Monday, November 27, 2006 COA report prompts closer look at Cebu City properties By Rene H. Martel Sun.Star Staff Reporter
HOW much are Cebu City’s properties worth?
The Cebu City Council last week requested the Internal Control Office to conduct an inventory, determine the properties’ value and submit their findings in 25 days.
The request was in response to the Commission on Audit (COA) annual report for 2005 on Cebu City’s operations, especially on its gasoline, oil, and lubricants account; property, plant and equipment (PPE) account; and all inventory accounts that are “not in order.”
COA said that the gasoline, oil and lubricants inventory was overstated by P35.99 million “due to the non-recording of the prior year’s fuel consumption.”
Cebu City’s PPE account also has unreconciled balances amounting to P202.47 million and unsubmitted inventory reports covering some P1.68 billion.
There are also inventory accounts of “doubtful validity” amounting to P325.83 million, because the accountable officers can no longer be located and an actual physical count can no longer be made.
The COA findings, which reached Cebu City Hall last July yet, were restated in a committee on budget and finance report on the letter of City Auditor Carolina Mendez.
It, however, excluded the findings that current and former City Hall officials and employees have unliquidated cash advances amounting to over P8.69 million.
In an interview last July, City Administrator Francisco Fernandez assured the City will establish whether or not all those listed have indeed liquidated the amounts released to them.
Those still working with City Hall will have to bear with deductions from their salaries, while officials may go to court against those no longer connected with the City Government.
He also said the City will conduct a “strenuous” and extensive physical inventory of properties from staple wires, to buildings, to infrastructure.
The Internal Control Office reports to the city administrator.
Fernandez likewise said that the City will adopt a cut-off date for a fresh start in recording its use of supplies and equipment, and ensuring that all cash advances are liquidated on time.
Everything prior to the cut-off date will be the subject of an investigation to avoid a mix-up, Fernandez has said.
He said then that the City will not be content with just setting its records straight; all accountable persons will be made to pay.
He asked the City Attorney’s Office to start an investigation.
The same goes for those responsible for the over-issuance of 21,013 liters of gasoline to leased multicabs, amounting to P636,069.
The City reported a net income of P511 million in 2005, but Councilor Jocelyn Pesquera, committee head, said the City’s cash balance included garnished amounts.
Payments
A case for instance was the old Matias Aznar Road, which was reportedly donated by Fr. Vicente Rallos in 1963, but no deed can be found. The heirs have sought compensation and the case is pending in the Supreme Court.
On separate dates in 2001 and 2002, the City’s four depository banks, on orders of the court, released to the Rallos heirs a total of P34.9 million.
Likewise included is the P23.45 million the court ordered garnished in favor of the heirs of Pantaleon del Rosario, over a lot in Barangay Mambaling; and P8.96 million in the case of Matilde Palicte against Cebu City.
Fernandez earlier said the garnished amounts were considered as cash balances because the cases are still under appeal in higher courts and the money is therefore still recoverable.
The City Council ordered the Internal Control Office to submit its report “on or before Dec. 17, 2006.”
Copies of the committee’s report were ordered sent to the City’s accountant, administrator, treasurer, budget officer and auditor.
