COA to City Hall: Reimburse P20K Calamity Assistance

The Commission on Audit (COA) has finally issued Notices of Disallowance directing Cebu City Mayor Michael Rama and other city officials, and the more than 4,200 regular and casual employees, to reimburse the city of the P84.4 million that each of them received at P20,000 as calamity financial assistance on December 23, 2013.

City Legal Officer Jerone Castillo has confirmed that the mayor’s office had already received the copy of the notice of disallowance and they will file an appeal to the COA Regional Office-7 to request the state auditors to reconsider their legal stand about the issue.

Cebu City Auditor Cymbeline Celia Chiong-Uy explained that although the grant of such calamity assistance through a supplemental budget was based on the ordinance enacted by the Cebu City Council, still it remains questionable because Section 321 of the Local Government Code does not include the grant of calamity assistance to government employees as one of the expenses that maybe considered for the enactment of a supplemental budget, even in times of calamity.

The law provides that “a supplemental budget may also be enacted in times of public calamity by way of budgetary realignment to set aside appropriations for the purchase of supplies and materials or the payment of services, which are exceptionally urgent or absolutely indispensable to prevent imminent danger to, or loss of, life or property, in the jurisdiction of the local government unit or in other areas declared by the President in a state of calamity.”

The state auditor argued that while the Department of Budget and Management’s review of the controversial Supplemental Budget No. 3 declared operative in their entirety, it is clear that the same are still subject to conditions, that the appropriations for financial assistance, aids and allowances to various bodies, organizations of entities shall conform strictly with laws.

Among them is that the appropriations intended as calamity assistance to employees shall be subject to the Joint Memorandum Circular No. 2013-1 dated March 23, 2013 issued by the National Disaster Risk-Reduction Management Council-Department of Interior and Local Government and Department of Budget and Management.

COA explained that while the city ordinance authorized the granting of P20,000 to each of the city officials and employees, but it is not in conformity with the provisions of COA Circular No. 97-002, which provides that “payments out of cash advance shall be allowed only for amounts not exceeding P15,000 for each transaction, except when a higher amount is allowed by law or with specific authority from COA.”

Mayor Rama was the one who endorsed to the City Council for approval the granting of P15,000 calamity financial assistance claiming that the City Hall employees has been badly affected by the earthquake and typhoon Yolanda last year.

But Councilor Sisinio Andales had made a gesture that if the city has the funds, it should be made P20,000.

According to the state auditors that “there were no proof showing that those city government officials and employees granted financial assistance were victims of the 7.2 magnitude earthquake on October 15 and typhoon Yolanda on December 8, 2013.

Some City Hall employees are already worried because they do not have money to reimburse the P20,000 that they have received. “Maayo unta og gagmay ra ang ibanon nila sa among suweldo,” one of the City Hall employee said.

But Castillo said the employees should be worried because the City Legal Office (CLO) will fight it even if they will reach Supreme Court.

Aside from Rama and Vice Mayor Edgardo Labella, COA mentioned in the notices of disallowance the names of Councilors Nestor Archival, Mary Ann De Los Santos, Dave Tumulak, Nendell Hanz Abella, Sisinio Andales, Alvin Arcilla, Roberto Cabarrubias, Nida Cabrera, Gerardo Carillo, Alvin Dizon, Eugenio Gabuya, and Noel Wenceslao.

Councilor James Cuenco was not included because he was absent when the ordinance was deliberated, Councilor Richie Osmeña was out, while Councilors Margot Osmeña and Leah Japson abstained from voting and did not received their share for the calamity assistance.

However, Councilors Dizon, Gabuya and Cabarrubias already returned to the City Treasurer’s Office the amount that they have received.

Because of such granting of P20,000 calamity assistance, Rama and the other city officials are also facing administrative complaints before the Office of the President filed by Lawyer Reymelio Delute, a supporter of the Bando Osmeña Pundok-Kauswagan (BOPK).