AID TO NGOS: City states case before COA on recent memo

CEBU - The Commission on Audit en banc heard the side of the Cebu City officials, who requested them to reconsider the policy that prohibits the local government units from granting financial assistance to non-government organizations whose officers are related to the local officials.

Acting Mayor Michael Rama explained to the COA en banc chaired by Reynaldo Villar that he went there to represent not only the officials of the City of Cebu, but also the Vice Mayor’s League of the Philippines where he is the national president.

Rama was accompanied by Councilor Edgardo Labella and city administrator Francisco “Bimbo” Fernandez.

The Cebu City officials expressed their opposition against COA Circular 2007-001 that prohibits any LGU from giving aid to any non-government organization whose incorporator, director, organizer or officer is related to any local official involved in the approval or release of government funds.

Rama explained that while the local government code encouraged the LGUs to have a partnership with the non-government organizations for better governance, the policy implemented by the COA could be an obstacle for its realization.

Labella who used to be an Ombudsman director before he became a city councilor, argued that it is not the relationship per se that makes a transaction between an NGO and the LGU a corrupt or prohibited transaction, but the additional element of financial pecuniary interest or advantage, direct or indirect, that the official of the NGO possesses or derives from the transaction.

 He started his speech by recognizing the nobility of the purpose of the circular, which is to ensure a graft-free usage of government financial assistance to NGOs and POs, but he also explained that “we are equally apprehensive about the debilitating effects of the said circular on the City’s partnership with NGOs in the sphere of good governance.”

Labella said the circular is only a duplication of the provisions as provided for under the Anti Graft and Corrupt Practices Act, and the Code of Conduct and Ethical Standards for Public Officials and Employees.

The three Cebu City officials told the COA en banc that the non-government organizations being assisted by the city have proven track records of providing services to the public.

Among the NGOs that are getting financial assistance from the city are the Sinulog Foundation Incorporated chaired by Rama, the Cebu City Task Force on Street Children with mayor Tomas Osmeña’s wife Margot as one of the directors, Cebu Pistol and Rifle Association headed by Osmeña’s cousin Rogelio “Jingjing” Osmeña, and Cebu Investments and Promotion Center that was founded by the mayor.

The memorandum was supposedly meant to help prevent graft and corruption.

“Ngano nga sunogon man g’yod nato ang usa ka bodega tungod lang kay dunay pipila ka ilaga nga anaa sa sulod,” Rama said, explaining that it would be better if there are some public officials who are helping in the management of the NGO.

The Sinulog Foundation is receiving P8 million of financial assistance from the city every year to augment its resources for the cash prizes, trophies and other expenses.

But in the case of Sinulog, the problem was already solved. Instead of giving the funds to Sinulog Foundation, it will be the city that will pay the necessary expenses. — Rene U. Borromeo/NLQ (THE FREEMAN)