Tuesday, December 23, 2008 Capitol rejoices over ruling; Labella says it’s a reminder
THE CEBU Provincial Government rejoiced over the decision of the Supreme Court ordering the Regional Trial Court (RTC) in Cebu to conduct a “full-blown trial” over P100 million in government contracts that Cebu Gov. Gwendolyn Garcia entered into allegedly without Provincial Board (PB) authority in 2004.
“If there is a prior appropriation ordinance, there is no need for another resolution. Clearly, the legal position taken by the Province is resolved,” lawyer Rory Jon Sepulveda, Capitol information and revenue generation consultant, told a press conference yesterday.
Sepulveda said the Provincial Legal Office is currently preparing the list of the P102 million in expenditures and contracts.
Dismissal
“In case there is a legal breach happening on a law that is subject matter of a declaratory relief, the remedy is not dismissal but converts it into an ordinary action and
conducts a full blown trial,” said Sepulveda.
At City Hall, Cebu City Councilor Edgardo Labella said the SC decision should serve as reminder to local government units (LGUs) to follow procedures.
Labella, head of the council committee on laws, ordinances, public accountability and good government, is a lawyer and a former deputy ombudsman for the Visayas.
Sought out by Sun.Star Cebu, he said he is always of the opinion that RTC Branch 9 Judge Judge Geraldine Faith Econg erred in clearing Garcia of any liability.
“The SC decision upholds my stand that in each and every transaction of a chief executive, there is a need for prior authorization from the Sanggunian. It’s based on principles of public accountability, transparency and most importantly, principle of check and balance,” he said.
“I knew the RTC ruling was not quite correct. I hope the recent court decision would serve as a clear guide to all local government units on the need for prior authorization from the Sanggunian, upholding the principle of check and balance,” he said.
Garcia signed contracts for the Capitol worth P102 million allegedly without getting authority from the PB, which is prescribed under the provisions of the Local Government Code.
Econg ruled in favor of the Province in 2006, saying a PB authority was not necessary on disbursements already included in the annual budget.
But the SC said she should not have resolved the case merely on the memoranda submitted by the Capitol and by the Commission on Audit (COA).
“What the trial court should have done… was to conduct a full-blown trial to thresh out the facts and make an informed and complete decision,” read the Dec. 8 SC en
banc ruling.
“(A PB) authority is meant to temper power and authority of the chief executive, a preventive measure for exercise of grave abuse of discretion, a preemptive thrust against a possible corrupt practice by the executive department, which conducts biddings through the BAC (bids and awards committee),” Labella said.
Procedures
He said his words are not intended to disparage Governor Garcia, with whom Mayor-on-Leave Tomas Osmeña has a disagreement, but to remind LGUs to follow procedures.
The COA, in an audit inquiry over Capitol transactions in 2004, uncovered contracts worth P102,092,841.47 that the governor entered into without PB authority .
It recommended that from then on, all local chief executives must secure authority from either the city council or the PB before entering into contracts.
Garcia had asked for reconsideration on the COA’s findings and recommendations. She also filed a separate suit for declaratory relief before the RTC.
“We are already looking at it perceptively because the issue really is that whether we can establish that these disbursements of contracts are covered by the ordinance,” said Sepulveda.
“In this case, klaro gyud that we are vindicated. We’re not reversed. In this effect, this is Santa Claus’ gift to the Province.” (GMD/RHM)
