Pasay in dire straits; P115-M loan nixed

Pasay City is in dire financial straits after the Philippine National Bank (PNB) recently turned down its loan application for P115 million.

Officials told The STAR that the recently-privatized bank had turned down the loan since most of its funds had already been loaned or allocated for loans to other local government units and national government agencies.

Mayor Wenceslao "Peewee" Trinidad sought and was granted by the city council the authority to apply for a loan with a bank or financial institution for P115 million late last month.

The loan was ostensibly to finance the Christmas bonuses of city employees of P50 million, the purchase of goods for Christmas "packages" to be distributed to lucky residents, worth P40 million; and the settlement of the city’s obligation with four garbage contractors of P35 million.

With this development, the city government may seek the loan elsewhere.

In a related development, Vice Mayor Greg Alcera urged Trinidad to bare the true state of the city’s finances.

Alcera pointed out that the city council, of which he is the presiding officer, recently passed an ordinance drawing up a P94.7 million supplemental budget at the urging of the executive department which assured them that the city expected more than P90 million in additional revenues. – Rainier Allan Ronda