Rama to withdraw time deposit

CEBU, Philippines - Mayor Michael Rama scheduled a meeting with Cebu City lawyers next week to come up a decision on whether they will withdraw the P165-million time deposit with the Philippine Veterans Bank.

The amount was placed on time deposit in December 2010 by former city treasurer Ofelia Oliva who was convinced the city will earn at least six percent or about P700,000 every month if the city would wait for the term to mature in 2015.

Councilor Margarita “Margot” Osmeña, head of the Council’s committee on budget and finance, said the five-year term is too long and is disadvantageous because the money could not be used for urgent expenditures.

Aside from the P165 million, the city also has P124 million deposited at the Philippine Postal Savings Bank but this is being frozen by the bank officials after the court issued a Notice of Garnishment.

Rama said he will ask City Legal Officer Joseph Bernaldez on the progress of their moves  to compel the Postal Bank to allow the city to withdraw because the Court of Appeals already issued an order suspending the notice of garnishment previously issued by the Regional Trial Court. —/JPM (FREEMAN)