Landbank, SM say Cebu City has no garnishable funds

CEBU, Philippines - The Landbank of the Philippines and SM Development Corporation told the court that the city government has no garnishable amount with them.

Lawyer Rosemarie Osopeo of Landbank manifested in court that based on records, the city government has no garnishable amount in its account with the bank.

Meanwhile, Jose Gabionza of SM Development Corporation manifested that the notice of garnishment issued to them by the court has no effect because the city government has no money and “real stocks” with the company.

The manifestation of Landbank and SM Development Corporation came following a notice of garnishment served by Sheriff Antonio Bellones of Regional Trial Court (RTC) Branch 9 in relation to the order of the court for the city to pay the heirs of the late Rev. Fr. Vicente Rallos.

This after the city used Rallos’ lot in Barangay Sambag as a public road without just compensation.

The court ordered the city to pay Rallos heirs up to P133,469,962.55.

Earlier, the Philippine Postal Bank and Philippine Veterans Bank told the court that the city has enough funds with them. They said they “cannot dishonor legitimate disbursements” against the city’s account beyond the judgment debt identified by the court.

The banks said they received a letter from Cebu City Mayor Michael Rama informing them that the accounts of the city are exclusively restricted for specific purposes for which the same have been allocated.

“This are duly budgeted to cover the city’s current operating expenditures for personal services, maintenance and other operating cost, capital outlays and continuing appropriations for CY 2010 and below,” Rama said. (FREEMAN)