City Council approves P2.5 billion Supplemental Budget-2

CEBU, Philippines — The Cebu City Council approved yesterday the P2.5 billion supplemental budget which will be funded from the proceeds of the controversial sale of the South Road Properties (SRP) lot.

In a vote of 10-7 with one abstention, the council approved the budget ordinance amounting to P2,532,973,460. Bulk of the budget covers the P455 million financial assistance for senior citizens; P300 million for medical equipment for the new Cebu City Medical Center; P100 million for the first, lower and upper ground of CCMC new building; P250 million digital traffic system; P268 million for the construction of medium rise building; P100 million for site development; P150 million for opening of roads; among others.

Those who voted for the approval of the supplemental budget were Councilors Raymond Alvin Garcia, David Tumulak, Renato Osmeña, Jr., Joel Garganera, Antonio Cuenco, Jerry Guardo, Donaldo Hontiveros, Eduardo Rama, Jr., Prisca Niña Mabatid, and Phillip Zafra.

Bando Osmeña Pundok Kauswagan (BOPK) Councilors Nestor Archival, Sr., Joy Augustus Young, Eugenio Gabuya, Jr., Alvin Dizon, Raul Alcoseba, Lea Japson, and SK Federation President Jessica Resch objected to it while Association of Barangay Councils (ABC) President Franklyn Ong abstained from voting.

The opposition-allied councilors were banking their objections on the pending case filed by Romulo Torres and former mayor Tomas Osmeña against the utilization of the proceeds of the SRP lot sale.

The executive department has identified the P2.19 billion lot payment of SM Prime Holdings, Inc. and P333 million lot payment of Cebu Holdings, Inc. as among the sources of funds for the supplemental budget.

In a privilege speech, Archival said the dismissal of the Torres case is not yet final while there is also a pending petition for declaratory relief filed by Osmeña.

“Contrary to the assertions of the other members of this August Body, there are still legal obstacles that prevent the use from using the proceeds of the SRP sale. If we insist on using the same, it might result to liabilities which the city could not afford to have,” Archival said.

He said there is a supplemental agreement between the buyers of the SRP lot and the city government to put on trust account the 30 percent including the interest accruing and shall be released to the city government if the City Council can pass an ordinance confirming and ratifying the authority of the mayor to execute the negotiated sale. To date, he said there was no ordinance passed on the matter. 

While saying he is not against the sale, Archival said the city should defer the use of the funds until all legal questions and issues are resolved with finality. He asked the executive department to look for other source of fund.

Tumulak, who used to be with BOPK, said there is no more legal impediment to use the SRP funds because the court has already dismissed the Torres case and granted the withdrawal of the declaratory relief filed by the previous members of the City Legal Office questioning the legality of the sale. — FPL (FREEMAN)