FOLLOWING the bungled P150-million loan deal with the Philippine National Bank (PNB), the City Council Tuesday gave Mayor Evelio Leonardia the authority to enter into a P250-M credit accord with the Philippine Veterans Bank.

The loan is still intended for the purchase and development of relocation sites for informal settlers in the City.

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The granting of authority in Tuesday’s special session was made following the request of Leonardia that the Council authorized him to sign the proposed loan agreement with the Veterans Bank, “including any and all other documents that may be required pursuant to the conditions set forth in said loan agreement and deed of assignment.”

Vice Mayor Jude Thaddeus Sayson said since Leonardia confirmed that the P150M loan agreement with PNB had been cancelled, “the mayor finds it best to find another option just for the informal settlers of the City since it is one of the priorities of the present administration to provide a relocation site for squatters of Bacolod.”

Sayson said the mayor already held talks with the Veterans Bank management, which said the bank is willing to finance the purchase of the land, including the development of the site area. “This is a much better facility offered by the Veterans Bank.”

He added the previous loan agreement entered into by the City Government with the PNB had been politicized. “The PNB is willing to release the P150-million loan to the city but because of politics, they would release it by next year, if ever.”

Earlier, Bacolod Representative Monico Puentevella admitted he was the one who opposed the release of the loan. “For the first time, the people must know that I’m the one trying to save Bacolod from all these debts. I’m proud to admit that I’m now the number one representative of Bacolod, carrying the voice of the people that we don’t want anymore loans for the City.”

But Sayson said while the PNB may release the loan next year, informal settlers who have pending ejectment cases in court can not anymore wait. He added that when Veterans Bank heard of the status of the city’s loan with PNB, the former made its offer and talked with the mayor.

The vice mayor hopes the new loan agreement would no longer be politicized. “If we wait for another year to purchase any property, the price might be more than the interest due the city.”

He said the City Government intends to provide a decent relocation site for the squatters, noting that almost 3,000 households are scheduled to be ejected from their present homes and that the city also needs to relocate almost 2,000 families who are living in identified danger zones.