Trust fund for CCMC project discussed

CITY officials continue to discuss extra safeguards in a proposal to keep all donations, pledges and budget outlays for the new Cebu City Medical Center (CCMC) intact in a trust fund.

In yesterday’s public hearing on the proposal, City Legal Officer Jerone Castillo said the city can’t mix fund appropriations and donations in one trust fund.

“While the intention of the ordinance is noble, we have reservations about it. The General Fund and the trust fund are two different, distinct accounts with different, distinct purposes. There will be serious legal questions if we put both together,” Castillo told the councilors.

He cited section 309 of the Local Government Code which defines trust funds and section 310 which mandates state accountants and treasurers to keep separate books and depository accounts for the general fund and the trust fund.

Councilor Margot Osmeña, who chairs the committee on budget and finance, said a trust fund was a good idea but that it should be limited to donations and contributions.

She said City Budget Officer Marietta Gumia had a similar opinion as Castillo about mixing different types of funds so what can be done is exclude “appropriations” from the proposed trust fund for CCMC.

Under Gabuya’s proposed ordinance, the mayor can accept donations and contributions for a new CCMC hospital but these must be counted and tallied weekly.

The tally sheets must be signed by the city treasurer, city accountant, city budget officer and a representative from the council and must be posted in two conspicuous places in the City Hall for transparency.

Public officials would be held liable for not following these rules.

City Treasurer Diwa Cuevas said a trust fund account already exists for all donations received by the city including those from the “Piso Mo, Hospital Ko” campaign and pledges from the private sector.