Cebu City Slashes PHP3.32B First Supplemental Budget to PHP2.88B, Defers Its Approval

The Cebu City Council has slashed the executive department’s proposed PHP3.32-billion first supplemental budget (SB1) this year to PHP2.88 billion, then deferred its approval, citing a pending case.

Cebu City Councilor Margarita Osmeña, who heads the budget and finance committee, said she already filed proposed budget ordinances covering the SB 1 this year amounting to PHP2.88 billion or PHP468.87 million less compared to the executive department’s original proposal of PHP3.32 billion.

The PHP2.88 billion will cover the PHP2.4-billion payment for the remaining loan for the SRP, the PHP77.3 million for the productivity enhancement incentive (PEI) of the city’s 5,000 employees and PHP87 million additional funds for garbage collection and disposal.

Funding for the SB 1 will be taken from the down payment in the sale of lots in the South Road Properties (SRP).

But it was also Osmena who moved to put on hold the approval of her budget ordinances, citing the petition for declaratory relief and temporary restraining order filed by Romulo Torres of Barangay Basak San Nicolas against the City Council before the Regional Trial Court.

Torres asked the court to stop the city from spending the PHP8.35-billion down payment it had received from the three developers, who won the bidding for the 45.2-hectare lot at the SRP.

Osmena said all the members of the City Council are named as defendants in the case.

Osmena said that if the court rules in favor of Torres, it will make the councilors personally liable and accountable to the entire PHP8.35 billion.

But she said she “strongly suggested” to the local finance committee of the executive department to look for alternative funding.

She said the PEI and the budget for garbage need to be released soon since these are “absolutely urgent and necessary.” (PNA) LAP/EB/EDS