Council holds off P14.5M for Sinulog Foundation

CEBU, Philippines - Claiming that it has a Commission on Audit restriction on giving aid to any organization whose officer is a local official, the Cebu City Council has withheld the release of financial assistance to the Sinulog Foundation Inc.

SFI, through its Executive Director Ricky Ballesteros, requested financial assistance for the Sinulog Festival 2011 in the total amount of P14.5 million.

Ballesteros said the amount covers the prizes for the winning contingents, financial assistance to the out-of-town contingents and the cost for the grand finale of the Sinulog activity.

City Councilor Jose Daluz III, chairman of the committee on budget and finance, said the financial assistance to SFI for the Sinulog festival 2011 activities will be charged to the city sponsored activity account.

But City Councilor Margot Osmeña said that it would be appropriate that the council get an opinion first from the council committee on laws, ordinance and public accountability before approving the release of the amount.

Osmeña cited COA Circular 2007-001 that prohibits any local government unit 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.

Osmeña is appre-hensive that it may violate audit rules since the board of the SFI, a private organization, is headed by Cebu City Mayor Michael Rama.

But Ballesteros said that the city government’s P14.5 million financial assistance for the celebration could be placed directly in the budget for city-sponsored activities.

“Like the procedures adopted in 2010, the disbursements of the funds will be directly under the city government and will no longer be released to the foundation as financial assistance," Ballesteros said.

Two years ago, the COA exempted the SFI from the circular.

The COA made it clear that the agency, as a rule, does not grant exemptions. However, COA will do so just once for SFI for the holding of Sinulog due to the significance of the festival.

The COA described the annual Sinulog celebration of Cebu City as a “traditional celebration of profound significance” celebrated not just by the city but also by Cebu Province and neighboring provinces.

Auditors said the Cebu City government may grant financial or other assistance to the SFI, but it must be subject to COA’s accounting and audit rules and regulations. (FREEMAN)