City gov’t owes P2.5-M gas, oil

ANGELES CITY–Pampanga First District Representative Carmelo “Tarzan” Lazatin revealed that the city government led by Mayor Edgardo Pamintuan has more than P2.5 million debts in gasoline and oil supply.
Irish Calaguas, Lazatin’s Chief of Staff, said reports from Magtoto Petron Station located along McArthur Highway say that the city government owes it more than P2.5 million worth of gas and oil.
Calaguas said government vehicles have not been able to acquire gasoline because of the city government’s inability to pay their obligations to the gasoline station.
“The only reason that the mayor’s office can still load gasoline is because they are using petty cash,” Calaguas said.
According to the Commission on Audit (COA) Circular No.97-002 dated February 10, 1997, all payments must be made by check. Only payments in small amounts may be made by cash through the petty cash fund in the amount not exceeding P1, 000.
‘Exaggerated’
In a statement, Pamintuan said the amount of gas and oil debts claimed by the Lazatin camp is “exaggerated.”
“I’m sure the amount is exaggerated as usual. But, as far as Magtoto is concerned, all vouchers are being processed and checks are being prepared. The supplier will be paid. There’s no problem in that,” Pamintuan said.
Moreover, Pamintuan added that Magtoto gas station is not their only supplier. He said all local government units in the country have accommodations and credit line from gasoline stations for easy service everyday but “the Angeles City government do pay at the end of the day.”
“Payments to our suppliers undergo due process. We’re even paying the debts of past administrations,” Pamintuan said.
The mayor branded Lazatin’s claim as “another malicious deed and black propaganda of Tarzan’s (Calaguas) aide.”
COA violation
Lazatin’s Chief of Staff, Calaguas, said the use of petty cash for gasoline expenses is a violation of Commission on Audit (COA) Corcular No. 97-002.
The COA Annual Audit Report for the year 2011, dated June 18, 2012, show that for the year 2011, the Pamintuan administration reimbursed a total of P1,417,740.77 in gasoline expenses.
Part II, Section 7.6 of the COA Audit Report states that “personnel of different offices had purchased goods and services in cash although the amounts and nature thereof were not petty.”
Reports also say that aside from millions of gasoline debts, the city government also owes local newspaper Central Luzon Businessweek about P124,000 in advertisement debts.
“The city government has not been able to pay for the numerous advertisements they commissioned on our paper since October 2011,” said Mina Navarro-Cabiles, Businessweek’s Marketing Officer.
The commissioned advertisements mentioned by Cabiles include calendar of activities for Tigtigan Terakan Keng Dalan published from October 5 to 11, 2011 amounting to P10,000; congratulatory message for Businessweek’s sixth anniversary published from November 16 to 22, 2011 amounting to P6,000; a six-page publication of City Ordinance No. 302 from March 7 to 13, 2012 amounting to P90,000; publication of birthday greetings for Congressman Lazatin from June 27 to July 3, 2012 amounting to P12,000; and the publication of a congratulatory message for the 98th anniversary of Iglesia Ni Cristo from July 25 to 30, 2012, amounting to P6,000.
The Lazatin camp also revealed that they received insider reports saying that the salaries of the controversial Job Order Employees from September 16 to 30, amounting to P8 million, were only paid on October 5, after SM Prime Holdings paid their taxes worth P9,189,775.98 the day before (October 4).
“The administration keeps on denying the city’s bankruptcy and calling Congressman Lazatin a liar, but the evidence are everywhere,” Calaguas said.
http://www.headlinegl.com/city-govt-owes-p2-5-m-gas-oil/

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