CEBU, Philippines - Despite the request of the opposition-dominated Cebu City Council, Mayor Michael Rama said the executive department will not submit Supplemental Budget-1 this year to pay for the amortization for the SRP loan.
Rama, instead, wants the council to act on the stalled P2.8 billion SB-1 last year.
“There was an SB1. That SB1, they should act on it. If they don’t act on it, they’re cowards. If they don’t act on it, their political oblivion is waiting for them when May 9 (elections) will come,” he told reporters yesterday.
He believed that the proposed P2.8 billion SB-1 last year, which covered the P2.4 billion prepayment of the outstanding balance of the SRP loan, is “still standing” even if 2015 has ended.
The executive and legislative departments do not share the same opinion on how the SRP loan amortization should be resolved, considering that the executive department did not propose the P400 million this year for amortization.
The executive department believes the city should pay the whole P2.4 billion outstanding balance on the SRP loan to avoid incurring further interest loss because of foreign exchange rate.
The council, however, said the city should prioritize the payment of over P180 million as amortization, which is due on February 20.
There is no allocation for the amount just yet.
City Treasurer Diwa Cuevas said the city government will incur penalties and charges if it cannot pay on February 20.
Cuevas added that the penalties and charges should be avoided since the Commission on Audit will not allow the same.
“As far as the executive, SB1 (last year) will remain standing,” Rama said.
He said the council should not hold the city government hostage, referring to the move of the majority block composed of Bando Osmeña Pundok Kauswagan (BOPK) councilors, which blocked the passage of the proposed P2.8 billion SB-1 last year.
They blocked the passage owing to a case filed by Romulo Torres, which challenged the validity of the sale of 45.2 hectares of lots at the SRP that earned the city P8.35 billion.
“In the meantime, naay kwarta. Pwerting daghana, mo-abot pa three billion. Don’t bring your being a majority putting all of us on hostage and when we are one million residents of the city,” Rama said.
He said he will ask Land Bank of the Philippines to issue a demand letter to pay the outstanding balance of the SRP loan.
“Ang executive has city attorney and legislative department is apil sa city government. They ought to be collaborating, coordinating and complementing. But they should never be supplanting, dictating and demanding,” Rama said.
He said budget matters are the job of the executive department and not of the legislative department. (FREEMAN)