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NEWS: People’s initiative petition filed vs. LGU P90 M bond flotation in Compostela Valley town

Posted in councilor raul caballero, mayor humol with tags , , , , , , on September 25, 2008 by cha monforte

NABUNTURAN, Compostela Valley- The people’s initiative petition seeking to repeal the controversial ordinance approving the P90-million bond flotation project of the municipal government of this town was finally filed to the local sanggunian Wednesday.

The bond flotation seeks to fund for the construction of a new public market building.

The Nabunturan initiative petition runs as the first test case in the exercise of people’s initiative in Mindanao as provided by the Constitution while only a couple of cases have been reportedly made in Luzon.

The petitioners led by Councilor Raul Caballero were composed of the authorized representatives of the petition, youth leaders, and representatives of public market vendors, who have since been apprehensive of being dislocated once the project is materialized.

Antonio M.I. Mencidor, one of the authorized representatives of the petitioners, said that their petition is not meant to obstruct development but stop the extravagant, exorbitant and expensive bond flotation project.

He added that the municipal bond float was rejected even by the town’s Local Finance Committee for its “uncertain terms”.

The petition seeks to repeal Municipal Ordinance No. 2008-10 which approved the P90-million bond flotation pushed by Mayor Macario Humol, Vice Mayor Romeo Clarin and eight of the eleven town councilors.

Also opposing the project are Councilors Alfonso Tabas Jr and Editha Arangcon.

Lead counsel of the initiative petitioners is Atty. Dexter Lopoz.

Petitioners stated that under Sections 120, 121 and 122 of the Local Government Code of 1991, local Initiative is resorted to or initiated by a minimum of 100 registered voters of the municipality directly in order “to repeal a clearly oppressive and grossly disadvantageous local ordinance which if not repealed will result to great wastage to taxpayers’ money, dissipate the coffers of the local government unit and more importantly, displace hundreds of market vendors from the said facility resulting to loss of income, loss of jobs and grievous economic injuries to the ordinary citizens of Nabunturan”.

They charged that “the nature of bond flotation with its floating rates of interest plus the numerous underwriting, trusteeship, guarantee and consultancy fees (all of which are recurring expenses save for the one-time consultancy fee of P2,700,000.00), the actual cost of bond flotation and its ensuing operations cost cannot be fully ascertained”.

They stated that compared to bond flotation, a loan from a Government Financial Institution (GFI) has the “cost of borrowing properly stated and easily provided in the budget” aside from the fact that “easier terms can be negotiated with the depository bank”.

They charged that as found out by the LFC during the two (2) years while the public market is under construction, the LGU of Nabunturan will already spend P39,600,000 on interest payments alone as compared to only a projected total interest payments for GFI borrowing at P30,933,750 for the same period of time.

For among these, the petitioners charged the “whopping P9,000,000 difference in interest payments making the bond flotation project prove to be grossly disadvantageous to the government”. (Cha Monforte/Rural Urban News) http://ruralurbanews.blogspot.com