Local fiscal autonomy with a "leash"

In the frenzied discussions over the Cebu City annual budget for 2012, there emerged like a sore thumb, the role of the City Treasurer as a member of the local budget committee. It’s still a hot incidental issue as Congressman Tomas Osmeña hies Mayor Michael Rama to the Ombudsman for insisting on Emma Villarete as his “pet” budget defender.

 Mayor Michael Rama has been adamant that Acting City Treasurer Tessie Camarillo was unacceptable to him to defend his budget proposals because he has lost “confidence and trust” in her. Hizzoner insisted that unlike Camarillo who declared not knowing where to source the funds, he designated Emma Villarete as CTO officer-in-charge to defend the Mayor’s budget proposals.

 However, the Cebu City Council presided by Vice-Mayor Joy Augustus Young recognized Camarillo because she was appointed by the Bureau of Local Government Finance (BLGF) of the Dept. of Finance, pursuant to Section 470 of the Local Government Code of 1991. Hizzoner insists that he is willing to raise the matter to the Supreme Court, inre his designation of Villarete, instead of Camarillo.

 Incidentally, despite the fiscal autonomy of the local government envisioned by the law (R.A. 7610), there’s a pesky limitation withheld from the appointing power of the LGU executives, that is, the appointment of the LGU treasurer and assistant treasurer. In practice, it is the executive director of the BLGF of the Dept. of Finance who picks the treasurer from a list of at least three recommendees or nominees of the governor/mayor, subject to civil service law, rules and regulations. Apparently, this “hold” of the power of appointment by Finance through the BLGF goes back to time immemorial and carried over now despite the local fiscal autonomy of the LGUs.

 In short, here’s the Finance Department continuing to hold the LGUs on “leash” which, definitely, is not part of the general supervision of the national government over the autonomous LGUs. The anomaly is that applicants for the positions of LGU treasurer and assistant, have to “light candles” to the BLGF, and if so appointed, to “maintain such lighted candles”. In practice, LGU treasurers nationwide often form “beelines” before the BLGF executive director, like, an earthling goddess of sorts.

 It’s time to cut this shit. Let the local treasurers be appointed by the Governor or Mayor, as the case may be. And that’s what Mayor Mike Rama intends to do by questioning the legitimacy of the power of appointment by BLGF notwithstanding the greater rationale to uphold the local fiscal autonomy. Or, perhaps, Mayor Rama could propose to an interested Cebu Congressman to sponsor the amendment. It, indeed, is anomalous for the BLGF to limit the appointing power of CEO’s of local governments.

 Imagine, to justify such aberrant appointing irregularity, the local treasurer among other local officials, is just under the administrative supervision of the governor or mayor. No wonder, human nature being so, “interested parties” always find subtle and non-subtle ways to “cultivate” the graces of the powers that be, in anticipation of future appointment.

 Meantime, as far as Camarillo and Villarete are concerned, advices from the BLGF appear to have Camarillo stay put as the Acting City Treasurer, awaiting further developments. Unless the Mayor starts the ball rolling to raise the issue to the Supreme Court which is not that simple as he has to build up a justiciable case, he has to abide by the BLGF to recognize Camarillo as the Acting City Treasurer.

At any rate, despite the Camarillo-Villarete setto, the City Council has done the budget hearings seemingly unperturbed. Among others, the Council has not approved billions from intended borrowings as sources of income for 2012, as too premature. After correcting double entries, wrong figures and other flaws, the City Council may settle for P5 B 2012 budget. Any funding need later could be treated in supplementary budgets when funding sources could be determined.