Margot wants budget for bonus OK’d ahead

CEBU, Philippines - Cebu City Councilor Margarita “Margot” Osmeña wants the P77 million budget for the productivity enhancement incentive of the City Hall officials and employees to be approved ahead of the other items in the P3.32 billion supplemental budget of the city this year.

Osmeña, chairperson of the committee on budget and finance, asked the local finance committee if this is possible because she said they do not want to rush the approval of the supplemental budget.

During the budget hearing yesterday, Osmeña said that the members of the City Council believe that the bonus of the employees is the only “urgent and necessary” among other items in the supplemental budget.

“How can we do that legally? Can we just make another supplemental budget for other items? We have a lot to discuss, PEI is the only priority. We don’t want to rush the other items,” she said.

Osmeña, however, said that it does not mean that the City Council will deny the other items.

“If we are to wait for the other discussions, it’s the PEI that will be stocked. We want to rush the bonus. Kay there are employees nga murag gi-baligya na ang bonus. Everybody wants to get it, even us,” she said.

Osmeña asked if there are other ways to approve only the P77 million. City administrator Lucelle Mercado said the executive department wants the whole supplemental budget to be approved, stressing its urgency.

City Councilors Sisinio Andales and Eugenio Gabuya said that they have been receiving text messages from the City Hall employees asking for the bonus.

“Make it on record, we want this bonus to be fast-tracked. Dili kay basig moingon nga babag nasad ta,” Andales said.

Osmeña asked if the city government can avail the one month PEI bonus or only P5, 000.

City Treasurer Diwa Cuevas said the city can give as much as one-month salary of the employees.

“We were allowed by the DILG (Department of Interior and Local Government) to give the one month salary since we have the seal of good financial housekeeping,” Cuevas said.

Osmeña said the City Council is willing to approve the bonus of the employees ahead of other items since they do not have regular session next week.

“We really want to give this. But, I have to admit that it takes time to discuss other items in the supplemental budget. We also have to acknowledge the items that were charged to wrong department,” she said.

Mercado, however, stressed the primary purpose of the supplemental budget is to fund the prepayment of the South Road Properties amounting to P2.4 billion. Bulk of the proposed additional budget is for the payment of the loan.

“We really want to pay the SRP loan. Let’s not just have a piecemeal approval. If not satisfied, i-remove lang sa items. All the other things asked is really urgent,” Mercado said

She said that the executive department is willing to wait for the two weeks once the City Council will resume its regular session on September 16.

“We can wait for the PEI and we want to pay the SRP loan,” Mercado added.

In 1996, the city entered into an agreement with Japan International Cooperation Agency for the Y12.315 billion or around P4.65 billion loan to finance the reclamation of the 300-hectare SRP. As of now, the city still owes JICA over P2.3 billion, which is scheduled to be fully-paid in 2025.

Mayor Michael Rama is not amenable to approve the P77 million ahead of the other items in the supplemental budget.

Rama said it is the job of the executive department to classify the items as “urgent and necessary,” and not the City Council.

“Nganong sila man ang mag-buot? Executive man ang nag-preparar. And it is the executive department ang mag-determine the urgency. The Council should think about that, expeditious rather than political about the matter. I think they should be reminded,” Rama said.

The sale of SRP amounting to P8.388 billion, down payment of the total bid price P16.7 billion, was identified as the source of fund of the P3.32 billion supplemental budget.

The amount came from the winning buyers of the 45-hectare lot at the SRP. Osmeña asked the Local Finance Committee to submit to the City Council all the communications prepared and forwarded to different agencies by the executive department on the application of the prepayment of the loan.

“We already authorized the mayor to negotiate with the prepayment of the loan. Just furnish us the copy of all documentations so that we can see where we are. Once you get response from these agencies, please also let us know,” she said.

The other requirements for the Local Finance Committee to secure are certification from the Bureau of Local Government Finance that the transaction is within the city government’s debt servicing limit; justification for the prepayment; and concurrence from the Department of Finance as well as from the Land Bank of the Philippines. — (FREEMAN)