Cebu City Mayor Nestor Archival has vetoed several provisions of the newly approved Supplemental Budget (SB) 1, removing restrictions related to manpower hiring, capital outlay limits, and the validation process for the PHP 35 million driver subsidy program.
Veto Letter Details
In a four-page veto letter dated May 13, 2026, Archival exercised his power under the Local Government Code to partially strike down portions of Sections 5, 6, and 7 of City Ordinance 2816, which authorizes SB 1 for 2026. The approved supplemental budget amounts to PHP 814.14 million for the General Fund Proper and PHP 17.72 million for Special Accounts, after being reduced by the City Council from the original proposal during committee deliberations.
Manpower Hiring Restrictions
One of the vetoed provisions required departments requesting additional manpower under Maintenance and Other Operating Expenses (MOOE) to submit a project proposal for approval by both the mayor and the City Council through a separate resolution, including details on the number of employees and project type. Archival stated that this requirement is unnecessary and administratively restrictive, as appropriations for manpower were already reviewed and approved by the legislative body during the budget process. He also vetoed the provision prohibiting retroactive hiring, noting it could affect workers who have already rendered service due to immediate operational needs. Archival cited existing regulations from the Civil Service Commission, Commission on Audit (COA), and accounting and budgeting rules as sufficient to prevent irregular hiring.
Capital Outlay Carry-Over Limit
The mayor also vetoed a provision limiting the carry-over of unused capital outlay funds beyond December 31. Under the ordinance, unused appropriations would be automatically defunded unless accompanied by complete procurement and funding documents such as Purchase Requests, Approved Budget for the Contract, and Certificates of Availability of Funds and Appropriations. Archival argued that this restriction could hinder the continued implementation of legitimate government projects, especially those with existing funds. He added that the determination of continuing appropriations should remain under national budgeting and auditing regulations from the Department of Budget and Management (DBM) and COA, not through blanket restrictions in a local ordinance.
Driver Subsidy Validation Process
Another vetoed provision involved the validation process for beneficiaries of the city's driver subsidy program. The ordinance designated barangay captains as validating authorities for habal-habal and tricycle drivers seeking fuel assistance. Archival opposed this, stating that exclusive reliance on barangay officials could cause delays, inconsistent processes, and operational difficulties in delivering aid. While recognizing the importance of barangay coordination, the mayor emphasized that the Department of Social Welfare Services (DSWS), as the implementing office, should have flexibility in determining the most effective validation mechanism for qualified beneficiaries.
Ordinance Status
The vetoed provisions are part of City Ordinance 2816, approved by the City Council on April 28 through Resolution 17-3579-2026. Despite the partial veto, the remaining parts of the ordinance remain valid and effective, including appropriations for garbage collection, infrastructure projects, transport assistance, manpower augmentation, and other city programs funded under SB 1.
