WHAT will happen to the charges made by the Cebu City Government to its P405.55-million second supplemental budget (SB 2) last year, when the bulk of it has been declared by the Department of Budget and Management (DBM) 7 as inoperative?
Of the total amount, DBM 7 said P286.88 million is inoperative since retained operating surplus and reversion of accounts payable in the previous years was not considered as sources of funds.
In a privilege speech during the City Council’s regular session yesterday, Councilor Eugenio Gabuya Jr. said he is “alarmed” bythe findings of the DBM.
“What will happen to the funds already disbursed? With these findings, our delivery of basic services is affected,” he said.
Gabuya believes the funds under the SB 2 have already been disbursed as it was approved by the legislative body in October last year yet. The DBM review, which was sent to the Office of the Mayor, is dated Feb. 5 this year.
Among the items funded under the SB 2 are the P140 million financial assistance to the 80 barangays (P1.75 million per barangay), P15 million for the burial assistance program, P30 million for garbage collection services, P10 million for traffic signalization, P9.7 million for the City-sponsored activities and P1.188 million allowances for additional lupons, garbage collectors and daycare workers.
Explanation
Gabuya then moved for the council to conduct an executive session with the City Budget Office, the City Treasurer’s Office, the City Accounting Office and the City Legal Office so they can shed light on the DBM findings. His motion was approved.
When a budget is declared inoperative, it is returned to the local chief executive to be adjusted, and the treasurer is told not to disburse any funds from that budget, according to a primer on the DBM website. It does not state, however, what the DBM can do in case the funds have already been spent.
‘Not a law’
Sought for comment on Gabuya’s privilege speech, Mayor Michael Rama said yesterday he no longer wants to add anything on the matter.
He said what is important for him is that there was no corruption; the funds did not go to anybody’s pockets and there is no technical malversation of funds.
“It (DBM findings) is not a law. It is just an observation. I see no problem,” he added.
Also yesterday, Councilor Sisinio Andales delivered a separate privilege speech asking what the City is doing to answer some of the audit observations of the Commission on Audit (COA) when it scrutinized the City’s operations and transactions last year.
The state auditors earlier questioned the P4 million advance payment to a contractor as it lack supporting documents, the P25.47 million payment for the garbage disposal services at Consolacion as the amount was paid through direct contracting or single source procurement despite the availability of other landfill operators, and the delay on the implementation of some of the 93 projects amounting to P629.45 million.
“I want to know who is remiss in all these. I am alarmed by the findings of COA. I want to know what are the remedies the City will avail to address these observations,” he said.
Andales wants also the council to conduct an executive session with the treasurer, the budget office, the legal office and the accounting office regarding the matter.
The council has scheduled the executive session for both Gabuya and Andales’s concerns on Feb. 26.