City closes dormant bank accounts

CEBU, Philippines - The Cebu City Council authorized Acting City Treasurer Tessie Camarillo to close several accounts of the City Government with the Land Bank of the Philippines.

These accounts have been classified as dormant by the bank for almost 10 years which have to be either reactivated or closed to avoid possible bank charges.

In a letter last month, Camarillo informed Budget and Finance Committee Chairman Councilor Margarita Osmeña about the notice from the bank reminding about the five accounts of the city that have been dormant. Two of these were dormant since 2003, one since 2005, one since 2006 and another since 2008.

Land Bank of the Philippines Cebu-Plaza Independencia Branch Manager Dexter Ruiz warned in a letter to Camarillo that the balance of accounts that have been dormant for 10 years will be escheated or reverted to the Bureau of Treasury for the Account of the Republic of the Philippines.

Ruiz said notices have been sent to the city in the past to keep reminding about the dormancy of these accounts.

       The accounts are the Trust Fund for LPP, General Fund for MCDP (Metro Cebu Development Project), Trust Fund – UNHP, Trust Fund – National Housing Authority and Trust Fund – Lihok Filipina.

The balances of these accounts when combined will reach P957, 661.64.

Camarillo asked the council for authority to close the dormant accounts and transfer the same to the Trust Fund Proper and General Fund Accounts.

“While the above bank accounts will be closed, its subsidiary ledger at the Accounting Department will remain for proper accounting and recording in the books of accounts. This would save the city government for any bank charges that maybe imposed thereto,” Camarillo said. — (FREEMAN)