3 LGUs in Iloilo face money woes

ILOILO CITY, Philippines — At least three local government units (LGUs) in Iloilo province are now beset with problems on deficient funds to finance their operations for the rest of 2013.

The mayors of these three LGUs-the towns of Dumangas, San Enrique and Cabatuan-have admitted taking austerity measures upon assumption of their posts due to lack of funds in their respective government coffers.

Dumangas Mayor Rolando Distura, said that, on top of the debt left by the previous administration, he is now facing a near-empty treasury. "For one, the fund allocated for assistance in crisis situation, which is usually given as aid to indigents, was left with almost nothing," he said.

Under the 2013 budget, P1 million was allocated for the purpose. Before the second quarter of the year, his predecessor requested for P300,000 supplemental budget while then Rep. Ferjenil Biron also provided P500,000.

"Of the P1.8 million, when I assumed post last July 1, what was left was P1,200. It was unfair because we deemed it was inappropriately used," Distura said, also noting that the LGU and the DBP inked a P13.5 million loan agreement, which will mature on April 2016.

The money was used for the construction of the transport terminal, said Distura. "I acknowledged that the intention was good, but my hands are now tied because of the brittle fund when I took over," he added.

Distura last week delivered his state of the municipal address (SOMA) "to let the people know of the true condition of our town because I want transparency." He admitted though that the LGU still has some money in the bank but then this might not be enough to cover the rest of the year.

San Enrique Mayor Ramona Palabrica-Go said there were 77 job hires in her town in addition to about 70 regular employees, and that almost half of the LGU's internal revenue allotment were spent for their salaries, amounting to about P2 million. "Our IRA is only P4 million. So, we are left with meager amount for development purposes," she said.

Cabatuan Mayor Ronilo Caspe, for his part, said the LGU has problems on the number of "job hires" by the previous administration, prompting him to slash this from more than a hundred to only 30.

The previous administration bloated the job hires a few months before the May 2013 polls. "Of the P3.5 million salary for the job hire, only P900,000 was left when I assumed office," Caspe said, adding that this remaining amount may not be enough to cover the rest of the year unless more cuts are implemented.

Caspe said the previous administration has left a substantial amount to cover the delivery of basic services. "Our debts are also very minimal," but then the LGU has a problem on paying the P160,000 electricity bill, among others.  (FREEMAN)