MANILA MAYOR Francisco “Isko” Moreno Domagoso sounded the alarm over the previous administration’s billions in debt along with questionable cash advances, a condition that he said placed the city’s finances in critical status.
During his inaugural State of the City Address on Tuesday, July 1, Domagoso said the administration of former Manila mayor Sheilah “Honey” Lacuna had incurred a budget shortfall and had left behind P10.2 billion in unpaid obligations, including P3.2 billion that has been overdue for over a year.
“This is the big picture of the finances of the City of Manila: our city finances are in ICU,” Domagoso said.
“We are [deepening] into cash [reserves], while obligations mount and the [promises] to the people go unredeemed.”
Domagoso said although the city’s 2024 budget was set at P25.8 billion, actual revenue collections under Lacuna’s term only reached P21.2 billion, resulting in a deficit of P4.6 billion.
The P10.2 billion debt, the mayor explained, includes the P589 million community development program owed to the Office of Senior Citizen Affairs, the P55 million mandatory subsidy of the Pamantasang Lungsod ng Maynila for the first quarter and a P26 million aid to the Manila Police District.
Domagoso attributed the alleged lack of supplies and services in the city’s health centers to the P2 billion debt in medicines and P925 million debt in medical equipment.
He added that garbage hauling and hazardous waste disposal debt totaled P950 million, stemming from non-payment to three garbage contractors: P561 million unpaid since May 2024 to Leonel Waste Management Corp. and a combined P389 million owed to MetroWaste Solid Management Corp. and Philippine Ecology Systems Corp.
Domagoso previously said he had received a letter of withdrawal from MetroWaste and PhilEco as Manila’s garbage management contractors because of unpaid obligations since February this year.
READ: Isko places Manila under public health emergency to address garbage problem
The city’s debt also covers unpaid services, including P431 million for security and cleaning; P2.9 billion for supplies and materials and P2.2 billion for infrastructure projects that consist largely of repair work, according to the mayor.
Domagoso added that the city has undisclosed balances owed to the Bureau of Internal Revenue and P200 million in unpaid contributions to the Government Service Insurance System, which had prevented city hall employees from receiving their benefits.
“What pains me the most is this is not my money nor the money of the people. This is the hard-earned money of the government employees,” Domagoso said.
Cash advances
On top of the city’s debt, Domagoso said cash advances totaling P3.8 billion have been made from August 2024 to May this year.
The mayor claimed that several officials had cash advances ranging from P132 million to P1.1 billion leading up to the 2025 elections. He directed the officials to present their liquidation reports, saying the instances presented may have violated the Omnibus Election Code.
“To these individuals, whether you are still in the city hall or not, I am ordering you to submit your truthful liquidation report in accordance with the government rules and regulations,” he said.
Restructuring
Domagoso also said he is pushing for the restructuring of local government offices to allow the local economy to recover.
He intends to create the Task Force Fiscal Accountability, Cost Transparency, and Spending or FACTS to monitor the financial activity of the city offices, particularly in the areas of tax collection, permit provision and zoning.
Among the offices the mayor eyes to reform is the Manila Traffic and Parking Bureau, whose revenue decreased by 26% since Narciso Diokno III was appointed by Lacuna as its chief.
The mayor also bared a plan to bring back the city’s business permit processing to the Bureau of Permits after being transferred to the secretary’s office in 2024. According to him, some prospective businesses relocated or were discouraged from investing in the capital city because of inefficiency and multiple complaints.
Domagoso also pushed for the reinstatement of the P500 subsidy to senior citizens as the previously doubled amount has been deemed unsustainable. As a compromise, the mayor said he would ensure the return of all unregistered voters who were removed from the payroll.
“As long as you’re alive, you have a pension in Manila,” Domagoso said. F — Rainer Martin Dacuycuy
