Vice Mayor to city officials: Stop insisting on loan-A A +A
Saturday, September 29, 2012
TACLOBAN CITY Vice Mayor Arvin Antoni advised officials of the City Government who still insist on taking out a P600-million loan from a government and a private commercial bank to “shut up, shape up or better yet ship out!”
“Even if they want to borrow money, it cannot be because the BLGF (Bureau of Local Government Finance) has already withdrawn the city’s authority to do so,” Antoni said Saturday.
Citing Section 324 of Republic Act 7160, known as the Local Government Code, Antoni said it is the law that prevents the city from borrowing money.
A review of documents submitted by the City Government showed that while it intends to take out P622.65 million, the City Council’s permit limited the amount to only P400 million to be drawn from Development Bank of the Philippines (DBP) and Philippine Veterans Bank (PVB).
The BLGF central office said discrepancy, coupled with the city’s failure to submit a certification of no compensating balance requirement which is compliant with Local Finance Circular 1 series of 2012, materially affected the earlier evaluation they made.
The loan is expected to finance several projects, including the construction of a two-storey hospital building, a sanitary landfill, a new city police and fire station and procurement of heavy equipment.
BLGF’s decision was, however, misconstrued by some sectors in the city and placed the blame on the minority bloc of the City Council.
A rally was held during last Wednesday’s regular session purportedly questioning the minority members of the council —Antoni, Councilors Neil Glova, and Jerry Uy, as to why they opposed the plan of the city to secure a loan. (Leyte Samar Daily Express)