City Sees No Risk

Officials thought no one would steal from them anyway, but promises to heed COA’s advise.

Cebu City Administrator Jose Marie Poblete has admitted that the city officials decided last year not to insure the city-owned heavy equipment like the bulldozers and some buildings thinking that nobody would steal them.

“Wala kami makakita og risk gani. Kawaton ba gud na’ng bulldozer nga dili man kana mapas-an and these do not carry passengers,” Poblete said when interviewed by the reporters. (We did not see the risk, so we thought there was no need because it’s impossible to steal the heavy equipment.)

He said the city-owned buses and the rest of the vehicles are all insured because the Land Transportation Office (LTO) will not accept registration of vehicles without insuring them.

The usual practice is for government agencies or offices to insure their properties with the General Insurance Fund of the Government Service Insurance System (GSIS).

When the COA examined the city’s records of properties, state auditors found that there are heavey equipment, machineries and even buildings worth P864.5 million that are not insured.

Although Poblete said nobody will steal the heavy equipment and buildings, the state auditors explained that the buildings may catch fire.

Poblete said the city will comply with COA’s recommendations and they will allocate funds for the insurance of all valuable properties of the city.

City-owned properties that are not insured are office equipment worth P242 million; IT equipment and software (P112 million), construction and heavy equipment (P91.9 million), firefighting equipment and accessories (P67 million), hospital equipment (P55 million), technical and scientific equipment (P72 million), machineries and other kinds of equipment P122 million.

The city officials only insured some of the city-owned buildings worth P1.3 billion and vehicles valued at P497 million.

The insurance code provides that “all departments, bureaus, offices, agencies and instrumentalities of the government are directed to insure against insurable risk all property and assets belonging to the government with the General Insurance Fund of GSIS.”