Dads seen to O.K Mayor Bona’s P40M loan
MANGALDAN – Despite the indifference of some members of the Sangguniang Bayan (SP), a political spectator here is optimistic that Mayor Bonafe de Vera-Parayno will be empowered by the SP to contract the remaining P40 million intended here from the Land Bank of the Philippines (LBP).
Members of the Sanggunian Bayan (legislature) suspended the rules for Mayor Bonafe de Vera-Parayno to deliver her speech.
“I hope double standard would not be the rule of the day since that P40 million was part of the P100 million loans approved by the SB through a resolution for then mayor (Herminio) Romero to borrow from the bank,” he stressed.
Mayor Romero borrowed only P60 million to finance the construction of the first complex of the market building. The old edifice was gutted by fire in 2009.
“During the stint of (acting mayor) Berex Abalos he was empowered by the SB to contract in behalf of this town the P40 million loan, but why some members of the council would not allow Mayor Bona to borrow the remaining P40 million,” the political kibitzer rues.
The source, who asked anonymity, said the amount would be used as fund for the construction of the second complex of the market building.
The source deplored the misinformation disseminated by some quarters at the August Body that this town is only allowed to pay an amortization of not more than 2 percent of its local revenue.
He clarified that according to the Local Government Code the town can subject up to 20 percent of its local revenue for the yearly amortization of the principal and the interest.
The source is optimistic that the two recalcitrant members of the August Body would be enlightened by joining the majority in passing a resolution for Mayor Parayno to represent this town with LBP officials.
He said LBP officials in Dagupan City since December last year has been badgering the leadership of this first class town to get the P40 million remaining omnibus package the bank approved during the time of the Romero Administration.
The bank in 2011 told then Mayor Romero that this town capacity to borrow is up to P200 million.
LBP imposes an 8 percent yearly interest on the principal of the loan.
Since 2011 this town pays P10 million yearly for ten years for the P60 million loan. With the P40 million loan, the amortization will become P14 million a year where the P40 million will be payable in 10 years.
The source said the yearly payment of the interest and the principal is miniscule since this town budget, like the more than P165 million this year, is spiking annually.
The hike in the budget was a result when 16 towns in the country left the 1,490 municipalities for cityhood.
“The share of these 1,490 towns in the country in the internal revenue allotment (IRA) ballooned because of that conversation to cityhood of the 16 former municipalities”.
The source said the Romero administration deflated the monthly rental and good will money for every stall holder in the first complex building just to ingratiate with the voters when it opened for business before the 2013 local election. He explained that the second complex will be self-liquidating that could help pay the amortization of the P40 million loan.