Fees for US equipment unpaid since February

CEBU, Philippines - Ten months after a US-based company’s donation of disaster preparedness equipment arrived last February, the Cebu City still has to settle the freight and shipping costs amounting to over P2 million.

City Councilors David Tumulak and James Anthony Cuenco were the ones who authored a resolution to charge US$56,000 (P2.6 million) for freight and shipping costs of the donations to the city’s monthly share of PAGCOR funds.

In its regular session last November 19, however, the City Council asked referred the resolution to the City Legal Office for its opinion on whether it is valid that the city government would pay for freight and shipping costs of the donations that arrived last February 17.

The equipment, donated by the Am-Phil Equipments and Logistics in Massachusetts, USA, includes two used ambulances, 10 brand new inflatable boats, three wheel steering type fiberglass speedboats, and two jet skis.

The equipment was given to better equip the Cebu City Disaster Risk Reduction and Management Council in responding to emergencies.

In its legal opinion drafted by lawyer Lyndon Bernardo Basan, the City Legal Office said it is valid to charge the freight and shipping costs of the donation against the city’s share of PAGCOR funds since the project involves the “extension of emergency assistance to the victims of natural disasters and other calamities and terrorism.”

“Considering that the payment of freight and shipping is related to acquisition of hospital and life-saving equipment for disasters and other calamities, the same may be charged to PAGCOR funds,” read the legal opinion.

City Councilor Sisinio Andales, however, moved for the return of the document to the City Legal Office since it was an answer to a different question.

“We are not asking for the validity of the charging of funds, but the validity of the payment,” the councilor said. (FREEMAN)