Valley officials face suit for bank loan-A A +A
Wednesday, August 1, 2012
LA TRINIDAD, Benguet -- Cooperative Bank of Benguet and its CBB Corporation Foundation filed a multimillion collection suit against the entire officialdom of the Valley.
Mayor Greg Abalos, municipal administrator Charles Canuto and municipal budget officer Imelda Grupo received the formal complaint Friday last week over unpaid loans from both Coop Bank and the CBB Foundation amounting to P23 million that was used to acquire the black hole technology in 2011.
Abalos loaned the P5 million on September 30, 2011 at the CBB Foundation, while the P18 million came from the Coop Bank in two tranches: one for P7,500,000 given June 15 and P10,500,000 given May 23, all to pay for down payments of the Black Hole Project in Alno that was seen to solve the worsening garbage problem in the Valley.
The Coop Bank and the CBB Foundation lamented that no payment has been made despite demand letters sent to the town’s chief executive.
Both entities are suing the respondents for collection of money and damages asking for P1 million apiece, plus a 24 percent per anum interest and legal fees.
Vice Mayor Romeo Salda and Councilors Francis Lee, Jim Botiwey, Henry Kipas, Arthur Shontogan, Roderick Awingan, Estrella Adeban, Von Ryan Tauli and Robert Namoro, as well as Sangguniang Kabataan president Brenden Quintos received their summons Monday afternoon, before their regular session.
Abalos advocated the P58-million project to the council, saying the “Black Hole Project” is aimed to revolutionize waste disposal here. The project costs P58 million and was dubbed as the “Zero Waste Management System (Super Black Hole Project).”
The P18 million was turned over to Wisdom Amahah, representative of Philippines NGO Support System, owner of the system.
The council gave Abalos authority to represent and loan in behalf of the municipality through a resolution.
In 2011, the Coop Bank agreed to loan the municipality the money for the project. Initial funding was turned over to the Amahah on June 15.
In the contract, payments will be divided into five tranches with the first installment given already representing the P7,188,750 given, another P5 million is set to be paid on June 15, the remaining balance will paid after the technology will be delivered to the Valley.
Abalos launched the black hole project November 4 to solve the municipality’s garbage woes, and again asked the council to authorize him to loan the remaining amount to play for the Japanese invention, which has a pending payment worth P40 million.
The council lagged and asked for solid base to approve a multi-million loan from bank, citing no single document to show to the council on equipment, money back guarantee and other papers assuring the municipality of success and security.
At present, the black hole project in Alno is deemed closed to the public with workers in the area claiming the technology is now under repair.
A representative to the mayor pronounced the Alno area is closed. (Ma. Elena Catajan)
Published in the Sun.Star Baguio newspaper on August 01, 2012.