FOR the past two months, salaries for employees at Cebu City Hall have been delayed, and payments for crucial government services have been put on hold. This financial bottleneck is a direct result of a single administrative vacancy: the position of a city treasurer.
Big question
Why has the City been unable to release salaries and pay bills — and what does this have to do with a controversial garbage contract from four years ago?
A dismissal order with far-reaching effects
The trouble began in March 2025, when the Office of the Ombudsman ordered the dismissal of Acting Cebu City Treasurer Mare Vae Fernandez Reyes and seven other city officials. The ruling was tied to their involvement in an anomalous P239-million garbage collection and disposal contract entered into in 2021.
The officials were found administratively liable for malversation of public funds and for violating the Anti-Graft and Corrupt Practices Act. Along with their dismissal came harsh penalties: forfeiture of retirement benefits, a lifetime ban from government service and disqualification from taking civil service examinations. Among those found liable were former city administrator Floro Casas Jr., Department of Public Services chief John Jigo Dacua, and acting city accountant Jerome Visarra Ornopia.
The order was issued in March, but the City only received its official copy on Aug. 20. Within days, the absence of a treasurer began to paralyze city operations.
Why treasurer matters
The city treasurer is not a ceremonial role. It is one of the most critical positions in local government. Every financial obligation, from employee wages to utility bills, requires the treasurer’s signature. Without one, money simply cannot move.
This explains why job order workers, who form a large part of the city’s workforce, have not been paid for June and July. Some regular and casual employees have received their salaries, but many are still waiting. Purchases, bills and contracts are also on hold, creating a ripple effect that affects both government staff and the services the city provides to residents.
Councilor David Tumulak, who heads the council’s committee on budget and finance, confirmed that the lack of an authorized treasurer has slowed down the release of funds. He noted that while some employees were lucky enough to get paid before the Ombudsman’s order took effect, others were cut off mid-process because their payrolls could no longer be signed.
Garbage deal that sparked it all
The roots of this crisis trace back to 2021, when Cebu City entered into a multimillion-peso garbage collection and disposal contract. Allegations soon surfaced that the deal involved overbilling, falsified documents and ghost deliveries.
The case dragged on for years before the Ombudsman finally ruled in March 2025. By then, 11 individuals, including both city officials and private contractors, had been indicted. The administrative case that led to the dismissal of Reyes and her colleagues is one of several legal proceedings arising from the scandal.
Searching for solutions
Faced with mounting pressure from unpaid workers and stalled city services, Mayor Nestor Archival has tried to find a fix. He took
these actions:
Meeting with BLGF 7: On Aug. 22, just two days after City Hall received the Ombudsman’s order, Archival met with Bureau of Local Government Finance (BLGF) 7 officials to discuss solutions.
Pushing four proposals: Appoint a permanent treasurer; designate a temporary official to sign documents; authorize assistant city treasurers to process routine obligations; and expedite the selection of a
long-term replacement.
BLGF 7’s response: An official based in Cebu could step in temporarily once Archival submits a formal request, giving the city time until a new treasurer
is appointed.
Potential replacement: Former treasurer Emma Villarete is being considered for the permanent post.
Villarete’s commitment: She confirmed she has been asked to prepare requirements and pledged that her first priority will be releasing delayed salaries and benefits.
“It’s the proper thing to do. We cannot delay the salaries, especially when services have already been rendered with valid and legal documentation… Maybe if I will be given the opportunity to serve at the City Treasurer’s Office, I will also assess which matters should be prioritized,” she said.
Who bears the burden
For now, the people feeling the brunt of the vacancy are the city’s job order workers, many of whom live paycheck to paycheck. Honoraria covering the months of June and July remain pending, and the City Treasurer’s Office has yet to release the exact number of affected employees.
The impact, however, goes beyond individual workers. City operations are hampered, contractors are left waiting for payments, and basic services risk disruption if the situation drags on.
What began as a corruption scandal tied to garbage collection is now affecting everything from employee welfare to the city’s ability to pay its bills.
What happens next
If BLGF 7 approves the City’s request for a temporary replacement, Cebu City could restore some normalcy within weeks. But until that happens, the government remains stuck—able to collect revenues but unable to disburse them.
The episode underscores a sobering reality: a single vacant office, when it happens to be the treasurer’s, can grind an entire City Government to a halt. / CAV, EHP