Rural Urban News

The Compostela Valley provincial board has referred the municipal resolution approving the P90 million bond flotation in Nabunturan town to a joint committee for a study during their session Wednesday.

But local critics of the bond flotation have expressed fear that the committee referral could be overtaken by the 30-day required period for Sangguniang Panlalawigan confirmation.

They charged that the SP legal committee chaired by Boardmember Peter Ruwel Gonzaga is presently too saddled with referred legal cases and delays of recommending legal matters which need lengthy of time of study, probe and recommendation.

The SP on Wednesday constituted a joint committee composed of the committee on legal matters and the committee on budget and finance, each of which have to make its study and recommendation to the joint committee created which would recommend to the whole SP on whether to confirm or not the municipal resolution approving the feasibility study for the P90 million bond flotation.

Once the legal committee drags its foot in not acting alone on Nabunturan resolution beyond a month’s time as required under the Local Government Code, the resolution is deemed approved and confirmed.

Boardmember Dexter Lopoz of District 1 earlier opposed the municipal resolution charging that the terms and conditions of bond flotation are “grossly disadvantageous” to the government.

The approval of the said resolution could lay the legal groundwork for the controversial bond flotation in town to proceed.

Oppositors have charged the municipal bond float Mayor Macario Humol is pursuing in his last term is “so expensive” and its projects components are laden with exorbitant and unnecessary fees and hidden charges such as the P6.7 million for the architectural and engineering design, P2.7 million consultancy fee and P2.8 million underwriter and guarantee fees.

They also questioned the mayor’s insistence to pursue the project despite the adverse findings of the municipal local finance committee showing the total expenditure of a bond float is at least P14 million greater than the expenditure of resorting to borrowing with the Development Bank of the Philippines with the staggering P19.8 million for interest payment alone for the first two years.

Earlier, Vice Mayor Romeo Clarin and nine of the 11 councilors who are in favor to the project were reported to have been “well accommodated” by the project’s financial adviser-consultant Preferred Ventures Corp. when they made a study tour to Calatagan, Batangas to know of Calatagan’s bond float early this year.

A source from the councilor’s majority said that the Calatagan public market which was the subject of bond flotation brokered by Preferred Ventures is largely idle with a handful of renters at present.

Small market vendors in Nabunturan are also worried that they would be displaced in the new market building sought for bond float financing as it pegs high monthly rentals of stalls.

Meanwhile, sources said that oppositors have reportedly mapped out legal actions to stop the town’s bond flotation including filing of administrative cases, temporary restraining order (TRO), petition for review by the Department of Justice and recall and initiative against the officials who approved the bond float project. (Cha Monforte/Rural Urban News) http://ruralurbanews.blogspot.com