Kidapawan approves P75-M equipment loan

KIDAPAWAN CITY -- Members of the legislative council of Kidapawan City have approved, with finality, the P75-million heavy equipment loan during their special session on Wednesday.

Of the 12 members of the City Council, only two opposed the granting of an authority to the city's chief executive to enter into a loan with the Veterans Bank of the Philippines.

"The discussion was too emotional. We argued so hard to make the other councilors understand our arguments. For me, the loan is untimely and I saw hidden agenda, especially so that the elections are upcoming," Kidapawan City Councilor Lauro Taynan said.

Taynan and another council member, Lawyer Greg Yarra, have stood firm on their position not to grant City Mayor Rodolfo Gantuangco to enter into a P75-million equipment loan.

Both have three reasons for the opposition.

First, the loan is untimely since the local elections are fast approaching.

Majority of the members of the council, including Mayor Gantuangco, are seeking re-election.

Second, Taynan argued, was the fact that the heavy equipment that the city LGU would purchase are all manufactured in China.

"Sorry to say, but as per our experiences, those equipment that are made in China are not heavy duty or durable. We can use them one to two years and they would easily bogged down," Taynan said.

Third, he said that the Council and the city mayor's office, including the Bids and Awards Committee, have not given them convincing explanations that the City Government has to loan the amount with the Veterans Bank and not with the Land Bank of the Philippines.

"Our argument was that, the Land Bank offers fixed loan interest rates, while Veterans Bank, though lower, depend much on the international market and other economic factors," Taynan said.

On Wednesday, the Council approved the resolution that granted Mayor Gantuangco the authority to enter into the multi-million loan. Also, the council has approved the Letter of Credit, which would be the basis for such loan.

Gantuangco, in an earlier interview, argued that the City Government has sought the approval of the loan since 2011.

"We needed the loan so badly because most of our heavy equipment is no longer in good running condition," Gantuangco said.

He also denied there is hidden agenda on why he pushed through with the loan.

"The equipment would be used to expedite the rehabilitation of roads and other infrastructure projects in the city. Many of the projects have not been completed because we lack heavy-duty equipment," he said.