodities such as but not limited to: corn, rice,
sugar, flour, vegetables, Pineapple, Banana, poultry, pork, beef etc.. How-
ever, despite what has been said, Bukidnon is identified as one of the 10
poorest province in the country1.

Like other provinces, poverty incidence in Bukidnon is seen to be

highest in IP communities. Having one of the highest population of IPs, it
would seem to explain why Bukidnon is one of the poorest province. But
with all the natural resources within the Ancestral Domains of the IP com-
munities this should not have been the case. Out of the 1,049,900
hectares total land area of the province, 227, 715 hectares or more than
21% is identified to be within Ancestral Domains already issued with Cer-
tificate of Ancestral Domain Title (CADT)2. This still does not include those
claims that are still on process and those that did not elect to have formal
recognition but is anchored on Native Title. With all this vast track of land,
how is it that the IP communities of Bukidnon have remained poor?

Before the enactment of the Indigenous Peoples Rights Act (IPRA),

most of the ancestral domains were classified as Public forest which were
legally considered as beyond the commerce of man. The IPRA law has
paved the way for these ancestral domains to become areas of production
and commercial activities.

20 years ago, the Indigenous Peoples Rights Act (IPRA) was enact-
ed. The law was enacted by Congress not only to fulfil the constitutional
mandate of protecting the indigenous cultural communities' right to their
ancestral land but more importantly, to correct a grave historical injus-
tice to our indigenous people3. To achieve such constitutional mandate,
the law declares that the state shall “protect the rights of ICCs/IPs to
their ancestral domains to ensure their economic, social and cultural
well being and shall recognize the applicability of customary laws
governing property rights or relations in determining the ownership
and extent of ancestral domain”4

1http://psa.gov.ph/

2 NCIP Provincial Office of Bukidnon. Appendix “A”

3 Cruz vs. Sec. of Environment, GR No. 135385, December 6, 2000

4 RA 8371, Sec. 2, b.
 The law has given recognition to IP ownership over their ancestral
domains. Lands that were classified as public forest lands and hence out-
side the commerce of man can now be used for economic activities sub-
ject only to the recognition and respect to the customary laws which is
supposed to be complied thru the observance of the Free and Prior In-
formed Consent (FPIC) procedure prescribed by the Implementing Rules
of IPRA. However, despite the lapse of more than 20 years, there has been
very minimal economic activities within the domains. Existing contractual
relations within the domains have either been looked upon as mostly ex-
ploitative of the Indigenous Peoples (IPs) right to their ancestral domains
or unstable and unpredictable for any sustainable commercial relation to
be invested upon.

According to one respected leader, inventor and entrepreneur in Bukidnon,

it is really a big puzzle why despite all the resources available to the IP
communities there is no industry within the domains. 5 The political leaders
of Bukidnon have also expressed their concerns that despite all the inter-
ventions and programs they tried to introduce, nothing seems to work in
bringing about economic progress in the lives of our IP communities. Per-
haps it is time to revisit the mandate of the IPRA law and determine how it
can be better implemented with a focus on capacity building for the cre-
ation of industries within the domains and introducing a framework that
will enable commercial relations to be cultivated within these domains
which is protective of IP rights, promotes economic development of the
IPs and the community as a whole and attractive for economic partners.

This submission seeks to learn from the experience of the 7 tribes of

Bukidnon relative to their struggle to bring about economic development in
their Ancestral domain under the existing law and implementing rules. The
focus of this study will be to come up with recommendations on how the
IPRA law and the cultural law can be harmonized to foster an efficient, vi-
able and culturally sensitive environment for business and industry in order
to bring about economic development in the IP communities and the Prov-
ince as a whole and how to refocus our efforts in order to bring about de-
velopment in the Ancestral Domains.

5 Pastor Manny Alquino, February 7, 2018. Lumbo, Valencia City.

Regulation or Empowerment

A careful reading of the IPRA law and its corresponding implementing rules
will show that that the rigid and lengthy processes prescribed before any
activity can be undertaken within the AD is aimed to protect the rights and
interest of the IPs. As a rule, no project or economic activity can take place
within ADs without going thru the FPIC process. Free Prior Informed Con-
sent is defined as:

“as used in this Act shall mean the consensus of all members of the ICCs/IPs to
be determined in accordance with their respective customary laws and prac-
tices, free from any external manipulation, interference and coercion, and ob-
tained after fully disclosing the intent and scope of the activity, in a language and
process understandable to the community;”6 ( emphasis supplied)

The Revised Guidelines on Free and Prior Informed Consent and related
processes of 2012 (herein referred to as AO No. 3) categorises 4 kinds of
processes of FPIC namely:

I. Full blown Free Prior Informed Consent

II. Validation of Non-extractive and Small Scale Activities
III. Validation of Community Solicited/Initiated
IV. Validation of Exercise of Priority Righty

A full blown FPIC process is the usual procedure being undertaken

by the NCIP for the communities as it is required before any Extractive/In-
trusive/Large Scale projects or programs can be introduced within Ances-
tral Domains. According to section 19 of the Revised Guidelines on FPIC
and related processes of 2012, the following are considered as Extractive/
intrusive or Large Scale:

a. Exploration, development, exploitation, utilization of land, energy, mineral,

forest, water, marine, air, and other natural resources requiring permits, licenses, lease,
contracts, concession, or agreements e.g production-sharing agreement, from the ap-
propriate national or local government agencies, including feasibility studies related
thereto; (emphasis supplied)
b. Those that may lead to the displacement and/or relocation of ICCs/IPs;
c. Resettlement programs or projects by the government or any of its
instrumentalities that may introduce migrants;
d. Declaration and management of protected and environmentally critical areas,
and other related undertakings;
e. Bio-prospecting and related activities;
f. Activities that would affect their spiritual and religious traditions, customs
and ceremonies, including ceremonial objects, archeological exploration, diggings and
excavations and access to religious and cultural sites:
g. Industrial land use including the establishment of economic zones;
h. Large scale agricultural and forestry management projects; (emphasis supplied)
i. Carbon trading and related activities;
j. Large scale tourism projects;
k. Establishment of temporary or permanent military facilities; conduct of

6 RA 8371, Chap. 2, Sec. 3, (g)

military exercises, or organizing para-military forces;
l. Issuance of land tenure instrument or resource use instrument by any government
agency and related activities; and
m. Others analogous to the foregoing, except small-scale quarrying.

Under a full blown FPIC, the following process must be followed7:

From the above mentioned flow chart, the entire process may take months
if not years depending on so many factors including availability of funds to
support the conduct of such activities. It is submitted that such process may
be necessary to regulate extractive activities within the Ancestral Domains
(AD for brevity). However, it may also become too onerous and restrictive
that would hinder development of the AD.

Such complexity was enough for Datu Sulda to find other ways to be able
to execute their project, it might have and may still discourage others to
even consider undertaking any activity within the ADs. It must be empha-
sised that although the IPRA law recognises the IPs rights to all the re-
sources within its domain, the readily available resource that the Indige-
nous Cultural Communities (ICCs) have is their land. And based on the
above definition, it could be interpreted that any business undertaking done
within the ADs would require a full blown FPIC since all businesses are re-
quired to secure at the very least a business permit from the local govern-
ment.

We believe that the above interpretation may have been subscribed

to most by people both from the community, the government or the private
sector. During our interview with Datu Sulda, the Manobo Tribal Chieftain of
Pangantucan, Bukidnon, he recounted to us the experience they had when
they implemented a research and reforestation project within their domain

7 Sec. 22 of DAO No. 3. Taken from power point presentation prepared by Atty. Phoebe Hidal -
go, Legal Officer, NCIP Bukidnon.
under the ICCA (Indigenous Communities Conserved Areas) of the DENR.
Datu Sulda remembered then NCIP Chair Pawid initially manifested frustra-
tion over DENR’s failure to follow the prescribed full blown FPIC process
but was later relieved and praised Datu Sulda for taking the initiative. Ac-
cording to Datu Sulda8, they did not follow the full blown FPIC process as
the same was their initiative or decision and they knew and understood that
it was good for their community and that the cultural process of decision
making, thru the council of elders was observed. The project involved a
grant of One Hundred Thousand Pesos (Php 100,000.00) for research and
reforestation. They did not follow the prescribed FPIC process as doing so
would mean delay and payment to the NCIP for the conduct of the FPIC
process which meant a deduction from the available funds. Whether or not
the interpretation of the law was correct will be the subject of a separate
discussion but what can be gathered from the experience shared by Datu
Sulda is that such interpretation was prevailing at that time and adherence
to such would have cost delay and expenses before the project which the
community has already deemed beneficial thru its own cultural process.

Interview with Datu Sulda

Another important lesson learned from the discussion with Datu Sulda is on
the process of consensus building. The law defines FPIC as the consensus
of ALL members of the tribe but later qualifies it with the phrase “in accor-
dance with their respective customary laws and practices”.

8 5:15 interview with Datu Sulda (February 6, 2018)

The definition can be a source of confusion. In many situations, the usual
“democratic” concept of consensus building is being insisted upon. The
“rule of the majority” or even a unanimous vote is understood to be the im-
port of the said definition of FPIC. This may be owing to our very western-
ised concept of consensus building. While it may be the design of any de-
mocratic organization that everyone is given a say on the matter, such is
not always true when it comes to decision making under the customary be-
liefs and traditions. The former also does not always ensure that the best
decision is made or that everyone is benefited therefrom. On the contrary,
many programs have been put on hold or even abused because of a few
unscrupulous members of the tribe who are more politically motivated
rather than culturally guided.

