Cebu gov’t left with P800M in debt

CEBU GOV. HILARIO Davide III catches his breath after a brief tour of the capitol on his first day of work. PHOTOS BY TONEE DESPOJO/CEBU DAILY NEWS

CEBU CITY—The new Cebu governor has to face a debt of almost P800 million, which he inherited from the administration of former Gov. Gwendolyn Garcia who is now representative of the province’s third district.

Quoting reports from the provincial treasurer’s office, Gov. Hilario Davide III said it was not true that Cebu is debt-free, as Garcia claimed when she turned over the reins of the provincial government to Davide on June 30.

Based on billing statements received by the capitol, Cebu province has payables of P788 million and has almost the same amount of money in the bank—P791 million.

“It’s obvious that the province is not debt-free,”  Davide said.

Lawyer Ramil Abing, Davide’s chief of staff, said a group had been tasked with reviewing the financial condition of the province.

Abing said most of the payables had no supporting documents, like vouchers, and contracts for services or projects for which the capitol is being asked to pay had not been ratified by the provincial board.

The new administration also plans to ask for  help from the Commission on Audit to check if payment should be made to those who are collecting what are supposed to be the capitol’s debts to them but without vouchers and supporting documents.

The payables include a billing from Sugbutel, a small hotel in the city, worth P231,845 for the accommodation of 126 barangay health workers on Dec. 18, 2012, who joined a prayer vigil for Garcia outside the capitol building in anticipation of a suspension order from Malacañang.

EX-GOV. GWENDOLYN Garcia hands over a painting of
Sto. Niño to her successor, Davide, on June 30 when she announced that she’s leaving behind a debt-free capitol.

On Dec. 19, 2012, the Office of the President imposed a six-month suspension order against Garcia for grave abuse of authority for usurping the powers of the vice governor.

Garcia defied the suspension and remained holed up in the governor’s office until January when she sneaked out to go to Oslob town, about 115 kilometers  south of this city, to inaugurate the briefing center of the Oslob Whale Shark Watching program.

Then acting Gov. Agnes Magpale immediately padlocked the office of the governor to keep Garcia out.

Another P63-million billing came from  ConEquip, a firm that sold to the capitol at least 27 tourist buses given by Garcia to different towns for the Suroy-Suroy Cebu, the province’s local tourism program.

Abing said that while the new capitol administration is reviewing the documents for the purchase of the tourists buses, Davide planned to pay the supplier because the buses had been delivered.

“The governor will find a way to pay this transaction,” Abingsaid.

But the payment cannot be made until the deal to purchase the buses has been ratified by the provincial board, albeit belatedly.

Abing said only payables that were covered by documents, like vouchers, and certificates of ratification by the provincial board would be given priority in payment.

Initial evaluation showed that of the nearly P800 million in payables, only P126 million worth of transactions were covered with supporting documents.

Abing said he could not say if those not covered by vouchers and documents would not be paid.

“We will let the governor decide,” he said.