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TUBA, Benguet – Some members of the local legislative body proposed to the leadership of the municipal government the conduct of consultations with the town’s sectors before entering into future loan agreements to ensure transparency and accountability in the acquisition of such loan from the different public and private financial institutions.
A number of local legislators claimed that it is still best for the municipal government to seek the suggestions and recommendations of the public and for concerned local officials to openly explain the merits of acquiring a loan to bankroll the implementation of high impact development projects that will contribute in improving the status of the municipality and spur economic growth in the different barangays.
Earlier, the municipal government tried to acquire a P45 million loan from the Development Bank of the Philippines (DBP) which was supposed to be used to purchase a 3-hectare lot along Marcos highway to serve as an area where an agriculture trading facility will be erected aside from the put up of an extension of the municipal offices to cater to the town’s growing population.
Initially, the loan was supposed to have been perfected but the same was temporarily shelved upon the recommendation of the local legislative body in deference to the conduct of the upcoming political exercise.
The concerned municipal councillors stated that it will still be best for whoever will be voted by the people as the officials of the municipality to look into the merits of the proposed loan and consult the different sectors on the matter so that all issues and concerns that will be raised in the acquisition of the loan will be clarified prior to the finalization of the loan agreement.
According to them, members of the municipal council do not actually object to the acquisition of the loan from a government financial institution because it will be used for the overall development of the municipality but there is a need for the local officials to inform the people and solicit their suggestions and recommendations because it will be the peoples’ money in the form of taxes which will be used to pay the principal and its interest.
While it is true that the local legislative body approved a resolution authorizing the local chief executive to enter into an agreement with the DBP for the acquisition of the loan, the same was shelved upon the decision of the local legislative body to pave the way for whatever will be the results of the upcoming elections and the conduct of future consultations with the sectors of the municipality.
Under the proposed loan agreement, part of the local government’s annual Internal Revenue Allotment (IRA) will serve as a collateral for the amount that will be released that will be used by the municipal government to purchase the desired prime lot along one of the major roads leading to Baguio city which will be used for a centralized trading center and the expansion of the government center for the efficient and effective delivery of government services to the people.