What Datu Sulda intimated is also shared by another wise leader, Datu
Migketay Victoriano Saway. According to such leaders the cultural law is
actually simple: it is based on natural law. And natural law dictates that a
good leader naturally decides what is best for his people. The authority of
the leader has already been pre-agreed from the moment he or they are
recognized as the leaders of the community. Hence the decision of the
Tribal council of elders should be sufficient to proceed with any project of
program. This is supported by the definition of the law itself when it says
that it should be in accordance with the customary law and practice of the
tribe. The challenge however is in identifying the true cultural leaders of the
tribe. This will be the further discussed on discussion of the Indigenous Po-
litical Structure.

Based on the unverified records we were able to obtain, it appears that the
NCIP has devoted majority of its time and effort on Full blown FPIC pro-
cesses. To illustrate such point, below is a table of FPIC process pending
before the NCIP Bukidnon for the period January 2009 to November 2010.
Based on such data, it can be seen that the FPIC process are mostly used
and undertaken whenever an entity seeks to utilize resources within the
Domain.

 NATIONAL COMMISSION ON INDIGENOUS PEOPLES

CP Application on FBI/FPIC Process

January- July '09 (Jan '09-Nov '10)

RE-
MARK
DATE PROPONENT LOCATION PURPOSE S

Province of Bukidnon
Mambusao Mining Co., San Fernando & Valnecia, Bukid-
Inc. non EXPA for FBI

Lambunao Mining Co.,

Inc.(Indpphil) Quezon, Bukidnon EXPA for FBI

Macote Mining Co., Inc. Maramag, Bukidnon EXPA for FBI

2/2/09 Endophil Resources NL Sinuda, Kitaotao, Bukidnon EXPA (EPA-000011-X) for FBI

Mr. Democrito V. Comal- So. Megbadiang, Bacusanon, Pan-

ing gantucan, Bukidnon SSM FBI

Mr.& Mrs. Herminigildo/ Impakebel, Manolo Fortich, Bukid-

Necitas Anlicao non SSMP FBI

8/13/09 Mr. Sargento G. Dalman Brgy. Tikalaan, Talakag, Bukidnon SSMP For FBI

Ophiolite Mining, Incor- San Fernando & Malaybalay City,

1/24/11 porated Bukidnon Exploration Permit FBI

Bluewater Mineral Re- Kibawe, Quezon & Kitaotao, Bukid-

1/25/11 sources, Inc non Exploration Permit FBI

Mining Phil. Resources Exploraton Permit

2/23/11 Corporation Brgy Bugsok, Libona, Bukidnon (EXPA-000116-X) FBI

Mun. of Impasug-ong and Malay- Exploraton Permit

2/24/11 Mr. Romel O. Cariño balay City, Bukidnon (EXPA-000117-X) FBI

Pilipinasmining Re- Impasug-ong and Malaybalay City, Exploration Permit

4/8/11 sources, Inc. Bukidnon (EXPA-000107-X) FBI

Pulangi River, Iba, Cabanglasan, Sand & Gravel Quarry

6/14/12 Mr. Joaquin Nellas Bukidnon Permit FBI

13 Ap-
plica-
tions

In simpler terms, FPIC procedures have only been undertaken when

someone other than the community seeks to make business out of the re-
sources within the domain. From the period shown above alone, and we
are confident that records, hopefully can be obtained from the NCIP Bukid-
non, will show the same trend. There is minimal, if any, proceedings under-
taken by the NCIP of programs and projects that concerns the ICCs exer-
cise of priority rights or Community initiated projects. Why it is so can be
the subject of speculation. But gathering from our interviews from our lead-
ers it appears that undertaking full blown FPIC is a very expensive under-
taking which only big companies and rich businessmen can afford. Pro-
grams or projects from the communities however are lacking any ready
funding from the community.
The reason and the justifiability for such reason for the said situation should
be the subject of a separate investigation. This submission will only focus
on the effect of such situation. Because the NCIP has become preoccupied
mostly with applications of companies to utilize resources from the ADs, the
development of the Ancestral Domains have become dependent on the
availability of interested investors on the resources of the domain.

For instance, in the Bukidnon Tagoloanon Tribe of Malaybalay City, the

NCIP local office have only been involved on development projects when a
hydro electric power plant was proposed by Sta. Clara electric corp. How-
ever, the government agency was not able to get involved when the tribe
decided it will develop 100 hectares of its domain to a cacao plantation by
forming its own cooperative that will enter into a marketing agreements and
apply for a bank loan to fund its own project. This will be further elaborated
in the succeeding discussions. What is noteworthy at this point is that there
is intervention or assistance only within the domains when it is initiated by
an interested proponent not when it is initiated by the community itself.
More importantly there is hardly any initiative from government to capaci-
tate the communities to undertake development on their own.

Again, this submission does not seek to impute any malfeasance or mis-
feasance, it only seeks to point out that by focusing more on its regulatory
function in the issuance of CADTs and Certificates of Preconditions for Ex-
tractive and intrusive activities proposed by outsiders, the ICCs have been
treated more as lessors or land lords who can only develop its land if a
lessee or investor desires to utilize its domain for business. This has left
much of the areas of the domain undeveloped as mostly only mining activi-
ties, quarrying for sand and gravel, hydro power plants have been identified
as viable businesses within the domains where ICCs are only expected to
give their consent for royalties.

At this juncture, it must already be stressed that most of the IPs are farm-
ers. More effort should be focused on developing agricultural production
within the domains rather than the above-mentioned activities.

Harmonizing the laws

Another major issue raised by many of the tribal leaders and ICCs is the
continued disconnect between the IPRA and the other laws such as the Lo-
cal government code and the Cooperative Law. In a number of interviews
and discussions, Tribal Leaders have lamented the difficulty of proceeding
with any project even if with the assistance of local government units. This
is especially true with those domains that do not have CADTs issued.

IPRA and the Local Government Code

In the Municipality of San Fernando, Bukidnon, a brewing conflict was seen
between the Local Government Unit and the Manobo Tribe led by Bae Lea
Tumbalang. The LGU is proposing the construction of a water impounding
facility but the area is within the Ancestral Land claimed by the Manobo
Tribe of San Fernando. In one of the meeting between the parties, it was
apparent that the LGU was becoming frustrated with the tribe coming up
with their “demands” to the LGU. One of the “demands”, although more of a
request according to Bae Lea, was that a reforestation project be undertak-
en and that the same be managed by the tribe. The request was worded: “
nga ang tribu Mao ang mag dumala”.

The wordings alone led to a misunderstanding as it appeared to be a pre-

condition set by the tribe before a water impounding facility can be put up.
secondly, although the LGU already appropriated a budget of one million
pesos, it insisted that it is not possible to give the budget to the tribe for
them to manage as it is not allowed by the local government code or the
COA rules. initially, the tribe was also of the conviction that being within
their Ancestral Land, they should manage and establish the program as it is
theirs. But upon further inquiry it was learned that the paramount consider-
ation of the tribe is to have a livelihood program to provide its members.

If the IPRA law is to be strictly followed, then the water system should not
be implemented before the issuance of a certificate of precondition which
called for a full blown FPIC. If the Local government code (LGC) and COA
rules are also to be strictly followed, no funds can be disbursed to the tribe
as they do not have an issued CADT over the area nor a registered juridical
personality recognised by the law to be a recipient of any project of funds.
An impasse or deadlock seems inevitable.

Ideally, it would be more in keeping with the vision of IPRA if the funds are
transferred to the tribe and that they be able to implement such project
based on their own initiatives and traditions. This empowers the tribes and
supports their struggle for self-determination. However, the IPRA is not the
only law to be followed, the provisions of the Local Government Code and
the COA rules must be observed as well.

Presently, the parties are undertaking continued negotiations which was

made possible after two basic considerations were agreed upon. First, the
tribe assured the LGU that it supports the construction of the water im-
pounding system as it is pro-life and is needed by everyone. The indige-
nous culture of the tribe mandates that it support pro-life activities (Pa ba-
tonbatona hu batasan). Secondly, the LGU announced the appropriation of
1 million pesos for the reforestation project and will work with the tribe to
meet the livelihood needs of the tribe subject to the provisions of pertinent
laws such as the LGC and COA rules. It is submitted that the best and legal
way is to have a registered Indigenous Peoples Organization (IPO) of the
tribe that can be the legal subject of any agreement with the LGC. However
as will be discussed below, the procedure for registration is quite a long
and tedious one. In the meantime other legal ways are being explored to

meet the needs of both parties.

Bae Lea Tumalang during the meeting with LGU San Fernando, Bukidnon with tribal
leaders at her back. Bae Lea is explaining that they are not imposing any demands and
that the tribe is thankful that lawyers are in attendance as they are not well versed in the
intricacies of the law.

