Capitol SP retracts on guv's authority to seal P350M loan
Three Resolutions that gave authority to Governor Niel Tupas Sr. to enter into a new loan and push for the construction of the P350 million convention center have all been recalled.
With a 7-3 vote sealing the division of the House, majority of the 9th Sanggunian Panlalawigan (SP) finally put an end yesterday to any hopes for legislative backing of the multi-million project. First District Board Member Mac Napulan abstained while explaining that for him it was the most prudent thing to do. Napulan was part of the previous SP body that then gave Tupas the approval.
The three who voted against the recall were Second District Board Members June Mondejar and Rodolfo Cabado and Fourth District Board Member Shalene Hidalgo.
The recall stemmed from a 60-paged report of the Iloilo SP's Committee of the Whole chaired by Third District Board Member Arthur Defensor Jr.
The now official SP stand stated that the convention center set to have been funded by a new loan "is a blatant violation" of a government policy.
"… it is not in the Province's local development plan and public investment program. It is not sound financing planning as it is not planned in terms of expected results because the Feasibility Study is wanting in all respects," excerpts of the committee report as obtained by The News Today (TNT) went.
About a two-inched thick set of documents formed part of the committee report's annexes. This, alongside a detailed disclosures and discussions of the statements gathered from resource persons in and out of government service.
"According to NEDA (National Economic Development Authority), there is a need for a more detailed feasibility study of the Project in all its aspects," the report continued. "The unavoidable conclusion is that, the Feasibility Study is not a feasibility study at all. At best, it only relies on the fact that the Province has capacity to pay the loan because of its IRA (Internal Revenue Allotment) which comprises 79.25% of its total revenues."
More issues against the project's Feasibility Study still particularly on how it supposedly failed to show that the project will finance itself.
The now all-too important Feasibility Study was courtesy of Capitol financial advisor to the Governor, businessman David Buenavacz.
"The Feasibility Study does not guarantee that the Project will be economically viable as to relieve the Province of its debt burden," the report stated. "If the viability of the Project is not certain, it becomes a gamble and at stake is the economy of the Province."