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Friday, June 06, 2008
Court wants Cebu City debt paid
By Linette C. Ramos
CEBU CITY -- Four depository banks of the Cebu City Government were ordered by the court sheriff to freeze about P20.6 million in Cebu City Hall's assets, to be used as payment for an expropriated lot.
Regional Trial Court (RTC) Branch 9 Sheriff IV Antonio Bellones notified officials of a branch of the Development Bank of the Philippines, Postal Bank, Banco de Oro and Philippine Veterans Bank of the garnishment of the City's deposits.
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After receiving their copy of the order for garnishment Thursday, the City Attorney's Office prepared letters addressed to the managers of the bank in an attempt to keep access to the City's funds.
The banks may implement the order five days after receiving the notice dated May 30, 2008. DBP received their copy last Tuesday.
City Hall lawyer Joseph Bernaldez said they will ask the banks not to implement the garnishment, as the City is still negotiating with the heirs of the late Matilde S. Palicte for the payment of the expropriated property.
"We wrote a letter to DBP asking them not to garnish whatever deposits the City has because we are still negotiating with the Palictes for an amicable settlement. The draft letter and the garnishment order are still with the mayor for approval," he told Sun.Star Cebu.
The City is requesting the Palicte heirs to waive the P6.2 million in interest that they are collecting and if granted, it will pay the P14 million balance immediately.
But if the Palicte heirs insist on having the garnishment order implemented, Bernaldez said the City might file a petition for certiorari and ask for a temporary restraining order to prevent the garnishment.
Garnishment is a court order to a company or entity to withhold all or part of its money and send the sum garnished to the person or organization that won a lawsuit over the former.
In the notice, Bellones informed the bank managers that by virtue of the court's order for the City to pay the Palictes, which became final and executory in November 17, 2003 yet, "garnishment is made upon all the goods, effects, interests, credits, monies, stocks, shares and all other personal properties of the City of Cebu that are in your possession... covering the total sum of P20,589,409.50."
The amount represents the unpaid purchase price of an expropriated property, interests and legal fees.
Sheriff Bellones also ordered the banks not to deliver, transfer and dispose of the City's properties to any person or entity without an order from the court that issued the order for the City to pay.
He gave the banks five days from the date of the receipt of the notice to make a written report stating whether the City has sufficient funds or credit to satisfy its debt payment, and to indicate how much the City has in their banks.
Of the four banks, the City has only heard from the DBP so far.
In her letter addressed to Mayor Tomas Osmeña, lawyer Maria Vita Jimenez-Nunag inquired if legal actions have been taken to stop the implementation of the garnishment order.
"Without your reply, we might be compelled to release the garnished amount when so requested by the court," she said.
The order dated May 30 is the second garnishment order issued for the Palicte property.
In May 2003, the court garnished P8.96 million when the City failed to pay the Palictes.
Since 2002, the City has received five garnishment orders involving four properties, but only those involving the properties of the Palictes and those of the Rallos family in Barangay Sambag I were implemented.
Some P39.4 million of the City's funds was garnished in 2002 for the Rallos property.
The City filed an expropriation case against the Palictes for the purchase of the lot located in Barangay Capitol Site, which the City is using as an on-site relocation for informal settlers who are socialized housing beneficiaries. According to the records of the Division for the Welfare of the Urban Poor, the lot is now occupied by some 170 families. (Sun.Star Cebu)
For more Philippine news, visit Sun.Star Cagayan de Oro. (June 6, 2008 issue)
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