The P1-billion loan used to finance the construction of the Parañaque City Hall Annex, which was left unfinished by the previous administration in 2013, will be fully paid in January next year.
City Treasurer Dr. Anthony L. Pulmano also disclosed Sunday that P2.786 billion debts of the administration of former Mayor Florencio Bernabe to several government contractors and city hall suppliers were settled early last year.
During his incumbency, Bernabe secured a stand-by loan agreement amounting P2 billion from the Land Bank of the Philippines (LBP) for funding several projects of the city government, including the construction of the city hall.
However, Bernabe’s administration failed to pay the bank loans and other borrowings when incumbent Mayor Edwin Olvarez in the 2013 elections defeated his son, Florencio III.
Citing Commission on Audit (COA) findings, Pulmano said the city government had been plagued by budget deficits from city obligations and massive debts to LBP since 2011.
He explained that the loans resulted in movement of funds from trust to general funds, which is contrary to law.
“The city coffers went empty when Olivarez first assumed office on the afternoon of July 2013 with total cash in bank at only P37 million, which is only enough for salaries and wages city hall employees,” the city treasurer said.
Pulmano said Paranaque had a cash deficit of P2.786 billion from contractors and suppliers, employees’ benefit, national and local personnel allowances, real property tax shares in addition to another P2 billion that it owed the LBP.
During the city development council session last August, the treasurer said the city now has total cash in bank of P2.7 billion ending in June this year.
Pulmano credited the city’s current financial standing to several tax revenue measures the Olivarez administration implemented, together with all income-generating offices boosting their tax collections and a strict adherence to prudent spending.
Pulmano also reported that the city is now planning to open short-term time deposit accounts to earn higher interest, compared with regular savings accounts the city has currently.
He also said the Entertainment City situated along Coastal Road is a “big prospect” that will result in the massive development and contribute huge revenues for the city, as well as employment to residents.