Rama wants COA, Ombud to investigate Rallos payment

CEBU, Philippines - Cebu City Mayor Michael Rama is planning to request the Commission on Audit (COA) and the Office of the Ombudsman to investigate the legality of the P56.1 million paid by the previous city administration to the heirs of Fr. Vicente Rallos.

Rama learned, through official court records, that the city during the stint of then mayor and now Cebu City South District Rep. Tomas R. Osmeña, paid the Ralloses the amount of P56,196,369 for the 4,654 square meter of road lot along Barangay Sambag II.

The mayor said he will encourage the COA to conduct a post-audit investigation on the propriety and legality of the previous release of the amount in favor of the Ralloses because it is contrary to the provisions of the State Audit procedures and Supreme Court Circular 10-2000 which provides that all garnishment of government funds shall be referred first to the COA and shall never be paid right away.

Rama said as a constitutional body and an independent institution, the Office of the Ombudsman can conduct an investigation or inquiry on its own without the need of a request to satisfy that the previous release of P56.1 million was completely aboveboard.

Osmeña said he is not afraid that COA and Ombudsman will investigate such releases because of the said amount, P34 million has been garnished from the city’s depository bank upon the order of the court.

Rama’s consultant, lawyer Jade Ponce, also questioned the transaction because in spite of the city having already paid P56.1 million to the Ralloses for their lot which originally cost P34 million, the amount continued to balloon and already reached P133 million.

The city has no plans of paying the amount which is why they are questioning the order of the Regional Trial Court (RTC) before the Court of Appeals.  (FREEMAN)