4 gov’t banks receive notices
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By Elly T. Bolonos, Gerome M. Dalipe and Jujemay G. Awit
Wednesday, September 28, 2011
FOUR branches of government banks in Cebu City were notified yesterday about the P133.46 million in unpaid balance of just compensation the City owed the Rallos heirs.
Court sheriff Antonio Bellones served the notices of garnishment to the managers/cashiers of the Land Bank of the Philippines, Development Bank of the Philippines, Philippine Postal Bank and the Philippine Veterans Bank.
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But the City Treasurer’s Office is confident the money will not be withdrawn from the four banks in the next few days.
Mayor Michael Rama is confident his “Bare” budget, which stands for balanced, adequate, responsive and effective, will lessen the likelihood of garnishment because all deposits have been obligated.
It wasn’t the case in 2001 when P34.9 million was garnished from three depository banks of the Cebu City Government.
That time, then mayor now Rep. Tomas Osmeña (Cebu City, south), ordered an investigation on why the amount was withdrawn.
Because the amount did not have an appropriation, the P34.9 million remained an “unreconciled item” in the bank reconciliation statement, said City Accountant Marietta Gumia.
Councilor Jose Daluz III also said that rules should be stricter when it comes to public funds because these are intended for public service.
Like Rama, Daluz questioned why a notice of garnishment was released a day after the writ of execution was delivered to City Hall.
“There should be time for the City to respond (to the writ of execution) so why is there a notice of garnishment?” asked Daluz.
City Treasurer Tessie Camarillo said the banks have their own procedures so that it will take some time before the P133 million will be drawn from the four banks.
Definitely, the City Government will be informed if the funds will be drawn out.
“Garnishment is hereby made upon all the goods, effects, interests, credits, monies, stocks, shares, and all other personal properties in your possession belonging to the City of Cebu sufficient to cover P133,469,962.55,” said Bellones in the notice of garnishment.
Bellones said a Veterans Bank branch along Osmeña Blvd., Cebu City refused to receive the notice of garnishment, saying only their legal office in Manila is authorized to receive any court notice.
Bellones said he will furnish copies of the notices of garnishment to the branches of the four banks in Manila.
In compliance with Sec.9 (c), Rule 39 of the 1997 Rules of Procedure, the four banks are required to submit a written report to court five days from receipt of the notices of garnishment.
The reports shall state “whether or not the City of Cebu has sufficient funds or credits to satisfy the amount of money judgment.”
“If not, the report shall state how much funds or credits each bank is holding for the City of Cebu,” said Bellones.
The court sheriff warned that failure of the banks to comply with the court order may result to “examination under oath,” which is pursuant to Sec. 37, Rule 39 of the 1997 Rules of Civil Procedure.
“Do not deliver, transfer, or dispose of such properties belonging to the City to any person or entity without an order from the court that issued the said writ of execution,” said Bellones.
Rama said lot 485-D is a road lot and cannot be sold.
He wondered why a notice of garnishment was sent to them when the writ of execution they received last Monday gave them 15 days to comply.
Rama questioned the notice because the City is asked to pay for the interest and “interest on interest” of the amount demanded. He said that as a lawyer, it is the first time he encountered such a case.
Rama said he sees bad faith in the notice of garnishment he received yesterday, since the date on it says May 29, 2009.
“Where’s good faith there? We received the writ of execution yesterday and now we received a notice of garnishment. If this not foolishness, I don’t know what is” Rama said.
Takeover
Since he was not satisfied with the way the City Legal Office handled the case, Rama said his office will take over the case.
Rama said he asked City Lawyers Leslie Ann Reyes and Carlo Gimena and his consultant Jade Ponce to help him pursue legal remedies.
Rama reminded the City’s depository banks that the City has adopted a bare budget this year and the P4.4 billion has been obligated and restricted.
Rama also believed garnishment should not be automatic and financial institutions should always take garnishment with much caution, because “the whole governmental function will collapse if we will have garnishment just to be implemented outright.”
Clients
“We are their clientele. If that’s what they do, why are we putting our money to them?” Rama asked.
However, in 2001, the City Government was forced to pay the heirs of Rallos P34.9 million, following a garnishment order from the court which Rama refused to talk about.
Meanwhile, Gimena said they haven’t read the records of the case yet but they will study on what options they are going to take.
Reyes, for her part, clarified the City shouldn’t pay the demand of the Rallos heirs.
She said there was no taking of the lot since it has been allotted for a road at the beginning.
Former city councilor Jocelyn Pesquera briefed the reporters yesterday about the history of lot 485-D and the document she got when she was a city legislator.
She found out that the property was originally a road lot based on the “convenio” or compromise agreement by the Ralloses in 1940s.
Pesquera said that in the convenio, the road will be donated to the City Government and if the City does not accept the donation, the road should remain and be made open as a public road.
“So what are they saying about the government taking it in 1963? How come that in 1941 it was identified as a road?” Pesquera said.
In an ocular inspection yesterday, Pesquera identified lot 485-D in Barangay Sambag I, which used to be a road but now occupied by settlers.
Some residents in the area said they bought their lots several years ago but that they don’t have the land titles yet.
Rama said some hands are involved in manipulating the Rallos case.
Published in the Sun.Star Cebu newspaper on September 28, 2011.
(mod's note: resetting font color to save our eyes. heads up to the TS. -- gareb)
4 gov’t banks receive notices!!!
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