THE NABUNTURAN PEOPLE'S INITIATIVE PETITION TO REPEAL THE P90-MILLION BOND FLOTATION ORDINANCE
NABUNTURANONS UNITE! REGISTER YOUR OPPOSITION TO THE EXORBITANT, EXTRAVAGANT, EXPENSIVE AND AMBITIOUS P90-MILLION BOND FLOTATION OF NABUNTURAN, COMPOSTELA VALLEY BY MAKING COMMENTS AFTER THE FOLLOWING FULL TEXT OF THE NABUNTURAN PEOPLE'S INITIATIVE PETITION:
REPUBLIC OF THE PHILIPPINES SANGGUNIANG BAYAN MUNICIPALITY OF NABUNTURAN COMPOSTELA VALLEY PROVINCE
IN RE: PETITION FOR LOCAL INITIATIVE TO REPEAL MUNICIPAL ORDINANCE NO. 2008 - 10 ENTITLED: AN ORDINANCE AUTHORIZING THE BOND FLOTATION OF THE MUNICIPALITY OF NABUNTURAN, COMPOSTELA VALLEY IN THE AMOUNT OF NINETY MILLION PESOS (PHP90,000,000.00) TO FINANCE THE PLANNING, DESIGN, CONSTRUCTION & DEVELOPMENT OF THE NABUNTURAN PUBLIC MARKET PROJECT X - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - /
P E T I T I O N
THE UNDERSIGNED PETITIONERS, all registered voters of the Municipality of Nabunturan, Compostela Valley, by themselves and counsel, respectfully file this Petition for Local Initiative pursuant to Section 122 of the Local Government Code or Republic Act NO. 7160, and state:
PREFATORY STATEMENT
1.1 This is a Petition for Local Initiative to REPEAL Municipal Ordinance No. 2008 – 10, otherwise known as the Bond Flotation Ordinance of the Municipality of Nabunturan, Compostela Valley to finance the “Nabunturan Public Market Project” in its entirety as authorized under Sections 120, 121 and 122 of the Local Government Code of 1991. As such, and with all due respect, the requirement of stating the contents or text of the ordinance sought to be repealed under the law becomes unnecessary.
Local Initiative is resorted to (or initiated) by the herein registered voters of the Municipality of Nabunturan, Compostela Valley directly in order to repeal[1] a clearly oppressive and grossly disadvantageous local ordinance which if not repealed will result to great wastage to taxpayers’ money, dissipate the coffers of the Local Government Unit and more importantly, displace hundreds of market vendors from the said facility resulting to loss of income, loss of jobs and grievous economic injuries to the ordinary citizens of Nabunturan, Compostela Valley.
To be sure, the truth is the herein petitioners are merely seeking social justice for while it may be trite, it still is true, SALUS POPULI EST SUPREMA LEX. The welfare of the people is the Supreme Law. And, JUSTITIA NEMENI NEGANDA EST. Justice is to be denied to no one. GROUNDS FOR THE LOCAL INITIATIVE
1.2 While there are numerous grounds for this Petition for Local Initiative in order to REPEAL Municipal Ordinance NO. 2008 – 10, the succeeding discussion cover the most significant salient points to pursue this initiative.
First and foremost, the Local Finance Committee of the Municipality of Nabunturan, upon the conduct of a Full Comparative Study concluded that disadvantages abound as to the proposed Bond Flotation primarily because there are “undetermined expenses that will result in problems in the budgeting and accounting process later”. This is primarily due to the fact the nature of bond flotation with its floating rates of interest plus the numerous underwriting, trusteeship, guarantee and consultancy fees (all of which are recurring expenses save for the one-time consultancy fee of P2,700,000.00) that have to be determined on a yearly basis and the added fact that according to the Local Finance Committee itself, as a clear “limitation of their comparative study”, the actual cost of bond flotation and its ensuing operation/s cost cannot be fully ascertained as again, it will largely be dependent on market forces and movements.
1.2.1 In the same Comparative Study, said Local Finance Committee concluded that the advantages of directly securing a loan from a Government Financial Institution (GFI) will be that the “cost of borrowing will be properly stated and easily provided in the budget” aside from the fact that “easier terms can be negotiated with the depository bank”. To underscore this fact, the Provincial Government of Compostela Valley was able to negotiate for a lower interest rate of only 7.5% p.a. for its very recent loan agreement considering that the Land Bank of the Philippines (the creditor bank) was its depository bank.
1.2.2 And yet, in spite of such recommendations by the Local Finance Committee, the body tasked under the law to primarily evaluate the economic and financial ramifications of any proposed local legislation that would affect the financial standing and fiscal position of the Local Government Unit, the Honorable Sangguniang Bayan, with all due respect, chose to totally ignore the same and proceed to enact the questioned Municipal Ordinance No. 2008 – 10.