During the Subsequent meeting together with the Chief Executive and other officer o the
LGU Datu Migketay was asked to be one of the panel members for the tribe to negotiate
with the LGU. Datu Migketay Victoriano Saway was one of the framers of the IPRA law
and was one of the first commissioners of the en banc commission. Here he explains
the need to find a way to harmonize the IPRA and the LGC in order to meet both man-
dates of said laws. The goal according to Datu Migketay is to build good and strong re-
lations between the LGU and the tribe anchored on the recognition of the rights of the
tribe and this can be done if we find a way to harmonize the laws. He also emphasizes
on the importance of getting the consent of the cultural or spritual leaders meaning
those that still observe the cultural laws.
IPRA and the Cooperative Law

One of the expected propellers of inclusive growth is cooperativism. Thru

the collective effort of people bound by a common interest, the marginal-
ized sector are given an opportunity to be a part of nation building and to
experience economic progress at the grass root level. There are numerous
advantages in forming cooperatives. Having a registered cooperative gives
the organization a recognized or even preferred juridical personality when
dealing with financial institutions and even the LGUs.

In the experience of the Bukidnon Tagoloanon Tribe of Malaybalay, it had

difficulty even in seeking assistance from the Local government unit when it
still did not have a registered cooperative. Although the tribe was organized
in accordance with its indigenous traditions and culture, it was legally diffi-
cult or even impossible for the LGU to give any form of assistance as the
tribe did not have the legal personality that is recognized by the local gov-
ernment code. Even with a CADT already issued over its domain, the
Bukidnon Tagoloanon Tribe could not access financial assistance much
more loan accommodations to fund its development projects.

The option to form as a cooperative was there but the decision was not that
easy as there were fundamental issues where the cooperative law and the
tribes cultural law do not meet. While cooperation is also the heart of cul-
tural life, one of the fundamental difference is in the manner of governance.
One of the basic principles of cooperativism is “one member, one vote”.
This is not how consensus or decision making is done by the tribe. The
Cultural law of decision making is different from what we have been accus-
tomed to under the western concepts of democracy. Even with good inten-
tions, the tribe did not hastily form itself into a cooperative as it might lead
to supplanting its own culture.

The Bukidnon Tagoloanon Tribe was very fortunate to have been chosen
as the target community of the “Inclusive Growth thru Inclusive Busi-
ness Program” of the Cagayan de Oro Chamber which is funded by the
USAID thru the Gerry Roxas Foundation. Thru the said program, the tribe
was assisted in looking for ways to bring about inclusive growth in its do-
main by engaging in inclusive business. One of the first issue the tribe
faced was whether or not to form a cooperative. The following is part of the
Business plan formulated by the tribe in its quest to undertake its own busi-
ness:

BUKIDNON TAGOLOANON MAMULAHAY HA

KABUKALAGAN COOPERATIVE

By:

Atty. Burt M. Estrada/ Datu Man-hanayan

HISTORICAL OVERVIEW:
 The Bukidnon Tagoloanon Indigenous People are the “tumindek” or primordial
people of Malaybalay City, Bukidnon. Even before the colonization of the Philippines
by Spain, the Bukidnon Tagoloanon have established its own governance which are
embodied in its “datalan hu agpangan”. For over 500 years, the Bukidnon Tagoloanon
Tribe has managed to preserve its indigenous identity even with the seemingly insur-
mountable force of colonization, modernization and development mainly introduced
by western ideas. While its members have appeared to be assimilated into the main-
stream society, they have managed to preserve their indigenous culture and tradi-
tions. Because of such ability to live in both the “modern” world but without leaving
behind their indigenous language, culture, beliefs, traditions and governance, one au-
thor (Egerton) referred to the native people of Bukidnon as the “People of the Middle
Ground”.

Today, members of the Bukidnon Tagoloanon Tribe are found living mostly in the
“poblacion”. Adjacent to its ancestral domain where they were once forced out by
government action. From being forced to leave in the pueblos by the Spaniards to the
“settlements” by the Americans, the Bukidnon Tagoloanon People never lost its rela-
tionship with its domain. Once place of great significance is found at the junction of
the Can-ayan and Kibalabag river. This place often referred to as the “Sabangan ha
Tagoloan” or the head waters of Tagoloan River, is one, if not, the most sacred ground
not just for the Bukidnon Tagoloanons but for the other tribes of Bukidnon as well.
Through oral tradition, it is said that this place is the bedrock of civilization of Bukid-
non and the source of governance and culture and law or the “Batasan”. From the
time the first settlers of Malaybalay and the greater part of Bukidnon arrived from the
Coast of Kalambaguhan ( a kingdom of what is now known as misamis oriental), the
Bukidnon Tagoloanon People have continuously comeback to this place at least once a
year to perform its rituals for thanks giving for the diety of water “panalawahig”.
Such pilgrimage (“panundan”), has enabled the Bukidnon Tagoloanon to pass on from
generation to generation its indigenous culture. Even today, the “Bongakatol ha Bu-
lawan daw katasa ha lana” (A bar of gold and a chalice of oil) which is centered on
mutual respect of life, mutual help and love, are the laws and traditions that are at
the crux of the people’s lives. These laws have been existing since time immemorial
and have been passed on for centuries if not millennia. these are what makes us in-
digenous. These are what we need to preserve.

For more than 30 years, the present Tribal Chief Datu or “Sangkuanan” Judge
Benjamin P. Estrada (ret.) known as Lumalambong Datu Manlumakbaw, has led the
yearly pilgrimage to the sacred grounds. In the early 90’s Judge Estrada and his family
spearheaded the filing for recognition of the ancestral domain. For more than 20
years, the struggle for recognition was led by Datu Manlumakbaw. Until finally, in
2016, the NCIP approved the Ancestral Domain Claim of the Bukidnon Tagoloanon
Tribe.

The Bukidnon Tagoloanon Tribe is not the first tribe to be awarded a Certificate
of Ancestral Domain Title. Many tribes all over the country have long been given state
recognition of their native title to their ancestral domains. 20 years after the enact-
ment of the Indigenous Peoples Rights Act (IPRA Law), the economic condition of the
Indigenous People has hardly improved. Even with the strides of progress the nation
has achieved, the IPs have remained marginalized and remains excluded from national
growth and progress. It is indeed a great irony that while many of the native people’s
lands have been issued with CADTs, such “titles” have seem to be opportunities for
large companies and the like to gain access to vast tracks of land. Ancestral Domains
have become mining areas, plantations for agro-industrial crops, amusement parks,
etc. The avowed purpose of the IPRA law remains elusive – the preservation and de-
velopment of the indigenous culture. One cannot possibly preserve his culture if he
abandons his domain where he keeps his sacred grounds and maintains his relationship
with not just the people but the spirits of all beings which has sustained life.

Because the concept of development nowadays has largely become the western
concept, people equate their economic status with the usual barometers given to us
by the western world – money. While the IPs have been given recognition over hun-
dred and even thousands of hectares of land. They remain “poor” because they don’t
have money. And because the need for money is a reality, the IPs are often forced to
give up their lands in exchange for a pittance in the form of rentals and royalties. The
IPs have not been able to improve their economic condition even with the vast tracks
of land because they are not given the equal opportunity to be able to have sufficient
capacity to engage in economic activities within their domain. The social reform for
equal rights and opportunities for the marginalized sector, especially the IPs, is still a
dream. How can the IPs develop their lands thru their unique indigenous ways if the
law and society sees it as primitive and not suitable to be given access to capital and
to enter into financial transactions?

Because they cannot access much needed capital from financial institutions and
cannot enter into commercial transactions, IPs are left with a very limited option of
leasing their lands or entering into lop-sided joint ventures. Both options promises
“development”. In truth both only promise “money” not “development”. Especially
not development that the IPs need in order to preserve their culture and their do-
mains.

The Bukidnon Tagoloanon Tribe desires to engage in inclusive business where

we, the owners of the land, become the producers of our crops. we desire to develop
and manage economic activities within our domain in order that it remain centered on
the preservation of our indigenous culture and provide for us a more meaningful de-
velopment. We desire to provide livelihood and social service to our people in order
that when can give them the opportunity to live as Indigenous People – cognizant and
practicing their indigenous culture.

VISION:

The Bukidnon Tagoloanon Tribe envisions to develop its ancestral domain thru
sustainable programs that is in keeping with its indigenous culture and traditions and
will uplift the economic condition of its members to enable them to continue to live
as Indigenous Peoples and pass on to the next generation its culture.

MISSION:

To create a cooperative which shall serve as the economic arm of the Tribe
which is an accepted juridical personality that can access opportunities for capital
and enter into commercial transactions to establish a 50-hectare cacao plantation.

The relationship of the Indigenous Political Structure

and the Coop

Indigenous People have their own political and governance structure. This structure
has enabled the Indigenous Peoples to sustain life for centuries if not millennia even
before the colonizers introduced their own forms of governance. Most of the organiza-
tional structure that we have now (i.e. Republican system, local government, corpo-
rations, cooperatives, etc.) are introduced to us and are western concepts. More than
500 years after the Philippines was colonized and more than a century after we are
supposedly free, the organizational structures and legal systems that have been intro-
duced to us remain to be what the Philippines practice.

Sometime in 1997, the IPRA law was enacted to address the social injustice that the
Indigenous People has experienced. 20 years after the enactment of the IPRA law, the
Indigenous People remain to be one of the most marginalized sector of society. Al-
though granted recognition to their ancestral domains, the IPs economic condition has
hardly improved. One of the basic reasons why the social reforms envisioned in our
Constitution and our laws are still not achieved is the fact that IPs are not given the
equal opportunity to engage in economic activities, government assistance, loan ac-
commodations and commercial transactions. An indigenous community, mostly bereft
of legal knowledge, is unqualified to access loan accommodations from financial insti-
tutions because they lack the preferred legal personality. Without access to capital,
IPs cannot develop their lands on their own and have to engage others parties to de-
velop their lands and mostly based on lopsided agreements.

