72-HOUR TRO ON CITY MOVE V. BDO
A hearing will be held today on the request of Banco de Oro to extend restraining order for 20 days
The Regional Trial Court (RTC) Branch 18 has issued a 72-hour temporary restraining order (TRO) against the Cebu City Government from doing any move against the Banco de Oro (BDO).
This means, Mayor Tomas Osmeña is restricted from doing any move that will lead to the closure of any BDO Unibank branches in the city.
The TRO came after the bank filed a petition for mandamus last Monday to compel Osmeña to decide on the renewal of their business permit applications.
RTC Branch 18 Judge Gilbert Moises issued the ex-parte TRO last Monday afternoon, and it was received by the City Legal Office yesterday morning.
City Attorney Joseph Bernaldez said that the TRO will take effect upon its receipt yesterday. This will expire on Friday.
In his order, Moises also pre- vented Osmeña from making further public comments or statements related to the matter.
In his news conference yesterday, Osmeña, however, stood firm on his earlier pronouncement that he will close the 26 BDO branches in the city.
“They have the right to exercise whatever legal options but I intend to close it,” he said when asked about the case.
Despite the TRO, Osmeña warned BDO that their days in the city are already numbered.
“We cannot survive when taxpayers like BDO will pay P6 a day and their answer is very insulting to the Cebuanos. We're not going to allow them to fool us, but very clearly they're saying that, that's what we deserve. Well, I promise the Cebuanos they deserve, I'll give them (BDO) the biggest headaches of their lives. I'm going to fight this out. Not under my watch,” Osmeña said.
Osmeña challenged BDO to pick a bank that is worse than them and he will immediately order its closure.
As to the mandamus case, BDO prayed that the mayor will already act on their 2017 application for business permits since all legal requisite and regulatory requirements were already submitted.
BDO said that the court should take note on the “Letter to the Editor” that Osmeña posted on his Facebook account where his message to the bank was made clear.
In the letter, Osmeña told BDO to leave because the City will actually save if they're not around.
“Mayor Osmeña's failure and/ or refusal to resolve BDO's applications, with the view of closing all BDO branches in Cebu City is entirely arbitrary, unjust, oppressive and contrary to law, which conduct should not be countenanced by this Honorable Court. If Mayor Osmeña's actions are left unchecked, these will surely have grave implications on BDO's stakeholders, and on the entire Philippine banking and financial system,” a portion of the complaint reads.
A hearing on the request to extend the bank's TRO for 20 days will be held today.
Meanwhile, the Cebu City Council urged Osmeña to observe due process of law in acting the renewal of business permits of all banking and financial institutions in the city.
In his privilege speech, Councilor Raymond Garcia said that the pronouncements of the mayor will not just send a wrong message to potential investors but will more likely bring undue trouble to the Cebuano bank clients.
Garcia earlier moved that his motion to denounce in strongest terms the mayor's statements against BDO will be approved, but some of the councilors who are allies of Osmeña opposed.
It prompted Vice Mayor Edgardo Labella to call for a voting.
The motion was killed after six councilors, namely, Councilors Margarita Osmeña, Sisinio Andales, Mary Ann delos Santos, Dave Tumulak, Eugenio Gabuya Jr. and Nendell Hanz Abella voted against it. Councilors Jose Daluz III, James Cuenco, Jocelyn Pesquera, Pastor Alcover and Garcia, meanwhile, voted in favor of it.
Councilor Philip Zafra abstained from voting, while Councilors Eduardo Rama and Joel Garganera were out of the session hall when the voting was called.