BO-PK blocks budget for 5th time; Offer to post bond nixed
FOR the fifth time, the Cebu City Council voted against acting on a P2.8-billion supplemental budget that includes outlays for garbage tipping fees and wiping out foreign loan payments for the South Road Properties.
The Bando Osmena-Pundok Kauswagan majority voted 8-5 against a motion of Councilor James Cuenco, to lift deferment on the supplemental budget.
This time, Councilor James Anthony Cuenco offered to break the impasse by having a bond posted to answer for any damage in case they lose a court case over the budget.
“To sweeten the pot, we in the minority are calling the challenge and dare of Councilor Eugenio Gabuya two weeks ago to post a bond for whatever is spent out of the proceeds of the South Road Properties (SRP) lot sale to cover for any liability in the remote possibility that the court case will not go our way,” Cuenco said in a privilege speech.
The pending case was filed by former prosecutor Romulo Torres against the city’s use of an P8.3 billion down payment of SRP lots.
The mayor’s allies were outvoted again.
Councilor Gerardo Carillo arrived too late to vote.
He said the mayor’s bloc discussed the possibility of a performance bond with Cebu City Mayor Michael Rama this week after Gabuya posed the challenged.
Councilor Margot Osmeña said they just want to be protected from any liabilities.
“If we approve the SB1, where the only source of funds is from the SRP sale, and the plaintiffs win in court, the council will be personally liable for P8.4 billion. So cover us first for P8.4 billion…if there is a bond, we will talk (about the SB1),” she told reporters after yesterday’s session.
Mayor Rama said if the court requires the posting of a bond, he would comply.
If no order is given, there’s no reason to put up a bond, he said.
“I’m trying to emphasize, there’s nothing to worry about. I am sticking my neck out. All that I’m asking them is, perform your role (as legsilators). They should always be reminded that there’s a presumption of regularity,” he told reporters yesterday.
The mayor and vice mayor have repeatedly urged the City Council to approve, disapprove or pass an amended budget — but not to continue stalling it.
He said the council should not be afraid of any case being filed since “there will be no case that can stop government.”
The council’s committee on budget and finance will also start marathon budget hearings for the annual budget which is proposed at P8.9 billion for 2016.
In a budget committee report, Osmeña, said they won’t convert the entire city council into a committee for the budget hearings since they would have probelms in in getting a quorum.
“But we still urge the other members to attend the budget hearings,” she said.
The hearings will start on Monday, November 9.
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