THE Cebu City Council decided to take the “risk” yesterday when it authorized the use of P6.8 million from Supplemental Budget 2 passed last year to fund the construction of a bridge that will connect the mountain barangays of Bonbon and Buot Taup.
The resolution introduced by City Councilor Roberto Cabarrubias awarding the construction project to Geety Realty and Devt. Corp. was approved, even after the Department of Budget and Management (DBM) declared the 2011 SB 2 “inoperative.”
The DBM said that the city government exceeded the 45 percent ceiling for its personnel service (PS) allocation making last year’s budget as inoperative.
When Cabarrubias moved for passage of his resolution, majority floor leader Augustus Pe Jr. cautioned the council about the DBM observation which was communicated to the city through a letter early this year.
“We have been implementing supplemental budgets (SB) declared by DBM as inoperative. Despite the DBM observation, we did not stop in the implementation of the SB,” said Councilor Jose Daluz who used to head the council’s budget and financial committee.
Daluz also defended the administration of Mayor Michael Rama against DBM “observation” that they exceeded the allowable PS appropriation. He said the DBM included in its PS computation appropriations from special accounts which were intended for subsidy and Maintenance and Other Operating Expenses.
Daluz also told the council that the city has been filing motions for recommendation on DBM observations issued during the previous years. But the national government agency have not responded to their motions.
Councilor Margot Osmeña, the council’s budget committee chief, voiced concern about a possible disallowance by the Commission on Audit (COA) should the city defy the DBM observation and continue to spend appropriations declared as inoperative.
“Can we go on with the projects (proposed under the inoperative SB) and risk disallowance by COA?,” Osmeña asked Daluz.