Radaza gives nod to P90M LBP loan

CEBU, Philippines - Lapu-Lapu City Mayor Arturo Radaza has given the go-signal to the proposed P90-million loan from Land Bank of the Philippines (LDP) to fund priority projects in the city.

In the last council session, the city council approved a proposal committing to comply with all the terms, conditions and requirements for the loan granted by the bank.

But lone opposition Councilor Junard “Ahong” Chan voted against the adoption of the resolution stating that it is no longer necessary for the city to borrow.

“Is it necessary to avail another loan for these projects?” Chan asked the council.

Chan argued that he never read the terms and conditions of the loan. He pointed out that he has the right to question the total amount of the loan as well as the schedule of amortization.

Councilor Florito Pozon, chairman of the committee on laws and closely-identified with the administration, said all records pertaining to the agreement are available in his office since every councilor was provided a copy.

“These are printed documents. We expect him to know that because everyone of us was provided a copy,” Pozon said.

Since Chan objected to the proposed resolution, Vice Mayor Mario Amores called for the division of the house. The resolution was approved in favor of nine against one.

Last October 12, the Cebu lending center of LBP informed the city that they already approved the loan to finance the city’s project but the city council needs to pass a resolution that would express in committing to perform certain acts as a pre-release condition.

The P90-million loan is intended for construction of a sports and commercial complex, jeepney terminal building, fire station building, site development works and comprehensive drainage system.

The loan is payable in 10 years with one grace period on the principal.

Also, it will authorize the mortgage and assignment of the real properties that are patrimonial and not actually devoted to public use and prohibiting the conversion of the properties to public use or service. – Garry B. Lao   (FREEMAN NEWS)