1.2.3 What is worse is that as found by the Local Finance Committee, during the two (2) years while the public market is under construction, the LGU of Nabunturan will already spend P39,600,000.00 on interest payments as compared to only a projected total interest payments for GFI borrowing at P30,933,750.00 for the same period of time. That is actually a whopping P9,000,000.00 difference in interest payments making the Bond Flotation project prove to be GROSSLY DISADVANTAGEOUS to the government. 1.3 Second, there is NO gainsaying the fact that the securities market at the moment is very volatile. The Philippine Stock Exchange had been performing badly all year due to sub-par investor confidence, a growing recession of the United States as well as the global economy, the skyrocketing fuel prices, the escalating food prices, the increased public transportation fare rates and the burgeoning unemployment figures.
1.3.1 To repeat, investor confidence at the moment is at historic lows. This has also greatly affected the local borrowing facilities of the National Treasury with numerous T-Bill or Treasury Bill Auctions – aborted or canceled – because the bid prices set by banks and other investors are so low that canceling T-Bill auctions would be more productive as it would save public funds rather than pursuing the same at rock-bottom interest rates set by such investors. At other times, T-Bill auctions were canceled due to the fact that only one (1) bank appeared to be interested in such auction.
1.3.2 These aborted T-Bill auctions are well-documented and much-publicized that it would be unthinkable for any local government unit to enter into the selling of Sovereign Municipal Bonds nowadays as the same endeavor is clearly dead in the water, so to speak. Such timing is not only bad, it is very bad.
1.3.3 Third, the Approved Final Feasibility Study of the Project shows that for the said proposed Public Market to be “self-liquidating” as required by law, the lowest rates of stall rentals would be P35.00 per square meter/daily or a monthly rental of at least P10,500.00 per 10 square meter stall! This is NOT only exorbitant, this is economic suicide as NO market vendor in his right mind would jump to secure market stalls at this unconscionable rates. Yet, to set rental rates lower than this would also be “economic suicide for the LGU” as under the law PROFITABILITY is a requirement before any Bond Flotation may be allowed for Local Government Units. The requirement of profitability is mandatory as only SELF-LIQUIDATING and INCOME-PRODUCING projects are allowed to be funded by way of Bond Flotation under Section 299 of the Local Government Code.
1.3.4 In essence, in order to prevent displacing the market vendors of Nabunturan as “assured” by some members of the Honorable Sangguniang Bayan and by both the Vice – Mayor and Mayor of Nabunturan itself, the rental rates will have to be “brought down” thus, the public market would operate at a loss and the concept and requirement of “self-liquidation” would be flushed down the drain.
1.4 Verily, the present occupants of the Nabunturan Public Market, especially those whose old stalls were burned, would NO longer be able to afford such rental rates as provided under the approved Feasibility Study in order to make the project viable and truly “self – liquidating as well as income – generating” and would be out of the public market very soon, the very place were they are able to eke out an honest living for many years already. In sum, such proposed public market supposedly funded through the much-ballyhooed “bond flotation” would anti-poor and anti-people.
1.4.1 And, if the Honorable Members of the herein Sangguniang Bayan as well as the Mayor and Vice – Mayor of Nabunturan swear to high heavens that the projected rates under the approved Feasibility Study will NOT be implemented as according to Mayor Humol in his interviews with the media that “consultation” will still be conducted before the any rental rate is set so that lower rates may be arrived at – then – it is now crystal clear that he is violating the law because the approved Feasibility Study now proves to be only “for show” and in truth and in fact, the project will NOT be self-liquidating nor income-generating! Obviously, everything was cock and bull, so to speak.
1.4.2 If they do so, then, the herein petitioners, with all due respect, will have to invoke both the administrative and criminal jurisdictions of the Office of the Ombudsman as there is already willful violation of the law by the Mayor, Vice – Mayor and the approving members of the Honorable Body. Truly, fraud and misrepresentation would have been employed inasmuch as the “feasibility study” was only used to, for lack of a better word, FOOL the populace of Nabunturan. If indeed, the rates provided in said feasibility study, which were set, studied and projected in order to make the project truly self-liquidating and income-generating, will NOT be used at all because lower rates will be provided defeating the purpose of profitability and self-liquidation, then, all of these public officials would have committed FRAUD and facilitated FALSEHOODS upon the people of Nabunturan as well as committing serious violations of the Local Government Code.
