Commitment to Lasting Impact: Witness My Enduring Legacy (Gwen)

Chatter: Outgoing Cebu Governor Gwendolyn Garcia stands her ground on the legality of establishing trust funds for her flagship programs, despite criticism from incoming Governor Pamela Baricuatro's transition team. Garcia, with the support of the Provincial Board, believes these programs are critical for Cebu's continued development and is taking measures to ensure their continuity after her term ends on June 30, 2025.

Update: Last Monday, June 16, Garcia issued Memorandum 36-2025, mandating the creation of trust funds to secure financing for flagship programs like Suroy Suroy Sugbo (tourism), Sugbo Segurado (insurance), Sugbo Negosyo (livelihood), Sugbo Kahanas (skills training), Sugbo Patubig (waterworks), and newer initiatives like Sugbo Kuryente (power supply) in Malapascua and Sugbo Sentro (food court), the revamped Larsian Food Park. The trust funds are based on Section 309(b) of the Local Government Code of 1991 and Commission on Audit (COA) regulations, allowing local government units to earmark funds for specific purposes.

However, concerns over the legality of these trust funds have been raised by Baricuatro's transition team. Lawyer Edmund Lao, leading the incoming administration's team, argues that the Sangguniang Panlalawigan (the provincial legislative body) has the authority to create trust funds through ordinances. The governor or treasurer cannot unilaterally create such funds without enabling legislation. While some of the programs have ordinances backing them, these do not necessarily authorize the establishment of separate trust funds. Funds for these programs usually belong to the General Fund and are subject to normal budget procedures if unused.

Analysis: The incoming administration is reviewing the legality of the trust funds, focusing on whether enabling ordinances exist to support their creation. Baricuatro has condemned the move as an abuse of fiscal power and a violation of good governance principles, pledging to pursue legal remedies to ensure transparency and proper use of provincial resources. However, Garcia dismisses these doubts, describing them as "noise" and "perhaps unenlightened or ignorant."

On the other hand, Incoming Vice Gov.-elect Glenn Soco points out that some of the programs are supported by provincial ordinances. He also noted that the creation of trust funds falls under the discretion of the Office of the Governor. Additionally, the PB scrutinizes the executive department's proposed annual budget every year.

Exploration: If the legality of the trust funds is questioned, what options does the incoming administration have to review, assess, and potentially revoke the memorandum? What are the potential implications for Cebu's flagship programs if the trust funds are found illegal or unsupported by proper legal basis? How might this controversy affect the relationships between outgoing and incoming Cebu government officials?

Perspective: This controversy highlights the complexities of governance, particularly when it comes to financial management and resource allocation. Ensuring the proper use and protection of public funds is crucial, but the means by which this is achieved can sometimes be debated and disputed. The incoming administration's approach to the trust funds might set a precedent for future transitions, demonstrating the importance of collaboration, transparency, and a strong understanding of local government rules and regulations.

The Philippine government is currently reviewing the legality of trust funds established by outgoing Cebu Governor Gwendolyn Garcia, with incoming Governor Pamela Baricuatro's team leading the investigation.
The incoming Cebu administration believes these trust funds could be a violation of good governance principles and is prepared to pursue legal remedies to ensure transparency and the proper use of provincial resources.
If found illegal or unsupported by a proper legal basis, the incoming administration may choose to revoke Garcia's Memorandum 36-2025, which ordered the creation of trust funds for Cebu's flagship programs.
A potential implication of this controversy is that it could affect the relationships between outgoing and incoming Cebu government officials, possibly setting a precedent for future transitions in the Philippines.
This controversy underscores the importance of collaboration, transparency, and a strong understanding of local government rules and regulations in financial management and resource allocation, particularly during transitions of power.