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Monday, October 15, 2007
Cebu City maxes out Pagcor funds
By Rene H. Martel
CEBU CITY -- The Cebu City Government has overcharged by P15 million its share in state-sponsored gambling funds, which amount to P5.5 million every month.
And the deficit could grow if more appropriations are approved by the City Council as endorsed by the executive department.
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But City Administrator Francisco “Bimbo” Fernandez said they will introduce some changes, adding that it is Mayor Tomas Osmeña who picks which projects should be prioritized and charged to the City’s monthly share from the Philippine Amusement and Gaming Corp. (Pagcor).
He said the deficit stems from the project budgets approved each month that exceed the P5.5 million share.
“We can call it a deficit because the funds are not yet there. But the projects will be funded in time,” Fernandez said in Cebuano.
Timing
He added that while a total of P15 million worth of projects charged to the Pagcor funds do not have budget allocations, the mayor determines which should be funded first once the money arrives each month.
“A project would not be prioritized unless the money is already there,” Fernandez added.
Under Pagcor guidelines, the money should be spent for peace and order, basic services, infrastructure, health services, culture and arts and sports.
However, the funds cannot be used for salaries and wages of employees, including consultants’ fees.
The following projects may be supported by Pagcor funds: self-sustainable economic livelihood projects; infrastructure projects essential to the community; projects connected with the delivery of basic health services, as well as projects designed to prevent widespread disease or epidemics; projects connected with the improvement of peace and order in the locality; emergency assistance to victims of natural disasters and calamities; and projects for “social amelioration.”
Rules
In 1997, then senator John “Sonny” Osmeña questioned the “abuse” of Pagcor funds and sought an accounting of its uses.
He had noted that the guidelines were “too general,” prompting Pagcor to issue more specific guidelines and require the City to submit reports on how it used the funds.
The City has been using the fund for police and fire equipment and infrastructure projects like electrification and road concreting in the barangays.
The fund also augments the budget for a particular service; for activities, projects and programs that will occur in a year that are not covered by the approved budget; and for items that are not thought of during the budget preparation.
Savings
City Councilor Augustus Pe Jr. revealed the “deficit” when he asked colleagues to approve the realignment of an undisbursed P3.91 million for Pagcor-prioritized projects in their session last week.
Fernandez asked him for the City Council’s endorsement, in compliance with then city accountant Edna Jaca’s reminder that realignment should be supported by an approved council resolution.
Pe said the amount represented savings from budgets that were reduced, after biddings were held for Pagcor-funded projects.
The realigned amount included a P1.2-million balance from the purchase of a computer main server, for which P10 million was originally set aside. Only P8.8 million was obligated after the bidding process.
Also realigned was P322,400 from the mass deworming of all public elementary school students of the city, for which P2.19 million was budgeted but only P1.868 million was used.(Sun.Star Cebu)
For more Philippine news, visit Sun.Star Manila. (October 15, 2007 issue)
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