MORE than P330 million in public funds were disbursed as cash advances to just seven individuals at Cagayan de Oro City Hall between late 2022 and early 2025, raising concerns over potential misuse and possible breaches of procurement rules, according to internal records obtained by Gold Star Daily.
The documents, provided by a city hall employee, who requested anonymity, show that some personnel received over 20 separate cash advances. One individual was issued a total of P71.7 million.
City government records identified the top recipients as Cyril Ranile, Jade Adeser, Xsyclyn Faith Lumbatan, Jasmin Maagad, Rhapsody Gaabucayan, Mark Kenneth Jalapadan, Remy Labiano and Sheila Lumbatan. The amounts ranged from P25 million to over P71 million each.
Among the flagged transactions were P71.7 million in cash advances issued to a single employee, more than 20 separate disbursements made to some individuals, and single-day releases totaling up to P26 million.
Several of the programs funded by these advances were described in vague terms, with limited documentation provided to confirm whether they were implemented.
Under Philippine law, including Commission on Audit Circular 97-002 and Republic Act No. 9184, cash advances are restricted to urgent expenses and require prompt liquidation. Analysts say the pattern of transactions may indicate an effort to bypass procurement procedures.
Under Commission on Audit (COA) Circular 97-002 and Republic Act No. 9184, the use of cash advances is strictly limited to specific, urgent needs and requires prompt liquidation. Repeated large advances, analysts warn, may indicate transaction splitting, circumvention of procurement rules, or the presence of ghost projects.
City Hall spokesperson Jan Guillmore Actub told reporters here yesterday, April 30, that cash advances are part of the processes that enable local governments to implement certain activities.
“Kabahin sa proseso sa gobyerno ang pag cash advance labi na’s mga activities nga gipahigayon sa gobyerno. Even ang national government ga cash advance,” Actub said.
He added that cash advances must ultimately be liquidate otherwise they will not be cleared by the Department of Budget and Management.
“Magbayad mi’g dagko kung na kana ma liquidate. Nag prepare mi’g liquidation kay pag abot sa panahon nga mawala na mi sa City Hall, ma cleared ‘mi,” Actub told reporters.
Former officials and watchdog groups are now calling for a special audit by COA, a review of liquidation reports, and possible administrative and criminal proceedings.
Former City Administrator Teodoro Sabuga-a said that they have noticed a pattern in the cash advances because they have uncovered a paper trail of the cash advances before the Barangay and Sangguniang Kabataan Elections in 2023.
“The last cash advance made in 2023 was on October 24,” Sabuga-a said citing that it is virtually on the eve of the local elections.
Not only where there a spike of cash advances on the election period but cash advances have been happening every month as if it is the norm rather than the exception, Sabuga-a added.
He also observed of some instances where there were three cash advances made in one day for the same supposed purpose.
“Nabalaka kami nga mahitabo na sad karon (midterm elections) ang the same pattern of cash advances,” said Sabuga-a.
Request for Special Audit
In a letter dated January 27, former City Councilor Zaldy Ocon asked COA-10 Regional Director Mathew Rey Magno to act on an earlier request to audit the city’s Gender and Development (GAD) fund. He expanded his complaint to include the newly disclosed cash advance transactions.
“I have received a list from a concerned city government employee detailing numerous cash advances drawn by several individuals, amounting to millions of pesos per person. This list appears to point to blatant violations of existing laws and regulations on cash advances, including Republic Act 9184 and Republic Act 3019,” Ocon wrote.
The Anti-Graft and Corrupt Practices Act (RA 3019), penalizes gross negligence, bad faith, and transactions that are grossly disadvantageous to the government. Ocon cited both Sections 3(e) and 3(g), which cover misuse of public funds and improper disbursements.
“I strongly urge your office to… conduct a comprehensive audit of these cash advances, including their liquidation. Failure to act on this matter will leave me with no choice but to assume your office’s complicity,” he wrote.
Sabuga-a has also submitted a letter to government auditors requesting them to investigate the alleged massive cash advances.
“Worse, it has been reported that some cash advances are being granted even to individuals who still have pending unliquidated cash advances,” Sabuga-a’s letter, dated April 28, reads in part.
Public Demands Transparency
Ocon also alleged that delayed salary payments and unsettled obligations to contractors and suppliers are now common in the city, even as cash advances and questionable spending continue.
He urged COA to fulfill its mandate as an independent watchdog and provide a public report on its findings.
“This letter also serves as fair notice of my intention to hold your office accountable if these issues remain unaddressed,” he said.
The Department of the Interior and Local Government and the Office of the Ombudsman have also received copies of the complaint for parallel review.
“Every peso entrusted to public officials must be accounted for. The people of Cagayan de Oro deserve full transparency and accountability,” said Sabuga-a.
For his part, Actub assured the general public that the cash advances hadn’t been pocketed.
“Naa man mga buhatan sa gobyerno nga mohatag sa ilang ‘audit findings’ kung adunay makit-an nga iregularidad sa paggamit sa kwarta sa gobyerno. Makalaum ang katawhan nga gigamit sa ensakto ang kuarta ug nakasunod sa proseso ug wala kini giwaldas o’ kaha gibulsa,” Actub told reporters.
