Council to discuss COA P1-B overdraft report

Ordinary citizens will have a chance to hear Cebu City’s actual fiscal status discussed during a public hearing of the City Council this Wednesday.

The Local Finance Committee, the city accountant’s office and the Commission on Audit (COA) were invited to shed light on an Audit Observation Memorandum (AOM) that stated that the city government overspent close to P1 billion last year.

The public hearing is set at 8:30 a.m. at the session hall in the 4th floor of the Legislative Building.

In an April 30 AOM, state auditors warned city officials “to stop incurring obligations without the corresponding cash reserves to avoid penalties, surcharges and legal implications in case the City would be unable to meet its obligations.”

Mayor Michael Rama authorized the local finance committee composed of the city planning and development officer, treasurer and budget officer to appear during the public hearing.

“But if the purpose of the public hearing is just to embarrass them then they will have to leave,” he told Cebu Daily News.

Councilor Noel Wenceslao recently presented to the council the AOM that stated a possible P1 billion overdraft.

Wenceslao, vice chairman of the council’s budget committee, also wanted to be clarified about Mayor Rama’s plan to sell lots at the South Road Properties (SRP) to address the city’s liquidity problems.

A second topic in the public hearing is the petition by the Visayan Electric Co. (Veco) filed with the Energy Regulatory Commission to pass on to their consumers the P34.2 million cost of repair of a transformer which was damaged by lighting.

The cost of recovery would mean an additional P.0592 or 5.92 centavoes per kilowatt hour for Veco consumers.

The public hearing will be held a day ahead of a consultation called by the ERC.

The council is sending its energy committee chaired by Councilor Nestor Archival to convey their opposition to the Veco petition.

Notices of the public hearing were published in local dailies by the Cebu City Council secretariat yesterday.

Councilor Margot Osmeña said it’s up to Vice Mayor Edgar Labella, the presiding officer, to decide whether to allow city residents to speak during the two public hearings.

Rama expressed his support for the Veco public hearing saying that “anything that would cause a burden on the people should be discussed.”

However, he said he was wary of the local finance committee’s appearance before the city council.

“The (council) cannot use their power for witch hunting but if the public hearing is for the people, then I will let the LFC appear subject to conditions,” he said.

Under Rama’s conditions, discussion should be limited to the audit memorandum of the COA and the council should refrain from “insulting” members of the local finance committee.

“But if the council will end up attacking anyone from the executive (department) or anyone they invited then they should leave. It’s not for the council to embarrass anyone,” the mayor said.