Manila City Hall virtually bankrupt, has more debts than cash — COA

A+
A
A-

MANILA, Philippines — The administration of Manila Mayor Alfredo Lim has dragged city hall in a deep financial hole, according to a Commission on Audit report, which claims that the local government unit has not enough cash to pay off its debts due to a bloated workforce.

In its latest report uploaded on its website recently, the COA said the Manila city government has unpaid debts of P3.553 billion or more than three times its cash holdings of P1.006 billion.

State auditors said that Manila’s payroll exceeded the mandatory spending limit of 45 per cent of the total annual income from regular sources realized in the next preceding fiscal year.

COA estimated that Manila city hall should have forked out only P2.458 billion in 2011 based on its P5.462-billion in income in 2010. But city leaders actually shelled out P3.424 billion in salaries and retirement benefits on top of the P260.95 million worth of  “financial assistance” granted to city officials and employees.  COA said these were erroneously recorded under  the maintenance and other operating expenses  account when they should have been classified under personal services.

Aside from its tax dues to the Bureau of Internal Revenue, COA said that city government was unable to remit the contributions collected from its employees to the Government Service Insurance System, Home Development Mutual Fund (Pag-IBIG) and the Philippine Health Insurance Corp (PhilHealth).

Manila’s unraveling finances have also led to delays in the turnover of  the revenue share of the city’s 896 barangay (villages) worth P511.391 million. “Hence, the delivery of basic services and implementation of the proposed development projects and programs for their constituents were hampered,” COA said.

Amid the weak cash position, the COA questioned the decision of city leaders to collect penalties, surcharges and interest on 6,126 delinquent tax payers, and give them P40.812 million in tax payment discounts without any legal basis, which further reduced the city revenues.

“Had the subject tax discounts been recovered, it could have been appropriated to finance other priority programs and projects of the City during the year. The City Treasurer gave the assurance that the subject tax discounts granted without legal basis shall be included in the computation of the business taxes, fees and charges due the concerned taxpayers in the succeeding year,” said the COA in its report.

Aside from a shaky balance sheet, the COA also questioned Manila’s accounting policies. It said an annual physical count of Manila’s property, plant and equipment yielded only an inventory worth P6.718 billion or P7.060 billion  of its supposed total asset holding with an acquisition cost of P13.778 billion. This includes the P2.814-billion purchase of land by the Manila city government.  The COA said the purchase has not been fully accounted for “because the corresponding titles to the said properties have not been transferred in the name of the City Government.”
In reaction, an official of the Manila City Hall said the latest COA report is yet to be reviewed by concerned departments, but he categorically denied not having remitted contributions collected from employees for their benefits.

“I still have to check with the treasurer,” Manila City Administrator Jay Marzan told the INQUIRER.net in a phone interview.

But as to the report that Manila’s payroll exceeded its mandatory spending limit, Marzan confirmed the information, but added that the city government has addressed the problem.

Without citing exact figures, Marzan said the Manila City Hall has let go of some of its employees since March or April this year, adding that the city hall remitted the contributions of all of its workers to the Government Service Insurance System, Home Development Mutual Fund (Pag-IBIG) and the Philippine Health Insurance Corp. (PhilHealth).

But the problem, Marzan said, is that the three agencies were slow in updating their records.

Particularly with GSIS, he said that some of their men have visited the GSIS office last year following observations that GSIS’ posting of contributions were “slow.”

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • BatangSingapore

    eh bakit hindi pa ipakulong yan si Mayor Lim.

    • OFW28

      News pa lang yan bata, ipapakulong mo na kaagad, mag-isip ka bata. kala ko matatalino mga workers sa SG hehehe!!!

    • http://profile.yahoo.com/PRDGZHO73F5SCBMJO3BGCPXR6E Nilo C

      Hindi Singapore ang Pinas. Kung gusto mong makulong si Lim umuwi ka dine at kaladkarin papuntang kulungan.

      • BatangSingapore

        bakit hindi ang presidenteng abnoy na may matuwid na daan?

    • Renato_SUPOT_Pacifico

      sa mahabang kasaysayan ng pilipinas sa corruption,
      ang tanonng,
      meron bang naipakulong ? huwag na kayong magtaka ! 

      • BatangSingapore

        lalo pa ngayon intsik din ang abnoy na pangulo hahahahhahaha.

    • Bart

      d nga makulong si arroyo

      • BatangSingapore

        ex president yun hindi pwede pakulong pero si Lim mayor lang at pwedeng pwede pakulong.

