Before Gov.-elect Pam Baricuatro could even set foot in the Capitol, outgoing Governor Gwen Garcia, with the aid of her Provincial Board (PB), ensured that her existing flagship projects and programs would be funded. She did this by creating a trust fund amounting to P2.1 billion, effectively unloading funds from the Capitol coffers. This move could potentially leave the incoming governor with a significantly reduced budget for her intended programs, which were part of her campaign pledges for her three-year term.
Baricuatro strongly criticized Garcia’s action, labeling it “abuse of power” and “political sabotage.” Baricuatro’s transition team will review the legality of Garcia’s trust funds and verify whether they are supported by an enabling provincial ordinance.
In Memorandum 36-2025, Garcia directed Provincial Treasurer Roy Salubre to establish dedicated trust funds for at least 15 Capitol programs. These include projects that the incoming governor publicly criticized and declared her intention to scrap, such as the Suroy Suroy Sugbo, which she considers a waste of public funds.
Garcia’s order invokes Section 309(b) of the Local Government Code of 1991 and follows rules under Commission on Audit (COA) Circular 92-382 regarding the establishment of trust funds. The fund is titled: “Creation and Establishment of Trust Funds for Various Programs of the Province of Cebu.” COA Circular 92-38 states that trust funds consist of private or public monies received by a local government unit as trustee, agent, or administrator, and such funds must be used exclusively for their intended purposes.
Reports indicate that Garcia’s current programs covered by these newly established trust funds include:
• Suroy Suroy Sugbo: A flagship tourism program institutionalized through a 2012 ordinance.
• Sugbo Segurado and Sugbo Negosyo: Both launched in 2024 as health insurance and livelihood assistance programs under separate measures.
• Sugbo Kahanas: Launched in 2021, this program provides skills training in fields such as pastry making, welding, and massage therapy. Its first run produced over 4,300 graduates.
• Sugbo Patubig: Involves waterworks improvements in Carmen and Moalboal, funded under a P1.38 billion supplemental budget in 2019.
• Sugbo Kuryente in Malapascua: Authorized in 2025 through an ordinance allowing the collection of electricity fees to support power generation.
• Sugbo Semento: Enables the Capitol to purchase cement in bulk from manufacturers.
• Sugbo Sentro: Formerly the Larsian Food Park, now a provincial food hub.
• Tourism-related activities: Such as canyoneering in Badian, regulated under a 2024 ordinance and other river adventures managed under existing environmental rules.
The directive also reportedly establishes trust funds for the Cebu Provincial Government Lot Sales Settlement Account, the Mactan-Cebu Bridge Management Board and projects funded by the 20 percent Development Fund. Furthermore, it includes the Development and Livelihood Fund and the Reforestation, Watershed Management, Health and/or Environment Enhancement Fund, in line with Republic Act 7638, or the Department of Energy Act.
Atty. Edmund Lao, head of Baricuatro’s review team, told the press that they will verify the legality of the trust funds’ creation. It may be recalled that the PB was unable to conduct business after the elections because some members allegedly boycotted scheduled sessions. “We need to gather additional information to determine if there are ordinances authorizing trust funds,” Lao stated.
Under these circumstances, Governor-elect Baricuatro and her team have the following options:
• Review and Revoke: Assess the trust funds’ legality and potentially revoke them if found to lack a proper and legal basis.
• Prioritize Transparency: Focus on ensuring transparency and accountability in the Province’s financial management.
• Redirect Funds: Potentially realign funds to support her administration’s priorities, such as infrastructure and social services.
During her campaign, Baricuatro emphasized agriculture, food security and improving the Provincial Government’s healthcare services.