Wednesday, April 16, 2008 With new COA rules, 6 groups stand to lose aid from Cebu City
SEVERAL nongovernment organizations (NGOs) relying on the Cebu City Government for funding could face budgetary problems if the City is forced to implement new guidelines issued by the Commission on Audit (COA).
A recent COA memorandum states that local government units (LGUs) are not allowed to extend financial assistance to NGOs and other institutions whose officers are related to any elected official of the locality.
The Cebu City Task Force on Street Children (CCTFSC), Sinulog Foundation, Inc., the Cebu Investments Promotion Center (CIPC), Cebu City Operation Second Chance, Cebu City Dancesport Team and the Cebu Pistols Rifle Association (CPRA) are just some of the NGOs that stand to be affected.
But Mayor Tomas Osmeña and Vice Mayor Michael Rama appealed to COA for reconsideration, saying the institutions will not survive without financial aid from the City.
Funding continues
Osmeña said he will not cut off assistance to these NGOs pending COA’s response to the City’s request for reconsideration.
“They have put certain guidelines so that assistance to some NGOs whose officers are related to us will no longer be allowed. The (CCTFSC) will be severely affected, CIPC and many others,” the mayor told reporters yesterday.
In the memorandum, all LGU-accredited NGOs receiving aid from the local government are required to submit affidavits that none of their officers is related to any LGU elected official up to the fourth degree of consanguinity and affinity.
Margot, the mayor’s wife, is co-chairperson of the CCTFSC and a member of the board of directors of the Operation Second Chance.
Osmeña himself is the founding chairman of CIPC, the marketing arm of the South Road Properties (SRP).
Family ties
CIPC receives a P3 million financial aid from the City annually while the task force gets at least P600,000 a year.
The mayor’s cousin and former city councilor Rogelio Osmeña is the president of the CPRA while Vice Mayor Rama is the chairman of the board of the Sinulog Foundation.
Also, the Cebu City Dancesport Team is headed by the wife of City Councilor Christopher Alix.
In his news conference yesterday, Osmeña said he does not agree to having the officers of these NGOs resign from their posts because they have been efficient in their respective projects.
“But the one that really upsets me is that I think it’s unfair for Margot to resign. It’s very painful to be unceremoniously kicked out of that position, but that’s from a personal standpoint. From an objective standpoint, she has managed to keep the movement together,” he said.
“And I also cannot stop the funding. I don’t know what to do. Maybe we can stop it for a while or continue it but we were given a warning already...We will just have to appeal to COA,” the mayor continued.
He also said that the amount the CIPC gets from the City is not enough to fund all its marketing activities and efforts to bring investors to Cebu.
“What’s critical here is that these NGOs are big institutions that will still be here even when I’m no longer mayor. Honestly speaking, if you remove Margot, Jing-Jing Osmeña and the others, it is highly questionable. Maybe the institutions will continue but we’re taking a risk of destabilizing the situation,” Osmeña added.
In a phone interview yesterday, Rama said he already discussed the matter with the COA commissioners, who asked the City officials to submit a position paper on the memo.
He would also ask the different NGOs to submit their respective position papers, stating the amount they receive from the City each year and how it has helped their organization.
“These are organizations that have received many national awards and citations and are helping the community, so we will tell COA how the City has helped these NGOs,” Rama said. (LCR)
