Close to half a billion pesos worth of infrastructure projects in Cebu City that were funded from last year’s 20 percent development fund were not implemented, state auditors said yesterday.
Quoting a Commission on Audit (COA) report, Councilor Margot Osmeña said only P407.5 million out of the P876 million allocated from the 20 percent development fund were obligated.
The rest of the amount had yet to be spent for projects identified in the Annual Investment Plan (AIP), she said.
The councilor chairs the City Council’s budget committee. “Of course, this (the audit finding) will affect how much money the council will authorize for appropriation next year. Let us do first what we have previously approved before we should again make more appropriations,” Osmeña said.
COA auditors also mentioned the city’s P1 billion shortage to cover last year’s obligations.
The Cebu City government only had P1 billion in cash as of December 31 last year.
Auditors said the city’s liabilities could be bigger because it doesn’t include its inter-agency payables of P2.9 billion.
Exit conference
City officials explained to auditors during their exit conference that P187 million from the inter-agency payables represent the city’s financial assistance to the barangays which “need not be paid immediately if cash is not readily available.”
Auditors also noted the unauthorized use of P56 million from its Special Education Fund (SEF) intended as incentives to public school teachers and non-teaching personnel.
-About P53.1 million in employees remittances were not paid to the Bureau of Internal Revenue (BIR), Government Service Insurance System (GSIS), Pag-ibig and Philhealth. There were also unliquidated cash advances worth P9.6 million. Auditors identified P105 million worth of projects in waterways and drainages that have not been implemented.
Osmeña said she already requested the Department of Engineering and Public Works (DEPW) to update the council on their projects. DEPW chief Engr. Kenneth Carmelita Enriquez said P57 million of the projects is being implemented while P185 million are still in the bidding stage.