Sual’s P500-M loan is aboveboard – Landbank
THE approved P500 million term loan of the Sual local government from Land Bank of the Philippines is compliant with the set standards and policies of the bank under its LGU Lending Program and in accordance with pertinent laws, regulations and policies.
In a statement, Landbank said the Sual LGU’s loan was not only duly authorized by a majority vote of the Sangguniang Bayan (SB), and affirmed by the Sangguniang Panlalawigan (SP), but the terms and conditions of the loan have been approved and ratified through an ordinance, that cited the certification by the Bureau of Local Government Finance of the net borrowing capacity of the Sual LGU, which confirms its capacity to pay back the loan.
The bank assured Sual residents that all its loan transactions are above board, and that due diligence is exercised by the Bank.
Last Monday, some 2,000 residents of the town held a protest rally carrying placards and marched through the municipal hall building to express their protest against the P500-million availed by the municipal government from Landbank.
Sual is one of the richest municipalities in the Philippines as it hosts a coal-fired power plant which pays millions in taxes to the town coffers.
Councilor JC Arcinue, one of four councilors who did not sign the resolution for the loan, said the projects for which the loan was made “are not priority, there is no return of investment”. (Eva Visperas)
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