      • Bart

        OK. Nice logic. Di ipakulong mo.

      • BatangSingapore

        oo naman dahil ako ang boss ni noynoy abnoy.  lahat ng magnanakaw na politiko pakulong tulad ni mayor lim.

      • Michael Tiu

        ikulong mo sarili mo,patunayan mong corrupt c mayor bago ka umasta,pag d mo napatunayan yn magpakamatya k n,tingnan mo muna kung cnocno may magagarang kotse sa cityhall,c mayor luma n kotse d nagbabqago pati mga damit cmple lng d tulad nung iba na ngtitrip pa sa iba ibang bansa magkakasama

  • Ommm

    Probably best to have the politicians running Manila to empty their pockets to find the missing cash….

  • JJF724

    Nagkabistuhan na….  Munghang panalo na si Joseph nito…  or else kung sino ang suportahan ni PNOY….  yon na lang iboto nyo…  Para nakapanumpa sa Matuwid na Daan….  Imaging, PNOY 2 years term… napakarami nang problemang na solusyunan!  GOCC, AFP, ARMM, SCHOOL, now flooding and relocation ay may budget na rin.  8 breaking times upgrade nang credit ratings… nakukuha pang mag palit palit nang chicks… galing talaga

  • http://pulse.yahoo.com/_HOCSZLQBWVGXXI2NZJ2P7LMPHA Leond Yobar

    What can you expect with and old man as your chief executive of Manila. Kulang nalang ibenta ang kaluluwa to hang on his post…an insult of the Manila residents.

  • Kristoffer Atienza

    What is going on, Mr. Mayor? What is going on people of Manila?

  • John Sulayman

    All I can say is: Good luck to whoever is the mayor of Manila in the next elections. You’re going to need it to clean up Alfredo Lim’s mess.

  • initrd

    COA should come up with a report of all the cities in the country and posted/updated on the COA web site same is true with all the government corporations.

  • efriend

    Mayor Lim MISMANAGED the City of Manila.  There is no income because big companies hold offices in either Makati or Fort Bonifacio.  What a big MESS.  Lim has to go.  He has no visible achievement except the building of statues and painting bridges with tacky colors. The entire City of Manila is an EYESORE.

  • http://joboni96.myopenid.com/ joboni96

    ‘Manila’s payroll exceeded the mandatory spending limit of 45 per cent of the total annual income’

    lahat ng lgu’s
    guilty nito

    mas marami pang projects sana
    lalo na kung minimized
    ang cutkong

  • alfred sanchez

     manila na conquer na ng mga squatter,addict, muslim, rugby boy, snatcher, pedicab driver, kargador at batang pulubi

  • http://profiles.yahoo.com/u/Q63DUTCNJJKCYNURT4A4C6QZJM marco

    mas ok pa nung si dating mayor pa…..what a shame mayor!! 

    natutulog sa kangkungan ang mayor na ito at hindi alam ang nagaganap 

  • Aryong

    Don’t expect may mapaparusahan dito, remember mayor is a KKK.

  • deadlyshooter

    more 15 – 30 employees, but no employees around on regular days, except on paydays…less works done, more pay, no accomplishments, more debts…tskstskstsks…where did the money go? many rich ghosts in the city? call the ghost busters…kaya pala may sigalot nangyayari sa city hall, kanino kayang opisina ang may ari ng maraming mga multong ito? dapat lang parusahan ang nagkasala at wag nang paupuin muli sa puwesto…di kasalanan ang mag abuloy sa patay, peru malaking kasalanan ang magpasuweldo ng maraming multo…

  • http://profile.yahoo.com/F3MQCMLOZ2KRHSIYGCJ7FSO2DQ Juan

    hinintay muna nila maging 3 times ang utang bagu nila iconsider na may problema?

  • Tnosce

    ” TIPID  NALANG ”  at   ” BAYANIHAN ” to Manila finest nandyan na ang problem eh. 

    • Kristoffer Atienza

       I agree pero may bumubutas sa kaban ng bayan. Kailangan imbestigahan ito para walang madala sa kabayanihan ng Pilipino sa pagBabayanihan.

      • Tnosce

        Kris, Kailanggan ng ” Watch dog ” at ” Cork ” muna pang samatala na matakpan ang butas. Sa ka na ang pang alis ng mga ” Anay ” sa City hall sa susunod na eleksiyon.

