The Bacolod Sangguniang Panlungsod yesterday approved the request of the Mayor for a supplemental appropriation of P59.2 million, which includes the 15 percent mobilization fund to be paid to Hilmarc's Construction Corp. for the construction of the government center project.

Those who voted in favor were Councilors Greg Gasataya, Jocelle Batapa-Sigue, Homer Bais, Dindo Ramos, Jude Thaddeus Sayson, Napoleon Cordova, Al Victor Espino, Arturo Parreño and Marx Louie de la Rosa.

Councilor Elmer Sy voted against it while Councilors Lyndon Caña, Reynold Iledan and Catalino Alisbo abstained. Councilor Ana Marie Palermo was not present.

Former Bacolod Mayor Luzviminda Valdez yesterday questioned the appropriation ordinance requested by Leonardia to be sourced from the Internal Revenue Allotment and the 2006 net income (surplus) and asked why it was not taken from the Philippine National Bank loan.

Espino, chairman of the Committee on Finance, said that since the city will be using new funds, all its projects for 2007, including the basic services, will not be affected.

In his letter to the SP, Leonardia said HCC has already secured a surety bond with a request for the delivery of the sum of P59,243,568.15 as down payment.

Leonardia said the PNB has informed the city that it could not release the 15 percent mobilization fund within 90 days prior to elections, based on its internal policy.

Any delay in the release of the loan will expose the city to a possible damage suit by HCC since it has already complied with its obligation by posting a surety bond, he said.

Leonardia said that, under the deed of donation, the donor of the property has given the city 30 months from Dec. 2006 within which to complete the construction of the project. Should the project not be completed within the stipulated period, then the donated land (worth about P140 million) shall revert back to the donor, he said.

Leonardia requested that the proposed supplemental budget be under the name: "Buildings (contractual obligation)".

Records show that the city has an available amount of P43.4 million from its IRA and P55 million representing its 2006 net income (surplus), or a total available amount of P98,523,811.65, he said.

Leonardia said that, should the 15 percent of the contract price of the construction of the project be paid by the city, it will definitely be more advantageous, as there will be a considerable reduction in the city's intended loan, and it will result in the reduction of the amount of interest which the city will pay.

But Valdez asked, how can you project that you will have an extra amount of IRA when you are not sure if it will come or not?

She claimed that the net income of 2006 which is the surplus can be estimated at the end of Dec. 31, 2006 and this has already been obligated since it has been included in the budget submitted to the SP for its approval and to be operationalized in 2007.

She also asked where they got the supplemental budget when the first quarter is not yet finished.

Valdez said this has strengthened the case filed by the taxpayers against the city which is pending with the Regional Trial Court. At the same time, she also said that if the case is dismissed at RTC, Land Bank of the Philippines might also release the 15 percent mobilization fund. So why spend the money of the city? She asked. She also said they are studying what possible action to take.

City Legal Officer Allan Zamora, however, said there is no problem with the appropriation ordinance. In fact it is favorable to the city because instead of having a loan of P394 million, the amount will be reduced by P59 million, he said.

This means that the city will only pay PNB the progress billing since it already shouldered the amount for the mobilization fund, which is favorable to the city, Zamora said.

Zamora said this simply shows that the city is solvent because it has an available fund of P59 million plus. There is nothing illegal with it since the City Accountant had certified that the city has available funds, he said.

He said this only shows that Leonardia is determined to continue the construction of the government center.*CGS

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