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Thursday, August 25, 2005
Espinoza: Gwen’s strategic move on Capitol contracts
By Elias L. Espinoza
BLAME. With the high repayment rate of the South Reclamation Project (SRP) loan, the Cebu City Government is in deep financial trouble.
At the present exchange rate, the City Government’s external financial obligation would be about P6.3 billion. Even if the SRP lot titles were issued now, the dilemma over the City’s loan obligation would not change.
Cebu City Mayor Tomas Osmeña has to blame himself, not the City of Talisay, for the pecuniary woes the City Government is now experiencing. His planners had already warned him of an unfavorable outcome of the SRP.
Optimistic as he has always been, Osmeña did not mind the advice. He even once bragged to his friends that once the SRP is realized, the City could already afford to buy a Lear Jet.
The problem is that the mayor already counted the chicks even before the eggs were hatched. The city mayor and his advisers perhaps didn’t expect that the SRP titling would face a snag.
Talisay City’s claim that a portion of the SRP is encroaching on its territory gave Osmeña a lame excuse for his failures. You know, he is one person I know who can’t admit mistakes.
The City’s public services have already been affected by the financial crisis. Worse, Osmeña might raise realty taxes, so the City can pay its outstanding loan.
Under the circumstance, every Cebu City resident carries the burden of repaying the loan for the SRP, a project that does not benefit the majority.
TACTICAL MOVE. Going to court over the issue involving Capitol contracts is a good tactical move for Cebu Gov. Gwendolyn Garcia.
The legal move is expected. With two brilliant legal minds behind Gwen, her ex-governor father Pablo and brother Pablo John, she is in safe hands.
To recall, the Provincial Board (PB) sought an opinion of the Office of the Ombudsman on this issue. The governor insisted that she does not need an authority from the PB to enter into contracts on items already contained in the appropriation ordinance.
The declaratory relief that the governor filed with the court the other day will legally preempt the ombudsman from issuing a legal opinion on the issue.
The position of the PB, which caused some Capitol legislators to announce that they’d rather resign because the governor signed contracts without legislative authority, was bolstered by the findings of the Commission on Audit (COA).
The COA, in its annual report for Cebu Province, mentioned the P102 million worth of contracts that the governor entered into without PB authority.
The ombudsman’s opinion, if unfavorable to the governor, might be used by the opposition PB members in their possible graft suit against Gwen.
Gwen’s declaratory relief, on the other hand, is only asking the court to clarify who is right, the PB and COA or the Office of the Governor, on the controversial contracts.
Still, I would opine that if the court’s opinion on the issue is not favorable to the governor, the PB members can use the ruling if they intend to institute legal action against the governor.
(August 25, 2005 issue)
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