Appropriated budget for NGC short by almost P900T
BACOLOD CITY -- Mayor Evelio Leonardia recently asked the Sangguniang Panglungsod to increase the budget appropriation for New Government Center (NGC) because the Appropriation Ordinance No. 17 series of 2007 is inadvertently short of P957,121.01 from what is required by the contract entered into by the City of Bacolod and with Hillmarc's Construction for the project.
In his letter dated October 10, 2008, Leonardia explained that on September 20, 2007 he requested the Sangguniang Panglungsod for the passage of an appropriation ordinance in the amount of P400 million as fund for payment for the construction of the Bacolod New Government Center.
But on September 25, 2007, the SP passed Appropriation Ordinance No. 17, Series of 2007 appropriating a reduced amount of P394 million for the construction of NGC and setting the same amount as the "Approved Budget of the Contract. The said appropriation was to be funded by borrowings from the Philippine National Bank which had been approved for a standby loan amount of P400 million.
Mayor Leonardia further stated that the additional amount of P957,121.01 must be appropriated through the passage of another appropriation ordinance to complete the amount needed to cover the contract with Hillmarc's Construction Corporation. This additional appropriation shall likewise be sourced from the existing loan facility of P400 million with the Philippine National Bank.
Records show that on December 28, 2007, the Sangguniang Panglungsod passed Resolution No. 1002 Series of 2006 which ratified the contract entered into by and between the City of Bacolod and Hillmarc's Construction Corp. for the construction of the Bacolod City Government Center with a stipulated a contract price of P394,957,121.04.
On the other hand, City Councilor Al Victor Espino, Chairman of the Committee on Finance and Appropriation, accepted last SP Session the letter forwarded by the Local Chief Executive for further study and review in order to come up with another appropriation ordinance increasing said budget.