Bacolod City Councilors Wilson Gamboa, Jr. and Claudio Jesus ‘Kalaw’ Puentevella are calling for the suspension of the P1.7 billion Development Bank of the Philippines (DBP) loan the Bacolod City government plans on borrowing.

During a press conference yesterday, the two discussed a letter penned to the lending institution, where they questioned the relationship between the terms of the loan and the deed of assignment, wherein ownership rights over an amount of debt are determined, which the city officials claimed was written on behalf of Bacolod City taxpayers.

They asserted, city taxpayers have not been made fully aware of contract details, pointing out, “The borrower is a local government unit and the subject loan shall be paid by public funds.

“We want to make it clear that there is still two or three councilors who are opposing it.” Puentevella affirmed.

DBP has since replied to the letter, with DBP Executive Vice President Anthony Robles indicating the matter had been referred to Senior Manager Nernardo Castillon Jr., who heads the Negros Occidental Lending Center-Bacolod.

Last November, Gamboa claimed the Sangguniang Panlungsod vote to approve loan requirements was “railroaded” and said the proposal should have been given at least a week in order for more studies to be conducted.

In response, Bacolod City Councilor Caesar Distrito explained the measure obtained the required number of votes, pointing out, approval to enter into a loan “does not require a public hearing.”

“We debated the same [issue] since [the] middle of 2018 regarding the authority to grant Mayor Evelio Leonardia [the right] to negotiate with the DOF (Department of Finance) and any government financing or banking institutions,” he added. “It was not made in haste; this was thoroughly discussed and debated upon, and all the requirements required by law had been complied with.”

Among the items the loan intends to fund include construction of the planned Bacolod MassKara Coliseum, developments for the Progreso Village relocation site and Bacolod City College, and construction and rehabilitation on city roads and bridges.

Candidate for Bacolod City mayor, former City Councilor Jocelle Batapa-Sigue, called the loan unnecessary and questioned its timing, saying, such a venture should be pursued after the May 2019 midterm elections.

According to the former city councilor, the city only needs to manage its budget carefully.

In addition, Bacolod City Councilor Ricardo Tan, who was on vacation leave when the vote took place, said he supports the move but does not agree on how the city government plans to utilize the funding.

In an earlier radio interview, he expressed skepticism surrounding the said coliseum project, which is earmarked at P800 million, and said city residents would benefit more from projects like the construction of a hospital./DGB, WDJ