CEBU Gov.-elect Pamela Baricuatro has criticized outgoing Gov. Gwendolyn Garcia for creating trust funds to secure funding for her flagship programs amid the leadership transition, describing the move as an act of sabotage.
In a statement on Tuesday, June 17, 2025, Baricuatro said she will review and assess Garcia’s Memorandum 36-2025, adding that her incoming administration may seek to revoke any illegal or questionable provisions.
Baricuatro described the memorandum, issued on June 16, just weeks before Garcia’s term ends on June 30, as a last-minute attempt to manipulate the provincial budget.
“This act of sabotage undermines the trust placed in us by the people of Cebu and threatens the fiscal integrity of our province,” she said.
Baricuatro called the action a “blatant disregard for the principles of good governance and democratic transition,” and an “outright violation of legal and ethical standards.”
While the creation of trust funds is allowed under Section 309(b) of the Local Government Code of 1991 and Commission on Audit (COA) Circular 92-382, these regulations mandate that such funds must be used strictly for their intended purposes.
The governor-elect described Garcia’s move as an “abuse of power designed to hinder the incoming administration’s ability to serve effectively.”
Trust funds
Governor Garcia, in issuing Memorandum 36-2025, directed Provincial Treasurer Roy Salubre to establish trust funds for various provincial programs, including flagship initiatives like Suroy Suroy Sugbo, Sugbo Segurado and Sugbo Negosyo, among others.
Baricuatro will succeed Garcia on June 30 after defeating the latter in the midterm elections last May 12.
Trust funds are defined as public or private monies held by a local government as a trustee.
Programs that will be funded under these trust accounts include Suroy Suroy Sugbo (tourism), Sugbo Segurado (insurance), Sugbo Negosyo (livelihood), Sugbo Kahanas (skills training) and Sugbo Patubig (waterworks). Newer initiatives such as Sugbo Kuryente (power supply) in Malapascua and Sugbo Sentro (food court), the revamped Larsian Food Park, are also supported.
Last May, after her proclamation as governor-elect, Baricuatro told reporters that she will discontinue Suroy Suroy Sugbo and Pasigarbo sa Sugbo. Baricuatro cited high costs, logistical challenges and significant concerns over public welfare as the primary reasons for her decision.
Garcia’s directive covers other accounts like lot sales settlements, bridge maintenance and development funds tied to national laws. It repeals any conflicting policies and ensures that all fund use aligns with audit regulations and local ordinances.
The transition team of the governor-elect has said that it will review the legality of the trust funds, focusing on whether enabling ordinances exist to support their creation.
Team head Edmund Lao said that without such legal basis, the incoming administration may revoke the memorandum issued by outgoing Governor Garcia. / EHP