Mayor slams report city is bankrupt

DUMAGUETE CITY, Philippines – Mayor Manuel Sagarbarria has assured all local government workers that the city government is not bankrupt as earlier reported and that it has sufficient funds to cover for wages, benefits and other expenses.

The mayor wrote in a letter addressed to all city government employees that “there is no cause for alarm” and that salaries, wages and other lawful benefits of regulars down to contractual workers are covered and funded.

The Sagarbarria letter came up after rumors began circulating a few weeks back that the city government had gone bankrupt and that it was facing a deficit in local funds.

The media reports triggered fear among employees who expressed concern over possible non-payment of benefits, especially with the coming Christmas season.

Sagarbarria, in his letter, said that records would show the previous administration had P200 million in various accounts, but that the money simply awaited some documentary requirements before it could be released for various projects.

“These requirements were fulfilled after the assumption of the present administration,” he said. In about two years’ time, some P31 million from the P200 million was disbursed to various city projects. The city currently has P169 million in various bank accounts as of September 30, 2012, as certified by the city treasurer, the mayor added.

The breakdown of the P169 million is as follows: P87,593,415.24 in savings/current and time deposits under the General Fund; P61,804,505.92 also in savings/current and time deposits under the Trust Fund; P3,269,955.26 in current/savings deposits under the Special Account; and P16,372,858.75 in current/savings and time deposits under the Special Education Fund.

Sagarbarria further said any inquiries can be coursed through the offices of the mayor, the city treasurer, the city accountant and the city budget. (FREEMAN)