| Senate
bill limiting loan amortization to terms of LGU officials
meet stiff opposition
 |
| Gov.
George Arnaiz |
The
country’s governors have collectively opposed a Senate
bill limiting the period of amortization of LGU loans to the
term of the concerned local elected public officials, branding
it as a form of class legislation.
Oriental Negros Gov. George Arnaiz, who sponsored the resolution,
branded Senate Bill 2246, especially the provision making
local elected officials personally liable for unpaid amortization
beyond their term as unfair and violates the right of LCEs
to due process of law, and right to equal protection of law
guaranteed by the 1987 Constitution.
The
governors said that while the intent of the proposed Senate
Bill is to ensure accountability, responsibility and transparency
in local governance, its provisions fail to balance the needs
of LGUs for alternative and other sources of funds to finance
development projects.
Nevertheless, the league has vowed to cooperate in the crafting
of an alternative bull that would implement the intent of
SB 2246 and curb abuses by local government officials in contracting
institutional and developmental loans that are payable beyond
their term of office.
The league maintained its position that limiting the period
of amortization of LGUs will reduce and restrict the capacity
of LGUs to tap developmental and medium- and long-term financing
which will consequently limit their capacity to implement
social interventions toward uplifting the quality of life
in the countryside.
The bill will likewise limit the implementation of major infrastructure
projects such as solid waste management facilities, water
work systems, farm-to-market roads, public markets, government
centers, public works and highways, and other infrastructure
projects which are part of the LGUs’ respective local
development plans.
The passage of the bill may slow down socio-economic development
in the countryside since it limits the loan portfolio of LGUs
to small-scale projects.
Lower class LGUs will not be able to avail of alternative
sources of funds for social and physical infrastructure projects
to pump prime the local economy because of the limited amortization
period.
The governors pointed out through the resolution that major
projects cannot be bidded out on a piecemeal basis and the
gestation period before most development projects are implemented
goes beyond the term of office of local elective officials.
Aside from affecting the implementation of developmental projects,
the bill likewise violates the constitutional guarantee of
local autonomy, and limits the exercise of the corporate powers
of the LGUs to continuous succession under the Local Government
Code.
The resolution further pointed out that unlike the national
government, LGUs do not incur budget deficits, and there are
sufficient safeguards, such as the Anti-Graft and Practices
Act, the Government Procurement Act, COA rules and regulations,
and other related laws, to ensure accountability and responsibility
in the loan applications and utilization, bidding and procurement
process, implementation of project management standards. (AJS)
 |
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