BAGUIO CITY — Before approving the Third Supplemental Annual Investment Program (AIP) for 2026 through a resolution, members of the Baguio City Council questioned procedural lapses, unauthorized spending, and audit compliance issues involving several city government offices.

Local legislators questioned executive officials over projects implemented without the required funding ordinances. Councilors discovered that several projects, including financial assistance for local transport groups and the procurement of equipment such as a drone, had already been implemented or paid for despite lacking the required legal authorization.

Councilor Betty Lourdes Tabanda questioned the timeline and legal basis for the distribution of financial assistance to transport groups using the Quick Response Fund (QRF). She expressed surprise that the measure remained pending before the council despite the public understanding that the aid had already been distributed. She asked where the funds came from if the measure had not yet been approved, noting that the council was being asked to approve only an investment program resolution rather than a full appropriation ordinance.

City Disaster Risk Reduction and Management Office head Charles Carame explained that executive offices had previously implemented projects once an investment program resolution was passed. However, recent audit observation memoranda from the Commission on Audit (COA) established a strict requirement that local government units enact a separate appropriation ordinance, in addition to the resolution, before disbursing funds.

George Ngolab of the City Planning, Development, and Sustainability Office (CPDSO) clarified that including completed and ongoing projects in the proposed investment program is a mandatory prerequisite before the city can formally request the necessary appropriation ordinance. Tabanda opposed the practice of seeking retroactive approval for items that had already been procured or paid for, saying the executive branch must strictly align its requests with statutory requirements.

Councilor Peter Fianza raised further concerns regarding the use of emergency funds for nontraditional responses such as transport assistance. Carame defended the move, saying the use of the QRF is permissible following the declaration of a state of calamity. He cited national and local declarations issued during the energy and transport crisis, adding that he believes the declaration remains in effect because no official order lifting it has been issued.

Fianza urged the disaster management office to review the legal parameters and scope of the calamity declaration to ensure that the transport assistance fully complies with Republic Act No. 10121. He requested that any future request for an appropriation ordinance drawn from the disaster risk reduction special trust fund be accompanied by an official council resolution, which Carame agreed to provide.

The city council decided to return the matter to the disaster management office. Executive officials were directed to furnish the council with all required resolutions, audit compliance documents, and updated plans before resubmitting the proposal.

The city council also discussed post-audit findings by state auditors highlighting missing documentation, including the failure to consult or secure the proper clearance from the disaster management office for certain disbursements. Tabanda cited specific audit recommendations requiring the disaster management office to formulate a comprehensive local plan in coordination with the City Development Council and to submit a detailed accounting of unutilized funds from previous years.

Carame assured the council that these items would be integrated into the main plan currently being finalized. However, Tabanda instructed that the programming of unspent balances be submitted to the city council as a standalone document to ensure transparency and compliance with audit requirements.

The AIP 2026 resolution now awaits the signature of Baguio City Mayor Benjamin Magalong.