City Council seeks review of aid to NGOs

The national spotlight on pork barrel use hasn’t escaped the attention of the Cebu City Council.

Councilor Alvin Dizon wants a review of guidelines on the allocation of City Hall’s financial assistance to non-government organizations (NGOs) and people’s organizations (PO).

“With what is happening now (in Congress) it is incumbent on the council to review and ensure that public funds will only go to legitimate NGOs,” Dizon told the council in last Wednesday’s session.

The matter was referred for study to Councilor Sisinio Andales, who chairs the committee on Private Sector Organizations Evaluation and Monitoring Board.

The topic arose when the council discussed a June 21 resolution from the City Development Council (CDC).

The CDC asked from Andales a flow chart of the process of securing financial assistance from the city government.

In its audit report last year, the Commission on Audit called City Hall’s attention to its failure to provide reports on financial aid to NGOs resulting in unliquidated allocations worth P76 million.

Of that amount, P54.8 million was released to NGOs in 2011 and the year before.

A COA circular requires NGOs to submit their fund use report within 60 days from receiving the city’s assistance.

Auditors noted that while liquidations were made of some of the fund releases, concerned NGOs failed to specify the debit balance of the assistance released to them resulting in a negative balance of P154,764.09.

The NGOs/POs mentioned in the audit report were the Bo. Luz Homeowners Association Multi-Purpose Cooperative, the Kaabag sa Kalamboan Inc., Kalamboang Alang sa Panumuyo sa San Roque (KAPASAR), Golden Center of Cebu Inc. and the Pagtambayayong (Foundation for Mutual Aid, Inc.).

Other recipients of the city’s financial assistance were the Visayas Chamber of Mango Industry, Inc.; Arts Council of Cebu Foundation, Inc.; Cebu City Tourism Foundation; Cebu Youth Center, Inc.; and the Rotary Club of Cebu among others.

Auditors said NGOs and POs that fail to submit the required liquidation may face legal action by the city government.

City officials told COA during their exit conference last June that demand letters were already sent asking NGOs and POs to submit their fund use report and some of these reports were already submitted for pre-audit.

“However, there was a log in recording the liquidation in the city’s books due to suspensions for incomplete supporting documents and delays in its compliance,” the COA report said.