Sunday, October 15, 2006 Nullification of ‘anomalous’ P60million loan sought
BONTOC, Mountain Province -- A member of the Provincial Board (PB) here has asked the Regional Trial Court (RTC) to void the alleged anomalous P60 million loan agreement entered between the Mountain Province Government and the Land Bank of the Philippines (LBP).
In a petition, Board Member Marcial Lawilao Jr. said “the release of the loan or any portion thereof is illegal, without sufficient basis and will work injustice to the province and constitutes waste of taxpayers’ money.”
He added that unless the court issues a temporary restraining order (TRO) and a writ of preliminary injunction to enjoin the bank from further releasing portions of the loan to the province and likewise to enjoin Governor Maximo Dalog from proceeding in the implementation of the project, “the continuous spending of the proceeds of the loan or any portions thereof will work and result to and cause grave and irreparable damage and prejudice to the people of the province.”
Records showed that on Jan. 6, 2006, Dalog and the bank executed a loan agreement in the amount of P60 million for the construction of the so-called Bontoc commercial center despite the fact that he was only authorized by the Board to secure a loan in the amount of P30 million.
The loan agreement states that it is being secured by Dalog in accordance with the authority vested upon him via Resolution 0313 dated July 18, 2005, which authorized him to secure a loan of only P30 million.
Lawilao claimed the act of the governor in securing a loan from the bank beyond his authority “is clearly illegal and ultra vires.”
He added the loan agreement was entered into between Dalog and the bank only on Jan. 6, 2006 while the invitation to bid for the construction of the commercial center, publication, bidding, the bids and awards committee resolution, the notice of award, contract and agreement and notice to proceed were all made from September to December last year, prior to the loan agreement or prior to the project having the necessary funding.
Lawilao added the bidding that took place before the approval of the funding “is illegal and highly irregular, thus, the same is a rigged bidding.”
On several occasions, the bank released to Dalog more or less P10 million as payment for the initial works of the controversial facility.
“Dalog exceeded and went beyond his authority to enter into a loan agreement with the bank,” Lawilao said. (Dexter See)
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