Part of P300M SEF Under Time Deposit- Councilor

Based on records, the Cebu City government has over P300 million in its Special Education Fund (SEF), but Councilor Margarita “Margot” Osmeña said that in reality more than half of the amount cannot be spent yet for school-related projects.

Councilor Osmeña explained that while there is over P300 million listed under the SEF, the P165 million of it is under a five-year-term time deposit with the Philippine Veterans Bank.

When she reviewed her old documents, Osmeña had found out that the city’s P165 million time deposit was previously deposited in bank under the City Hall’s General Fund.

The City Council discovered that there are millions of pesos which are intended for the Special Education Fund, but still remained in the General Fund and was never transferred to the SEF.

This prompted the City Council to pass a resolution in October 23, 2013 requiring the city treasurer to transfer the P80 million from the General Fund account to SEF. The law provides that SEF shares one percent of the Real Property Tax collections of the local government unit for school-related projects.

Osmeña said she observed that last April, the amount in the SEF account has been added with P165 million, but City Treasurer Diwa Cuevas admitted that the amount is under time deposit under the GF.

“Gibalhin lang nato ang P165 million sa Special Education Fund kay dili pa man ‘sab nila gamiton ang tibuok g’yud nga kantidad sa SEF,” Cuevas said.

Councilor Osmeña asked if this could mean that the SEF, under the said time deposit account, cannot be withdrawn until it matures in 2016.

Reports said it was then city treasurer Ofelia Oliva who placed the huge amount under time deposit purposely to earn more revenues of six percent of interest per annum.

Some of the city councilors who are allies with the Bando Osmeña Pundok-Kauswagan (BOPK) said the city should not keep the SEF, but to spend them for the construction and repair of dilapidated schools.