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Cebu News

Finance dept. probing why CCMC fund went to seniors

The Freeman

CEBU, Philippines - The Department of Finance will look into the complaint of lawyer Reymelio Delute on the alleged illegal spending of P300 million intended for the construction of a new Cebu City Medical Center building.

The amount was allegedly distributed as cash assistance to senior citizens last January.

Delute had filed the complaint before the Office of the Ombudsman-Visayas, requesting the anti-graft body to investigate Mayor Michael Rama for realigning the amount without first securing an authority from the City Council.

A copy of the complaint was sent to the Department of Finance.

In response, Finance Undersecretary Carlo A. Carag directed Bureau of Local Government-Finance Executive Director Salvador M. Del Castillo to look into the matter.

Carag also asked Del Castillo to inform DOF’s Revenue Operations and Legal Affairs Group on any development in its investigation.

Delute said he was surprised why Rama used the amount intended for the construction of a new hospital building because the City Council had approved P720 million in the 2014 Annual Budget for the granting of P12,000 in cash assistance to each of the 60,000 senior citizens of the city.

In his complaint, Delute recalled that the P300 million was originally placed in the 2014 budget for drainage projects, particularly for the improvement of the Mahiga Creek, but the mayor realigned the amount for the construction of a new CCMC building.

The old hospital building was demolished after it suffered cracks as a result of the magnitude 7.2 earthquake on October 15, 2013 and was declared unfit for occupancy.

Delute argued that the amount should have been “used exclusively for the intended project and cannot be used for other purposes” unless with authority from the City Council.

He asked the Ombudsman to conduct a fact-finding investigation into the matter and to impose disciplinary actions, like the filing of administrative and criminal charges against the mayor or the city treasurer. — Rene U. Borromeo/RHM (FREEMAN)

ANNUAL BUDGET

BUREAU OF LOCAL GOVERNMENT-FINANCE EXECUTIVE DIRECTOR SALVADOR M

CARAG

CEBU CITY MEDICAL CENTER

CITY COUNCIL

DEL CASTILLO

DELUTE

DEPARTMENT OF FINANCE

FINANCE UNDERSECRETARY CARLO A

MAHIGA CREEK

MAYOR MICHAEL RAMA

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