A PETITION for review filed by Cebu City mayor Michael Rama and budget officer Marietta Gumia seeking lifting of the notice of disallowance on the P84.48 million cash subsidy to city officials and employees in 2013 has been thrown out by the Commission on Audit (COA).
The commission instead affirmed the liability of all local government officials who approved the payout of the P20,000 across-the-board financial calamity assistance (FCA) and ordered a refund by all who received the sum.
Held liable under the Notice of Disallowance were Rama, acting city accountant Mark Rossel Solomon, acting city treasurer Diwa Cuevas, accountant Jason Salazar, city administrator Jose Marie Poblete, human resources assistant department head Esteban Jemenia, assistant city accountant Giovanni Delgado, assistant budget officer Roseny Flores, city councilors Nestor Archival Sr., Mary Ann de los Santos, David Tumulak, Nendell Hanz Abella, Sisinio Andales, Alvin Arcilla, Roberto Cabarrubias, Ma. Nida Cabrera, Gerardo Carillo, Alvin Dizon, Eugenio Abuya Jr., and Noel Eleuterio Wenceslao; and all recipient city employees.
In approving the FCA, the city officials cited the twin disaster of the 7.2 magnitude earthquake on October 15, 2013 and Typhoon Yolanda which struck Cebu province on November 8, 2013.
Auditors however noted that there was no budgetary item covering the augmentation for the extra pay for city personnel.
“This Commission finds the petition without merit. The NDs were properly issued because the grant of the FCA is not among the expenses that may be considered for the enactment of a supplemental budget in times of public calamity,” the COA pointed out.
Despite the severe impact of the two calamities, the commission held that the grant of such cash assistance without any basis is a violation of RA 7160 or the Local Government Code.
“Consequently, being the persons directly responsible for the illegal utilization of the funds, the approving and certifying officials of the City Government of Cebu, including members of the SP (Sangguniang Panlungsod) who passed the Supplemental Budget No. 3, must remain solidarily liable,” it added.
