Saturday, September 13, 2008 On advice of ex-mayor, City finds way to avoid violating COA rules for Sinulog
CEBU City officials have found a way to avoid violations of audit rules when it funds the Sinulog 2009 festivities, by directly purchasing and paying for items needed in the grand parade.
On the advice of former mayor Dr. Florentino Solon, Mayor Tomas Osmeña said the City will just identify expenses that the City can directly pay for, so it won’t have to give the annual P8-million financial assistance to the Sinulog Foundation Inc. (SFI).
Instead of giving them money, the City can purchase materials or pay for certain services such as the stage, lights and sound system, costumes and other supplies.
But when asked for comment on the mayor’s proposal, SFI executive director Ricky Ballesteros proposed to have the City shoulder the cash prizes and financial aid to out-of-town contingents, which will amount to some P8 million.
SFI is a private entity governed by its own board of directors and officers, chaired by Vice Mayor Michael Rama.
P18M
“Sinulog spends around P18 million for the Sinulog and the City usually contributes P8 million. So we will see how this P18 million is being spent and maybe out of this P18 million, we can identify expenses that the City can spend for directly,” Osmeña said.
In his news conference yesterday, the mayor said the items will be legitimate expenses of the City Government and will not violate the Commission on Audit (COA) Circular 2007-001.
COA Circular 2007-001 prohibits any local government unit from extending financial aid to any nongovernment organization whose incorporator, director, organizer and officer is related to any local official involved in the processing, approving, disbursement and release of government funds.
“I received the suggestion from Dr. Solon and what he said is very feasible... We will just look for the P8 million and spend it directly. It makes sense, I don’t know why we didn’t think of this sooner,” he continued.
Osmeña said, though, that the government procurement process could pose another problem, since it will take at least six months to procure supplies and services.
The Sinulog grand parade is on the third Sunday of January, or barely four months from now.
“We might not be able to do it in time because of all the bidding, procurement and other government processes, which take time. It’s very tedious. That’s one advantage if it goes as financial aid because the NGOs are not subject to the same procurement process, there is no bidding,” he explained.
In a phone interview yesterday, Ballesteros suggested that instead of supplies, it will be better for the City to shoulder the cash prizes and cash assistance to contingents from other provinces.
He said it might take time if the supplies they need will be purchased by City Hall because of the procurement process requirements.
“Although appropriations for the cash prizes are also subject to the usual government procedures including pre-audit by COA, it will be faster compared to the purchase of materials,” Ballesteros told Sun.Star Cebu. (LCR)
