SHOULD the Cebu City Council approve the implementation of infrastructure projects even in the absence of a fund source?
Until the issue is resolved, council members agreed there was no point in continuing their scrutiny of the P1.147-billion supplemental budget 2 proposed by Mayor Michael Rama.
“What’s the point of continuing the discussion when there are really no fund sources?” said Councilor Margot Osmena, head of the council’s budget committee.
Osmeña said instead of passing the entire SB 2, the city should prioritize passage of appropriations for the salaries especially of job order employees some of whom have not been paid for the last two to three months.
Engineer Kenneth Carmelita Enriquez, head of the Department of Engineering and Public Works, told the council during the continuation of their budget hearing yesterday afternoon that a total of 83 projects worth P674 million are being proposed under SB 2.
But none of the 83 identified infrastructure projects has a duly completed program of works and estimates. Only 20 are accompanied by cost estimates.
Tessie Camarillo, acting city treasurer, said the infrastructure projects would have to be funded from a bank loan in the absence of available cash.
Of the city’s four depository banks – Land Bank of the Philippines (LBP), Postal Bank (PB), Philippine Veterans Bank (PVB) and the Development Bank of the Philippines (CBP) – only LBP has furnished her a credit proposal with a 7 percent per annum interest.
“But we don’t have funds yet. There is no commitment yet from LBP because we are yet to comply with the (loan) requirements,” said Osmeña. Chief of reporters Doris C. Bongcac