Baricuatro questions legality: Guv eyes trust funds

CEBU, Philippines — Outgoing Cebu Governor Gwendolyn “Gwen” Garcia has issued a memorandum directing the establishment of trust funds for at least 15 provincial government programs, prompting legal questions from the transition team of Governor-elect Pamela Baricuatro.

Memorandum No. 36-2025, dated June 16, was addressed to Cebu Provincial Treasurer Atty. Roy G. Salubre. It seeks to institutionalize the allocation of funds for various initiatives, including flagship programs such as Suroy-Suroy Sugbo, Sugbo Segurado, and Sugbo Negosyo.

Garcia cited Section 309(b) of the Local Government Code of 1991 and existing Commission on Audit (COA) regulations as the legal basis for creating the trust funds.

The directive also covers funding for both ongoing and newly launched initiatives, including Sugbo Kahanas, Sugbo Patubig (for Carmen and Moalboal Waterworks), Sugbo Kuryente in Malapascua, Sugbo Semento, and Sugbo Sentro.

Also included are allocations for tourism-related programs like Canyoneering and River Adventure, the CPG Lot Sales, the Settlement Account (interest on overnight placements), the Mactan-Cebu Bridge Management Board, and ongoing projects under the 20 percent Development Fund.

In addition, the memorandum mandates the creation of trust funds for the Development and Livelihood Fund (DLF) and the Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF), pursuant to Republic Act 7638, or the Department of Energy Act of 1992.

According to COA, trust funds refers to money held by the government for a specific purpose, not available for general use. These funds must be used only for their intended purpose and must be accounted for separately from the General Fund.

However, the move has come under legal scrutiny from Baricuatro’s transition team.

Atty. Edmund Lao, who heads the team, said they currently lack access to records showing whether ordinances exist to legally authorize such trust funds.

“So we do not know sa pagkakaron kay June 30 pa man makuha namo ang records nga ma-determine kung naa ba juy authority based on sa ordinances nga allowing the creation of the trust funds,” Lao said in a phone interview.

He emphasized that all budget-related matters must be backed by ordinances passed by the Sangguniang Panlalawigan.

“Kung wala, dili pwede mag-direct lang ang governor to create trust funds,” he added.

Lao further explained that while some programs may already have enabling ordinances, it remains to be seen whether those laws specifically authorize the creation of trust funds or merely allocate funds under the General Fund.

“Not necessarily nga maghimo ka og trust fund. Pwede naay ordinances but ang mga pondo kay part of general funds. Kung naa’y dili magamit, naa manay proseso kung asa gamiton,” he said.

He warned that if no legal authority exists for some of the trust funds being created, the memorandum could be deemed invalid.

The creation of trust funds may also limit the incoming administration’s ability to realign unused General Fund resources to new or urgent priorities.

“The incoming administration will responsibly exercise its powers to ensure the continued needed public services including revocation of the circular when necessary,” Lao assured.

He also signaled that revoking the memorandum is possible if it is found to lack legal basis.

Lao emphasized that while no conclusions have been made yet, validating the trust fund directive will be a priority after the June 30 turnover.

He also noted that Suroy-Suroy Sugbo, one of the programs listed in the memorandum, was previously identified by Governor-elect Baricuatro as a program she plans to discontinue.

“Precisely, mao to ang among gi-propose nga before June 30, naa juy exchange of ideas and records para walay misunderstanding,” Lao said.

He added that the lack of communication between the outgoing and incoming administrations makes it difficult to verify the intent and legality of certain end-of-term decisions.

The transition team reiterated that only the Sangguniang Panlalawigan has the authority to create trust funds, and that this power cannot be exercised solely by the governor or the treasurer.

“But if walay authority because walay ordinances for the creation of the trust fund for those particular programs, and memorandum circular ang gi-basehan, then the governor is warranted, pwede ra niya e-revoke ang memorandum circular,” Lao said. — (FREEMAN)