Lot purchase not in annual budget, investment plan

CEBU, Philippines - The Capitol purchase of the 24.7-hectare Balili property in 2008 was not among the items found in the annual budget and the annual investment plan of the province.

The Provincial Board approved on December 3, 2007 the Appropriation Ordinance 2007-15, otherwise known as the budget ordinance of the province for 2008 amounting to P2.2 billion.

As proposed by Governor Gwendolyn Garcia, P1.2 billion was earmarked for the general fund proper, P690 million was allocated for the development fund, P193 million for the operation of the district hospitals and P21 million for the South Bus Terminal.

On August 20, 2008, PB approved a supplemental budget amounting to P756.9 million wherein P528.6 million was allocated for the development fund. Nothing in the annual budget and the supplemental budget included the acquisition of the Balili property in Barangay Tinaan, Naga which cost the province P98.9 million.

The annual investment plan of the province which charted all the development projects of the provincial government for 2008 likewise did not show that the Balili property was among the projects for the year.

Provincial Planning and Development Office Adolfo Quiroga and Budget Officer Emme Gingoyon who appeared earlier before the Adhoc committee of the Provincial Board claimed that the amount used in the acquisition of the property was taken from the 20-percent development fund.

Quiroga and Gingoyon said this was taken under the item site development and housing program. The 2008 budget showed that only P50 million was allocated for site development and housing program.

Since this was not enough to cover the entire P98.9 million Balili transaction, Capitol officials claimed the deficit was covered in the supplemental budget.

Some provincial board members who wished not to be quoted admitted that it is questionable to use the budget for site development in the acquisition of property, saying it is awkward to develop something that is not in the possession of the province yet.

In fact, Provincial Board member Victor Maambong asked during one of the hearings of the Adhoc committee why the amount was not taken from the capital outlay. Maambong said he was of the opinion that property acquisition should be considered a capital outlay.

Maambong earlier asked Gingoyon what was his legal basis in using the site development instead of the capital outlay, to which the latter answered he used the Local Government Code especially Section 287.

PB member Wenceslao Gakit, chairman of the committee on budget and appropriations of the provincial board, told The Freeman that the Balili lot purchase was covered in the annual budget and the annual investment plan.

He said that as explained to him by the executive department, the budget was taken from the site development and housing program. It is however questionable for the Capitol to use the budget for housing program to acquire the property because it was not used for its housing project.

In fact, the Capitol already entered into a Memorandum of Agreement with the Korean Power Corporation sometime in July to allow the latter to dump coal ash in the Balili property.

The Capitol purchase of the property is now under investigation by the Office of the Ombudsman Visayas after it was found out that a large portion of it is submerged in water.

Aside from the anti-graft office, Garcia also created a committee led by the National Bureau of Investigation to conduct an investigation on top of the on going inquiry by the provincial board. — Fred P. Languido/WAB     (THE FREEMAN)