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Monday, May 09, 2005
City to check P52M unpaid market loan
BAGUIO City Mayor Braulio Yaranon directed Sunday the local finance committee to look into the City Government's unpaid 1989 loan from the Economic Support Fund (ESF), which was supposedly used for the construction of the public market.
The PA Systems Secretariat under the Office of External Affairs of the Office of the President earlier wrote the mayor informing of the City's outstanding arrears amounting to P51,622,854.35 from said loan from March 1, 1989 to December 31, 2004.
Secretariat officer-in-charge Leonardo Kirk Galanza said his office, formerly known as Office of the Presidential Adviser for Regional Development (Opard) secretariat, came to know of the City Government's obligations while it was updating the collection of ESF loans.
The said loan was accordingly granted to local government units after the abolition of the Presidential committee on flagship programs and projects.
According to Galanza, the City was granted a principal amount of P12,107,611,27 and because the City has not paid any amount for the past 15 years and 11 months, the amount has ballooned to almost P52 million inclusive of the interest worth P10,734,358.68, and surcharges and penalties amounting to P28,780,883.40.
"In order that your LGU will not incur further penalties and surcharges, may we request for your immediate payment of our past due accounts (principal and interest only), in the amount of P22,841,970.95within 30 days from receipt thereof," Galanza said.
The mayor directed the local fiscal team to look into the matter.
"Kindly study the subject obligations of the City and recommend within seven days the course of action that can be undertaken immediately. Please also provide this office (with) a copy of all documentation pertaining to this case," Yaranon said in his directive. (Aileen P. Refuerzo)
(May 9, 2005 issue)
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