TRO sought on Capitol’s P683M proposed loan
ROXAS CITY – Capiz Board Member Gilbert Ardivilla, lone opposition to the proposed loan P683,160,000 by the Provincial Capitol, has filed at the Regional Trial Court (RTC), office of Provincial Sheriff Blas Nolasco, Jr a Certiorari and Prohibition with prayer for issuance of a Writ of Preliminary Prohibitory Injunction and Temporary Restraining Order (TRO).
The respondents of the case are Capiz Gov. Victor Tanco, Sr and 10 Board Members namely: Esteban “Evan” Contreras, Rommel Lastimoso, Raymund Locsin, Enrique Martin, Alfonso Bediones, Jr., Vincent Fritz Cruz Am, Winston Advincula, Nenita Martelino, Baden Cantiller, David Felix Bauson, and Philippine Veterans Bank represented by Ricardo Balbido, Severo Leagogo, Anabelle Yong and Grace Azarraga.
In a 15-page petition signed by Ardivilla, he stated that he filed the suit for the purpose of exposing, questioning, seeking and obtaining immediate reliefs against the serious damage and prejudicial effects committed by the public respondents when they railroaded the legislative proceedings and without any supporting document and reasonable justification, confirmed and ratified a certain agreement providing a stand-by credit facility to the provincial government with the bank of the said amount.
He said that he intends to prohibit the public respondent and the private respondent from proceeding with the execution of the financial contracts, memoranda of agreements, promissory notes and other commercial documents relative to the above-referred resolution.
In last week’s special session, the SP has confirmed and ratified the loan agreements and its amendments providing credit facility, which Tanco, Sr entered into with the Philippine Veterans Bank in the amount of P683,160,000.
The resolution was supported by the 10 pro-administration board members except Board Member Gilbert Ardivilla who maintained his opposition to the provincial government’s proposed loan.
Included in the resolution are corresponding memorandum of agreement, promissory note and deed of assignment in order to pay off the provincial government’s loan obligations with other banking institution and to finance its various development and priority projects.
Under the agreement, the loan will be released through six tranches such as: 1, take out/refinancing of Land Bank of the Philippines; (with 2 subtranche) 2, design and construction of Capiz Government Business Center; 3, Land Acquisition for the site of the provincial engineering office; 4, design and construction of the Capiz Rehabilitation Center with a sub-tranche for Land Acquisition for the project; 5, Concreting of provincial roads in various locations with a total aggregate stretch of 40 kms.; and 6, Construction of the Provincial Transport Terminal with sub-tranche for Land Acquisition of the project site.
Provincial Budget Officer Antonio Arbis said that the loan is payable in 10 years.
Tanco was authorized by SP through Resolution No. 136, Series of 2007, dated October 11, 2007, to negotiate and enter into a loan agreement with any banking institution to augment the provincial resources in the implementation of priority programs and projects in agriculture, infrastructure, socio-economic, health and other services.
