PPSB may face charge

CEBU, Philippines - The Cebu City Government is planning to file a case against the Philippine Postal Savings Bank (PPSB) , one of its depository banks, for freezing the city’s account.

Cebu City Administrator Jose Marie Poblete yesterday said that the city may seek the help of the court to compel the bank to release the city’s P124 deposit so it can be spent for projects.

The Regional Trial Court earlier directed PPSB officials to remit the P133 million to the court as it will be used to pay for the road lot owned by the late Rev. Fr. Vicente Rallos in barangay Sambag 2.

Although the bank did not allow the court to garnish the city’s deposits, the account was also frozen and the city treasurer’s office is no longer allowed to withdraw money from the bank pending further order from the court.

Poblete explained that the bank should not freeze the city’s deposits because the Court of Appeals has already issued a status quo order preventing the RTC from implementing its garnishment order.

Mayor Michael Rama already instructed the City Legal Office to study the possible actions that the city may take to protect its rights over its funds with PPSB.

Cesar Sarino, the bank’s president and chief executive officer, is firm not to allow the garnishment of the funds despite of threats of imprisonment for contempt of court that they received from the heirs of the late priest.

Sarino, in a document obtained by City Hall, explained that since the amount that the court want to garnish are public funds, it can be disposed only in accordance with the governing law and jurisprudence.

Rama has repeatedly said that there is a Supreme Court ruling that public funds cannot be levied upon to satisfy a private claim unless there is an appropriation for the payment of such claim and a petition authorizing the payment of such claim shall have been filed with and granted by the Commission on Audit.  (FREEMAN)