DBM returns SB2 sans review, action

THE Department of Budget and Management (DBM) 7 has returned Cebu City Hall’s P201-million Supplemental Budget 2 (SB2), saying they cannot review nor act on it.

“As a matter of procedure, this office cannot pursue the review of the FY 2015 SB No. 2 until FY 2015 SB No. 1 is submitted and reviewed first. In this connection, the former is hereby returned without review action with the suggestion to resubmit the same together with SB No. 1,” said DBM Director IV Carmela Fernan in a January 11 letter addressed to the City Council.

During the council’s regular session yesterday, councilor Noel Wenceslao gave a privilege speech asking about the implications of the return of SB2, the bulk of which was the P30,000 across-the-board cash incentives that were distributed to City Hall employees last December.

Wenceslao asked what will happen to SB2 since the DBM wants to review SB1 first.

The council deferred action on the P2.6-billion SB1 several times last year because of a pending case in court on the validity of the lot sales at the South Road Properties (SRP).

Wenceslao said he was puzzled as to how the city council should respond to the DBM considering the circumstance.

DBM’s letter wasn’t included in the council’s agenda for their regular sessions in the past two weeks.

But Councilor Margarita “Margot” Osmeña told the council that she had told DBM director Fernan that the problem is just a “numerical issue.”

Osmeña said acting Vice Mayor and presiding officer of the city council Nestor Archival, Sr. has already written back to Fernan explaining the situation.

“As the acting vice mayor and presiding officer of the SP, I am respectfully informing your office that there was only one SB in 2015 that was approved by the SP and that was the SB No. 2,” Archival said in his letter to Fernan.

He also explained in the letter that the approval of SB1 was held in abeyance by the council due to questions on the validity of the proceeds of the sale of the SRP lots which was the lone source of funds for the proposed measure.

The Regional Trial Court has upheld the validity of the lot sales, but petitioner and former prosecutor Romulo Torres has appealed the ruling before the Court of Appeals.

“With the foregoing explanation, the SP is hereby returning back to your office the approved FY 2015 SB No. 2 in the hope that this will merit your action for review,” Archival added in his letter dated January 22.

Osmeña said Fernan herself had recommended that the council write her office explaining the situation.

The letter was received by the DBM but the office has yet to respond to it.