Garcia slams Magpale’s declaration of bankruptcy

CEBU, Philippines - It is ironic that only six days before acting Governor Agnes Magpale declared that the Province of Cebu is short of funds that she announced the P30,000 bonus and one sack of rice each for the more than 1,300 Capitol employees, said embattled Governor Gwendolyn Garcia.

Garcia said that the ruling party's orchestrated move to illegally suspend her reached its "most detestable pinnacle" when Magpale brazenly declared that the Province of Cebu is bankrupt."

"Thus, the question may be asked - what did Vice Governor Magpale do as acting Governor in six days that from being able to give millions of pesos in bonuses, the Province of Cebu is now bankrupt?" Garcia asked.

The basis for Magpale's claim that there was a shortfall of funds was the report of Provincial Treasurer Roy Salubre that only P90 million cash is available for general funds of the provincial government while the estimated payables are almost P200 million.

"This interpretation reveals the Vice Governor's elementary understanding of fiscal management and her complete and utter inability to grasp the concept of budgeting, which is a necessary and indispensable tool for local chief executives," Garcia said.

Garcia said that Magpale conveniently omitted that the Province has a Trust Fund amounting to over P204 million and a Special Education Fund amounting to over P61 million.

The report also showed that the Province has a total Cash in Bank amounting to over P387 million.

Garcia earlier said that the Province also has assets of over P28 billion.

Garcia said Magpale allegedly excluded from the Province's supposed financial status its projected revenues, which would cover its projected payables.

On the sale of Province-owned properties, the Province expects revenues of up to P1.3 billion while the Province's Internal Revenue Allotment (IRA) share will be collecting P133 million per month.

The Province also expects hundreds of millions of pesos in revenues from its economic enterprises, real property taxes, permits and other taxes, among others.

In discussing the Province's estimated payables, Garcia said the Vice Governor misled the public by presenting the estimated payables as gospel truth when in fact, by general accounting practice, estimated payables are, as the name connotes, mere estimates.

Garcia also pointed out that checks for payment of P20 million worth school supplies have already been prepared but these checks have not been released by Magpale because they bear her signature.

Contrary to Magpale's claim, Garcia maintained that Province of Cebu is debt-free saying that a debt is an obligation owed by the debtor to a creditor such that of a financial institution.

A payable is money, which a company owes to vendors for products and services purchased on credit.

"The Vice Governor seems to confuse these two varying obligations. Indeed, the Province has present and estimated payables, as it should, as a functioning government unit. However, the Province does not have any outstanding debts to any financial institution. Thus, the Province IS debt-free," Garcia said.

Garcia stressed that it is a duty of the local chief executives to translate the funds of the Province into projects that will benefit the Cebuanos.

"What the Vice Governor has falsely painted to the people as a bleak picture of Cebu's financial condition is not only belied by the Province's Cash in Bank, assets and expected revenues, but more importantly, by the numerous and far reaching projects and services that have benefited millions of Cebuanos," she said.

Magpale was reportedly calling on the Department of Interior and Local Government (DILG) to conduct a further audit of the Province's finances.

"Never mind that the DILG is the very same agency that illegally swore her in as acting Governor. Never mind that the jurisdiction to conduct audits on local government units is with the Commission on Audit," Garcia said.

Garcia said that Magpale is irresponsible, uninformed and downright reckless for her false declarations about the Province of Cebu's financial health being a member of the Sangguniang Panlalawigan for decades.

"As a result, what we, Cebuanos, have toiled and suffered for 443 years to build this great Province, Vice Governor Magpale has destroyed in a single day," Garcia added.

As of press time, The FREEMAN failed to get the comment of Magpale although her son, Provincial Board Member Miguel Antonio Magpale, assured his mother will gladly answer it.   (FREEMAN)