OUTGOING Gov. Gwendolyn Garcia is defending the legality of, and Provincial Board (PB) support for, establishing trust funds to finance several of her flagship programs.
“We intend to continue these programs — legally and above the noise,” she declared. “Cebu must and will continue. How? Watch me.”
Her term concludes on June 30, 2025, following her unsuccessful reelection bid for a third term as Cebu governor during the May 12 midterm elections. She lost to political newcomer Pamela Baricuatro, who garnered 1,107,924 votes, compared to her 765,051.
In the weeks leading to the end of her term, the transition to the new administration has been marred by controversy. Baricuatro has accused Garcia of delaying the turnover of crucial documents and barring meetings with department heads, among other issues.
During the “Spectacular Sugboanon” RCebu Expo at the Robinsons Galleria Cebu on Friday, June 20, Garcia assured the audience that her flagship programs would continue despite the change in leadership.
Last Monday, June 16, Garcia issued Memorandum 36-2025, mandating the provincial treasurer to create a trust fund to secure funding for several of her flagship programs.
“For the past days, you probably have read in the news, I have been putting in place the necessary steps in accordance with the Local Government Code, in accordance with Commission on Audit (COA) memorandum circulars and joint circulars of the Department of the Interior and Local Government and COA, putting in place the necessary steps that would protect the flagship programs of the Province of Cebu,” Garcia said.
Programs slated for funding 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 like Sugbo Kuryente (power supply) in Malapascua and Sugbo Sentro (food court), the revamped Larsian Food Park, are also supported.
The directive covers other accounts such as lot sales settlements, bridge maintenance and development funds tied to national laws like Republic Act 7638, or the Department of Energy Act of 1992. It also repeals any conflicting policies and ensures that all fund usage aligns with audit regulations and local ordinances.
During the RCebu Expo, Garcia highlighted that her flagship programs have been benchmarked by local government units across the Philippines, which are attempting to emulate them in their own localities.
“Flagship programs that other local government units, whether they be provinces, cities, or towns, have been traveling all the way from their own localities to learn from us with their benchmarking activities, asking how was the Suroy Suroy Sugbo done? How was the Pasigarbo sa Sugbo? What about Sugbusog, Sugbo Negosyo, Sugbo Kahanas, the Enhanced Countryside Development Program? Who is to maintain? Well, with the full support of the Provincial Board, for many of these programs, as you probably read in the news, we have put in the necessary protection so that these programs continue,” she added.
Last Tuesday, June 17, the governor-elect’s transition team announced they would review the legality of the trust funds, focusing on whether enabling ordinances exist to support their creation. Baricuatro accused Garcia of creating the trust funds, describing it as an act of “sabotage.”
Baricuatro said she would review, assess and, if necessary, revoke any illegal or questionable provisions of this memorandum. Seeking legal remedies against the memorandum, to ensure that the rule of law prevails and that the Province’s resources are used properly, remains an option for her team.
Under Section 309(b) of the Local Government Code of 1991 and COA Circular 92-382, trust funds, defined as public or private monies held by a local government as trustee, must be used strictly for their intended purposes.
Regarding the controversial trust funds that finance several of the Province’s flagship programs, Garcia asserted their legality and purpose.
“These programs were carried out in accordance with the law,” she said. “They have been benchmarked by other provinces, and with the full support of the Provincial Board, we put in necessary protections.”
While critics have questioned the legal basis of these trust funds, Garcia dismissed such doubts, describing them as “noise” and “perhaps unenlightened or ignorant.”
Incoming Vice Gov.-elect Glenn Soco pointed out that some of the programs are supported by provincial ordinances.
He added that the creation of trust funds falls under the discretion of the Office of the Governor.
He also noted that the PB scrutinizes the executive department’s proposed annual budget every year.
“I believe this program [is derived] from the annual budget and it is even in the Annual Investment Program of the Provincial Government,” said Soco.
The RCebu Expo features various products from towns and a city in Cebu’s 3rd and 5th Districts from June 21-23.
“This feels like a graduation,” Garcia remarked during the event, likening the end of her term to a commencement that signals both closure and new beginnings.
“Public office is a public trust. The voice of the people is the voice of God,” Garcia added, reiterating a principle she has often invoked throughout her tenure.
She said that by June 30, “we now become ordinary citizens,” suggesting a return to private life — yet hinting at continued involvement in public affairs.
She added that after being in public service since 2004, she will now have time to prioritize herself.
The R’Cebu Expo serves as an avenue for local entrepreneurs across the province to showcase their products inside a mall, an initiative that started amid the Covid-19 pandemic and after the onslaught of Typhoon Odette. / EHP