CEBU, Philippines - Cebu City Acting Treasurer Diwa Cuevas said she can explain and disprove the report of the Commission on Audit (COA) that the city incurred an overdraft amounting to P965 million as of December 31.
Cuevas said she is willing to appear before the City Council if necessary. “Ma-explain man na nako ngadto sa mga konsehal,†Cuevas said.
In fact, she said, she has already explained the matter to COA and state auditors reportedly heeded her explanation and asked her to formalize and simplify the same so it can be understood easily by ordinary people.
Incurring an overdraft means the city’s available funds at the end of 2012 did not meet its total payables, which is over P1.9 billion.
Finance Secretary Cesar Purisima had appointed Cuevas as acting treasurer of Cebu City for six months.
City Councilor Margarita “Margot†Osmeña, head of the City Council’s committee on budget and finance, said they just want to inquire from the Local Finance Committee about the reported overdraft, as well as about some issues discussed in COA’s Annual Audit Report (AAR).
Osmeña said the Council also wants to get the latest on the city’s financial situation because while the city has about P600 million in its General Fund, at least P200 million cannot be used because the amount has been placed on a five-year time deposit while the rest has been tagged by the bank owing to a pending garnishment case in court.
Mayor Michael Rama, in an earlier interview, said the councilors will have time to ask their questions to the Local Finance Committee members when he will finally submit the proposed Annual Budget for 2014 or a Supplemental Budget. —/JMO (FREEMAN)