Monday, September 08, 2008 COA ban on aid snags Sinulog By Rene H. Martel Sun.Star Staff Reporter
WITH preparations already underway for next year’s festivity, the Sinulog Foundation Inc. has appealed to the Commission on Audit (COA) to exempt it from the new guideline that bars the Cebu City Government from giving the organization financial assistance.
COA Circular 2007-001 prohibits any local government unit (LGU) from giving aid to any nongovernment organization (NGO) whose incorporator, director, organizer or officer is related to any local official involved in the approval or release of government funds.
The memorandum was supposedly meant to help prevent graft and corruption.
Issued last October, the memorandum also affects the Cebu Investment Promotions Center (CIPC), Cebu City Task Force on Street Children (CCTFSC), Cebu Pistol and Rifle Association (CPRA) and the Cebu City Dancesport Team because a few city officials are either officers of these groups or are related to their officers.
In the Sinulog Foundation’s case, Vice Mayor Michael Rama is its overall chairman.
The annual Sinulog grand parade draws the “most number of local and foreign tourists than any other festival or tourism even in the country, giving substantial contributions to businesses.”
In a letter to the COA, Sinulog foundation executive director Ricky Ballesteros mentioned the organization “creating a tremendous impact and contributions to the economy of Cebu.”
Yet, he said, the foundation has to source out funds to cover the total production expenses of around P20 million.
The City gives P8 million to the foundation annually, while the balance is sourced from sponsorships and donations.
Aside from the cash prizes that total around P8 million, the foundation also spends for the promotion and advertising, TV production, supplies and materials, labor, and transportation and honorarium of judges.
We understand the reasons of the COA; but we are asking it to reconsider sad, dili dapat sweeping ilang decision,” Ballesteros said.
“We are a working foundation with a track record. Though it is only here in the Philippines, we have international exposure,” he added.
Compromise
The COA is yet to respond to the two-page letter with numerous pages of supporting documents attached to it.
Earlier, City officials argued that the affected NGOs have made Cebu City livable through their programs, including the firearms proficiency training of policemen and promotion of the South Road Properties and other investment opportunities.
In the case of the CIPC, with Mayor Tomas Osmeña as its founding chairman, Cebu City found a way to avoid violating the COA memorandum.
Starting this year, it will be the Philippine Amusement and Gaming Corp. (Pagcor) that will directly release a P3 million annual financial assistance to the CIPC.
The amount will be deducted from the City Government’s share of Pagcor’s earnings and remitted to CIPC at P25,000 a month.
This means that of the City’s P4 million monthly share, Pagcor will only give P3,750,000 to the City Treasurer’s Office.
