Guv says move to scrap coop agreement not his

CEBU, Philippines - Cebu Governor Hilario Davide III has clarified that he never suggested the termination of the memorandum of agreement (MOA) between the Capitol and the Cebu CFI Community Cooperative.

He was reacting to The FREEMAN’s September 6 editorial advising that the governor should be a builder, not a destroyer.

“Governor Hilario Davide III did not bat for the termination of the contract,” said Capitol Spokesperson Ethel Natera, in a letter to The FREEMAN.

Natera said the matter was discussed during the Provincial Board’s (PB) session last week, where some members suggested that the Capitol be open to other lending institutions.

CFI is headed by its president, retired judge Esperanza Fiel Garcia, mother of former governor Gwendolyn Garcia and former congressman Pablo John Garcia, Davide’s opponent in the May elections.

In a press conference, Davide said he favors a review of the MOA and will wait for the action of the board.

He said it is also important to review the MOA following reports that CFI is imposing higher interest rate of loans to Capitol employees.

“Pait kaayo, alaot kaayo ang mga empleyado magbaguod anang ilang mga utang; tag-as kaayo’g tubo, tag-as kaayo’g interes (It is very difficult, the employees are burdened by their loans, whose interest is very high),” Davide said.

Under the MOA, CFI extends salary loans to government employees for a minimum amount of P15,000 and a maximum figure of P300,000, at an interest rate of 24 percent per year.

Re-loan is allowed upon payment of 25 percent of the principal and if 25 percent term of the loan is reached.

A service fee of 3.5 percent of the principal amount and retention of P5,000 for the first loan as initial share capital are also deducted from the proceeds.

Vice Governor Agnes Magpale earlier clarified that the PB only wanted to clarify the status of the MOA, especially about the payrolls directly sent to the CFI.

Magpale said it was because they wanted to review it, not because they wanted to change it.

Provincial Legal Officer Orvi Ortega had said the agreements were bilateral they could be reformed, rescinded and terminated by either of the parties concerned. (FREEMAN)