Payment of P133M to Rallos heirs: Mike to 4 banks: Defy court order

CEBU, Philippines - Cebu City Mayor Michael Rama has asked the managers of four banks of the city government to defy the court’s order to garnish P133.4 million from its deposits.

Rama said that the city would be filing some legal remedies questioning the court’s garnishment order.

Rama said he already told the Philippine Postal Bank, Land Bank of the Philippines, Veterans Bank, and Development Bank of the Philippines last Tuesday not to heed the court’s order.

It was on the same day that the banks received the notice of garnishment from the court.

Regional Trial Court (RTC) Branch 9 Sheriff Antonio Bellones asked the bank managers to inform the court how much is the city’s deposit and what are its properties that can be garnished if the city would not settle its obligation of the heirs of the late Fr. Vicente Rallos.

In his letter, Rama told the bank managers that the city’s deposits with their banks are already allocated to fund projects.

The city has a time deposits amounting to P165 million with the Philippine Veterans Bank that is earning about P300,000 every month, said former city treasurer Ofelia Oliva.

The garnishment order can be stopped by paying the outstanding judgment balance directly to the clerk of the court that issued the judgment of the case, or if the city have basis in law to have the garnishment overturned, it can request a hearing.

   During the hearing, the judge will determine whether the objections are valid. If they are deemed valid, the garnishment order will be canceled or modified.

   “Walay atrasay… panalipdan nato ang kwarta sa katawhan,” Rama said.

Rama even said the city is now looking into the possibility of initiating legal action against the court sheriff because he described it as highly questionable when Bellones issued the notice of garnishment the day after he demanded payment of the P133 million from the city.

Backers?

The mayor believed that some persons are behind the case by acting as “financiers or investors” hoping that the city would pay the collectible amount for the payment of the 4,654 square meters that have been converted into a road at barangay Sambag 2, now named M.L. Aznar Road.

“Sa tanto nga pagdali-dali sa sheriff nga maka-issue og garnishment order ang petsa sa paghimo sa court order imbis September 27, 2011 ang nabutang May 29, 2009,” the mayor said.

Bellones said the city should pay the heirs of Rallos P133,469,962 as just compensation of the lots, which the city used as road.

Rama said he will fight it out before the court because he found new evidence to support his claim that it would be unfair for the city to be compelled to pay for the road lot that has been agreed already by the Rallos family themselves in 1940 to be made as road for public purpose.

As of yesterday the team of lawyers composed of Leslie Reyes and Carlo Vincent Gemina of the City Legal Office and legal consultant Jade Ponce were still collating their legal ammunition for the court battle.

   Earlier, the Supreme Court ruled in finality of the previous RTC decision that ordered the city to pay the heirs of Rallos the amount of P9,500 per square meter and 12 per cent interest per annum to be computed 40 days from July 24, 2001.

Rama yesterday blamed former mayor Tomas R. Osmeña because in 2001 the court had already garnished P34,905,000 from the city’s depository bank despite of the strong opposition of the city lawyers. Then, the city again deposited another P20 million to the court.

The P34.9 million amount was the first court-declared just compensation of the lot at P7,500 per square meter, but the court amended its previous order and raised the amount of just compensation at P9,500 per square meter or P44.2 million for the whole lot.

Since the amount was not fully paid, the amount continues to increase until it now reach to P133 million. —/NLQ (FREEMAN)