CEBU, Philippines - The provincial government will pull out its P300 million worth of deposits at the Land Bank of the Philippines so it can be deposited in one of three commercial banks that have reportedly offered higher interest rates, said Board Member Wenceslao Gakit Jr.
“The Provincial Capitol will definitely withdraw its high yield deposit in Land Bank of the Philippines worth P300 million pesos. Governor Garcia will choose one from those three banks or will open an account with those three commercial banks,” Gakit said.
The Provincial Board is set to approve a resolution that would authorize Garcia to deposit Capitol funds in either the Development Bank of the Philippines, Metrobank, and Bank of Philippine Islands “in such amount as she deems best and appropriate.”
The funds at Land Bank are on a “time deposit scheme,” which is renewable every 30 days.
But Gakit clarified the move is simply for economic reasons and does not have anything to do with the decision of Landbank to allow Tudela Mayor Rogelio Baquerfo Sr. to sign the checks that would release the salaries of the town’s employees.
The municipal employees have not received their salaries for quite some time following a political standoff when the Regional Trial Court declared Baquerfo’s political rival, Demetrio Granada, as the real winner in the last elections.
But Baquerfo had refused to give in and recently asserted authority by signing the checks to disburse the salaries.
After the Department of Interior and Local Government maintained it still recognizes Baquerfo as mayor, Landbank authorized Baquerfo to sign the checks.
Meanwhile, aside from the P300 million time deposit, Gakit said Capitol may also withdraw its special savings deposit worth P600 million from Land Bank, should an ongoing evaluation show that the bank’s services are not worth continuing.
Gakit said they have received many complaints about the bank’s services from Capitol employees, particularly on its Automated Teller Machines that reportedly often run out of money fast, especially during payday.
“In depositing said funds/money, the financial stability, reputation and records of the depository banks should be considered,” Gakit’s resolution reads. — Johanna Natavio/JMO (THE FREEMAN)