PARAÑAQUE TO PAY OFF DEBT NEXT YEAR
PARAÑAQUE CITY – The local government will pay the remainder of the P1-billion loan obtained to build the Parañaque City Hall Annex, a report by the Manila Standard said.
The P2.786 billion worth of debts left by the administration of former Parañaque City Florencio Bernabe to several government contractors and city hall suppliers were settled early last year, according to City Treasurer Anthony Pulmano.
To recall, Bernabe secured a stand-by loan agreement amounting to P2 billion from the Land Bank of the Philippines (LBP) to finance numerous projects such as the construction of the city hall. However, the predecessor of Mayor Edwin Olivarez failed to repay these financial obligations.
Citing a report from the Commission of Audit (CoA), Pulmano said the city government had been plagued by budget deficits from city obligations and substantial debts to LBP since 2011
“The city coffers went empty when Olivarez first assumed office on the afternoon of July 2013 with total cash in bank at only P37 million, which is only enough for salaries and wages city hall employees,” he added.
He added that the city had a cash deficit of P2.786 billion from contractors and suppliers, employees’ benefit, national and local personnel allowances, real property tax shares on top of the P2 billion it owed the LBP.
Moving forward, the local government is planning to open short-term time deposit accounts in order to generate higher interest, compared with regular savings accounts the city currently has.