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REASONING that public funds could not be subjected to garnishment without an appropriation ordinance, the chairman of the Cebu City Council's budget and finance committee backed the move to question in court the freezing of over P20 million worth of City Hall's funds in four depository banks.
Councilor Jose Daluz III on Friday said the city should question the garnishment order before the Court of Appeals lest this sets a legal precedent to other local government units.
Daluz said he learned that the City Legal Office filed on Friday afternoon a petition for certiorari before the CA to prevent implementation of the garnishment order on the city's deposits at the Development Bank of the Philippines, Postal Bank, Banco de Oro and Philippine Veterans Bank.
Over P20 million in city funds were to be used as payment for an expropriated lot at the Capitol site owned by the Palicte heirs that were intended as relocation for informal settlers turned socialized housing beneficiaries.
Regional Trial Court Branch 9 sheriff Antonio Bellones notified the officials of those banks on the garnishment of the City’s deposits amounting to P20,589,409.50 as payment for the lot expropriated by the city government.
The basic debt was pegged at P14 million but because the city failed to pay it outright, the amount ballooned to over P20 million with interest at P6.2 million.
A lower court decision to pay the heirs of the late Matilde Palicte became final and executory on November 17, 2003 after the city legal office failed to file a motion for reconsideration, Daluz explained.
He said when the city filed a petition for review before the CA at that time, it was junked. Still, Daluz said the city can still file a petition for certiorari before the CA because the city is questioning the garnishment order that wasn't backed by an an appropriation ordinance.
“We have strong ground, it can not be garnished without an appropriation ordinance, naa man tay balaod nga no public funds can be paid without a corresponding appropriation”, Daluz said.
He also said he suggested to the city legal office to likewise file a petition for annulment of judgment with the provisional remedy of injunction, on the ground that the lower court committed an error when it awarded to the Palictes.
Daluz said the city government's appraisal of the lot was actually lower compared to the amount awarded by the court.
Aside from the legal ramifications of the case, Daluz said over P20 million worth of taxpayer’s money for payment to the lot is too big and should be protected.
He said it doesn't mean the city refuses to pay the Paclites, citing that they are in negotiations with the heirs. He said he tried to convince one of the heirs on a payment scheme spread over three years but the latter insisted on the full amount.
Now, Daluz said, the city wants the Palicte heirs to drop the P6 million interest so it can immediately pay the basic P14 million debt.
Cebu City Administrator Francisco Fernandez confirmed the city is willing to pay the P14 million if the Palictes drop the P6 million interest.
But if not, Fernandez said the city will avail of all legal means to protect the taxpayer’s money.
Councilor Sylvan Jack Jakosalem agreed that the city should defend the people’s money by elevating the case to the Supreme Court. Correspondent Jhunnex Napallacan
