In early 1998, as May or Robredo “blessed” and campaigned for his interim successor Cho Roco, his administration released a P2,085,000.00 loan to Sabang Puro Urban Kabisig Organization, Inc. (SPUKOI). This, the COA questioned in 2002:
“Sabang Puro Urban Kabisig Organization Inc., a non-government organization, was granted a P2,085,000.00 loan on February 17, 1998 by the city government which was charged to continuing appropriation. This amount was intended for the payment of lots under the agency’s socialized housing program.The transaction was not in consonance with Section 4(1) of PD 1445 which states that no money shall be paid out of any public treasury except in pursuance of an appropriation law or other specific statutory authority. The audit further disclosed that no payment was ever made by any member of the above organization.”
Obviously, during his term from 1998 to 2001, Roco failed to collect a single centavo from SPUKOI. Neither did Robredo as mayor again in 2001 onward.
COA’s 2003 audit revealed continued failure to collect and produce any specific appropriation. COA’s next reports for 2004, 2005, and 2006 indicated partial action only in that collection efforts were being pursued and the loan was allegedly part of a continuing appropriation for socialized housing. Then, COA’s latest 2007 report did not make any update as yet.
However, SPUKOI’s relevant SEC Financial Statement (FS) for Jan. 1, 1999 to Dec. 31, 1999 (no FS filed for 1998) made no mention at all, much less, include this P2,085,000.00 for repayment. It only showed funds of P13,640.00 and P13,640.00 expenses. Even SPUKOI’s latest FS for Jan. 1, 2003 to Aug. 31, 2003, reported funds of P5,874.50 only and expenses of P5,874.50.No payment from SPUKOI can be expected after all.
Genuine transparency demands a full accounting.
More importantly, the loan, which was granted on February 17, 1998, appears illegal as there was no city ordinance providing for the appropriation required by law. The city’s explanation is a “continuing appropriation” for socialized housing. But, Sections 36 and 37 of Ordinance No. 98-033 known as “The Kaantabay sa Kauswagan Ordinance of 1997” making a continuing appropriation for socialized housing was approved only on March 11, 1998. There is no other earlier appropriation as the Naga “Transparency at Work” website shows. And if the P2,085,000.00 were part of the 1998 approved budget, then it should have been readily cited. In short, the loan was unauthorized.
This then calls for an Ombudsman investigation for graft and corruption of all responsible officials. The Sanggunian and the Naga City People’s Council should likewise investigate this loan posthaste, acting not by blind loyalty to Robredo, but by their solemn OATH to our People.
Lest we forget, if this P2,085,000.00 is fully repaid, plus interest, it could then be used for development projects or for others in need like people living at the Balatas garbage dump, street-children, and watch-your-car- boys.