The IPRA law recognizes the Indigenous Political Structure (IPS) of the Indigenous
Communities. As defined by law, the Indigenous Political Structure “refers to organi-
zational and cultural leadership systems, institutions, relationships, patterns and
processes for decision-making and participation, identified and accepted by ICCs/
IPs. The IPS shall be recognized as the highest governing body with the IPO as its
technical arm”. The law recognizes the IPS as the governing body of the Indigenous
Communities. However, the law does not recognize the IPS as an acceptable juridical
personality. To achieve a legal personality under the IPRA law, the IPs need to have an
Indigenous Peoples Organization (IPO) as its technical arm. The registration and ap-
proval of the IPS is already a very tedious and technical process which requires an en
banc resolution of the NCIP. It is only after the IPS is approved that an IPO can be reg-
istered under the IPRA law. Again, the ICCs are at a disadvantage because not many
ICCs have the legal and technical knowledge to undertake these processes.

Very often, ICCs are constrained to adopt to the “modern” forms of organization just
to acquire a juridical personality. ICCs are advised to adopt or change their Indigenous
governance supposedly to finally take part in the development and progress of “mod-
ern society”. Although probably paved with the best of intentions, these advices are
actually advices to the IPS to abandon and supplant its indigenous culture. It defeats
the mandate of the State as enshrined in the Constitution to preserve the Indigenous
Culture.

Faced with these challenges, the Bukidnon Tagoloanon Tribe stands firm on preserving
its Indigenous Political Structure. This is not being stubborn or adamant to change but
rather a conviction that our Indigenous ways maybe the only way to truly address the
social concerns of our people. Every program or ideals introduced to us has so far not
been able to address the social problems created by modern society. It is our belief
that by maintaining our political structure which is centered on our indigenous cul-
ture, we may be able to offer an alternative approach to solving these modern social
problems unsolved by modern approaches.

The Bukidnon Tagoloanon Tribe has submitted its IPS to the NCIP for approval together
with several other communities along the Tagoloan River who share the same indige-
nous culture. Our governance system is called the “agpangan hu datalan”. Embodied
in our indigenous political system is the Indigenous Political Structure and the
“Batasan” or laws that our people live by to sustain a harmonious communal life. Our
Political governance is headed by the “Sangkuanan” or the Chief Tribal Datu. The
Chief Tribal Datu governs the community together with the “palasambag” who are the
datus who lead or represent different sectors of the community from the hunters or
“mangangaso”, the farmers or the “igbabasok”, the weavers or the “Manglalala”, the
blacksmiths or the “Mananalsal” and so on and so forth. Sectoral representation has
been in the heart of our governance as it is believed that each one has a role and duty
to perform to sustain a progressive and harmonious community. Today, the governing
council of elders of the Bukidnon Tagoloanon Tribe maintains such sectoral form of
governance.
The Bukidnon Tagoloanon Tribe cannot abandon its indigenous political structure
for the expediency of gaining access to government assistance, bank loans and
commercial transactions. However, the Tribe has agreed to form an a cooperative
to serve as the technical or economic arm of the IPS to be able to have a juridical
personality preferred by the modern world. This cooperative however will not
take the place of the IPS but will be under it. While it shall exist as an indepen-
dent entity, it is entrusted by the IPS to function and decide based on its bylaws
which will be centered on the “Batasan” or our cultural laws in as far as it does
not conflict with the basic principles of cooperativism. Our culture is very much
akin to the essence of cooperativism. Mutual help is the key to our collective suc-
cess.

To insulate the tribe from possible vested personal interests from outsiders or even
from within, we agreed to register a cooperative to be composed initially of the min-
imum requirement of members. These members were selected for their awareness
and belief on our cultural laws. They will be given the authority over particular por-
tions of our domain to establish economic activities. The cooperative members are
fully cognizant that while they are the only registered members of the cooperative,
the benefits to be derived from the activities of the cooperative can be enjoyed by
the rest of the members of the tribe. While the members of the cooperative techni-
cally will own the proposed 50 hectare cacao plantation, the benefits derived from
this project can be enjoyed by all. The livelihood to be created will not be limited to
the members of the cooperative only. The profit that may be generated from this en-
deavor will later be used to fund other economic activities which will be the vehicle
of the IPS to deliver basic services to all its members.

The cooperative will open its own pharmacy, clinics, schools, and lending centers.
These businesses will not only cater to the members of the cooperative but to every
member of the tribe and perhaps even to everyone. All the members of the tribe
shares in the profit of the business being ran by the cooperative by having access to
subsidized or cheaper basic goods and services. Our culture does not believe in profit
sharing based on one’s equity. Our culture teaches us to be useful members of the
community by doing your assigned duty. Thru your loyalty and industry for the good of
the community, you are given opportunities and protection by the community thru its
leadership. During times of need – sickness, hunger, ignorance, your leaders will pro-
vide for you to ensure that you do not go astray and be able to do your integral role in
the community’s life and ultimately maintain the harmony within the community.

After we address the economic needs of our members thru the livelihood to be made
available by the businesses to be undertaken by the cooperative, it is our goal to pro-
vide an environment for all our members to be able to live as Indigenous People.
When our people no longer feel poor they will no longer seek their own private lands
but will be content to live in a communal life. They will no longer be driven by self-
interest to preserve one’s self or enrich one’s self but to preserve our community and
to enrich our people and our future generation.
x——————————————————-x

The experience of the Bukidnon Tagoloanon Tribe shows that the IPRA and
the Cooperative law are not contradictory but rather complimentary. The
ICCs should not be made to abandon their IPS by urging them to form
themselves into a cooperative. It is imperative that the State empowers the
IPS as it is what will bring about stability and cultural integrity within the
domain. Under the IPRA a cooperative can be formed to be the Indigenous
Peoples Organization (IPO) of the tribe.

Equal opportunity to access to financial capital

The most common cause of the underdevelopment of the Ancestral do-

mains of the ICCs is the lack of financial capital. As mentioned earlier, the
ICCs have two very important capital resource: vast lands and manpower.
However, owing to the fact that Ancestral Domains have no collateral value
and the prevalent low educational background of most ICCs, the ancestral
domains mostly remain dormant in terms of sufficient economic activities as
ancestral domains and ICCs are perceived to be unbankable, unstable and
unpredictable for any financial institution or well meaning would-be busi-
ness partner to invest in.

From the vision and mission of the Bukidnon Tagoloanon Tribe mentioned
above, the tribe sees the opportunity to be able to develop much of the AD
for the benefit of its members. But any plan for development almost always
boils down to the question of financial capital. The Constitutional mandate
of the IPRA law to “correct a grave historical injustice” is the promotion of
social justice to the IPs as a neglected, discriminated and marginalized
sector. Recognition of their Ancestral Domains have been implemented in
the last 20 years of IPRA yet social justice is still elusive. The IPRA de-
clared as an objective “to ensure that members of the ICCs/IPs benefit
on an equal footing from the rights and opportunities which national
laws and regulations grant to other members of the population;”9

Social justice demands that equal opportunity be given to those who have
less in life. Equal opportunity to exercise its political and civil rights. This
can only be achieved if the poor are uplifted and given the chance to exer-
cise their rights with dignity and without having to sacrifice their rights in or-
der to address basic necessities such as food. Social justice calls for the
humanization of laws. In the case of the IPs, social justice is not achieved
by merely regulating the utilization of their resources by others for mere
royalties or rentals. Social justice would be better served if they are truly
given equal opportunity under the law. And one of the opportunities not
made available to the marginalized sector is access to financial capital.

Without financial capital, the tribes are almost powerless to develop their
lands. This in-turn renders much of the lands of Bukidnon undeveloped. In
a bet to access much needed financial Capital, the Tagoloanon Tribe visited
the main office of the Landbank of the Philippines. In a meeting with one of
the assistants of the President of the Bank, the Tribe explained the dilem-
ma commonly shared by other marginalized sectors. How can the margin-

9 RA 8371, Sec. 2,e

alized sector progress if financial capital is only available to those who are
already rich?

The Bukidnon Tagoloaonon Tribe wants to avail of the CACAO 100 pro-
gram of the LBP. In order to be eligible for such program, the tribe adressed
the issue of having a legal personality by registering its own agricultural co-
operative. However, despite having the preferred legal personality, the ap-
proval of the loan application is still a tall order as the bank still requires a 3
year financial statement and 20 to 30% equity. It is understandable that the
landbank would require such things as it is first and foremost a bank. how-
ever, if the government is to fulfil its mandate to deliver social justice, this
laws or policies must be humanized. There must be a way for the marginal-
ized sector to truly have equal opportunity to access capital. Lest these
programs be available only to those who already have. Presently, the
Bukidnon Tagoloanon Tribe is awaiting the Banks decision on its loan ap-
plication.

