Rama earmarks P50M for loans to employees

CEBU, Philippines - Cebu City Mayor Michael Rama has earmarked P50 million in the 2012 annual budget as a loan fund for the city employees.

City administrator Jose Marie Poblete yesterday admitted during the budget hearing conducted by the City Council that part of the P1,076.8 billion allocation under the Office of the Mayor will be granted as loans for employees to save them from the “loan sharks.”

Poblete appeared on behalf of Rama to justify the budget of the office of the mayor. He however failed to justify some of the items and leave it for the members of the council to decide whether or not to retain it in the final draft.

Vice Mayor Joy Augustus Young said they are not against the idea of the city government’s granting loans to employees. However, Young said he is not sure about its legality and whether or not it will be approved by the Commission on Audit.

“Dili man ni maisip nga dole outs, bayaran man gihapon ni nila,” Poblete explained.

According to Poblete, the guidelines for the program, as soon as the budget is approved by the council, will be submitted for approval by the legislative department.

In yesterday’s budget hearing, the members of the council questioned some of the items in the budget under the mayor’s office. Among the items scrutinized were the personnel services, intelligence fund and budget for the anti-drugs campaign.

Surprisingly, the members of the council did not tackle the controversial P50 million budget for the purchase of a barge. Young however explained that this does not mean that they will approve it.

Councilor Margarita “Margot” Osmeña, who chairs the committee on budget and finance, questioned why the budget for salaries and other benefits has been increased from P64 million this year to P75 million in 2012.

Poblete said the increase in personnel services is due to the city government’s expected compliance of the Salary Standardization Law next year.

Councilor Augustus Pe Jr. likewise questioned Poblete on the whooping increase in the budget for anti-drugs campaign next year from P3 million to P24 million when Joey Herrera, head of the City Office for Substance Abuse Prevention (COSAP), admitted his projects only need about P7.2 million.

Philipp Zafra, the mayor’s chief of staff, also did not escape from the grilling on the hefty P24 million intelligence fund next year when this year’s budget was only P6 million.

Although Cebu City Police Office director Melvin Ramon Buenafe already explained that the intelligence fund will help them improve the peace and order situation in the city.

According to Zafra, the P24 million budget for intelligence fund next year represents the 3 percent of the overall budget proposal, which is allowed by law.

Another items questioned by the members of the council was the P30 million allocation for the construction of arches to serve as boundary of each barangay and the P18 million budget for the ‘city-sponsored activities”.

According to Poblete, the city-sponsored activities next year was increased from P5 million this year because of the activities lined up for the upcoming 75th Charter Day celebration of the city.

Young advised Poblete to ensure that the P50 million allocation as “good will” deposit to the provincial government will serve its purpose.

“Magasto na ‘sab na sa lain,” Young said.

The amount is part of the proposed settlement brokered by Vice President Jejomar Binay to help the city residents occupying the province-owned lots who are endangered of being evicted.  (FREEMAN)