SP OKs P100-M loan for heavy equipment

By Florence F. Hibionada

The Sanggunian Panlalawigan approved Tuesday the request of Gov. Niel Tupas to borrow P100 million from Land Bank of the Philippines for the purchase of heavy equipment.

Voting 9-4, the body gave Tupas the authority to enter into a contract of loan with the government finance institution after lengthy and heated exchanges, unresolved matters and unanswered questions

It was not smooth sailing however for the administration lawmakers in the SP.

The governor's request encountered resistance from the SP's minority members and the 'conscience bloc,' who all questioned the 'speed' at which the request was being processed.

Vice Governor Roberto Armada relinquished his spot as presiding chair and aired similar concerns however in the final count, administration board members ended up victorious.

In an interview, Armada told The News Today that all he wanted was to be clarified why the loan was being railroaded without the benefit of a deliberation.

"We have to remember that this is a loan that will be paid by people's money. Sure we need new dump trucks and other heavy equipment, but is this the best option for us?," he pointed out, adding "and why the rush?"

Armada, in taking note of the loan's expediency, lamented that the committee on appropriations and infrastructure conducted only one hearing. The committee is chaired by Tupas' son, 5 th district Board Member Niel Tupas Jr. and Board Member Domingo Oso, also an ally of the governor.

Justifying the need for the said loan, Oso averred that as per explanation of Provincial Engineer Gracianito Lucero the provincial government spends 17-18 million pesos for the maintenance of the old fleet of heavy equipment.

The expenditure increases every year, with that, Oso said it is much better for the provincial government to acquire brand new heavy equipment.

"The resource persons called in said hearing were not even made to put their statements under oath," the Vice Governor said. "And the minutes were not even approved yet nor ratified and now here comes the move for the approval of its report."

The P100M loan stemmed from the June 2, 2005 letter request of Provincial Engineer Gracianito Lucero. The letter contained a proposal that explained the need of the Iloilo Provincial Government to acquire brand new heavy equipment and phase out the fleet of old ones. The very next day, Governor Tupas issued Executive Order No. 186 creating an inter-office committee on the purchase of various heavy equipment. Chaired by top Tupas aide, Provincial Administrator Manuel Mejorada, a report then reached the governor three days later in June 6th with committee findings pushing for Lucero's proposal. By June 7th Governor Tupas wrote the SP seeking authority. With the agenda for that day's regular session already calendared, the item was inserted and tackled in the "Other matters." By June 8th, the committee hearing was conducted with the matter apparently resolved thereafter.

Board Member Licurgo Tirador in posing his objections asked about the supposed multi-million surplus of the province.

"We hear the governor saying we have that surplus. Why can't we use that for this purpose?," Tirador said.

Board Member Macario Napulan for his part pointed out the need for a feasibility study given the enormity of said loan. Same sentiment supported by the Vice Governor who added, "how can the board members make a sound judgment on something this big based on assumptions because indeed, we have no feasibility study on this one as of yet."

The loan like its SP approval is expected to be in the provincial coffers also in record speed with no less than Provincial Administrator Mejorada taking note of the assurance from LBP president, Gary Teves. Teves, he said in a letter to the governor, "indicated that this government financial institution is willing to waive the usual requirements to make it easier for the Province to avail of financing for this purpose."