The resolution approving the P90-million feasibility study for the bond flotation in Nabunturan is now at the hands of the provincial board of Compostela Valley. Last week after two separate deliberations the matter was referred to the joint committee on finance and legal matters.
But critics of the bond flotation have now expressed that the committee referral might yet be overtaken by the one month period for the provincial board to act given that especially the legal committee chaired by Boardmember Ruwel Peter Gonzaga- the former vice governor who slid in the last election running to his lower position now- is too saddled with legal matters that need lengthy time to probe and resolve. That is according to our sources.
Hence, there is a likelihood that by the committee delay itself would have the resolution deemed confirmed and approved, and legally Mayor Macario Humol et al and the cabal of conspiring consultants, brokers, guarantors and underwriters would then start the ball rolling. This is a speculation, but this important matter that affects the future of Nabunturan people needs to be speculated.
By simply dividing straight the P90 million by the period of bond flotation, which would run for 7 to 10 years, or three terms for the next mayor, at the minimum Nabunturan town be burdened of paying P12.8 million yearly. Whew, that’s about half a million budget assistance for each of the town’s 28 barangays, or 28 two-classroom buildings at a cost of P400,000 for each, or thousands of books, chairs, tables for the needy day care pupils in villages, or a thousand of kilometers for barangay road maintenance, thousands of monetary assistance for pauper’s burials, medicines for barangay health centers, subsidies for barangay health workers and nutrition scholars and school board-paid teachers, or for other basic services especially for the barangays.
In this bond flotation, the town’s Internal Revenue Allotment (IRA) will be losing for at least P12-P15 million yearly which will go for the assured repayment of the statutory and contractual obligations attendant to the bond float. This is supposed to be spent to address for these badly needed services for the barangays. The yearly amount of repayment at the minimum is about 22 percent of the town’s IRA which stood last year at P54.7 million. It even appears that it breaches the 20-percent cap allowable to LGU borrowing.
That’s without yet considering the staggering interest payments of the bond float as computed by the town’s Local Finance Committee at P9.9 million each for the first and second repayment years alone. All told, the bond float is bound to strain whatever budget allocation vulnerable to fiscal and discretionary power of the chief executive, while usually the 80-percent of the IRA is already pegged for personnel services (salaries and wages), maintenance and other operating expenses and other basic expenditures.
By the cage and straightjacket put over this rather discretionary development and intervention funds for the barangays, the bond float will be turning the next mayor in town inutile to the clamor for basic needs and interventions of barangay officials and people. The next mayor wants to help, but he just could not do it as he would be burdened by the obligations of first paying for the bond flotation capital and interest costs, including the additional and hidden recurrent charges and fees (tong-pats for the conspiring ahentes, consultants, brokers, guarantors and underwriters), plus the unnecessary .preparatory, pre-construction expenditures like the exorbitant P6.7 million for architectural and engineering design (or sa drawing lang) alone. These, all in the name of a White Elephant project.
It seems that from the White Elephant the bond float of Humol et al seek to fund is making the capital town of Nabunturan a Banana Republic, that is, when inutile mayor comes one after another or is fast replaced every other election during the 7-10 year repayment period of the bond float. (For online edition, visit my blog at: http://cha4t.wordpress.com)
