Word war erupts over ‘bankruptcy’

Former political allies Caloocan City Mayor Reynaldo Malonzo and Rep. Edgar Erice traded barbs yesterday over the city’s supposed "state of bankruptcy" allegedly caused by the leadership’s wasteful spending.

Erice, who had raised the bankruptcy issue, shot back at Malonzo for accusing him of "grandstanding and engaging in politicking this early."

The congressman told the mayor he was duty-bound to expose irregularities at city hall because the issue is of public interest.

"I am just doing my job, no more no less," Erice said.

Malonzo, who denied the city was going bankrupt, accused Erice of setting his sights this early on the top city post.

"It is absolutely untrue that the city government is on the brink of bankruptcy. If this were true, why is he so hell-bent on wanting to become the mayor of Caloocan?" a fuming Malonzo said.

The mayor, who is on a 10-day trip to China, issued the statement through lawyer Ellen Veza. Malonzo was scheduled arrive at 10 p.m. yesterday, city hall sources said.

"Erice does not know what he is saying. The city government has the power to tax so it is impossible for any local government to go bankrupt. He should not mislead the people for his own purpose. He should not be dragging the names of city hall officials and making malicious imputations," Malonzo said.

He dared the congressman to file charges against him instead.

Erice, for his part, said the mayor was trying to skirt the main issue by resorting to personal attacks.

"So what if I intend to run in the next mayoral elections? What’s wrong with that? The problem with the mayor is that he has run out of excuses in justifying what the Commission on Audit (COA) task force discovered and has resorted to attacks to cover up for the anomalies," Erice said.

Armed with a confidential report from the COA task force, Erice blew the whistle on Malonzo and city hall officials last week, claiming the city government could go bankrupt with the way the administration was handling the people’s money.

Erice charged Malonzo of mismanaging city funds and engaging in deals disadvantageous to the government.

He also revealed that the Malonzo administration has been remiss in paying city hall employees’ pension fund premiums.

Erice said many employees complained of not being able to secure loans from the Government Service Insurance System because their premiums have not been remitted.

The congressman has asked the COA to conduct an investigation, claiming the city is now left with huge debts and obligations amounting to P1 billion.

"I can understand if they fail to pay these obligations for one or two months. But for seven months? That’s a different story. Where did all the money go?" Erice asked.

The congressman said his claims are documented and can be verified with the concerned national agencies.