Philippine Postal Bank says city has funds to pay Rallos' heirs

CEBU, Philippines - The Philippine Postal Bank has told the court that the City of Cebu has enough funds to pay the heirs of the late Rev. Fr. Vicente Rallos and that the bank “cannot dishonor legitimate disbursements” against the city’s account.

This statement is stipulated in a manifestation the bank’s manager Ricardo Cordova submitted to court.

“The City Government of Cebu has sufficient amount of deposit in Postalbank’s possession to satisfy and or to cover partly or wholly the garnishable amount,” the manifestation reads.

The bank said it cannot dishonor legitimate disbursements, if any, against the account of the City of Cebu beyond the judgment debt in the amount of P133,469,962.55.

The bank earlier received a notice of garnishment from Regional Trial Court Branch 6.

The bank filed the manifestation in court after City Treasurer Tessie Camarillo and Mayor Michael Rama informed the bank that the funds duly deposited under the city’s account are “exclusively restricted for specific purpose for which the same have been allocated.”

In his letter, Rama said the bank account balances are duly budgeted to cover the City’s expenses.

“This are duly budgeted to cover the city’s current operating expenditures for personal services, maintenance and other operating cost, capital outlays and continuing appropriations for CY 2010 and below,” Rama said.

Rama added that any release or disbursements of funds may be valid only if it was approved and signed by the City Treasurer and City Administrator.

In a certification, Camarillo said the funds deposited are duly appropriated for the specific purpose and it was under City Ordinances.

The court earlier ordered the city to pay the heirs of Rallos P133,469,962.55 after it was proven that the city used as a public road a portion of Rallos’ property situated in Barangay Sambag II without just compensation.

A notice of garnishment was issued to four banks, including Philippine Postal Bank, Philippine Veterans Bank, Land Bank of the Philippines, and Development Bank of the Philippines.

The Philippine Veterans Bank earlier submitted its manifestation to court, saying that it also cannot dishonor legitimate disbursement against the account of the City of Cebu beyond judgment debt. – (FREEMAN)