by ODON S. BANDIOLA
The Sangguniang Panlalawigan of Aklan disapproved the ordinance of the municipality of Banga authorizing its municipal government to borrow P50 million from a bank to finance the procurement of heavy equipment.
The disapproval of the ordinance followed after the Provincial Local Finance Committee (PLFC) concluded that LGU-Banga is not qualified to incur bank loans as it has never been issued the Seal of Good Housekeeping by the Department of Interior and Local Government.
The requirement is embodied in Local Finance Circular No. 1-2012 dated April 16, 2012 making the Seal of Good Housekeeping a major requirement to LGUs to contract loans, according to the PLFC.
The SPs disapproval on the Banga ordinance was passed during its 9th Regular Session on Wednesday, March 20, 2013.
The disapproved Banga Ordinance is No. 2013-003, “An Ordinance Authorizing The Proposed Loan of the Municipality of Banga, Province of Aklan In the Amount of Fifty Million Pesos (P50,000,000) To Fund the Purchase of Various Heavy Equipment: Namely; One Bulldozer, One Wheel Loader, Road Grader, Crawler Excavator(Back Hoe), Garbage Compactor, Six-Wheeler Dump Truck and Mini Dump Truck To Be Used for Road Opening As Well As Rehabilitation, Construction, Expansion of Municipal Roads, Circumferential Road, Access Roads, Feeder Roads, Farm To Market Roads, Dredging of Aklan River Shoreline(Municipal Territorial Jurisdiction), Solid Waste Management Program And Other Various Infrastructure and Socio-Economic Development Projects of the Municipality of Banga.”
Before its disapproval, the SP returned the same ordinance without action to the Sangguniang Bayan of Banga for lack of the required number of votes for its passage.
The Local Government Code prescribes that any enactment authorizing a local government unit to borrow money shall be approved by the majority of all the members of the local (SB) legislative body. /MP
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