CITY OF SAN FERNANDO – Mayor Edwin “EdSa” D. Santiago has denied saying that the city government is bankrupt.
During a press conference following the commemoration of National Heroes Day at the Heroes Hall here yesterday, Santiago explained that only the Finance Committee or Commission on Audit (COA) can say with authority if the city government is indeed bankrupt.
He said statements attributed to him that the city is bankrupt are totally untrue.
“I am not saying that the city has no money,” Santiago said. But he admitted that he convened the crisis management committee since last month in the light of the projected budget of the city government.
Santiago explained that the projected income of the city treasurer is P1.2 billion as approved by the city council.
But he said before he assumed office as city mayor, he convened the Finance Committee and asked them how much is the intelligent budget?
“I am talking of the realistic budget,” the mayor said based on the “true collection” of the city treasurer.
He said he was told that the minimum collection will be about P950 million and the maximum is about P980 million.
He said he told the committee that “I don’t like the minimum. You should exert extra effort to collect the maximum.”
Santiago said the committee told him that only P960 million will be readily achievable. But Santiago said he insisted that he wanted the maximum collection achieved.
However, based on a quick and realistic computation of the projected budget, he agreed with the P960 million projected revenue collection proposed by the committee.
Santiago explained that from the P960 million, about two thirds is already “obligated” or P660 million is already spent from January to June 2013 under the past administration leaving only the difference of P300 million to be collected by the city treasurer for the period of July to December 2013.
”That’s the reality,” he said. It means that social services and infrastructure programs have already been implemented, he added.
“So the minimum projected budget of P300 million will still be collected by the treasurer,” he said. “Kung sisipagin (If he will work harder) we might achieve P350 million. Kaya tinututukan ko ang treasurer (That’s why I am focused on the treasurer).”
The projected income already includes the P30 million Internal Revenue Allotment (IRA) that is given monthly until December, Santiago said. He said Congressman Oscar S. Rodriguez has vowed to give a one-time P3 million to the city government as a form of assistance.
“So pag nagkamali kami ng paggastos, magkakaroon kami ng deficit. So ang nilalabanan ko ngayon kung papano magiging operational ang city government (So if we make a mistake in spending the budget we will incur a deficit.
So what I am fighting for now is how the city government can be operational…) as far as public safety, public order, garbage collection and salaries and wages of city government employees can be suited in the P300 million projected budget until December,” he said.
Santiago explained that the P447 million deposited at the Land Bank of the Philippines as claimed by Rodriguez is composed of trust funds for safekeeping and not for general funds which can be spent for social services.
“Those are intended for programs like the Giant Lantern Festival, health, Special Educational Fund, employees’ benefits and disaster funds,” he said.
Santiago said because of the meager budget, he has declared an austerity program to efficiently manage the city coffers.
