Archival blames Cebu City’s P3B deficit to SUV deal, ‘wasteful spending’

The Cebu City Hall. CDN Digital photo | Brian J. Ochoa

CEBU CITY, Philippines — An SUV that costs P4.4 million may be the tip of a deeper financial problem.

Mayor Nestor Archival Sr. on Saturday blasted what he called “irregularities” and “wasteful spending” under the previous administration, linking them to the city’s projected P2 to P3 billion budget deficit.

He warned that the city’s current budget woes were not just a matter of poor collection or rising costs, but of questionable spending, overpricing, and possible irregularities under the previous leadership.

“This is something unimaginable,” Archival told reporters, citing a flagged vehicle purchase as a prime example. “If you’re going to buy a car worth P3.4 million, and then charge the city P4.4 million… that is unacceptable.”

READ: Osmeña slams ‘vulgar’ P4.4M SUV deal; Garcia says purchase was canceled

Archival was referring to the controversy of a luxury BYD Tang electric SUV, which Vice Mayor Tomas Osmeña earlier decried as overpriced by over P1 million. While the deal was said to be “eventually voided,” Archival said the very attempt set a dangerous precedent.

“The moment you let this pass, others will just follow and think ‘okay ra man diay.’ That is not good for the city,” he said. “This might be the biggest case, but there are preliminary reports of other questionable items — like a T-shirt worth P20,000.”

Though details remain under verification, Archival was firm in his assessment.

“I would say irregularities… If you have something you buy and overpriced it, mao nay usa ka rason nga nagka anam ka dako ang atong deficit,” he said.

READ: Rama, Garcia vs Osmeña? SUV feud fuels City Hall tensions

Archival counters Garcia’s defense

Archival’s comments came a day after former mayor Raymond Alvin Garcia denied the existence of a deficit under his watch, claiming he left over P11 billion in cash deposits and zero debt.

“I respect Mayor Garcia. Maybe he was looking at it months ago, before he stepped down,” Archival said. “But now, what’s left in the bank is only a small amount. When you compare it with the payroll and obligations, we’re already at a negative P2 billion.”

Garcia, who led City Hall after the dismissal of former mayor Michael Rama in late 2024, maintained that any perceived shortfall could stem from unpaid payables dating back to as early as 2008, a claim Archival did not accept.

“If you have something you buy and overprice it mao nay usa ka rason nga nagka anam ka dako ang atong deficit. This is a waste of money so if ingani ka daghan then usa ni sa rason nga dako ang atong deficit,” Archival said.

Budget freeze and selective hiring

Since assuming office on July 1, Archival announced a hiring freeze and suspended automatic renewals of job order (JO) contracts.

He said the city collected P5.49 billion in revenue in the first half of 2025 but had already spent P3.6 billion, with more than P2.6 billion going to Maintenance and Other Operating Expenses (MOOE), including JO wages.

The city has over 8,500 employees. So far, around 1,400 casual workers have been renewed. Under Archival’s guidelines, department heads must endorse essential personnel, regardless of political affiliations, and all endorsements must go through the mayor’s chief of staff.

“Relax lang ta,” Archival told job seekers. “We will consider your ability and find where to put you.”

Osmeña hits ‘vulgar’ spending

Vice Mayor Tomas Osmeña continued his own offensive against the former administration, calling the P4.4-million SUV “vulgar” and accusing outgoing officials of destroying public records before stepping down.

“There’s a reason Gwen Jr. tried very hard to destroy documents on his way out,” Osmeña alleged, referring to Garcia. “He says he’s cooperating with Mayor Nestor, but in truth, he’s trying to sabotage him at every turn.”

Osmeña revealed that a financial auditor from Manila is now helping City Hall examine records.

“Expect many more exhibits to come,” he said.

Rama defends Garcia

Former mayor Michael Rama came to Garcia’s defense, saying the canceled SUV deal should not be grounds for any legal action.

“Wala man kaha palita, so no injury or damage. Then no liability. Then no case,” Rama said. He even offered to serve as Garcia’s lawyer: “Tell Raymond, I will be his lawyer. I’ll defend him.”

Osmeña, however, scoffed at Rama’s gesture.

“He’s the expert in overpriced vehicles, after all,” he said, citing a previous P3.6-million Toyota HiAce purchase under Rama’s term. /csl