The P2.5 billion supplemental budget 2 will be sourced from the funds earned from the sale of the 45-hectare South Road Properties (SRP) lots to Filinvest and the SM-Ayala Consortium in 2015. |CDN FILE PHOTO
CEBU CITY, Philippines — Despite strong opposition from seven councilors to disapprove the P2.5 billion supplemental budget 2, the Department of Budget and Management (DBM) declared that it is “operative in its entirety.”
The supplemental budget, which was deliberated and approved by the Cebu City Council last September 2019, will be sourced from the sale of the 45-hectare South Road Properties (SRP) lots to Filinvest and the SM-Ayala Consortium in 2015.
DBM’s comment is a response to the request of the opposition councilors to disapprove Appropriation Ordinance (AO) 2540 citing the pending case filed by Romulo Torres and former mayor Tomas Osmeña against using the money earned from the sale of SRP lots.
In a letter dated November 4, DBM Central Visayas (DBM-7) acknowledged the receipt of a letter from seven councilors led by minority floor leader, Councilor Nestor Archival.
The minority councilors requested the DBM Secretary to issue a legal opinion on AO 2540 and to subsequently disapprove the supplemental budget 2.
The DBM letter, signed by regional director Imelda Laceras with the authority of DBM Secretary Wendel Avisado, noted that AO 2540 revealed “substantial compliance” with the provisions of the Local Government Code including its Implementing Rules and Regulations.
“Accordingly, the said AO is declared operative in its entirety effective on the date fixed herein,” a portion of the DBM letter reads.
However, the DBM noted that the “review action is subject to the final determination by competent authorities” which includes the courts.
The department noted that the “determination of factual and legal issues on the validity of the ordinance” and the procedures undertaken by the Cebu City Council in enacting the ordinance is “beyond the jurisdiction of the DBM”.
The AO 2540 was submitted to DBM-7 for review on September 17, 2019.
The P2.5-billion budget includes the following: P455 million financial assistance for senior citizens; P300 million for medical equipment for the new Cebu City Medical Center; P100 million for the first, lower and upper ground of CCMC new building; P250 million digital traffic system; P268 million for the construction of medium-rise building; P100 million for site development; and P150 million for opening of roads.
The opposition councilors called for the disapproval of supplemental budget citing legal issues including the case filed by Torres and Osmeña.
But the administration councilors, who are allies of incumbent Cebu City Mayor Edgardo Labella, maintained its stand that there is no legal impediment to use the SRP funds because the court has dismissed the Torres case.
The administration side also said that the court granted the withdrawal of the declaratory relief filed by the previous members of the City Legal Office who questioned the legality of the sale. / celr