NEWS: Court stops P90 M bond flotation of Compostela Valley LGU

nov 13

The Regional Trial Court Branch 3 has issued an injunction stopping the implementation of the P90-million bond flotation of the local government of Nabunturan, Compostela Valley.
RTC Branch 3 Executive Judge Hilarion Clapis Jr in his decision, released Wednesday, in the Special Civil Case No. 898  praying for injunction with application for writ of preliminary injunction stated that his sala finds that the three complainants, who are town residents, “have sufficiently established the existence of grave damage and irreparable injury to justify, albeit provisionally the restraint of the act or acts complained of in this the bond flotation scheme.”
Temporarily enjoined not to make any act relating to bond flotation pending the decision of the case on the merits are Mayor Macario Humol, Vice Mayor Romeo Clarin and town councilors Darwin Tan, Eduardo Minosa, Vivencia Secuya, Cheryl Trinidad, Iluminida Cabuga, Felipe Masambo and Sangguniang Kabataan representative Jennifer Gamao.
The officials have been wanting to raise P90 million by selling government bonds to the public to fund for the construction of a “mall-like” public market building to replace the old market building razed by a fire four years ago.
Complainants were Charlie Monforte, a journalist, Emilio delos Reyes, a president of a  parent-teachers association and opposing Councilor Alfonso Tabas Jr.
They charged in their complaint that the bond flotation enacted by Municipal Ordinance No. 2008-10 “is clearly oppressive and grossly disadvantageous which if not repealed will result to great wastage of taxpayers’ money, dissipate the coffers of the Local Government Unit and importantly displace hundreds of market vendors from the said facility resulting to loss of income. loss of jobs and grievous economic injuries to ordinary citizens of Nabunturan”.

The respondents filed a motion to dismiss last February citing lack of jurisdiction and lack of cause of action, but complainants filed opposition to it following hearings where regional officials and experts from Dept of Finance and Dept. of Budget and Management and Local Finance Committee officials were summoned to testify as resource persons.
Monforte and Delos Reyes were also complainants of a separate graft complaint filed at the Office of the Ombudsman for Mindanao last August.
In that complaint, the two charged that the same respondents have allegedly failed to conduct public bidding in the hiring of the bond flotation’s financial adviser-consultant Preferred Ventures Corporation, a Makati-based firm.
They claimed that even without the “legislative enactment, ordinance or resolution to hire a financial consultant and advisor for the municipality’s infrastructure project, Mayor Humol proceeded to enter into Memorandum of Agreement with Preferred Ventures” and “(it) became an automatic financial consultant/advisor without passing through the bidding procedure as required by law”.
For opposing the bond flotation, Councilors Raul Caballero, Editha Arangcon and Tabas were spared from the complaint.  (Al Rosero/Rural Urban News)

 

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