  • http://profile.yahoo.com/F3MQCMLOZ2KRHSIYGCJ7FSO2DQ Juan

    overpopulated na ang manila tapus may utang pang 3B? sounds fishy ha… at besides kung alam nilang below na sila sa budget bat kelangan pang paabutin sa 3B? really fishy

    • http://profile.yahoo.com/F3MQCMLOZ2KRHSIYGCJ7FSO2DQ Juan

      kinancel na nga ni noynoy yung flood control sa manila tapus may 3b pa ding utang>? absolutely fishy

  • http://pulse.yahoo.com/_AMZEEGZ5TGEOYWIEUCZWO5FEA4 Brian

    Sa tingin ko, isa sa pinuntahan ng pera ay pambayad sa ibang empleyado ng munisipyo na mag time in lang pagkatapos, uuwi ng bahay or may iba pupuntahan. Balik sa hapon para mag time out. Di lang leader ang corrupt. pati ang masa. yung mga nag papabayad ng boto, tanggapin nyo ang kinabukasan nyo.

    • http://profile.yahoo.com/MNEST36JFEFH4FHUFVJRRFC6VE Maria Theresa Huff

      Tama! at kampi sa kanila ang korte…mukahang naimpluwensiyahan ang judge!

  • ryq24

    they could start by abolishing those useless traffic enforcers who only arrest private vehicles but look the other way when pedicabs or jeeps breaks the law. 

  • http://pulse.yahoo.com/_GG4T5UNZ3P7SCHSRNJ7PF5JZMM Jimmy

    Remember what Isko Moreno did when Lim terminated thousands of casual employees because Manila has no money to pay them..? Iskoba and lot of councilors went to court and the stupid court sided with him..! !!!  Now Manila is bankrupt courtesy of Moreno et al….!!!!!!!  

    • http://profile.yahoo.com/MNEST36JFEFH4FHUFVJRRFC6VE Maria Theresa Huff

      TAMA! ANG DALI MAKALIMOT NG TAO! HINDI AKO TAGA MANILA, PERO ALAM KO MGA BALITANG MANILA. HINDI SI MAYOR LIM ANG DAPAT SISIHIN…AND KABAGALAN NG COURT PROCEDDING. MALAKI NA ANG DAMAGE BAGO MADECISION TAPOS KUNG SINO PA ANG MALAKAS ANG PANALO

      ayan! d ba nga pinaaalis na ni mayor Lim yan mga ghost employee n yan..kaso mas malakas ata sa judge si isko. lalong maghihirap ang manila kung kagaya ni isko ang magiging mayor. walang vision at insight. sinasabi lang nya tinutulungan nya mahihirap, pero doon lang siya nkafocus, paano ang counter-effect nun as a whole sa city government. tsk tsk. mas maganda itulong nyo turuan nyo magtrabaho ng tama ang mga mahihirap sa Manila, kung paano magpasok ng pera sa kaban ng manila. hindi yang tulungan na magtrabaho kuno para sumweldo galing sa kaban ng Manila. TOtally wala din di ba? isip ka Isko. wala kang insight. tsk tsk!well, concern lang ako because im working in Sta Mesa Manila.

  • http://profile.yahoo.com/ZRRXYXQ37JJXJDNECS2RUTZYDU mg

    corruptions & govt employees na hindi naman talaga nagtatrabaho.

  • http://pulse.yahoo.com/_QZZKXPEA67I7HELEIYM35QVYFA Jon

    Puro na lang kasi pag-paskil sa mukha nina Cory at Ninoy ang inaaptupag ni Mayor Lim.
    Tuloy, baboy na nga ang Manila, lalo pang naging babuyan.
    Trabaho naman po Mayor at tama na ang panay PR.

  • http://pulse.yahoo.com/_UWISP2YXGDQ7K2SIX2GI37B2EI Darwin

    Kung isang kumpanya yan, matagal nang nagpakamatay ang may-ari. Dito, sitting pretty pa din ang mayor at ang vice-mayor ayaw mag cost cutting. Walang pag-asa.

    • http://profile.yahoo.com/MNEST36JFEFH4FHUFVJRRFC6VE Maria Theresa Huff

      ayan! d ba nga pinaaalis na ni mayor Lim yan mga ghost employee n yan..kaso mas malakas ata sa judge si isko. lalong maghihirap ang manila kung kagaya ni isko ang magiging mayor. walang vision at insight. sinasabi lang nya tinutulungan nya mahihirap, pero doon lang siya nkafocus, paano ang counter-effect nun as a whole sa city government. tsk tsk. mas maganda itulong nyo turuan nyo magtrabaho ng tama ang mga mahihirap sa Manila, kung paano magpasok ng pera sa kaban ng manila. hindi yang tulungan na magtrabaho kuno para sumweldo galing sa kaban ng Manila. TOtally wala din di ba? isip ka Isko. wala kang insight. tsk tsk!
      well, concern lang ako because im working in Sta Mesa Manila.

