‘Financial assistance’ to groups deemed illegal
EVEN when the ‘financial assistance” funds distributed to various groups by the Dagupan City government under former Mayor Benjamin Lim are finally liquidated, there remains a more basic legal issue: Were the disbursements legal in the first place?
A city official who asked not be identified pointed out that by law, public funds can only be extended as special aid or donation to such groups as non-government organizations (NGOs), people’s organizations, civic clubs, barangays, and the Liga ng mga Barangay if there is approval from the Department of Budget and Management (DBM).
The DBM, it must be recalled, did not approve and returned the Dagupan City budgets for 2011 and 2011 in the absence of the required Local Development Plan, City Disaster Risk Reduction and Management Plan and Gender and Development Plan.
RICE ALLOWANCE
The PUNCH source also said the extension of rice allowance to government employees through the Dagupan City Government Employees Multi-purpose Cooperative also has no legal basis because it was not included in the budget.
The cooperative was the biggest beneficiary of the financial assistance, receiving P20.8 million over three years from 2010 to 2013. The group, however, submitted a liquidation for P16.4 million of the total only last September 18.
It was also pointed out that it is illegal to give government employees financial assistance more than the authorized salaries and allowances.
City Budget Officer Luz de Guzman is reportedly now verifying with the DBM whether Dagupan, under Mayor Belen Fernandez, can continue extending the rice allowance to employees.
In reaction to the list of civic clubs that received financial assistance, one city hall employee asked “Is it not the civic clubs that are supposed to help the city government and not the other way around?”
Among the civic clubs that received financial assistance were the Dagupan Bangus Jaycees, Rotary club of Dagupan East, Metro Dagupan Chamber of Commerce and Industry and Dagupan Philippine Chinese Community Association.
The local government code provides that a financial assistance can only be extended if there is a resolution requesting for such donation duly approved by the city council.
The financial assistance given to the Government Association of Certified Public Accountants (GACPA) through City Auditor Ofelia Celi, is viewed as a case of conflict of interest since auditors are supposed to be independent.
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