Codilla: Use of geothermal royalty fund is above board

CEBU, Philippines - Ormoc City Mayor Eric Codilla hit back at his detractors who accused him of illegally using the royalty fund, which the city government earned from geothermal operations.

“The city’s use of geothermal royalty to finance the improvement of the waterworks system here was above board,” he said, adding that it had the endorsement of the City Council and then DILG Secretary Angelo Reyes in 2006.

Codilla said this matter started in 2006 when Secretary Reyes told the city government to accomplish the requirements if it wanted to use the royalty fund for other than subsidizing the power rate of some consumers in the city.

“Upon compliance of the DILG requirements, it was reviewed by the Commission on Audit, which subsequently gave the city government the go-signal to use the fund for the waterworks system,” said Codilla.

“The use of the geothermal royalty was cleared by the COA, and if the city did an illegal act, it could have been reflected in the annual COA audit report and the city government could have been notified or warned about it,” said the mayor.

Codilla said the camp of his politicial opponents tried to mislead the issue by only asking for an opinion of Justice Secretary Leila de Lima on the provisions of the Local Government Code regarding the use of geothermal royalties.

“Secretary de Lima was correct in her opinion, but then she was not provided with the other details about the DILG’s and the COA’s approval of the city’s other intended use of the money. Naturally de Lima shall base her opinion only on what the law provides,” said Codilla.

“Had they given the city government the chance to give its side on why and how the royalty fund was used for the waterworks project, then the secretary could have issued a different opinion and the public will be provided with the correct information,” said the mayor adding that the improved waterworks system had even benefitted thousands of residents now.  (FREEMAN)