Based on an opinion by the Department of Budget and Management (DBM), an P800 million lumpsum for aid to Cebu City barangays last year became “inoperative” with Mayor Michael Rama’s veto.
With this, Cebu City Councilor Margot Osmeña said use of these funds could be considered “irregular” for lacking council approval.
In a privilege speech yesterday, she asked the the Office of the Ombudsman and the Commission on Audit (COA) to look into transactions charged to two “inoperative” accounts in the 2015 budget.
Mayor Rama also vetoed an outlay for city-sponsored activities amounting to P42.7 million in the 2015 budget.
If a budget is declared inoperative, City Hall would have to reenact the prior year’s appropriation for the same purpose.
Osmeña, who heads the committee on budget and finance, said she earlier asked the DBM’s opinion specifically about the city-sponsored activities and aid to barangays of P800 million.
She questioned why the mayor decides how much should be given a barangays as if he were giving out shares of a pork barrel.
Mayor Rama, sought for his reaction, wasn’t worried.
“Dili man kaha na kaso? Opinion ra. An opinon, as long as its’ not conclusive, and is not from the court, is just an opinion,” he said.
Rama said the executive department will continue to disburse money for both accounts unless stopped by a court order.
He said it would be unfair for some barangays not to receive aid when others already received their share.
In her letter reply, DBM 7 Regional Director Carmela Fernan reiterated that lumpsum appropriations and those described in generic terms need approval from the City Council.
Osmena said the cCouncilors increased to P800 million the P640 million aid to barangays which Rama included in his 2015 budget request. Legislators wanted to increase to P10 million the P8 million aid which Rama set aside for the barangays.
However, Rama vetoed the increased aid.
Rama also vetoed six items in the allocation for city sponsored activities.
City sponsored activities include the annual Sinulog – P25 million; Graduation Fee Subsidy- P4 million; IBP 15th National Convention – P3.5 million; Charter Anniversary Activities – P3 million;
Christmas Activities – P3 million; other activities subject to the approval of the council – P2.6 million; League of Lupong Tagapamayapa of Cebu City – P1 million; IT/BMP Sector Recognition
Night – P250,000; One-stop Sports Hub Activities -P250,000; and Earth Hour Activities – P75,000.
Rama vetoed allocations for the IT/BMP sector recognition night, earth hour activities, graduation fee subsidy, league of lupong tagapamayapa, one stop sports hub activities and the other activities subject to the approval of the SP.
Osmena said City Hall can still implement two – Earth Hour and other activities subject to approval of the city council – of the six vetoed items but using its 2014 appropriation.
City Hall will have to forgo four other programs and activities including the release of the P4 million subsidy for graduation fees, she said.
“Who is obstructing? We in the City Council appropriated for graduation subsidy for our students. What happened? The students are waiting for their money but it was vetoed, so it’s gone.” Osmena said.
As to the P800 million aid to barangays, Osmena said, “the amount became a lump sum appropriation which the mayor disbursed at his own discretion.”
“How is this possible? By law, with all the lump sum appropriations, the mayor cannot just spent it on his own. He needs the authority of the City Council before he can use it,” she said.
The DBM letter cited the case of Gabriel Luis Quisumbing against former governor Gwendolyn Garcia when Quisumbing was still a member of the Provincial Board. The court affirmed the need for the board’s authority to disburse appropriations stated in general terms.