Another striking example is that of Datu Diaon of the Matigsalug Tribe of

Sinuda, Kitao-tao, Bukidnon. This 84 year old Datu has no formal educa-
tion. After laying down his arms decades ago, he has struggled to develop
his domain and uplift the lives of his people. One of the problems he want-
ed to address was the lack of electricity in their area. For three years, he
and his family strived to put up a hydro power plant in a waterfalls near
their community. according to Datu Diaon he merely used his common
sense and the help of the “Tumanods” spirits to be able to copy the mecha-
nism of a hydro power plant. Using mostly wood and recycled materials
such as rubber from worn out tires, Datu Diaon finally electrified his com-
munity which they are now able to use for

cooking Lutya or taro crackers.

Datu Diaon’s Indigenous Hydro Power plant

Datu Diaon declared that he undertook such project without government fi-
nancial assistance as he grew wary of the delays and intricacies of the bu-
reaucracy. He used the proceeds from the sale of his cassava plant and
bought a dynamo. With the help of some friends like Mr. John Perrine who
provided him drop wires, he was able to put up a truly indigenous hydro
power plant. But Datu Diaon also laments that if only he had enough financi
al capability he could have built something bigger and better. He postulates
that given the fact that the IPs have the land and the manpower, it should
be impossible why the IP cant be rich. It is only the lack of financial capital
that is the major road block and this road block is very real.

The Matigsalug Tribe cooks its Lutya crackers using charcoal fuelled stoves with electric
blowers/fans using electricity from his hydro power plant.

V- CONCLUSIONS AND RECOMMENDATIONS

In order to promote economic development within the Ancestral Domains, it

is submitted that Indigenous Communities must be involved in the core
business of business. IPs should not only be regarded as landlords or
lessors over their domains If we are to uplift the lives of the poorest sectors
of our communities and maximize the potential for production in ancestral
lands, the IPs must be given the tools to be able to develop their domains.

Firstly, it is recommended that the NCIP refocus its efforts towards capacity
building. In the last 20 years, NCIP has been perceived to be more of a
regulating body. It is important that the NCIP continues to ensure that Cer-
tificate of Ancestral Domain Titles should be issued only to legitimate
claimants. NCIP should continue to ensure that before any extractive or in-
trusive activity be undertaken within the domains the ICC has given its free
and prior informed consent. However, in order for the ICCs to promote
more meaningful development, the NCIP must now focus more on capaci-
tating the communities to be able to initiate its own economic activities, ex-
ercise their priority rights in developing their domains.

Based on the IPRA and the implementing rules, economic activities can
also be introduced within the domain even without a full blown FPIC. These
processes are essentially for activities that are not considered as extractive
or intrusive; are community initiated; or an exercise of priority rights of the
community. These processes are theoretically faster and should enable the
communities to initiate and undertake economic activities other than those
proposed by firms that seek to extract or utilise their resources for business
and just pay them royalties or rents (i.e. quarry, mining and power plants).

If the tribes are given the equal opportunity to undertake business, there
should be more meaningful development in their domains. But to truly give
such equal opportunity to do business is not as simple as giving them busi-
ness permits for the IPs are so situated that they do not stand in equal foot-
ing with other sectors who are already capacitated, learned and bankable.
In furtherance of social justice, which is the heart of our Constitution, the
asset reform agenda of IPRA must be complimented and supplemented by
its relationship reform. From being landlords and lessors, IPs must be up-
lifted by the state to be able to rise to the status of business owners and
business partners. From being mere cultivators or labourers of another
company, IPS should not only be the recognized owners of the land but the
cultivator and the owners of the crop.

After recognition of the ownership over their domains, three (3) essential
provisions of the IPRA can be focused on by the NCIP to promote the
above-mentioned relationship reform. First, assist the community in the
confirmation of its Indigenous Political Structure (IPS). Second, assist the
community form its Indigenous Peoples Organization (IPO) preferably by
helping them form a cooperative Third, assist the community formulate its
ADSDPP. These three elements will give the IP communities the legally
recognised structures to be able to enter into commercial transactions, ac-
cess financial capital and undertake business.

Indigenous Political Structure (IPS)

The success of any organization rests on the strength and stability of its
leadership. This is even more true when it comes to Ancestral domains.
The reality is that while the IP community has its own political structure, it is
not known or recognized by other parties. This uncertainty in the leadership
and political structure of the IP community renders them unbankable and a
high risk investment for would be partners. It is no secret that business and
economic progress strives in stability and predictability. As long as there is
not way for others to see the IP community as a stable and predictable
partner, no bank or businessman would venture to invest or partner with
them. In more than one occasion, a businessman who is interested to
partner with a community would shy away after not having any assurance
that any agreement with the present leader/s would be honored by the next
generation of leaders.

This desired environment of stability, continuity and predictability can be

fostered by the state’s confirmation of the Indigenous Political Structure of
the Tribe. It is not a simple task as much of the framework of governance
and leadership of the tribe is passed on thru oral tradition, but if not given
due attention and assistance it would be very difficult for the community to
have such framework confirmed.

Many of the tribal leaders are one in opinion that the NCIP may have been
too focused on the Indigenous Peoples Mandatory Representative (IPMR)
selection under the LGC. In many communities, the IPMR selection has
become a partisan and divisive exercise. Instead of empowering the culture
of the ICCs, the focus on the IPMR selection has somewhat weakened the
cultural leadership system of the tribes. Because the IPMRs become part of
the political structure of the local government, it has been observed that
they are susceptible of being used for partisan activities and lose track of
their role of being representatives of the IPs voice in order that IP concerns
and interest are included in the policy making of the local government units.

If the tribes are to be uplifted and their domains developed, their culture
must be preserved and strengthened. The people must be allowed to unite
behind their indigenous culture and their indigenous political structure. The
selection of the IPMR must be secondary only to the empowerment of the
true cultural leaders. Only by empowering the true cultural leaders is it pos-
sible for the IP to be united instead of divided in election-like processes of
selection which has reduced the idea of IP leadership to mere political posi-
tions.

The selection of IPMRs must be continued as IP communities should have

a voice in the LGU policy making bodies. But the selection must be truly in
accordance with the customary processes of the tribe as this is what the
law also prescribes. In order to follow the customary process, the Indige-
nous Political Structure should be consulted and followed as this is the
“organizational and cultural leadership systems, institutions, relation-
ships, patterns and processes for decision-making and participation,
identified and accepted by ICCs/IPs”.10 It is the power and function of
the IPS “To convene the ICCs/IPs and in accordance with local process-
es to lead the selection of the IP mandatory representatives in all poli-
cy making bodies and in local legislative councils”11.

Below is a chart of the indigenous leadership structure of the Bukidnon

Tagoloanon Tribe and 10 other communities in the northern part of Bukid-
non. Other tribes may have a similar structure. This structure is part of the
“Datalan hu Agpangan duen hu Lamahan” (Framework of governance in
the territory), the Indigenous Political Structure of the Bukidnon and Hi-
gaonon ICCs. From the said structure, it can be seen that the IPMR are re-
garded as “keleba” or representatives which is subordinate to and not
above the Darantulan/Sangkuanan or the Tribal Chieftain and the Council
of elders.

10 Chap II, Sec. 3 (i) of IPRA

11art. III, Sec. 7, par 15 of NCIP AO 12, series of 2012

As mentioned above, the confirmation of the tribes Indigenous Political
Structure (IPS) will hopefully create stability within the ancestral domains.
Government recognition of the indigenous framework of governance should
settle issues of conflicting claims to leadership and procedures. This will
enable the other parties to have a sense of security that they are dealing
with the right leaders when dealing with ancestral lands. This recognition in
turn empowers the true cultural leaders and refocuses the power to bring
about development to the bearers of the tribes culture and away from those
with only personal or political vested interest in mind.

The confirmation is a tedious process but one that should be pursued in or-
der to create a better and conducive environment for development. The fol-
lowing are the powers and functions of the IPS according to NCIP Adminis-
trative Order No. 2, Series of 2012:

Section 7. Powers, Duties and Functions of the Indigenous Political Structures. The ICCs/
IPs through the elders/leaders of the IPS shall have these powers, duties and functions as
enumerated in the IPRA, but not limited to the following:
1. To formulate and implement systems for the sustainable use, protection and con-
servation of the flora and fauna, watershed areas, sacred places and all other objects of
ritual and ecological importance in accordance with their indigenous knowledge systems
and practices (IKSPs), customary laws and traditions, and duly adopted ADSDPP, if any;
2. To revitalize and strengthen ICCs/IPs own institutions, systems and standards for
protecting their natural resources, taking into consideration the national minimum stan-
dards. For this purpose, the ICCs/IPs may be authorized by the appropriate government
agency to exercise powers to prevent, apprehend and prosecute all persons violating envi-
ronmental and natural resources laws within ancestral domains in accordance with Chap-
ter XI, Section 72 of the IPRA;
3. To regulate activities that may adversely affect the ICCs/IPs’ airspace, bodies of
water and lands. Any violation of environmental laws adversely affecting the integrity
of the ecological systems in ancestral domains shall be sanctioned according to custom-
ary laws of the ICCs/IPs concerned;
4. To help negotiate the terms and conditions for the exploration of natural resources
in the areas for the purpose of ensuring ecological, environmental protection and conser-
vation measures, pursuant to national and customary laws;
5. To uphold the Free and Prior Informed Consent (FPIC) process relative to all ac-
tivities involving the utilization, extraction or development of natural resources;
6. To assist the community to seek redress and or compensation for any loss, injury or
damage caused to its culture and the ancestral domain;
7. To assist the community to source out, manage, disburse or use any funds, appro-
priations or donations from any legal entity, for the development of the domain/land
and to ensure individual and collective accountability and responsibility for such
funds, appropriations or donations;
8. To assist the community in filing the petition for, and lead the community in, the delin-
eation and identification of ancestral domains in accordance with the Principle of Self
Delineation rights by virtue of Native Title;
9. To assist the community in working for the de-establishment of reservations made by
executive fiat or law overlapping ancestral domains/lands, or parts thereof;
10.To resolve all conflicts emanating from violations of all customs and traditions of the
community;
11.To cause the formulation of programs and projects on the role of women based on a
gender analysis framework to strengthen and promote participation of indigenous women
in decision-making processes on sustainable resource management;
12.To provide testimony or other evidence of marriage in accordance with customary law
for purposes of registration with the Local Civil Registry;
13.To ensure their domains as special zones of peace and life, and advocate recognition
and respect thereof;
14.To nominate traditional leaders or elders as representatives to the Consultative Body,
which must include women and youth, IPO and Non Government Organization represen-
tative;
15.To convene the ICCs/IPs and in accordance with local processes to lead the selection
of the IP mandatory representatives in all policy making bodies and in local legislative
councils,
16.To convene the ICCs/IPs and select IP representatives to all government bodies such
as but not limited to the National Anti Poverty Commission-IP Sectoral Council, National
Commission on Culture and the Arts, Department of Agrarian Reform, LGUs, Regional
Development Councils and other local and international policy-making and special bod-
ies;
17.To develop programs and projects in the practice and revitalization of their own
cultural traditions and customs;
18.To regulate entry of migrants and other entities in accordance with their consensus-
building processes, community practices, customs and traditions and upon the free, prior
and informed consent of the community members;
19.The power to authenticate indigenous leadership titles and certificates of membership.
All Certificates of Tribal Membership previously issued under Executive Order No. 122-
B and 122-C as amended, shall be validated by the IPS in accordance with their own pro-
cesses, and if found to be valid, shall be endorsed to the National Commission on Indige-
nous Peoples (NCIP) for confirmation and recording purposes;
20.Other traditional roles or functions analogous to the foregoing.

The confirmation also enables the tribe to take the next step towards en-
gaging in inclusive business - the registration of the Indigenous Peoples
Organization. The IPS does not have a legal or juridical personality hence
cannot be the party or subject of many legal relationships that is necessary
for business (e.g. government financial assistance, bank loan accommoda-
tions, commercial contracts). Hence, equal opportunity is still not accessi-
ble at this point. Below is the process for registering the IPS and IPO:
National Commission on Indigenous Peoples (“NCIP”) Administrative Order No. 02-1212 de-
fines Indigenous Political Structures (“IPS”) as the organizational and cultural leadership sys-
tems, institutions, relationships, patterns and processes for decision-making and participation,
identified and accepted by Indigenous Cultural Communities/Indigenous Peoples (“ICCs/IPs”).
The IPS shall be recognized as the highest governing body with the Indigenous Peoples Organi-
zation (“IPO”) as its technical arm.13 The IPO shall have legal capacity to assist the ICCs/IPs in
ensuring their collective rights to their ancestral domains and to strengthen their political, eco-
nomic and social systems or institutions.14

The following are the requirements for the processing of the confirmation of the IPS:

1. A Genealogical Survey;

2. Written accounts not limited to customs and traditions including the interfaced customary
practices on the following:

2.a Social organization — a profile of the IPS including information on traditional

and emerging elders/leaders; norms and social stratification based on access to
prestige and power; succession (birthright); the leadership structure including the
roles and functions of the elders/leaders of the IPS;

2.b Basic social processes:

2.b.1 Dispute resolution and conflict management;
2.b.2 Consensus-building and decision-making processes towards cooperation,
unity and harmony;
2.b.3 Mutual help and defense systems;
2.b.4 Specialized functions in relation to observance of rituals.

2.c Access to resources:

2.c.1 Applicable community imperatives in accordance with customary law as
well as on the access and benefit-sharing agreements/wealth management
on resources;
2.c.2 Monitoring and evaluation as well as indicators on sustainable
development of resources;
2.c.3 Role of women in the sustainable development of the domain.

3. Written and verified oral accounts of customs and traditions on governance system and
how these have responded to the changing socio-political order; and

4. Other relevant anthropological/historical data.15

The application for confirmation initiated by the IPS itself shall be filed by the elders/leaders
with the nearest NCIP Provincial Office (“PO”) or the Community Service Center (“CSC”) in the
absence of a PO, supported by the requirements above.16

After the confirmation of the IPS, the IPO may be formed and registered. The following are
the registration requirements for IPOs:

12 The General Guidelines on the Confirmation of Indigenous Political Structures and the Reg-
istration of Indigenous Peoples' Organizations, March 15, 2012.
13 Id., Sec. 6(a).

14 Id., Sec. 3(f).

15 Id., Sec. 12.

16 Id., Sec. 13(a).

1. Resolution stating to the effect that they are affirming that the applicant being registered
is their duly organized IPO, which Resolution must contain the following information:
1.a Purposes and goal of the IPO in relation to the collective aspiration of ICCs/IPs;
1.b Target beneficiaries;
1.c Roles and functions of IPO and IPS as far as coordination on working relations;
1.d. Location and area of operations;
1.e Targeted major programs, activities and projects of the IPO.

2. Duly accomplished NCIP Application Form for registration signed by the duly authorized
representative of the IPS;

3. Profile indicating the qualifications of the IPO leader/Chairperson which includes, but not
limited to, the following:
3.a Proof of Tribal Membership;
3.b Proof of actual residence in the domain/land for at least five (5) years im-
mediately preceding his/her selection;
3.c Resolution/affirmation by the ICCs/IPs endorsing that he/she is a practitioner/
advocate of the customs and traditions; and narrative of his/her advocacy and
struggle on IP rights;
3.d Public knowledge of skills/expertise necessary to carry out the objectives of the
IPO.

4. Written internal rules prescribing regulations binding the officer and members in accor-
dance with the objectives of the IPO;

5. Grounds for voluntary dissolution of the IPO which are not limited to the following:

5.a If it falls to adopt its written internal rules by resolution within 30 days from filing
of its application as provided in this Guidelines;
5.b Filing by the IPO, with the consent of the IPS, a petition with the NCIP to shorten
its term;

6. Complaints mechanism and/or grievance procedure;

7. List of officers/leaders and members;

8. Latest Audited Financial Statement;

9. Other relevant requirements at the discretion of the NCIP CSC Head/PO/Regional Direc-
tor/Commissioner of the Ethnographic Region. 17

The application for registration of IPOs shall be filed by the IPS or the IPO under its direc-
tion with the nearest NCIP PO or CSC.18 The authorized representative shall submit three (3)
complete and duly accomplished sets, one (1) original and two (2) duplicate copies. Copies of
the application shall be for the applicant IPs, the concerned CSC, and the Office on

Indigenous Peoples Organization

The IPRA envisions the “INTERFACE” of the ICCs with the mainstream
community. Interfacing as one of the avowed operating principles of the
implementing rules on the registration of IPS and IPO is defined as “The in-

17 Id., Sec. 14.

18 Id., Sec. 13(a).

terfacing of indigenous systems of governance to the mainstream legal sys-
tem to effectively carry out the ICCs/IPs’ collective right to self-governance
and self - determination;”19

Interfacing or the harmonisation of the culture and mainstream legal system

is the key to development in the ancestral domains. By enabling the ICCs
to assert their collective rights by engaging in legal transactions and rela-
tionships under the mainstream legal system, the ICCs can genuinely be
on equal footing with the rest of the country’s population in terms of capaci-
ty to develop economically. The law and implementing rules have been is-
sued to achieve such objective but the implementation is wanting.

Under the law, it was probably envisioned to achieve interfacing by granting

LEGAL PERSONALITY to the IPO registered by the IPS. Section 19 of
NCIP Administrative Order No. 2, Series of 2012 expressly states: “The
registration of the IPO with the NCIP confers to it a juridical personali-
ty to represent the ICCs/IPs in pursuing and securing their collective
rights over their ancestral domains.”

As the technical arm of the IPS, the IPO is supposed to be the legal entity
that the ICCs need to be able to be elevated to the equal footing with other
organisations in the mainstream legal system. theoretically, the IPO as a
juridical entity representative of the ICC should be able to enter into com-
mercial contracts with other persons and apply for loans with banks and fi-
nancial institution. theoretically, this should enable the ICC to develop more
of its domain for economic activities. This theory however seem to have not
been converted into practice on the ground. Aside from the fact that the
registration process is very tedious, it appears that an IPO is still not a pre-
ferred or recognised entity by financial institutions.

