Council to Rama: Refer all contracts to us

ANY new contracts of the Cebu City government will face scrutiny by the City Council.

“I would just like to remind the office of the mayor to seek council authority before signing contracts and MOAs (memorandum of agreements),” said Councilor Margot Osmeña, who was named the new chairman of the committee on budget and finance yesterday.

The council ratified an office space lease contract for the Philippine Tourism Authority (PTA) in the City Savings Bank Financial Plaza in Osmeña Boulevard.

But the council was only given a copy of the renewed lease contract for ratification in yesterday’s session.

Osmeña cited the council’s authority to review contracts in section 22 (c) of the Local Government Code.
“You just gave the media a bombshell,” joked Vice Mayor Joy Augustus Young after the councilor issued her public reminder to the mayor.

The council’s more aggressive role in reviewing contracts will be tested in Mayor Rama’s desire to join the Capitol-led Metro Cebu Development Coordinating Board.

The mayor’s secretary Belinda Navascues wrote the council last June 27 asking them to authorize the mayor to represent Cebu City in the signing of an agreement to establish the new coordinating board, which is led by Gov. Gwendolyn Garcia.

Rama, who signed a Memorandum of Understanding of members of the board last April 1, said he didn’t know about the letter.

“I will have to check on that. I may not have (to secure council authority to sign the MOA),” the mayor said.

The PTA contract involved leasing three office spaces at the City Savings Bank Plaza for P47,732 a month.

The agency occupied these office spaces since Feb. 1, 2009, and the contract had been renewed annually.

Rama signed an undated lease contract with Agnez Lacson, City Savings senior vice president, a copy of which was furnished to the council in yesterday’s session.

Osmeña told reporters she could understand that there are instances when council authority is “overlooked” especially in contracts for renewal of services.

Councilor Rodrigo Abellanosa questioned why the city government is subsidizing the office lease for PTA, a government agency capable of earning for its needs.

Osmeña said they relocated PTA from Fort San Pedro to the City Savings Bank Plaza after the city government converted their previous office space into a museum.

She said it was the city’s commitment to help the PTA with their new office lease after they transferred. Chief of Reporters Doris C. Bongcac