CJ NEWS

LAND BANK SHELVES PHP800 PROV'L. GOV'T. LOAN REQUEST


LAND BANK SHELVES PHP800 PROVL. GOVT. LOAN REQUEST
CALBAYOG CITY - The controversy over the PHP800 million loan application of the Samar provincial government at the Landbank of the Philippines seems headed for a hiatus after the said financial establishment decided to put it aside because of the unresolved loan-related cases filed against the borrower.

The bank's decision was hailed by Samar Provincial Board Member Alma Uy-Lampasa saying that it tantamounts to victory for the population who will be the one to pay back the money plus interest. Lampasa who is the lone opposition in the provincial legislature, apparently sees the loan as a curse that will bring financial trouble to the province in the coming years.
LAND BANK SHELVES PHP800 PROVL. GOVT. LOAN REQUEST
Lampasa, who filed a petition against the proposed loan request late last year claiming that Ordinance No. 14-062-15 which authorizes the governor to obtain the loan was tainted with irregularity, obtained a 20-day Temporary Restraining Order while evidences was set for presentation on January 06, 2016.

In an Order dated January 04, 2016, however, Catbalogan Regional Trial Court Branch 29 which heard the petition lifted the TRO thereby dismissing Lampasa's case.

Motion for inhibition of the hearing court and reconsideration of the petition was immediately filed by Lampasa which was heard by Catbalogan Regional Trial Court Branch 27 and are awaiting resolution as of press time.
Earlier, Governor Tan reportedly issued a statement saying that her office decided to defer the signing of the loan agreement with Land Bank until after the 2016 elections. The move was reportedly meant to disprove the propaganda of the opposition that the loan proceeds will be used for the elections.

The governor's statement was corroborated by LBP Loans Department Manager Buenaventura Leyva. In an interview, Leyva told the Calbayog Journal that the report contains a grain of truth based on the absence of any move from the provincial government to complete the process. He revealed that the province has not actually complied with the requirements for the continued processing of its loan proposal since complying with the issuance of a loan ordinance in October 29, 2015.
LAND BANK SHELVES PHP800 PROVL. GOVT. LOAN REQUEST
LAND BANK SHELVES PHP800 PROVL. GOVT. LOAN REQUEST
In a bank's letter dated February 29, 2016, addressed to Lampasa, however, Leyva informed on the bank's "terms and conditions of the loan approval" which clearly indicates that "the Bank reserves the right to withhold released should there be a case filed against the LGU or its officials involved in the project/s to be financed, hence, holding the loan in abeyance."


-, March 9, 2016


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