Toward a debt-free Parañaque
Finally, after six years, the Parañaque City government has fully settled the P1billion loan to the Landbank of the Philippines (LBP), which was used to finance the construction of the Parañaque City Hall Annex that was left unfinished by the previous administration in 2013.
Mayor Edwin Olivarez recently received the Certificate of Confirmation from LBP AVP for loans implementation department Lani Purnuevo stating that the standing loan amounting P999,999,743.71 was paid last Jan. 16.
The simple ceremony was attended by Arne Tan, assistant executive of DOF-BLGF and Stella Maris Labindao, LBP Sucat branch manager.
During his incumbency, former Parañaque City Mayor Florencio Bernabe, Jr. secured a stand-by loan agreement amounting P2 billion from the LBP for funding several projects of the city government, including the construction of the city hall.
However, Bernabe’s administration failed to pay the bank loans and other borrowings when the incumbent mayor in the 2013 elections defeated his son, Florencio III.
Commission on Audit (COA) findings showed that the city government had been plagued by budget deficits from city obligations and massive debts to LBP since 2011.
City treasurer officials also explained that the loans resulted in movement of funds from trust to general funds, which is contrary to law.
The city coffers went empty when Olivarez first assumed office in July 2013 with total cash in bank at only P37 million, which was only enough for salaries and wages of city hall employees, records showed.
It was also discovered by the Olivarez administration that Parañaque had a cash deficit of P2.786 billion from contractors and suppliers, employees’ benefit, national and local personnel allowances, and real property tax shares, in addition to another P2 billion that it owed the LBP.
For his part, city treasurer Dr. Anthony Pulmano credited the city’s current financial standing to several tax revenue measures the Olivarez administration implemented, together with all income-generating offices boosting their tax collections and a strict adherence to prudent spending.
Pulmano also reported that the city is now planning to open short-term time deposit accounts to earn higher interest, compared with regular savings accounts the city currently has.
He also said the Entertainment City situated along Coastal Road is a “big prospect” that will result in the massive development and contribute huge revenues for the city, as well as employment to residents.