Bacolod City Administrator Rolando Villamor yesterday said they have evidences to show that the loans incurred by the previous administration had reached more than a billion.
Villamor said the loans they inherited from the Leonardia administration has reached P1.2 billion from banks, aside from unpaid account to the Central Negros Electric Cooperative and the Bacolod City Water District.
Documents furnished by Villamor to the media yesterday showed that the total bank loans of the city as of June 30 for the Bacolod City Government Center, the development of the sanitary landfill project in Felisa and the purchase of the Arao property reached P665,490,548.08 plus interest of P342,159,442.15, or a total of P1,007,649,990.23 to be paid in installments.
The document showed its outstanding balance as of June 30 for CENECO is P206,160,263.39 and BACIWA, is P77,554,653.67, but this, according to Chuck Garcia, who joined Villamor during the press conference yesterday, is still subject to verification.
Records of CENECO showed that out of the total accounts of the city of P203,716,031.52 as of July 18, P45,129,625.31 were incurred from 2002 and below.
However, Garcia also said, the city wants to charge CENECO the franchise tax on the entire gross receipts which includes 12 percent Value Added Tax, which is subject of a compromise agreement between CENECO and the city. Based on the agreement, CENECO will pay the city a certain amount for the franchise tax and at the same time the city will pay its current account with CENECO, he said.
Villamor said the Commission on Audit had also issued notice of suspension on various transactions of the city amounting to P41,824,905.19, for the period April 1 to June 30. It also issued notice of disallowance amounting to P380,602,404.77, covering the same period.
Villamor said the total suspensions, disallowance, and charges found in the audit of various transaction of the city as of June 30 is P422,427,309.96.
He said a disallowance was also issued to the city for the purchase of the property of Dynasty Agricultural Corp. in Felisa amounting to P1,676,280.95 and Comfac Corporation for the purchase of furniture and fixtures amounting to P21,429,234.10.
Contacted for comment, Rep. Evelio Leonardia said, “In the first place, I think the presentation is highly suspect and malicious, designed to protect the previous administration in the worst possible light.”
The former mayor, who is in Manila where he attended the budget hearing as member of the Appropriations Committee in Congress, said he will check the figures when he gets back to Bacolod this week.
“For one,” he said, “They are including in their figures the amounts that have already been paid on the loans. They have also, perhaps purposely, not taken into consideration that the amount will be paid in installments that, according to the terms of the loans, will be paid, some in 15 years, and the others in 10 and six years.”
“They also did not note that, as the installments are being paid, not only the balance, but also the interest, decreases, and what they are trying to show that the entire initial amounts and the projected interest are still to be paid,” he said.
He also pointed out that, for the first six months of the new administration the installment is already included in the budget.
“The new mayor has only two and a half years to worry about the payments which are already covered by the projected income of the city for the succeeding years. Is he presuming that he will be in that office forever?” he asked.
CENECO, BACIWA OWE CITY, TOO
As for the Ceneco account that they are harping on, it is on record that Ceneco also owes the city about the same amount in taxes, which the previous administration was trying to offset. In fact the case is now pending in court. Would they rather have the city pay Ceneco, while its own account with the city remains unpaid? he also asked.
The case of Baciwa is similar to that of Ceneco, because of the in-lieu shares of the city, he said.
“As for the Commission on Audit these problems are not yet final, and still the subject of appeal, and we are confident that it will be reversed,” he added.
“Let us not juggle figures and facts just to suit our own purposes to put others down,” Leonardia further said.*CGS