CEBU, Philippines - The Cebu City government cannot pay just yet the P5.2 million it owes the Red Carpet catering company for its service in the 2010 elections.
City Treasurer Diwa Cuevas said yesterday no budget has been appropriated for the transaction.
“Di jud na siya kabayran (for now) kay wala na siyay budget appropriation. Naa baya nay fundamental principle sa govenrment funds nga no money shall be disbursed without an appropriation,” Cuevas said.
Section 4 (1) of the Presidential Decree No. 1445 or the Government Auditing Code of the Philippines states that “No money shall be paid out of any public treasury of depository except in pursuance of an appropriation law or other specific statutory authority.”
Section 4 (6) of the law provides that “Claims against government funds shall be supported with complete documentation.”
Based on the Report of the Committee of Budget and Finance, the transaction is not supported by an approved Purchase Request, Bids and Awards Committee resolution, Purchase Order, and Notice of Award.
“Diha (in the documentation) gyud na nasango tanan. Wala gyud na siya’y appropriation. That’s the reason why wala gyud na siya na process. We cannot process from the start,” Cuevas said.
The problem started when the city decided to get food from Red Carpet under “emergency purchase” through credit after a fast food chain backed out at the last minute.
In May this year, Red Carpet sought the help of the City Council after the city failed to pay its debt.
“This account has been outstanding since we served the poll watchers during the barangay elections of 2010,” Jose Uy of Cebu Red Carpet Catering Services said in her letter to Councilor Margot Osmeña, the chairperson of the Council’s committee on budget and finance.
Uy said the survival of the company lies with the Council’s help, considering that the company needs the amount to open a new office.
Red Carpet already filed a civil case against the city in 2012, naming Rama and former city treasurer Ofelia Oliva as respondents.
At this point in time, Cuevas said that the only chance for the debt to the paid is if the Council will pass a budget for the payment.
“Maybe yes, of course, pero i-justify gyud na siya,” she said. (FREEMAN)