Rama orders LBC outlets padlocked

CEBU, Philippines - Cebu City Mayor Michael Rama ordered yesterday the immediate closure of all LBC branches in the city without security guards, following a string of robberies victimizing outlets of the courier firm.

“The temporary closure is effective today (yesterday) (for) those LBC branches outside the malls and those without security guards. I was very clear to them to invest on security, but they failed to heed it,” he told a press conference.

Rama refused to grant an LBC official’s earlier request for him to reconsider the making the order, saying the firm should instead start hiring security guards.

“Focus on security measures because when there is money it’s going to…entice and attract robbers,” he told the official who visited him Thursday.

In Cebu City alone, LBC has around 30 outlets.

The City Legal Office, however, failed to draft the notice on time yesterday so that the mayor’s order could only be implemented on Monday yet.

City lawyer Jerone Castillo also said that while the Bangko Sentral ng Pilipinas has ordered that banking institutions should have adequate number of security personnel, such is not clearly expressed for non-banks.

“If we look at non-banks performing non-quasi-banking functions like LBC (which are still regulated by the BSP), there is no express provision for guards, but security measures are allowed like vaults and the like,” he said.

Castillo, though, said that with the series of robbery incidents involving LBC, the mayor has the basis and power to invoke the doctrine of police power and the general welfare clause, as provided for under the Local Government Code, “to address the issue, to secure clients, to prevent the residents against possible harm from this continued crime involving LBC branches.”

Once the notices are served, operations of the courier firm would automatically be suspended until LBC submit its security plans and comply with all the required security measures, like the deployment of guards and installation of surveillance cameras.

Castillo said that LBC is expected to act on the matter within five days from the receipt of the notice.

“Hopefully LBC will heed the call and would be cooperative and submit security plans and measures to help also resolve this issue and to put a stop to the crimes. We are going to suspend their operations until they can comply with the appropriate security requirements,” he said.

If LBC fails to obey the order, it would run the danger of being ‘permanently closed,’ depending on the legal grounds.

“This one should not be limited to LBC alone.  We will look into the entirety of those establishments performing quasi-banking functions, which necessitates for them to provide appropriate security measures,” he added.

Moreover, the city is appealing for LBC to cooperate with the city for everybody’s “best interest.”

“This is for the best interest of their company and clientele if they will help out actively…. It’s incumbent upon them to help and protect their clients because we don’t want them to be a security nightmare of the city. Dili nalang ta paabot nga naay cliente nga mapusilan (We should not wait for the instance when a client gets shot by robbers). If they lack all security measures and plans, if naay mahitabo sa (something happens to the) employees or clients, Who’s to blame?” Castillo said.

Other businesses performing similar quasi-banking functions are ML Kwarta Padala, Cebuana Lhullier, Palawan Express, among others.

Castillo said LBC has the same nature of operation with these firms, which managed to hired sufficient number of security guards for their branches.—/RHM (FREEMAN)