      • http://pulse.yahoo.com/_UWISP2YXGDQ7K2SIX2GI37B2EI Darwin

        delikadong maging mayor yan si isko.

      • http://twitter.com/Sun_Uy Sun Uy

        Si Vice-Mayor panay ang check-in nyan sa Hyatt… I should know kasi parati naka-park (nakabalandra) yung escorts at service nyan sa tapat ng building na pinagta-trabahuran ko. He’s a frequent guest at the casino.

  • http://profile.yahoo.com/7PJYZYOUAK45TSZOOWZODAFHRA Drew H.

    Dami kasi ghost employees eh. Mga kamag-anak ng mayor tsaka ni isko.

    • http://profile.yahoo.com/MNEST36JFEFH4FHUFVJRRFC6VE Maria Theresa Huff

      ayan! d ba nga pinaaalis na ni mayor Lim yan mga ghost employee n yan..kaso mas malakas ata sa judge si isko. lalong maghihirap ang manila kung kagaya ni isko ang magiging mayor. walang vision at insight. sinasabi lang nya tinutulungan nya mahihirap, pero doon lang siya nkafocus, paano ang counter-effect nun as a whole sa city government. tsk tsk. mas maganda itulong nyo turuan nyo magtrabaho ng tama ang mga mahihirap sa Manila, kung paano magpasok ng pera sa kaban ng manila. hindi yang tulungan na magtrabaho kuno para sumweldo galing sa kaban ng Manila. TOtally wala din di ba? isip ka Isko. wala kang insight. tsk tsk!
      well, concern lang ako because im working in Sta Mesa Manila.

  • Rommel

    Blame the uneducated electorate for putting idiots in the government.  The stupid masses have been in control of who to place in the government for so long now and that is the freaking reason why the whole nation have not risen from poverty.

    In tagalog…”Mga bwakang ina nyo mag-isip naman kayo!!!!”

    • Romeo salvador

      kaya lang pare kahit sinong mga bwakang inang yan na mga politiko at kandidato wala kang mapipili dahil puro mga BWAKANG INANG KURAKOT NA MGA HAYOP NA YAN!!!

  • Romeo salvador

    Kahit sinong iboto mo lahat yan puro mga bwakang inang KUKARAKOT LAHAT YAN MGA YAN kaya dapat matapos na ang mundo sobrang sama na nang mga tao sa buong mundo lalo na ang pinoy puro walang disiplina kahit saan nagtatapon ng basura mga bwakang inang yan ang daming salot sa mundo sana lipulin ang lahat ng masama ni LORD unahin ang mga politikong GANID AT KURAKOT MGA BWAKANG INANG YAN DINA NAAWA SA MGA PILIPINONG HALOS KAYOD MARINO PERO WALANG ASENSO dahil sa mga BWKANG INANG MGA POLITIKONG WLANG GINAWA KUNDI MAGPAYAMAN SA KABAN NG BAYAN NA PINAGHIRAPAN NANG NAGDURUSANG SI JUAN.

    • H_A_B_A_G_A_T

      reality check pre.
      sa sinabi mong “Kahit sinong iboto mo lahat yan puro mga bwakang inang KUKARAKOT LAHAT YAN MGA YAN “. sabihin nating lahat na, ano gagawin mo iiyak ka nalang at magsisigawan at sasabihin sa mga anak at apo na gayan. na hindi mo na bibigya nng pagasa kinabukasan ng anak.

      your not wrong but question is ano gagawin mo?

      instead na mag iiyak at reklamo jan, di mo e try iakw mismo tumakbo. kung wala ka tiwala sa pulitko ikaw mismo humabol baguhin mo pulitika. tutal laki ng problema mo.
      or kung may humabol na ibang tao ikampanya m osa iba at iboto mo.

      hulaan ko sagot mo. ayaw mo!
      kasi hangang reklamo ka lang.

  • gerp

    im not from Manila… but the way I look at this post…someone is making politics here.

  • http://profile.yahoo.com/GOCA2L4TNSDFSWVDJAYBJCEXRI earl jon

    mas iblame nten cguro yung COA kz kung ginagwa nila ng maayos trabaho nila eh di mttkot mangurakot yung mga nsa position, kz ang ngyyri ang mga tga COA mismo nasusuhulan…

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94