An example of this is the experience of the Bukidnon Tagoloanon Tribe of

Malaybalay. While awaiting the confirmation of its IPS, the tribe has been
eager to undertake economic activities on its own within its domain. One of
the identified activity was the establishment of a cacao plantation. With the
assistance of the Inclusive Growth thru Inclusive Business Program of
the Oro Chamber, the tribe met with officers of the Land Bank of the Philip-
pines for their CACAO 100 program. During the meeting it was discovered
by the tribe that even if its IPS or IPO is already registered it still cannot
avail of such program as it is not one of the identified eligible borrowers.
candidly, the bank officers informed the tribe that it has not heard of such
entity and that based on the bank policies only the following are eligible for
the program: (from landbank.com)

If government banking institutions do not recognize IPOs for its programs,

how much more for private entities. It is therefore imperative for the gov-
ernment to update its policies to catchup with the declarations of the IPRA
and the need to interface. These policies will create a ripple effect towards

19 NCIP AO NO. 2, Sec. 3 (g)

private business entities who will be engaging the tribes thru the IPO for
commercial partnerships and transactions.

As of the writing of this paper, there is not a single registered IPO known to
the author. The IPS of the Bukidnon Higaonon Tribes was recently con-
firmed by the NCIP en banc last December 201720. The Bukidnon
Tagoloanon Tribe of Malaybalay IPS will be registering its IPO as soon as
the Certificate of Confirmation is received. This situation renders the
prospect of interfacing and ultimately development in the AD still a remote
possibility. In the interim, it is proposed that ICCs be helped in forming their
own cooperatives in order for ICCs to have their economic arm to engage
in business. As soon as the IPs of the tribes are confirmed, their coopera-
tives can later be registered as their IPOs.

Having a cooperative as the IPO allows the ICC to have more immediate
access to government programs as cooperatives are the present preferred
juridical personalities that the government uses to implement its programs
for livelihood and poverty alleviation. A cooperative is also a familiar entity
for business men. Business transactions and partnerships between the co-
operative and a private company is more likely to happen since the private
company knows how a cooperative works and hence knows who he is
dealing with. The continuity and accountability which is established and
known in the cooperative framework should create the stable and pre-
dictable business environment that will allow for more economic transac-
tions thus more development activities within the Ancestral Domains.

THE BUKIDNON TAGOLOANON TRIBE OF MALAYBALAY STRUGGLE

FOR INCLUSIVE GROWTH THRU INCLUSIVE BUSINESS

20 Appendix “B”
In 2015, 20 years after filing a claim for issuance of a Certificate of Title
over its ancestral domain, the Bukidnon Tagoloanon Tribe of Malaybalay
was given government recognition over its domain. The tribe’s domain con-
sists of 990 hectares. In terms of economic activity, there was very minimal
options other then those that could be entered into with the city govern-
ment. 10 years ago, the city government of Malaybalay constructed a water
impounding facility and a temporary waste disposal facility within the do-
main. In return for the consent of the tribe to use portions of its domain for
the said facilities for basic services, the city government constructed a
swimming pool facility which was suppose to be a part of a 4 hectare agro-
tourism project which was to be given to the tribe as a livelihood program. It
was only after 10 years that the pool was finally turned over to the tribe and
is now one of the first livelihood activity of the tribe.

Turn over ceremony of the swiming pool facility with Malaybalay City Mayor Iñaki W.
Zubiri Jr. ( left most). A MOA was signed on the said day (Appendix “C” )
Victory!!! More than 3 decada ago Lumalambong Datu Manlumakbao took up the cudgels to
fight for the recognition of our tribes native title to our ancestral lands. 10 years ago this pool
was completed but the turnover to the tribe was held in abeyance. Today the Bukidnon
Tagoloanon Tribe owns and operates this pool within its ancestral domain. 10 years ago he visit-
ed the construction of this pool almost everyday. Today he took his first dip on the same pool.

A few months after, the LGU of Malaybalay signed a Memorandum of

Agreement21 with the tribe for the use of another 8 hectare portion of the
domain as a new waste disposal facility for the city as the old open dump-
site was ordered closed by the Department of Environment and Natural
Resources. In return for the tribes consent for the waste disposal facility,
the LGU turned over the facilities of the old dump site which consisted of
buildings, a fenced 4 hectare covered up land fill, a bio-degester and a
plastic liquefier. The Tribe had high hopes of creating jobs out of this facility
which could process fertilizer from the biodegaradable waste and building
materials from the non-biodegradable waste that are brought in from the
city. however, almost a year from the turn over, no jobs are created as the
tribe has no financial capital to commercially operate such machineries.

MOA signing with Mayor Iñaki W. Zubiri

In keeping with its culture and the intent of the IPRA, the council of elders
formally adopted a policy to develop its domain thru communal efforts and
not subdivide it among its members. The elders were cognizant of the reali-
ty that it should create economic activities to be able to uplift the lives of its
members but they also were determined to uphold their self-determination
and not succumb to easy option of just leasing its lands. They realized that
to be able to preserve the indigenous culture, they had to be the initiators,
implementors, managers and owners of the economic activities in the do-
main. Only by doing so will meaningful development be had, one that will
preserve and develop the culture of the tribe.

21 Appendix “D”
Sometime in February 2017, the tribe was chosen as one of the identified
community by the USAID funded program of the Cagayan de Oro Chamber
, the “Inclusive Growth thru Inclusive Business Project”. At the onset of
the talks with the program, it was made clear that the program will not give
or lend money to the tribe. Instead, the program offered to assist the tribe
gain capability and access to funds, technology and markets. One of the
first questions asked on the tribe was: are you willing to borrow money?

The idea is something that ICCs are not used to but it appealed to the
members of the council of elders as it reinforces their plight for self-deter-
mination. The idea opened up the possibility of being able to undertake a
development project in the domain that is owned by the tribe. It gave the

tribe the hope to be able to create economic progress while empowering

and not abandoning its culture. The tribe manifested its willingness to par-
ticipate in the program. A cacao plantation was the initial business to be es-
tablished by the tribe.

It was envisioned that the tribe shall have a cooperative that shall be the
economic arm tasked to create livelihood for those that are ready, willing
and able to work and participate within the policies set up by the coopera-
tive which are guided by the framework of the cultural laws. It was envi-
sioned that out of the industry of its members, the tribe can provide basic
social services for all its members and perhaps even one day to anyone in
need.

“The cooperative will open its own pharmacy, clinics, schools, and lending centers. These busi-
nesses will not only cater to the members of the cooperative but to every member of the tribe and
perhaps even to everyone. All the members of the tribe shares in the profit of the business being
ran by the cooperative by having access to subsidized or cheaper basic goods and services. Our
culture does not believe in profit sharing based on one’s equity. Our culture teaches us to be use-
ful members of the community by doing your assigned duty. Thru your loyalty and industry for
the good of the community, you are given opportunities and protection by the community thru its
leadership. During times of need – sickness, hunger, ignorance, your leaders will provide for you
to ensure that you do not go astray and be able to do your integral role in the community’s life
and ultimately maintain the harmony within the community.

After we address the economic needs of our members thru the livelihood to be made available by
the businesses to be undertaken by the cooperative, it is our goal to provide an environment for
all our members to be able to live as Indigenous People. When our people no longer feel poor
they will no longer seek their own private lands but will be content to live in a communal life.
They will no longer be driven by self-interest to preserve one’s self or enrich one’s self but to pre-
serve our community and to enrich our people and our future generation.”

A year and a half later, and along the recognition and confirmation of the
tribes IPS, the tribe has undergone several lectures, seminars and trainings
for capability building, it has a registered cooperative, a business plan22, a
signed marketing agreement with Kennemer foods, and a loan application
filed with the Landbank of the Philippines for its initial plantation establish-
ment. The tribe has planned to start its plantation establishment by June of
2018. This now rests on the availability of financial capital to be able to put
all these plans into fruition.

If successful, the tribe will be able to develop hectares of its land which has
been economically idle for decades. The tribe will have provided economic
development for its members. The tribe will have been a part of inclusive
growth by being given the opportunity and made part of nation building thru
inclusive business.

It is hoped that this approach will lead to more and faster developments
within the Ancestral Domains. Not only will it enable tribes to carry on with
the preservation of its culture thru self determination it will hasten the inter-
facing of the culture with the mainstream legal system. It will also create a
better environment for business partnership. Production will be increased in
our province with the help of the business sector as buyers of our products,
and source of new technology. This set up will also be beneficial to busi-
nessmen as they have no financial risk as they only commit to buy products
based on agreed quality and specifications embodied in a marketing

22 Appendix “E” is the Business plan for the tribes proposed cacao plantation
agreement. This marketing agreement will allow the tribes access to finan-
cial capital if found financially sound by the banks.

This set up has already been replicated in another community in one of the
most depressed barangays of Malaybalay. The Odino Clan of Kibalabag,
Malaybalay City is also poised to establish its own 50 hectare abacca plan-
tation with its own registered cooperative. Below is a presentation of the
journey and achievements so far of the program.
As mentioned above, the loan application for the establishment of the
tribe’s inclusive business is in the pipelines. Hopefully the loan application
will be approved by land bank.

Another challenge for the tribe is looking for funding source for the equity
portion and funds to support the administrative cost for the cooperative for
the initial three years. The bank loan will only cover a percentage of the es-
tablishment cost and will not cover any cost for administration. The busi-
ness plan drafted by the tribes cooperative calls for the sourcing out of
funds for the equity portion not covered by the loan and the administrative
cost. It is believed that in order to ensure the successful implementation of
the business plan and the provisions of the marketing agreement, it is im-
perative that key people of the cooperative be enabled to devote their time
to the business by providing them ample compensation.

