Fund concern stalls drainage projects of city

CEBU, Philippines - While Cebu City keeps flooding every time it rains, approval of six drainage projects costing P12.1 million have been stalled at the City Council since April because of the lack of justification in the sources of funds to finance them.

The council has set an executive session on September 5 to deliberate over the matter.

The council committee on infrastructure headed by City Councilor Roberto Cabarrubias requested for funding of the projects for the rehabilitation and construction of drainage systems in the city last April 30, but the council deferred its approval due to questions on funding source.

The projects involved a drainage system (1.27 million) in Barangay Kinasang-an, and completion of road concreting with drainage system in Barangay Lusaran (P2.4 million) and in Barangay Paril (2.5 million).

The executive department told the City Council funds would be sourced from the 2012 Annual Investment Plan.

The committee  is now waiting for the approved resolution authorizing Mayor Rama, for and on behalf of the city, to enter into and sign a contract with the  contractors.

In a letter addressed to Cabarrubias, City Treasurer Diwa Cuevas explained that these projects are in a 2012 continuing appropriation, or that there are already funds set aside for them as early as two years ago.

“I would like to highlight that these projects are yet to be implemented and thus, no cash was involved. When I certified the funds availability on these projects, it does not mean that funds refer to cash,” she said.

“Upon certifying the funds’ availability, the city has substantial receivables from real property taxes, which in my professional judgment as the city treasurer can be collected and easily be converted to cash and will be used to finance these projects,” read part of the letter.

Cuevas cited Section 306 of the Local Government Code of 1991 that provides that “funds also include other assets convertible to cash such as receivables from real property taxes.”

In its 2012 audit findings, the Commission on Audit recommended for City Hall to record receivables from real property taxes as part of city’s assets, which are considered vital in the analysis of the liquidity of the city’s financial situation.

Cabarrubias has also proposed additional drainage projects in Barangay Basak Pardo (P2.92 million); and rehabilitation of existing drainage systems along Escario Street, Barangay Capitol Site to Barangay Ermita; and along Col. Cabreros Street Barangay Basak San Nicolas to be charged against the Annual Budget in 2012 and that year’s AIP.

Furthermore, there were also proposals on the construction of concrete lined canal with cover in Sitios Niño and Nangka in Barangay Luz (P727,889); rehabilitation of the box-type canal with movable inlet cover in Sitios Nacua, Delos Reyes and Tugas in Barangay Mambaling (P2 million); and  concrete lined canal along Figueroa Street, Barangay San Nicolas Proper (P588,841).

The committee on budget and finance is yet to make a report on the proposed infrastructure plans, which is essential for the project approval.— /RHM (FREEMAN)