Augmented 4-Q fund for Cebu LGU

CEBU CITY — The City Council has approved the proposed P2.5 billion supplemental budget for the local government’s various projects scheduled in the fourth quarter of the year.

Voting 10-7-1, the Cebu City Council during its regular session on Tuesday passed the utilization of at least P2,528,763,663.73 as supplemental fund.

The fund will be sourced from the proceeds of the sale of the 45-hectare South Road Property (SRP) in 2015, which is still being questioned.

This will be the second time that the administration of Cebu City Mayor Edgar Labella approved a supplemental budget. Earlier, a total of P191,587,195.85 is supplemental fund was passed for the city’s garbage collection and disposal services.

The move to approve the second supplemental budget was initiated by Councilor Raymond Alvin Garcia, the chairman of the Committee on Budget and Appropriations, and Vice Mayor Michael Rama divided the house.

Councilor Eugenio Gabuya Jr. clarified that while he is not objecting for the city to have its second supplemental budget, he insisted that it is the source of funds that is “questionable.”

On Monday, former Mayor Tomas Osmeña filed a petition for declaratory relief before a regional trial court insisting that the sale of the 45.5 hectare to the consortium SM-AyalaFilinvest in 2015 during the time of then Mayor Rama was illegal.

Osmeña argued that the committee on awards in 2015 had no authority to bid out the SRP lots because it was not authorized by the 13th Sangguniang Panglungsod.

He added that then Mayor Rama only entered into a negotiated sale with SM-Ayala and Filinvest consortium.

“The law is clear, there must be prior approval of the city council before mayor can transact business,” Osmeña said.

Osmena warned that the city executives and legislators may face the legal consequences if they continue to use the funds of the sale.