CEBU, Philippines - The City of Toledo lost P1.7 million in its 2013 revenue due to the conversion of the city-owned Traveler’s Inn into an office of Mayor John Henry “Sonnyâ€Osmeña and other government departments.
The Commission on Audit, in its 2013 report, said the city could have earned an estimated additional revenue of P1.7 million in 2013 had it continued the operations of the Traveler’s Inn and collected the rental dues from the lessees of the stalls, kiosks and blocks at the Toledo Commercial Village Arcade Center and Toledo Passenger Terminal.
COA noted in the Schedule of Rental Dues Collection as of December 31, 2013, submitted by the City Treasurer’s Office, that there were uncollected rentals from lessees of the stalls, kiosks and blocks. The amount collectible of the Toledo Commercial Village is P270,794.30 from 10 lessees and the Toledo Passenger Terminal is P154,993 from 19 lessees.
Likewise, the city’s Traveler’s Inn which is a lodging house located at the Toledo Commercial Village Arcade Center has an average annual income for 2011 and 2012 of P2,229,252.50.
However, in 2013, COA reported the income went down to P926,900, thereby showing a decrease of P1,302,352.50 or 58 percent from the average of the last two preceding years.
“Records of the city showed that the decrease of the income of Traveler’s Inn was attributable to the stoppage of its operations from July to December, 2013 because it has been utilized as the offices of some of the Toledo City government departments,†the state auditor said.
Osmeña and other city officials have been holding offices at the Traveler’s Inn since July 2013.
Osmeña justified that the City Hall should be easily accessible to their constituents that is why he decided to hold office at the Traveler’s Inn.
However, he has other plans with the existing City Hall Building.
COA has recommended the City officials concerned to intensify rental collections and further recommended to reconsider the decision to hold offices at the Traveler’s Inn in order to fully utilize the existing City Hall building and generate income for the cost recovery of the Toledo Commercial Village. — (FREEMAN)