Bank assures protection of city's deposits

CEBU, Philippines - The Philippine Postal Savings Bank assured the Cebu City Government that the interest of Cebu City as its client is first in line amid the threat of garnishment against the city’s deposits because of the Rallos case.

In a letter to Mayor Michael Rama, PPSB President and CEO Cesar N. Sarino assured the mayor that they are continuously protecting the funds of the city amounting to P124 million deposited in several PPSB accounts.

“We would like to state with all sincerity that Postal Bank resisted all attempts and pressures from several parties and we did not release your funds in spite of the existence of an Executive Order from the court,” Sarino said.

“Our Board of Directors also did not authorize the release even if there is a threat of court cases from the complainants,” he added.

Sarino also wanted to clarify the wrong perception that PPSB is going against the City Government.

“We did everything to protect the interest of the City,” Sarino said.

In the same letter, Sarino also tried to explain why the bank cannot release all the funds of Cebu City and rejected the city’s request for withdrawal of its deposits.

“We do not wish to withhold any funds of the City except that there are constraints that our Legal Department see in the garnishment order issued by the Regional Trial Court,” Sarino said.

He however assured that the bank will immediately release the funds if the Court of Appeals grants the city’s petition for the lifting of the garnishment. He said that the lifting of the garnishment will put out all impediments in the release of funds to the city government.

The city government decided to withdraw all its deposits at PPSB after losing trust and confidence to the bank. - THE FREEMAN