For lack of City Council authority: COA disallows P800M brgy aid

CEBU, Philippines - The Commission on Audit has issued a Notice of Disallowance to the Cebu City government’s P800-million “City Barangays-Financial Assistance for Various Projects” due to “lack of required authorization” from the City Council.

With this, State Auditor IV Maria Daisy Bercede directed Mayor Michael Rama, City Accountant Mark Salomon, City Treasurer Diwa Cuevas, City Budget Officer Marietta Gumia, and Barangay Tejero Captain Jessielou Cadungog, who are all “persons liable,” to settle immediately the disallowance.

“Aid to City Barangays-Financial Assistance for Various Projects in the amount of P800,000,000, is disallowed in audit due to the lack of the required authorization of the Sanggunian on the list and cost of Projects to be implemented, contrary to the City’s Appropriation Ordinance No. 2417 (2015 Annual Budget),” read the notice.

Bercede said disbursement of P800 million for various projects of different barangays of the city from September to December 2015 should have had an authorization from the City Council “prior to its release.”

She said that the Department of Budget and Management March 18,2015 budget review stated that “the utilization of all appropriations for Capital Outlay under the Local Development Fund and the General Fund-Proper, including Non-Office, more specifically the lump-sum appropriations shall, as may be applicable, be subject to the authorization of the sanggunian on the list of projects.”

DBM had cited as jurisprudence as Supreme Court decision in the case of Hon. Gabriel Luis Quisumbing, et.al. vs. Hon. Gwendolyn F. Garcia, et. Al. G.R. No. 175527, December 8, 2008, which resolved the question on whether a City Council authorization is needed separate from the appropriation ordinance.

The Supreme Court decision stated that “resort to the appropriation ordinance is necessary in order to determine if there is a provision therein which specifically covers the expense to be incurred or the contract to be entered into.”

Cuevas said the notice of disallowance was referred to the City Legal Office so that the city government can answer and appeal the COA decision.

Bercede said Section 5 of the specific provisions under Non-Office (General Public Service) states that the aid to the city barangays will be disbursed subject to the submission of the barangays’ development plans and approval of the project proposal by the City Council.

Bercede said the city has disbursed the P800 million to different barangays of the city without the approval of the City Council, thus the notice of disallowance.

She said the city government can appeal the audit disallowance within six months from receipt of the copy.

If the city will fail to appeal within the given period, Bercede said, the notice of disallowance shall become “final and executory.”

She said Rama is liable since he approved the release and he certified that charges to appropriation or allotment was “necessary, lawful and under his direct supervision.”

THE FREEMAN tried to ask for Rama’s comment but to no avail.

Tejero Barangay Captain Jessilou Cadungog, though, said his barangay has received a copy of the disallowance notice yesterday but he was not able to read it yet.

“So far, naa pa sa bangko among kwarta kay wala mi nakapa-bid out kay naa bayay election ban karong March 25,” he said.

Cadungog said the P8 million that the barangay received from the city last December 2015 is supposedly used to purchase a ten-wheeler truck, a shuttle service, and for other projects of the barangay.

“Maayo gani wala pa namo nagasto,” he said.

Sought for comment, Association of Barangay Councils President and Tisa Barangay Captain Phillip Zafra said he, too, has not received yet a copy of the notice.

Zafra, who is an ex-officio member of the City Council, said he would just reserve his comments until he receives a copy of the COA disallowance. — /RHM (FREEMAN)