P126 million needed to plug calamity fund

CEBU, Philippines - The Province of Cebu still has to look for money to fill in the unexpended balance amounting to P126.48 million in the calamity fund during the time of then governor, now third district Rep. Gwendolyn Garcia.

The Commission on Audit earlier asked the provincial government to transfer the said amount to a special trust fund in compliance with Republic Act No. 10121, otherwise known as the Philippine Disaster Risk Reduction and Management Act of 2010.

Acting provincial treasurer Emmanuel Guial yesterday said that they cannot comply with the law yet because no cash is available.

Guial considered the amount as "payable from General Fund to the Trust Fund."

Last year, the Province of Cebu appropriated five percent or P98.72 million for Local Disaster Risk Reduction and Management Fund in its General Fund for the 2013 annual budget, but only P36.89 million was used, leaving a balance of P61.84 million on top of the P64.64 million balance the previous year, or a total remaining balance of P126.48 million.

The law provides that the unexpended balance of the LDRRMF shall be transferred to a special trust fund to act as a standby fund available for use without delay in the event of any disaster or calamity within a period of five years.

Any fund transferred to a trust fund account can no longer be used except for the purpose for which it was established.    

The law also provides that any such amount still not fully utilized after five years shall be reverted back to the general fund and made available for other social services to be identified by the local council.

Vice Governor Agnes Magpale earlier said that when she assumed office as acting governor, she asked the provincial treasurer to set aside P7.5 million per month out of the Internal Revenue Allotment starting January 2013.

Guial said that the P7.5 million is not yet a trust fund, adding that at the end of year they still have to account for how much of the fund would be left.

For this year, the Province of Cebu has appropriated P108 million for LDRRMF.

Guial said that should there be an unexpended amount for this year, this will be transferred to the Trust Fund for LDRRMF.

COA earlier noted that the total unexpended amount was not transferred to a special trust fund because of a conflict of opinion between the provincial accountant and the then provincial budget officer.

The provincial auditor had reportedly long responded to the query of the provincial budget officer on the issue, but to date, the same office continues to inquire as to the procedure even citing the closing of the books of accounts as an excuse.

Aside from this, no report on the utilization of the LDRRMF was prepared and submitted to the auditor for review and evaluation. — (FREEMAN)