CH starts CCSC financial audit

CEBU, Philippines - The Internal Control Office of the City Hall has started auditing the Cebu City Sports Center after Mayor Michael Rama ordered them to conduct a financial audit and physical inventory of the facility.

Rama’s memorandum order was triggered by the question on the security at the sports center following the burglary incident involving more than P1 million of funds owned by the Sinulog Foundation Inc.

The funds kept at the center’s safety vault was lost to burglars a day after the Sinulog Grand Parade.

The incident gave more reason for the city government to take over the management of the facility which is currently managed by a committee formed in 1994.

ICO chief Arlene Rentuza said that they have conducted initial auditing last Friday where they gather documents to analyze the organizational structure at the facility.

Rentuza said they want to know the basis why the facility is operating independently from the city government while it is identified as a city government facility.

Rentuza showed the first Executive Order issued by then mayor now Representative Tomas Osmeña in 1994 creating the Cebu City Sports Center Management Committee and defining their functions and responsibilities.

E.O. 94-04 appointed the pilot members of the committee composing of Vice Mayor Joy Augustus Young as the chairman, Eladio Dioko, who was then with the Department of Education, as the Vice Chairman, and Juan Aquino Jr., Leonilo Oliva and Victor Machacon as members.

The executive order mandates that the committee is responsible in the daily operations and maintenance of the facility and may promulgate rules and regulations to govern its operations.

“This is maybe why they are operating independently from the city government. But supposedly, they ought to report to the city about what’s going on with their operation since it is the mayor who created them,” Rentuza said.

The sports center is self-sustaining and self-liquidating. Rentuza said the Commission on Audit used to examine their operations but it stopped because COA is also confused who owns the property.

Rentuza however said that the center is registered at the Bureau of Internal Revenue as a government corporation. The facility earns more or less P1 million a month from rent and entrance fees. But Rentuza said the income is almost equivalent to the expenses in maintaining the facility.

The sports center was built by the city government to host the 1994 Palarong Pambansa. But after the event, confusions on who will manage the facility have become a problem. Three entities have contributed to the construction of the facility – the city government for most of the structures, the Department of Education for the lot and the Philippine Sports Commission for the swimming pool.

It was agreed then by the Philippine Sports Commission, Department of Education and the city government to entrust the management to the latter, thus, the creation of the management committee.

 Rentuza said the ownership of the facility is now in question because she heard from CCSC Manager Ricky Ballesteros that Abellana National School is asserting rights over the property.

The lot where the facility stands is under the name of Abellana National School but the lot where the school stands belongs to the city government. Rentuza said they are yet to check if there was a land swap during the time.

Rentuza said that it is important to know who the rightful owner of the property is because the city is pouring millions for the improvement of the facility, which would be deemed illegal if it later turns out to be a private property. (FREEMAN)