LINGAYEN–The mayor of Urbiztondo is in hot water for withdrawing part of a P55 million loan for the municipality from the Philippine National Bank (PNB) prior to the approval by the Sangguniang Panlalawigan (SP’s) of the ordinance on the loan approved by the municipal council.

Making the situation worse for Urbiztondo Mayor Ernesto Balolong, the SP recently declared the ordinance “null and void”.

Board Member Alfonso Bince Jr., chair on the committee on public accountabilities, said in an interview that during the public hearing on the proposed ordinance authorizing the municipality to borrow money, they found some disturbing facts that the loan with PNB “was released without the enabling ordinance”.

We believe that while the municipality has the conferred authority to apply for the loan, that authority was used to commit a crime and hide the disbursement. So, the ordinance has lost its validity and now it is declared null and void,” Bince said.

Bince pointed out that P20 million of the loan was issued by way of check in the name of Balolong, and another P6 million, again in Balolong’s name, supposedly as a cash advance.

These amounts were later used by Balolong to supposedly pay suppliers without any authority from the SB.

Bince also noted that there was no supplemental budget nor an annual investment plan approved by the Urbiztondo Sangguniang Bayan (SB) to disburse the amount.

SLEEPING

Balolong defended himself by saying that the ordinance passed by the Urbiztondo SB has long been sleeping before the SP and therefore lapsed into law.

Bince explained that if no action is taken by the SP on an ordinance, it is presumed to be valid after 30 days but quickly added that this does not apply in this case as the ordinance was duly referred to the committees and to the provincial legal officer for comment.

Ordinance No. 01-2012 of the Urbiztondo SB authorized the proposed borrowing of the municipality in the amount of P54 million to fund the construction of a sports complex (Phase XVI), roofing P7.8 million; construction of stall beside the sports complex (Phase XVI), P2.5 million; construction of 20 stalls at the Urbiztondo public market, P5.5 million; construction of slaughterhouse, fish, meat and vegetable section, P5.05 million; construction of a two-storey commercial building at public market, P3.8 million; construction of drainage canal, P6.8 million; construction of three classrooms at the Urbiztondo Central School, P2.4 million; and loan from the Land Bank of the Philippines, P19 million.

Bince said the provincial council also found out that part of the money loaned was used to build a gymnasium on part of a church property which the municipality was leasing.

However, the 20-year lease contract will soon expire and the agreement provides that upon the end of the lease agreement, all improvements will go to the church.

The ordinance was initially approved by the SP Committee on Laws and Ordinances saying it was “within the conferred power of the Sangguniang Bayan to enact”.

Committee Report No. 129-2012 earlier received a tie-vote of 2-2 in the committee level but which was broken by the chairman, Angel Baniqued. The measure was proposed by SP Member Raul Sison and seconded by SP Member Von Mark Mendoza.

This was later reversed by the SP with a ruling signed by Mendoza, Bince, Salvador Perez, Teofilo Humilde Jr., Danilo Uy, Ranjit Shahani, Amadeo Espino, Jeremy Rosario, Clemente Arboleda Jr. Mark Mendoza, Mojamito Libunao, and Generoso Tulagan Jr.

These 12 board members said that during the deliberations of the committee report, many circumventing facts arose which nullified the said power of the SB of Urbiztondo.

Bince said with the nullification of the ordinance, there will also be problems with the PNB.

The bank said it will refer the matter to their legal department.

“I don’t know if the PNB will ask for the refund of the loan extended to them”, he said.

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