T-shirts purchased at P20,000 each? Archival scrutinizes transactions in sweeping audit of past admin

Local

CEBU City Mayor Nestor Archival Sr. on Saturday, July 5, said the city government’s projected multibillion-peso deficit was fueled not only by overspending but by “irregular” transactions under his predecessors, including alleged overpricing of vehicles and other questionable purchases.

Archival cited a failed procurement of a luxury BYD Tang electric SUV, which was supposed to cost the city P4.4 million but had a lower retail value of just around P3.3 to P3.4 million.

“That’s unacceptable,” Archival said in a media interview. “If you allow something like that to go through, others might follow. They’ll think, ‘Okay ra man diay.’ That’s not good for the city.”

The SUV purchase, flagged by Vice Mayor Tomas Osmeña as “vulgar spending,” was later canceled, but Archival said it reflects a pattern of wasteful governance that contributed to what he now estimates as a P2 to P3 billion budget shortfall.

He said his team has begun validating reports of other transactions, including T-shirts reportedly priced at P20,000 each.

“There’s preliminary information, though it’s not fully verified yet,” he said.

These remarks came in response to former mayor Raymond Alvin Garcia’s public denial that the city was in deficit when he stepped down in June.

Garcia claimed the city had more than P11 billion in bank deposits and left no debts behind.

“I respect Mayor Garcia. Maybe he was looking at the books months ago, before he exited,” Archival said. “But today, if you compare the remaining funds with our obligations and payroll, we’re already short by around P2 billion.”

Garcia previously argued that any perception of a deficit could stem from unsettled payables dating back over a decade.

But Archival disagrees. “If you have overpriced purchases like that SUV, that’s one of the reasons why the deficit grew,” he said.

The newly installed mayor has already frozen new hires and instructed department heads to evaluate which personnel are essential. Of the city’s over 8,500 employees, only around 1,400 job-order and casual workers have so far been renewed.

Department heads are responsible for identifying critical staff, and all endorsements must pass through the mayor’s office. Archival stressed that political loyalty will not be a factor in the selection process.

“Let’s take it slow,” he said. “We’ll assess each person’s skills and assign them accordingly.”

According to Archival, the city raised P5.49 billion in revenue in the first six months of 2025 but has already spent P3.6 billion, with over P2.6 billion going to operating expenses, including salaries.

“If we continue at this pace without controlling expenses, we’ll end the year having spent P11 billion with only P9 billion in revenue,” he said. “It’s unsustainable.”

Osmeña, who initially exposed the SUV deal, said the P4.4-million price tag was grossly excessive and accused Garcia’s administration of rushing the transaction without transparency.

“They weren’t even ashamed. They were proud,” Osmeña said. “But this kind of spending is exactly what brought us here.”

He also accused the outgoing administration of attempting to destroy key city records before the turnover, allegedly to obstruct the transition process and hide questionable transactions.

“There’s a reason Gwen Jr. (referring to Garcia) tried very hard to destroy documents on his way out,” he said. “Luckily, an auditor from Manila is now helping us go through everything. Expect more revelations.”

Meanwhile, former mayor Michael Rama came to Garcia’s defense and offered to act as his legal counsel should the SUV deal lead to legal troubles.

“Wala man kaha palita, so no injury, no damage. Then no liability, no case,” Rama said. “Tell Raymond, I will be his lawyer.”

Osmeña fired back, saying Rama was the “most qualified” to represent Garcia due to his own history of vehicle-related controversies.

“He’s the expert in overpriced vehicles,” Osmeña said, sarcastically referencing a P3.6-million Toyota HiAce acquired during Rama’s term and the latter’s previous suspensions from office.(TGP)