Compostela mess: 2 banks refute "bankruptcy" issue

CEBU, Philippines – At least two depository banks have issued certifications to deny the claims of fifth district Rep. Ramon "Red" Durano VI that the town of Compostela is on the brink of bankruptcy.

Land bank of the Philippines - Danao branch and the Philippine Postal Savings Bank in Cebu City issued certifications to Department of Interior and Local Government-7 director Pedro Noval, Jr., acting mayor of Compostela, certifying availability of funds in the existing accounts of the local government.

Bulk of P7,093,973.99 is deposited as balances in three separate accounts of LBP while P1,004,384.66 is the balance in the Philippine Postal Savings Bank account.

Durano, in a privilege speech at the House of Representatives, said Compostela's treasury is nearing bankruptcy, that there is no power in some parts of the town and that the peace and order is deteriorating.

These are happening because of the absence of a duly-elected mayor and the alleged anomalous appointment of Noval, of all the people, as the caretaker of the town, according to Durano.

Noval presented data and statistics to contradict the statements of Durano such as the crime statistics and the savings of the town as certified by police chief Rodrigo Encarnacion Giangan and municipal treasurer Lorenzo Almodiel, respectively.

The Committee on Finance of Compostela also certified the obligations of the municipality to Cebu Electric Cooperative II was already paid in August 2010 and is already cleared from any obligation due to CEBECO II.

Noval said Durano is "deceiving the people" by providing inaccurate pictures of the town when he delivered a speech without validating the information.

Durano however cried foul over the statement of Noval which prompted him to ask for the deferment of next year's budget of the DILG and the Commission on Elections until the issue of Compostela, which belongs to his district, is resolved.

Noval submitted his special report on the status of the municipality of Compostela to DILG Secretary Jesse Robredo.

In the said report, Noval has provided Robredo some facts that will refute the statement of Durano shall he make good his threat for the deferment of the 2011 budget for Comelec and DILG in the House.

Durano already started his move on his threat during the budget hearing for Comelec the other day.

The Comelec is yet to resolve the election protest filed by former mayor Ritchie Wagas against proclaimed mayor Joel Quiño, who already took his oath as mayor but was not able to assume office after his proclamation, along with that of other newly-elected officials, was suspended by the Comelec.

To prevent a vacuum in the local government, DILG appointed Noval as caretaker and acting mayor but Durano did not recognize him. (FREEMAN)