Gwen creates trust funds for flagship programs, disappoints Pam

Local

JUST two weeks before her term ends, Cebu Gov. Gwendolyn Garcia has moved to lock in funding for her administration’s flagship programs by creating dedicated trust funds.

Garcia, through Memorandum No. 36-2025, ordered the creation of trust funds for at least 15 major provincial government programs, including her signature tourism campaign Suroy Suroy Sugbo and other initiatives that Governor-elect Pamela Baricuatro earlier vowed to scrap.

The directive, titled “Creation and Establishment of Trust Funds for Various Programs of the Province of Cebu,” instructs the Provincial Treasurer to earmark funds for specific Capitol initiatives.

It cites Section 309(b) of the Local Government Code of 1991 and Commission on Audit (COA) Circular 92-382 as legal bases for the move, which allows local governments to create trust accounts dedicated to particular purposes.

Among the programs covered are Suroy Suroy Sugbo, institutionalized through a 2012 ordinance to promote tourism caravans across Cebu; Pasigarbo sa Sugbo, a festival showcase that Baricuatro also intends to discontinue; Sugbo Negosyo and Sugbo Segurado, both launched in 2024 to support micro-entrepreneurs and community health insurance; Sugbo Kahanas, a skills training program initiated in 2021; Sugbo Patubig, focused on waterworks upgrades in Carmen and Moalboal; Sugbo Kuryente, an energy access project in Malapascua approved in 2025; Sugbo Semento, for the Capitol’s bulk cement procurement; and Sugbo Sentro, the revamped Larsian food strip turned provincial food hub.

Additionally, trust accounts will be established for the Capitol Lot Sales Settlement Account, the 20% Development Fund, the Reforestation and Watershed Management Fund under the Department of Energy Act, and tourism-regulated activities such as canyoneering in Badian and other river-based adventures, all legislated through local ordinances.

The memorandum further states that any previous issuances inconsistent with this order are automatically revoked.

Baricuatro hits back

Baricuatro, who defeated Garcia in the May 2025 elections, strongly criticized the order, calling it a “last-minute attempt” to block her incoming administration from realigning public funds.

“I am deeply disappointed and appalled by the recent actions of the Outgoing Governor, as evidenced by Memorandum No. 36-2025,” Baricuatro said in a public post on June 17.

“Her last-minute attempt to manipulate the provincial budget through the creation of trust funds—just weeks before her departure—is not only a blatant disregard for the principles of good governance and democratic transition but also an outright violation of legal and ethical standards,” she added.

Baricuatro had earlier announced that she would terminate Suroy Suroy Sugbo and Pasigarbo sa Sugbo, citing excessive costs and the need to focus provincial resources on education, health care, infrastructure, and other essential services.

She warned that the newly created trust fund accounts could tie the hands of the next administration by limiting how public money is spent.

“This act of sabotage undermines the trust placed in us by the people of Cebu and threatens the fiscal integrity of our province,” Baricuatro said. “It is an abuse of power designed to hinder the incoming administration’s ability to serve effectively.”

She vowed to thoroughly review the order and pursue legal remedies if necessary.

“We will review, assess, and, if necessary, revoke any illegal or questionable provisions of this memorandum,” she said. “We will pursue all legal remedies to ensure that the rule of law prevails and that the province’s resources are used transparently and for the benefit of all Cebuanos.”

On April 28, Garcia was served a six-month preventive suspension without pay over alleged grave abuse of authority and other charges, in connection with the issuance of a special permit to a construction company without legal basis.

She refused to vacate her post and instead sought clarification from Interior and Local Government Secretary Jonvic Remulla, asking the DILG to clarify the Ombudsman’s order.

Despite this, Garcia ran for reelection in May but was soundly defeated by Baricuatro, who won by a margin of approximately 300,000 votes. A week after the polls, the outgoing governor filed an electoral protest covering more than 4,100 precincts across Cebu province.

Baricuatro will formally assume office on June 30.(TGP)