1.5 Fourth, besides additionally, some legal questions abound as to the propriety of such bond flotation ordinance. For one, such Bond Flotation Project was NOT unsolicited. Otherwise stated, it came from the purported “financial advisor” of the Municipality of Nabunturan – that is – Preferred Ventures Corporation. The proposed project actually did not come from the bright and inquisitive minds of the members of the Honorable Sangguniang Bayan of Nabunturan. Instead, it was marketed and sold to the members of the august body, including the Vice-Mayor and the Mayor of Nabunturan itself by representatives of Preferred Ventures.
1.5.1 It was for this reason that questionably, the Honorable Mayor of Nabunturan, Mayor Macario Humol, proceeded to enter into a Memorandum of Agreement with Preferred Ventures Corporation making the latter the exclusive candidate as “financial advisor” of the local government unit for a fee of a whopping P2,700,000.00 or 3% of P90,000,000.00 without the benefit of scouring the market for other advisors as such through a transparent public bidding of said services.
With all due respect, the Honorable Mayor (and even possibly, the Vice-Mayor and the SB members who authorized him as such) have already committed serious violations of the law in so doing. But let us leave it as it is.
1.6 Fifth, the staggering amount of NINETY MILLION PESOS (P90,000,000.00) for just one singular infrastructure project is both unconscionable and bordering on the immoral. More than a few modern and efficient municipal public markets had been built and constructed at way lesser amounts such as the newly opened Maragusan Public Market (less than P5 – Million), the modern Monkayo Public Market (wet and dry sections at just over P20 - Million) and even the proposed ultra-modern Laak Public Market valued at more or less P30,000,000.00 only.
1.7 It would have been understandable if this massive infrastructure project valued at P90,000,000.00 is undertaken at the first term of the local chief executive as there would be a semblance of “responsibility” and “accountability” on this score particularly that the amount involved is simply staggering and comprises nearly an entire year’s Internal Revenue Allotment of the Municipality of Nabunturan. Besides, with floating interest rates provided under the Bond Flotation Ordinance, the interest involved would also be enormous amounts that are designed to be raised solely from the rental payments of the public market project. Indeed, why only now?
THE LEGAL BASIS FOR THIS PETITION AND THE PROCEDURE PROVIDED BY LAW
2.1 Under the Local Government Code of 1991, particularly, Section 122, Paragraph (a) thereof, the first step in undertaking Local Initiative is the filing of a PETITION by not less than ONE HUNDRED (100) registered voters of a certain municipality with the Sangguniang Bayan concerned for proposing the adoption, enactment, REPEAL, or amendment of an ordinance. Hence, this petition filed before the Honorable Sangguniang Bayan of Nabunturan, Compostela Valley.
2.2 And, under Paragraph (b) of the same Section, where NO favorable action is taken by the sanggunian concerned within thirty (30) days from its presentation, the proponents may then invoke the power of initiative and resort to the procedure provided Section 122, Paragraphs (b), (c), (d), (e), (f), (g) and (h).
2.3 However, under Section 124, Paragraph (c) of the Local Government Code of 1991, if the sanggunian concerned adopts in toto the proposition presented and the local chief executive approves the same, the initiative shall be canceled as the proposition now becomes an ORDINANCE or RESOLUTION itself as the case may be.
2.4 It bears emphasis that the instant Petition for Local Initiative does not fall under one or any of the limitations set under Article 149 of the Implementing Rules and Regulations of the Local Government Code of 1991.
THE PROPOSITION
I - WOULD YOU, AS ONE OF THE REGISTERED VOTERS OF NABUNTURAN AGREE TO REPEAL THE QUESTIONABLE AND SEVERELY ONEROUS BOND FLOTATION ORDINANCE OF THE MUNICIPALITY OF NABUNTURAN OTHERWISE KNOWN AS MUNICIPAL ORDINANCE NO. 2008 – 10? THE PROPOSED REPEALING ORDINANCE
“AN ORDINANCE REPEALING MUNICIPAL ORDINANCE NO. 2008-10 THEREBY RENDERING SAID ORDINANCE FUNCTUS OFFICIO AND WITH NO FORCE OR EFFECT WHATSOEVER”
WHEREAS, Municipal Ordinance No. 2008-10 authorizing Bond Flotation for the Construction of the proposed Nabunturan Municipal Public Market has been pursued and ordained sans the favorable recommendation of the Local Finance Committee considering that the latter found more disadvantages to resorting to Bond Flotation rather than securing loan/s from GFIs.
WHEREAS, the approved Final Feasibility Study of the Bond Flotation and the proposed Nabunturan Public Market readily shows that the projected rental rates for the project to become viable and self-liquidating would be exorbitant and would displace numerous market vendors from the same public market.
WHEREAS, the staggering amount of P90,000,000.00 intended only for one infrastructure project is NOT only unreasonable but downright unconscionable as the same amount can already be used to finance three (3) to four (4) high impact infrastructure programs in the municipality and would even be more than enough to pursue “pump-priming” of the local economy of Nabunturan.
