Due to civil case: Council defers P2.8B budget

CEBU, Philippines - The Cebu City Council will not approve the proposed P2.8 billion Supplemental Budget 1 for this year until the court resolves the civil case filed against the councilors.

A certain Romulo Torres has sued the city government, including the council, to stop it from using the proceeds from the sale of lots at the South Road Properties. The city has collected over P8.5 billion from the sale of a 45.2-hectare area at the SRP.

Yesterday, Councilor Margarita Osmeña, chairwoman of the Council’s committee on budget and finance, said it is but “prudent” to defer the approval of SB1 until the court renders its decision.

Osmeña said that as the “final approving party, the Council would be “personally” held liable and accountable if the court will in Torres’ favor.

“In view of the pending case filed in court - Civil Case for declaratory relief, injunction with payer for temporary restraining order and writ of preliminary injunction filed by a certain Romulo Torres against the members of the Sangguniang Panlungsod of Cebu naming each and every one of us as the respondents, would it not be prudent that we hold in abeyance the passage of the (budget) ordinance, which we would have presented before this August Body today (September 30)?” she said.

The deferment would yet again stall the funding for certain items, including the P87 million for the garbage tipping fee, P77 million productivity enhancement incentives to employees, P2.3 billion prepayment of the SRP loan, among others.

In filing the case against the city, Torres contended that the resolution the City Council passed that authorized Mayor Michael Rama to dispose of the property at the SRP violated City Ordinance 2332, “An Ordinance protecting the South Road Properties and its Stakeholders from Unlawful and Unauthorized Transactions and Dealings.”

The executive department has proposed a P3.32 billion SB 1 but Osmeña’s committee slashed the budget down to P2.8 billion.

With the deferment, the council asked the executive department to look for other sources of funds so that the P87 million for garbage tipping fee and P77 million for the employees’ productivity enhancement incentives can be released.

“We strongly suggest that the executive department and the Local Finance Committee look into other sources of funds such as the realignment of continuing appropriations that may include but not limited to the various capital outlays for 2012, 2013, and 2014 amounting to P91 million, P130 million, and P75 million (as of January 2015), respectively,” Osmeña said.

She said this will not be the time the executive department would realign appropriations to fund “urgent” projects.

She recalled the time City Hall realigned the SB 1 in 2014 amounting to P325 million, the funds of which came from the continuing appropriations from 2009 to 2014. The fund was intended for a drainage project but was used instead to construct the Cebu City Medical Center.

As far as the productivity enhancement incentive is concerned, the city seeks to grant an equivalent of a month’s salary City Hall employees and officials pursuant to Executive Order No. 181 issued by the Office of the President in June.

Funds for the tipping fee have been depleted since August. — /JMO (FREEMAN)