Capitol cash position still tight, awaits IRA

Until the Province of Cebu receives its monthly share of national taxes for January, cash flow will be tight and expenses will have to be carefully managed, said Acting Gov. Agnes Magpale yesterday.

She was referring to the P133 million Internal Revenue Allotment (IRA) of the province.

“We are now IRA-dependent,” she said, after meeting with officials of the Bureau of Local Government and Finance of the Department of Finance, who are conducting a cash examination.

Acting BLGF Regional Director Herminigilda Garsula, who submitted a Jan. 8 cash position report, said the provincial government has P81,651,066 in its General Fund.

So far no discrepancies were seen.

“So far, wala mi nakit-an nga kakulian, normal man,” she said in an interview.

Magpale earlier asked the DOF to replace the provincial treasurer Roy Salubre for loss of trust and confidence, and to conduct a cash audit after discovering that the Capitol’s payables at yearend had reached more than P200 million as against a General Fund of only P90 million.

Suppliers and service providers have agreed to accept staggered payments, she said.

Magpale repeated that she would not touch Trust Funds of the province amounting to more than P200 million to settle these oblgations because trust funds are reserved for specific purposes.

“I owe it to the Cebuanos to let them know kung ano talaga ang totoo… hindi pa negative,” she said.

Suspended Gov. Gwendolyn Garcia said she was willing to coach Magpale on how to run the Capitol because Magpale “has been reckless and alarmist in making statements as she continues her fervent desire to picture me in a bad light.”

She said Magpale’s statements that Cebu is short of funds was counterproductive.

“I have time and again challenged her to a debate on the financial position of the province. If she wants advice, I could advise her that the operations of the province can go smoothly, that salaries can be paid on time, that she really does not know anything about the financial position of the province of Cebu,” Garcia said.

“The least she (Magpale) can do is to confer with me so she would know what to do. I will teach her how to run the province,” said Garcia, who has been holed up in the Governor’s Office since Dec. 19, 2012.

Garcia has petitioned the Court of Appeal to issue a temporary restraining order but said she’s ready to exhaust all legal remedies up to the Supreme Court.

CHECK PAYMENTS

Magpale said that initially checks have been issued which included P5.9 million to Perfect Clean which earlier presented an unpaid P13 million bill for janitorial and medical manpower services for the whole year of 2012.

A check for P500,000 was also released to the Sinulog Foundation Inc. as the province’s financial aid to the festival.

Magpale said there’s a possible delay in salaries this month since she was informed that the IRA will come in a few days later. The IRA usually comes in on the 12th or 13th of every month but “historically” it is delayed during January.

Other pending payables include P48 million for incentives of health workers and tanods, P3 million for electric bills, and P31 million in remittances.

Magpale said the province owes 9 months payment for satellite operations of Sugbo TV. She said the Capitol was only able to pay 3 months of the one year contract with Solid Broadband Corporation.

This satellite feed costs $14,000 a month. Payments were made on the dates November 15 and 19 and December 10, 2012.

This is separate from other payables with Sky Cable (Pacific Cable Inc.) in the amount of P150,000 a month (not P100,000 as cited earlier) for the 24/7 airing of the provincial news cable channel.

“They came already and talked with PB Member Arleigh Sitoy. How can we operate Sugbo TV if we have a large unpaid obligation?” Magpale said.

“I am only stating facts. I will show you the demand letters that the treasurer gave me and how much money we have,” she added./With Correspondent Renan Alanginan