WHEREAS, the only way to prevent the total wastage of taxpayers’ money which will surely happen once the project would prove to be non-self liquidating and non-viable and the eventual hemorrhaging of the coffers of the Municipality of Nabunturan is to recall and repeal such ordinance.
WHEREFORE, premises considered, RESOLVED, AS IT IS HEREBY RESOLVED, to enact an Ordinance REPEALING Municipal Ordinance No. 2008-10 thereby rendering the same functus officio with NO force or effect whatsoever.
MUNICIPAL ORDINANCE NO. 2008 - ___
Section 1. Short Title. This Ordinance shall likewise be known as the “Bond Flotation Repealing Ordinance”.
Section 2. Repeal of Municipal Ordinance No. 2008-10. This Ordinance hereby FULLY REPEALS and renders ineffective as well as without any force or effect Municipal Ordinance No. 2008 -10 otherwise known as the “Nabunturan Public market Project to be funded and implemented under the Bond Flotation of the Municipality of Nabunturan”.
Section 3. Effectivity. Upon approval of this Proposed Ordinance pursuant to Section 123 of the Local Government Code of 1991, through Local Initiative, or under Section 124 thereof, whenever the Sangguniang Bayan adopts this initiative, this ordinance then takes effect and FULLY REPEALS Municipal Ordinance No. 2008 -10.
Section 4. Repealing Clause. Any Ordinance or Resolution or parts thereof, inconsistent with this Ordinance is hereby repealed or amended accordingly.
“SO ORDAINED.”
DESIGNATION OF AUTHORIZED REPRESENTATIVES
3.1 Pursuant to law, the undersigned petitioners, through their signatures provided below, hereby formally designate Hon. Alfonso L. Tabas Jr., and Messrs. Antonio M.I. Mencidor, Emilio P. Delos Reyes and Charlie V. Monforte together with their counsels whose names and signatures appear below, to be the duly authorized representatives of the herein petitioners to appear, argue and comply with all requirements before the Honorable Sangguniang Bayan and the appropriate Commission on Elections offices.
3.2 In accord with this formal designation, the above- named individuals and counsels are authorized to sign and fill – in any pertinent document required by the Sanggunian or the COMELEC as the case may be and to represent them in any hearing or proceeding in pursuance of this Petition for Local Initiative.
P R A Y E R
WHEREFORE, in the interest of social justice and good governance, the herein petitioners respectfully pray that the Honorable Sangguniang Bayan of Nabunturan ADOPT the herein Petition for Local Initiative and APPROVE THE RECALL AND REPEAL of Municipal Ordinance No. 2008 – 10.
Other relief just and equitable are likewise prayed for.
Nabunturan, Compostela Valley, Philippines, 7 August 2008.
Assisted by:
LOPOZ FUENTES-LOPOZ & SEVILLENO Counsel for Petitioners Suite 1, 3/F MJB Bldg., No. 75, GSIS Heights McArthur Highway, 8021 Matina, Davao City Tel. Nos. (082) 301-8267; (082) 301-5922
By:
ARVIN DEXTER M. LOPOZ Roll No. 45515 PTR No. 18113301; ComVal; April 11, 2008 IBP No. 736153; Davao City; June 16, 2008
MARIE JUDE M. FUENTES- LOPOZ Roll No. 46686 PTR No. 6078830; Davao City; Jan. 04, 2008 IBP No. 731082; Davao City; Jan. 04, 2008
Republic of the Philippines} Nabunturan, Compostela Valley} S.S. X - - - - - - - - - - - - - - - - - - - - /
WE, THE UNDERSIGNED PETITIONERS, all of legal ages, married/single, Filipinos, residents and registered voters of Nabunturan, Compostela Valley, Philippines, after having been sworn to in accordance with law, hereby depose and say:
1. That we are the PETITIONERS in the above-entitled Petition for Local Initiative;
2. That we have caused the preparation and filing of this Petition before the Honorable Sangguniang Bayan of Nabunturan;
3. That we have read and understood the contents of this Petition for Local Initiative and that the allegations therein are true and correct to the best of our own personal knowledge or based on authentic records;
4. That we hereby attest that we have not commenced any other action or proceeding involving the same issues in the Supreme Court, the Court of Appeals, or different branches thereof, or any other tribunal or agency, and that to the best of our knowledge, no such action or proceeding is pending in the said courts, tribunals or agencies, and that should we learn that a similar action or proceeding has been filed or is pending therein, we hereby undertake to report the said fact within five (5) days from notice to this Honorable Court.
IN WITNESS WHEREOF, we hereby set our signatures this ______ day of __________ 2008 at Nabunturan, Compostela Valley, Philippines.
