City Hall to use CCMC funds to pay seniors’ allowance, other obligations
FUND MESS BARED
Juggling of funds ‘allowed’ by DBM, says City Treasurer, but councilors see red flags in practice
REASON TO SMILE. Loreto T. Cuelbar, 76 of barangay Capitol Site smiles as he receives the P1,000 cash and loaves of bread that the barangay gave to its elderly residents. The dole out is separate from the cash allowances given by the Cebu City government.
(CDN PHOTO/JUNJIE MENDOZA)
Aquery into when City Hall is planning to release the remaining balance of the cash assistance allowance to Cebu City’s elderly residents has raised deeper questions on the state of the city’s coffers.
At yesterday’s session of the City Council, the councilors agreed to summon City Treasurer Diwa Cuevas to the Doña Eva Macaraeg-Macapagal session hall to answer questions raised by senior citizens over the P5,000 balance due them for the year.
The city’s qualified elderly residents are entitled to receive P12,000 as part of the city government’s social welfare program. The city government has appropriated P720 million for the program which benefits at least 57,000 elderly residents.
City Hall has so far released P9,000 in four tranches to the elderly residents. The amount released included the P2,000 balance from 2013.
Councilor Margot Osmeña, chairman of the powerful Committee on Budget and Finance, said the city has a promise to fulfill to the senior citizens who have already been waiting for the assistance.
She added it’s becoming a habit of the city to delay portions of the assistance due to the elderly.
“It’s discouraging for them since they are already expecting. If we say it depends on the availability, it means we don’t have funds. If we can’t do it, why promise? It’s not fair, it’s cruel,” Osmena said.
Mayor Michael Rama last week said he will make an announcement concerning the balance due the senior citizens.
Rama was however out of town yesterday, prompting the councilors to seek answers from Cuevas.
Cuevas said she has already prepared two sets of payroll – one that gives out P3,000 to the elderly beneficiaries and another for P2,000.
“The P3,000 will be released on December 22. For the other P2,000, I will have it included in the accounting to be obligated next year. It will be distributed on the second week of January,” she told the councilors.
Based on the city treasurer’s pronouncement, it will be the second straight year that the city government won’t be able to give the P12,000 cash assistance to the seniors in full.
The revelation irked the councilors who lamented that as what happened last year, some sectors blamed the City Council for the delay in the payment of the cash allowances.
“We are obligated to pay the balance per a city ordinance. Why can’t we pay fully when we appropriated P720 million this year for that?” Councilor Sisinio Andales said addressing Cuevas.
Cuevas explained that appropriating funds on a budget item would depend on the actual funds available in the city’s coffers.
She ended up admitting that because the City Treasurer’s Office (CTO) could not hit its target collection of P5.8 billion to fund the city’s approved budget this year, implementation of some of the city government’s programs will be delayed.
“We have to match the estimated revenue with the appropriation. But we can’t meet the target. If we have money, we can release,” she said.
To bankroll the P3,000 allowance, Cuevas said they would be needing P163 million. Considering the revenue collection shortfall, she said they will be dipping into the P300 million set aside for the first phase construction of the Cebu City Medical Center (CCMC).
The account was appropriated by the executive department and approved by the City Council under the first supplemental budget this year. The amount was placed under a time deposit account.
Aside from the senior citizen’s assistance, the CTO is also using the CCMC fund to pay for other obligations including P20 million as subsidy to CCMC, the P6.5 million incentive for barangay officials for the last quarter and several honoraria.
Cuevas admitted that if they don’t use the money earmarked for the CCMC, they won’t be able to pay what is due the city’s seniors as well as the other liabilities and obligations of the city.
Cuevas’ explanation surprised the councilors who said the juggling of funds may mean that City Hall may be suffering financially.
Councilor Mary Ann Delos Santos , who heads the CCMC ad hoc committee, said she was assured that the appropriation would be used specifically for CCMC.
When asked if the juggling of funds is a standard practice of the CTO, Cuevas said, “It’s a continuing appropriation. It will be replaced by new collections coming this January. It’s a practice of the office. When CCMC starts, I can assure that we can already pay.”
Cuevas further said that the Department of Budget and Management is allowing such practice as long as the deficit is replenished.
Osmeña said that while the practice may be allowable, it still shows that the city doesn’t have enough funds.
“It’s allowed. But what does it indicate when we have to do that? Supplemental budget means it’s over and above. Why do they have to use it for something else?” she said.
She added that the supplemental budget specifies that the money should have only been used for CCMC.
“With this, I’m worried of the state of the city’s finances. It looks like it’s in bad shape,” said Councilor Alvin Dizon.
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