CH to appeal “tied” budget

CEBU, Philippines - The Cebu City Legal Office vowed to exhaust all administrative remedies for the city government to be able to use the over P240 million which was tied by the Department of Budget and Management after it declared inoperative part of the 2014 Supplemental Budget Number 2.

DBM-7 declared inoperative P241.52 million out of the P243.72 million in the general fund under the SB-2, which includes the P30.25-million reversion of accounts payable in 2011 and P211.27-million retained operating surplus in 2013.

“We can file necessary review mechanism either we appeal or we challenge it...if they will not reconsider we will elevate it to the Office of the President, that’s allowed under the exertion of administrative remedies, if the latter denies it we will elevate the matter to the courts of if again denied we can elevate it to the Supreme Court, as the final arbiter, to say whether the sources are really inoperative,” City Attorney Gerone Castillo said during yesterday’s executive session.

 Castillo contended that they can challenge DBM’s declaration considering that two questioned sources were used as sources of fund for 2005 to 2013 Local Development Fund, which was declared operative by DBM.

 “That’s why, in order to exhaust administrative remedies, we will challenge the declaration made by DBM. We will prove that consistent with the application of law in previous years these were the same sources declared operative. Why there is a new declaration inconsistent with previous one?” he said.

 He said they will peruse the letter for the necessary appeal or exhaustion of all remedies allowed under the law. They received the letter on February 23.

Councilor Margarita Osmeña concurred that the said funds were considered in previous years, however, the actual availability of funds might have contributed to the said finding.

 “Maybe we can look in the past, maybe the same sources were accepted when the funds are actually available. Maybe, looking at the balances at certain point that it has exceeded the estimated target as of the time, that’s we might consider or look into,” she said.

 Osmeña pointed out that for four consecutive years since 2011 the city has been failing to meet its target revenues.

 “I worry about the financial side because any collection this year is for this year’s budget. We have not reached our target revenues. This is hard. But, if will continue doing this disallowances and observation reports from COA and DBM will not end. So, we must be prudent enough,” she added.

 Moreover, Councilor Alvin Arcilla asked if the city can validly charge against the questioned account owing to the report of DBM.

 Castillo said it is the prerogative of the city mayor. “He can do it with caution but by good faith standards by informing the concerned office while the necessary remedies are being sought.”

 He clarified further that the amounts disbursed are still operative unless the court declared it otherwise.

 “Unless there is a declaration from the court with finality that we can’t charge it, the presumption is it’s still operative,” he said.  (FREEMAN)