City lawyer raises reservations on Councilor Gabuya’s proposal

DUE to technicalities, the Cebu City Legal Office has reservations on the move that seeks to create a trust fund for all the donations and appropriations made by the City Government for the construction of the new Cebu City Medical Center (CCMC).

The creation of a trust fund is covered by a proposed ordinance by Councilor Eugenio Gabuya Jr.

In a public hearing held by the City Council yesterday, City Legal Officer Atty. Jerone Castillo said his office did not see any problem in the creation of a trust fund for all the donations received by the City for the CCMC, but it has reservations on the plan to establish a trust fund for appropriated items that are under the general fund.

He told the legisla- tive body that a trust fund and accounts under the general fund are different accounts with different purposes. Castillo cited Republic Act (RA) 7160, otherwise known as the Local Government Code.

Section 309 provides that a trust fund should be consist of “private and public monies, which have officially come into the possession of the local government or of a local government official as trustee, agent or administrator” for the fulfillment of specific obligations.

The general fund, on the other hand, as provided for under Section 308 of RA 7160 are monies and resources that is received by and can be disbursed from the local treasury and can be used for the payment of expenditures, obligations or payables.

“You cannot fuse the trust fund from the general fund because under the law you are even required to maintain separate accounts,” said Castillo.

He then invoked Section 310, which stipulates that “local accountants and treasurers shall maintain separate books and depository accounts, respectively, for each fund in their custody or administration.”

“That is why, with all due respect to the proponent, there will be serious legal question if we make a trust fund out of an appropriated amount arising from the general fund because these are two separate and distinct accounts,” he said.

City Treasurer Diwa Cuevas, for her part, said there is already a trust fund they created for all the donations the City has received for the construction of the CCMC.

Councilor Sisinio Andales said though that Gabuya’s proposed measure only aims to avoid “comingling” of public funds.

This, considering that the executive department utilized the P300 million set aside last year for the construction of CCMC for the distribution of financial assistance to the senior citizens and barangay officials last December.

The P300 million is under the general fund of the City’s P325.5 million approved first supplemental budget last year.

Cuevas said, though, that the P300 million they used has already been refunded.

Gabuya said he will consider the position of the legal office when he will submit the final draft of his proposed ordinance for the council’s final deliberation and approval.