As shared by the cooperative officers of CDA and the LGU of Malaybalay,

many cooperatives fail due to the fact that no body is manning the opera-
tions of the cooperative. While volunteerism is also a shared values of co-
operativism and the tribes culture, the need for disposable income for basic
needs is a reality that must be accepted as having paramount importance
even to the most willing volunteer. Especially if the task is to take years.
This reality is very much recognized in the mainstream legal system, this
must also be interfaced with how the ICCs are to undertake business activi-
ties.

The tribe has asked the Provincial Local Government and the Office of the
Vice President for financial assistance to address the above-mentioned
need. Recently, the tribe has visited the office of the Chairman of the Co-
operative Development Authority and discussed with him this matters. The
tribe will be sending a letter request to the CDA for possible financial as-
sistance after the good chairman has shared possible funding source.
Hopefully these request for financial assistance of loan assistance will be
made available in order that the proposed economic activity within the do-
main will push thru within the year and will hopefully serve as a model for
other communities.

The Bukidnon Tagoloanon Tribe of Malaybalay has been very fortunate to

have been assisted by the Inclusive Growth thru Inclusive Business Pro-
gram who’s dedicated staff have done the leg work in the cooperative regis-
tration. The difficulty in registration is a daunting task, expensive, time con-
suming and complex. Even for a tribe with many professionals such as the
Bukidnon Tagoloanon Tribe, it would have been very difficult to comply with
all the requirements that the program has assisted us with. We have asked
the staff of the program to relate to us their experience in assisting the
tribe. It is an understatement to say that if they found it very difficult even if
they had the funds and they were doing this as part of thier jobs, the more it
is very difficult for poor and illiterate members of an ICC to register and op-
erate a cooperative. The Tribe recognizes that it could not have accomp-
ished what it has now if not with the help of the program. It is hoped that
other communities can be assisted in the same way. Below are some of the
comments from the programs staff in their experience of helping the tribe
form and register a cooperative.:

• Forming a cooperative is never easy. Especially for the indigenous people who wants to
lend money in the financial institution which primary requirement is a duly registered
cooperative.
• Even if the CDA supply the necessary documentary requirement prior to the registra-
tion, it is difficult to the indigenous people to accomplish those things because of the
language barriers.
• CDA has a satellite office that covers the district jurisdiction but they have a very lim-
ited functions since they have a limited man power that caters multiple cooperative.
• As our experience, the officer that is in charge in our district is difficult to deal with.
The time we submit our documents for her validation, she only correct some part of it
and fail to explain the corrections. The next time we submit, she still correct some
part of it and not the whole documents.
• For the IP’s that want to organize a cooperative that is self-supporting and no funds
for mobilization, it is hard for them to go into the whole process. Filling for registra-
tion will be on the regional office of CDA, and the IPs will travel from their communi-
ties to the CDA regional office that is located in the interior part of the city.
• After the registration, the personnel from CDA regional office fail to discuss the next
step. Based on our experience, we will be needing a certified true copy of the regis-
tration that is the requirement of BIR for the tax exemption. They did not advise us to
go directly to the BIR after the registration.
• They did not inform us that if the cooperative fail to secure the Certificate of Regis-
tration from the BIR one month after the release of the CDA registration, there is a
corresponding penalty to be paid off.
 • They did not inform us that the registered cooperative must apply for a tax exemption
to the BIR, which has a lot of requirements, on of it is the TIN of all the cooperators of
the cooperative. We all know that most of the IPs have no TIN, even birth certificate.
• Registered cooperative is required to conduct their annual general assembly. Before
the set date of the GA, the financial statement of the cooperative must be done with
approval of an CPA which is the accredited one by the CDA.
• At this moment, we are still exploring for more details about cooperative.

• Expense uncured during the preparation of necessary documents.

• Expense in name reservation and transportation expense going to Region X office.
• CDA did not inform that we need to make a certified copy (additional expense charge
per page) as one of the requirements needed by BIR, so after applying to BIR the co-
operative representative will go back to region office for the documents to be certi-
fied true copy. (transpo from Bukidnon to CDO yayay na)
• Applying of tax exemption of the BIR needs lot of requirements and most Ip’s had no
TIN and birth certificate specially those in the hinterlands.
• Checking of financial statement to CDA requires an accountant approved by their of-
fice and  the cooperative will shoulder the PF, and that’s a big amount already to a
cooperative that is just starting.

In summary, in order to bring about more meaningful development within

the domains the following need to be refocused on:

1.) Strengthen and support cultural leadership.

2.) Enable interfacing of the culture and mainstream legal systems by assit-
ing tribes form and register their Indigenous Peoples Organizations prefer-
ably cooperatives.
3.)Capacitate IPOs by providing technical assistance in cooperative man-
agement and operation and providing marketing opportunities by matching
tribes desired business or available crops with bona fide buyers.
4.) provide equal opportunity to access to financial capital by making policy
shifts to give room for indigenous cooperative who are in much need of the
equitable application of the law to give true meaning to social justice.
5.) provide financial assistance or funding source to enable the indigenous
cooperative to function and administer the implementation of the tribes
business plans for the initial gestation period.

It is humbly recommended that a similar program to that of the Inclusive

Growth thru Inclusive Business Program be created and institutional-
ized. The technical assistance towards the tribes’ capacity building and
empowerment to engage in their own development activities is invaluable.

Atty. Burt M. Estrada

Bukidnon Tagoloanon Tribe of Malaybalay City

Atty. Arbie S. Llesis

Talaandig Tribe

UPDATE: A YEAR AFTER…

This article was originally written in the early part of 2018. Since then there has been
numerous developments. The Original article was published as is for purpose of study by the
law students of BSU.
 The Loan Application of the Bukidnon Tagoloanon Tribe was finally approved by the
Landbank of the Philippines sometime in the middle of 2018 . As a proof of concept, the loan
was granted even without any collateral since Ancestral Domains have no collateral value or
cannot be used as a security for a loan. secondly, the usual requirement of submitting three (3)
years of financial statements was waived. If banks only lend to those who have 3 years of good
financial background, there would be no opportunity for start ups like the Bukidnon Tagoloanon
Mulahay hu Kabukalagan Agricultural Cooperative (BUKTAMACO) to access much needed fi-
nancial capital. It would also in effect mean that only those who already have money can borrow
money. Fortunately, LBP approved the loan application of BUKTAMACO for the establishment of
a 10 hectares cacao plantation. As of the writting of this update, the tribe has already estab-
lished or planted 80% of the plantation within its Ancestral Domain.

The loan approval from Landbank was a great achievement but the tribe could not have
started the establishment of its cacao farm if not for the full support of the Local Government of
Bukidnon thru Governor Jose Maria R. Zubiri.

like most who apply for loan accommodations, BUKTAMACO had to provide an equity to
fully fund the proposed business. As mentioned above, the tribe approached the Provincial
Government of Bukidnon and presented its business plan. Most livelihood programs before did
not provide for labor component and much more for administrative costs. The usual concept
was that the labor should be the equity of the “beneficiary”. It was postulated that for the benefi-
ciaries to have a “sense of ownership” over the program or project, they had to have a stake in
the project and this is supposed to be achieved by having them invest their time, effort and labor
in establishing the project without any compensation.

The author believes that such presumption is the reason why most livelihood projects
were not able to achieve their goals and why many cooperatives do not survive. The assump-
tion, that the poor can invest their time and labor without being paid because the project is theirs
and they will benefit in the long run once the plantation or any other project for that matter bears
fruits after a few years or even months, is wrong. People need need daily disposable income to
sustain their basic needs. They need the disposable income now and not years from now. While
the goal of introducing a sense of ownership to the project thru their personal labor is plausible
and may be even logical but this purpose can still be achieved even if the beneficiary is com-
pensated for his labor. In this manner, the intended beneficiary is able to work on the project
and might be able to see the project succeed years after but at the same time be able to provide
for his family while the livelihood project is still in its gestation period.

Thankfully the provincial government of Bukidnon supported the livelihood program of

the Bukidnon Tagoloanon Tribe and allocated funds to support the tribe in establishing its pro-
posed cacao plantation. The Local Government Unit approved a budget of 30 million pesos to
support the establishment of 100 hectares of cacao plantation within the ancestral domain of the
Bukidnon Tagoloanon Tribe. The assistance will be in the form of farm inputs such as seeds,
seedlings and fertilisers. It also includes allocation for needed infrastructure such as a bridge
and irrigation system. Most importantly, LGU appropriated funds for the labor component and
administrative support.

Today, BUKTAMACO has 19 Job Order employees from the province. 10 are leadmen
who spearhead the plantation establishment and 9 have different administrative functions es-
sential in the upkeep of the cooperative office. The cooperative has not only started the estab-
lishment of the cacao plantation, it has created other business activities like legal charcoal mak-
ing, furniture shop, mini grocery, etc., which also provide livelihood to its members.

Thru this activity, BUKTAMACO has been able to interface with two legal systems: the
bank and the local government unit. Such interfacing has already provided many of our mem-
bers with jobs and the potential to have sustainable source of income once the farms are estab-
lished. The project also improves the ecology as it will mean the reforestation of about 110
hectares within the domain.

With the support of the Provincial government and the opportunity from land bank, many
of the tribes members who lived below the poverty line now have disposable income to support
their needs.
BUKTAMACO workers with the Honorable Governor Jose Maria R. Zubiri.