FORMER Cebu governor Gwendolyn Garcia has pushed back against Gov. Pamela Baricuatro’s claims that her administration left the Capitol with a P1.1-billion debt.
Garcia said the amount referred to routine payables, not loans, and denied other allegations, including mismanagement of education and disaster funds, operating a troll farm and ties to controversial contractors. She called for a press conference at her company’s office in Mandaue City on Monday morning, Sept. 8, 2025.
“INHERITANCE” FROM GWEN. Baricuatro, in her State of the Province Address (Sopa) last Aug. 29, described the P1.1 billion as debt inherited from Garcia’s term. Garcia rejected this, saying the obligations were payables — such as project billings, Philhealth premiums and Pag-Ibig Fund contributions — that are part of normal government transactions.
She stressed that debt means certified loans from financial institutions, which she insists her administration left none of.
Garcia argued that equating payables as debts could mislead the public into thinking the Capitol was saddled with bank loans.
“I can say without fear of contradiction, wala tay (we have no) outstanding obligation from any financial institution,” she told reporters.
What is a payable vs. a debt?
In the world of accounting, both payables and debts are considered liabilities, which are funds an entity owes to others. However, they are not the same thing, according to financial website Investopedia.
Payables (or accounts payable) are short-term, outstanding bills for goods or services a business or government has received on credit. They are a normal part of business operations. For example, if the Provincial Government receives an invoice for a construction project that is due in 30 days, that is considered a payable.
Debt is a much broader term that includes payables but often refers to more formal, long-term financial obligations. A common example is a bank loan or a note payable, which typically involves a formal agreement with interest payments and a set repayment schedule. These are usually used for large, planned expenditures like buying equipment or building a new facility.
UNSPENT FUNDS: SAVINGS OR NEGLECT? Baricuatro also questioned why Garcia left large balances in the Special Education Fund (SEF) and the disaster fund. Garcia defended both.
She said the SEF grew because property tax collections increased after a revision in valuations. Funds were used to supply nearly a million students with materials and daily meals. The remaining P1 billion, she argued, showed fiscal discipline, not neglect.
On disaster funds, Garcia asked why readiness for calamities should be criticized. She cited the Dasig Sugbo program after typhoon Odette (Rai), which distributed P1.8 billion in cash aid to more than 350,000 households, as proof her administration mobilized resources when needed.
COMELEC COMPLAINTS: WHY THE DELAY? Garcia also revealed in the press conference that she had filed complaints with the Commission on Elections (Comelec) “months ago,” alleging that Baricuatro accepted foreign funding for her gubernatorial campaign, which she said a violation of both the Omnibus Election Code and the Constitution.
She added that her own electoral protest contesting Baricuatro’s victory had likewise stalled, and suggested that Comelec be asked why the cases have not progressed.
OTHER ISSUES. The former governor also addressed other controversies raised during Baricuatro’s early months in office.
Troll farm: She denied running one and invited Baricuatro to inspect her Mandaue City office, clarifying that a nearby call center was unrelated to her company. “My office is open. Governor Baricuatro is welcome to visit,” Garcia said.
Contractors: Garcia said she had no personal ties to QM Builders’ owner Allan Quirante or the controversial Discaya couple. The Discaya-owned firm was awarded contracts for at least two bulk water supply projects in Cebu during her term. The current administration divulged that the projects, still unfinished, are located in the southern towns of Alegria and Malabuyoc and have a combined worth of P180.42 million.
Mandaue rice: Garcia said the issue of unsold rice in Mandaue City should be addressed by the local government. “I don’t think I should even take that up na, that is a Mandaue City issue and I think that should be confined in Mandaue City,” she said.
WHAT’S AT STAKE. The dispute over whether the P1.1 billion is debt or payables is not just an accounting matter — it affects how voters view Garcia’s fiscal record and Baricuatro’s credibility. The same goes for unspent education and disaster funds: are they evidence of prudence or proof of underdelivery of services?
The Comelec complaints raise the stakes further. If foreign funding allegations are substantiated, they could shake the legitimacy of Baricuatro’s governorship. If they languish, Garcia can argue that oversight bodies are failing to act.
THE POLITICAL ANGLE. This is more than a technical fight over finances. It’s a political showdown between a neophyte governor establishing her narrative and a former governor defending her legacy. The debt-versus-payables framing, the handling of funds, and the election protest are all battlegrounds in their rivalry, possibly in the 2028 general elections. Baricuatro defeated Garica in the midterm elections last May.
WHAT’S NEXT. Watch for developments on two fronts: first, whether the Commission on Audit or independent auditors clarify the “debt” issue; second, whether Comelec moves on Garcia’s complaints of foreign funding and her election protest. Both could redefine and reshape Cebu’s political climate moving forward. / CDF