Entrepreneurial Farmer

Ambrosio R. Villorente

Dreaming Costs None

Is the municipality of Banga, Aklan bent to engage in a construction business? The Banga Sangguninang Bayan has approved Municipal Ordinance No. 2011-014 which authorizes the town Mayor of Banga to borrow fifty million pesos (P50,000,000) to finance the purchase of various heavy equipment.

These heavy equipment with its estimated corresponding cost as of Dec. 13, 2011 are as follows:

1. Brand New 6-wheeler Left Hand Drive Heavy Duty Dump Truck – US$113,400.00;

2. Brand New Shantui Bulldozer – US$213,600,00;

3. Brand New Lanking Motor Grader-US$244,400.00;

The list of equipment included seven (7), however, only three had quoted prices. The other four (4) are wheel loader, crawler, excavator, garbage compactor, and wheeler dump truck.

Purposes

According to the said Ordinance, the equipment will be used “for road opening, rehabilitation, construction, expansion of municipal roads, barangay farm to market roads, access roads, feeder roads, circumferential road, dredging of Aklan river shoreline, solid waste management program, clean and green program” and others.

The way I see it, Banga LGU is building a capability to engage in a municipal wide real estate and housing project. I picture the town of Banga in five years after the approval of the P50 million loan to be a huge first class subdivision in the province of Aklan. Really?

Let the Banga Mayor dream, for dreaming does not cost a centavo. On the other hand, never use the P50 million, if ever the loan is granted and released, in the course of the mayor’s dream.

Banga Municipal Ordinance No. 2011 – 014 was enacted and approved on Dec. 13, 2011 with five (5) affirmative votes, two (2) dissented; one (1) abstained and one (1) out on official business.

Ms. Joly B. Bolivar, secretary certified for its correctness; Vice Mayor Joseph Pierre R. Teodosio attested and certified to be duly enacted, and Mayor Antonio T. Maming approved.

Those who cast affirmative votes are Honorables Manuel R. Masangya, Rosemarie S. Piolo, Joselito B. Fernandez, Margarito R. Andrade, and Pabs Abre L. Arboleda. Hon. Rodolfo R. Sta. Maria and Hon. Stabnley Leigh G. Macahilig dissented, Hon. Noel L. Redison abstained, and Hon. Jonna Morales – Torres was on official business.

The said Ordinance was forwarded to the Office of the Sang-guniang Panlalawigan (SP), Kalibo, Aklan for review. It was assigned to the appropriate committees of the SP. The Committee on Laws, Rules and Ordinance and Committee on Appro-priation, Budget and Finance, and Ways and Means scheduled a joint committee hearing aimed to review Banga Municipal Ordinance No. 2011 – 014 on January 9, 2012. The members of Banga SB were invited to attend the hearing for interaction. They were also requested to submit Financial Statement of Banga. They did not comply. The ordinance was returned “without action”.

Did Banga SB members attend the hearing and submitted its financial statement?

Going over the said ordinance, it will allow the town mayor to borrow P50 million for the purchase of seven units of heavy equipment to be used for infrastructure construction. The loan is payable in eight years with no grace period. The interest rate is floating for the first year plus 3.625 percent minimum spread. The interest is payable monthly with the principal payable in equal monthly amortization.

To secure the loan, the 20 percent Internal Revenue Allotment and other locally sourced income are used as collateral. The heavy equipment acquired using the loan proceeds will be under chattel mortgage.

Mayor Antonio Maming must review and reconsider this P50 milion loan proposal. In the first place, his term as Mayor of Banga will end on June 30, 2013. He has only 15 months as Mayor of Banga. If he runs for congressman, win or lose he will not implement the P50 million loan.

He will leave the Banganhons swimming in neck deep debt for eight years. He mortgaged Banganhons’ future.

The SB Banga has already identified the probable supplier of the equipment complete with specification and respective prices. This is a “no no” in government procurement. Are the SB members committed to this supplier?

Mayor, do you have enough money for the operation and maintenance to sustain equipments’ excellent operating condition?

Is there in the Banga plantilla of positions sufficient number of capable personnel to operate and maintain those equipment in case Banga through Mayor Maming acquires those machineries?

I suggest further studies and review of the P50 million proposal to avoid disruptions of essential services for the people of Banga. /MP