P241M outlay stalled; City council alarmed

Basic services may be affected after DBM declareds supplemental budget ‘inoperative’

HOW will the Cebu City government adjust its budget?

Cebu City Councilor Eugenio Gabuya Jr. asked this yesterday after the Department of Budget and Management (DBM) declared a big chunk of the city’s P400 million Supplemental Budget (SB) “inoperative.”

“With this finding, delivery of basic services in the city will be affected. This is what alarms me. And the mayor has the attitude of passing the blame to the City Council,” Gabuya said in a privilege speech during the council’s session.

A public hearing has been set on Feb. 26 to shed light on the matter.

The Council is inviting the Local Finance Committee to explain what will happen to the “inoperative” funds that were already disbursed and to provide a list of charges made against SB-2 and its status.

Invited to attend are City Treasurer Diwa Cuevas, City Accountant Mark Salomon, City Attorney Jerone Castillo, the Association of Barangay Councils (ABC) and DBM representatives.

Earlier this month, the DBM declared inoperative P241.52 million out of the P243.72 million outlay in the general fund under Supplemental Budget No. 2.

DBM said they can’t consider as sources of funds the retained operating surplus and reversion of accounts payable in the previous years. This includes the P30.25-million reversion of accounts payable in 2011 and P211.27-million retained operating surplus in 2013.

Meanwhile, P45.35 million in special accounts out of a total approved P161.83 was also found “inoperative.”

DBM Regional Director Carmela Fernan said both the identified SB-2 sources were “disaqualified” because under Administrative Order 47 a supplemental budget can only be supported by “actual funds”.

In a separate privilege speech, Councilor Sisinio Andales said he was also alarmed over unfavorable opinions of COA on Cebu city’s financial transactions.

He cited the P84 million calamity assistance to to city officials and more than 4,200 regular and casual employees, which the COA has disallowed and ordered refunded.

The COA also noted delayed , extended or unfinished infrastructure barangay projects, the city’s contract with a private landfill in Consolacion and a P4 million advance payment given to a private contractor for several projects without proper documentation.

With the “inoperative” Supplemental Budget No. 2 and the Land Bank of the Philippines already billing the city for its loan amortization for the South Road Properties (SRP), “Is the city prepared to pay these obligations? What has the city done to address these observations by COA?”

“I’m also alarmed. What remedies have been done?” Andales asked.

Mayor Michael Rama, back from a week-long post-Sinulog vacation, yesterday said the Supplemental Budget No. 2 was used for a public purpose and was in order.

“For as long as there is no corruption ad there is no such thing as technical malversation, I don’t see any problem. Is it a law? An opinion?” he told reporters.

“So (the DBM declaration) is not a law,” he told reporters.

Last year, the council approved P243.7 million of the original proposal of P501.2 million; approved only P100,000 of the proposed P6 million allocation for intelligence funds; and approved P9,981,868 (of P25 million) city-sponsored activities.