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Davao Oriental officials seek stop to P80-M loan

Thursday, December 14, 2006
Davao Oriental officials seek stop to P80-M loan
By Ben O. Tesiorna

DAVAO CITY -- Several mayors, two congressmen, and four Provincial Board members of Davao Oriental recently asked the court to stop their governor from taking a loan of P80 million with a government-owned bank.

The petitioners, in their plea for a temporary restraining order and writ of preliminary injunction, described the multi-million-peso loan as anomalous.

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Representatives Joel Mayo Almario and Corazon Malanyaon, along with mayors Francisco Rabat (Mati), Pedro Mejos (Banybanay), Afran Quiñones (Lupon), Antero Dayanghirang (Manay), Alicia Mori (Caraga), Samuel Uy (Tarragona) and Provincial Board members Nelson Dayanghirang, Camilo Nuñez, Ruben Linsag, and Delfin Miones filed the motion before the Regional Trial Court of Mati, Davao Oriental.

They said the P80 million-loan entered into between the Governor Maria Elena Palma Gil and the Development Bank of the Philippines (DBP) did not comply with legal requirements.

Aside from Palma Gil, also named respondents by the petitioners were Vice Governor Edgardo Lopez, Provincial Treasurer Adelinda Amacna, Provincial Budget Officer Decemerno Balasabas and the DBP.

The Provincial Board last April 25 passed two resolutions authorizing the governor to enter into a contract with DBP for a loan intended to purchase 14 brand new heavy equipments.

The planned acquisition, according to the petitioners, was done without the conduct of a feasibility study or program of work.

Also, they pointed out, component municipalities in the province have their own heavy equipments, thus making the province's purchase unnecessary.

The petitioners also claimed that the resolutions allowing the governor to enter into a contract with DBP were passed and approved not in accordance with the prescribed procedure.

"Resolutions 58-2006 and 59-2006, which are in the nature of appropriation ordinances authorizing or directing the payment of money or certain liability, were passed under suspended rules, contrary to the provisions of the Local Government Code," the petitioners said.

"Moreover, the said resolutions were not approved by the board or voted upon by it but merely passed through a motion for the adoption of a committee report as that of a committee of the whole," they added.

The petitioners suspect that the multi-million-loan is actually intended for the coming elections and is "obviously intended to circumvent prohibited acts under the Omnibus Election Code." (Sun.Star Davao/Sunnex)

For more Philippine news, visit Sun.Star Iloilo.

(December 14, 2006 issue)
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