CH P267 million SB2 declared inoperative

CEBU, Philippines - The Department of Budget and Management has declared inoperative the P267 million Supplemental Budget No. 2 of the Cebu City government.

DBM-7 director Carmela Fernan said that some items of the budget are not found in the 2012 Annual Investment Plan and the amended AIP.

Fernan said it has however “substantial compliance” with the Local Government Code and its “Implementing Rules and Regulations.”

City accountant Diwa Cuevas said payments for the projects and expenses under the appropriation “could be disallowed” because of the DBM declaration. She could not however tell whether the entire amount was already spent.

If it was, the legal consequence would be for the members of the Local Finance Committee who signed the disbursement of the funds to refund the money.

Cuevas said they are now in the process of seeking clarification from the DBM which items in the SB 2 are covered by the ruling. She however believes that the DBM may have been referring to P5.1 million Local Development Plan projects.

Councilor Jose Daluz, who pushed for SB2, said they are expecting it to happen and has prepared for it.

“I’m not surprised. We will file a reconsideration as we have done with the others,” Daluz said in a text message sent to The Freeman.

The P267 million SB2 is composed of P243.6 million general fund proper

through Appropriations Ordinance 2341 and P23 million special accounts

through Appropriations Ordinance 2342. (FREEMAN)