Bacolod Mayor Alfredo Abelardo Benitez and Vice Mayor El Cid Familiaran (right)*
Bacolod Mayor Alfredo Abelardo “Albee” Benitez on Friday, March 28, denied the claim of Vice Mayor El Cid Familiaran that the Bacolod City government has a P6.5 billion loan, and that its payment would drain resources that could be used for social services.
“Let’s set the record straight so that the constant lying of the other party will stop,” Benitez, who is running for congressman of Bacolod, said in a press statement.
Familiaran is running for mayor of Bacolod.
The loan line granted to Bacolod City was only P4.1B, and based on the record, and what was availed of by the city from the Development Bank of the Philippines for various projects is only P2.05B at this point in time, Benitez said.
The P2.1 billion Super City Project is not a loan but a Public Private Partnership project payable based on accomplishment in the next 10 years, he said.
The P4.1B loan was granted based on the capacity to pay of the city. In fact, in the last three years, Bacolod City had a budget increase from P3.2 billion to P4.4 billion or an increase of P1.2 billion in just three years, Benitez said.
“Our financial standing is in very good shape and healthy as we had just received an award of Financial Excellence from the Bureau of Local Government Finance,” he pointed out.
Benitez said it is worthy to note that their payment based on Sec 324 (b) of The Local Govt Code of 1991 should not exceed 20 percent of the city’s regular income.
However, based on our projected amortization payment, we will pay only 8 percent out of our 2025 budget or P352 million, even including the payment for the P1.8B loan incurred by the Leonardia administration, he said.
“Basic social services will for sure will not be affected as our financial obligation every year is less than what we projected to earn in the succeeding years,” Benitez said.
Benitez pointed out that they even set aside a budget P50 million for the he Bacolod Comprehensive Health Program and P50 million for social pension last year, and then increased it this year to P130 billion and P100 million, respectively.
Aside from the purchase of properties for housing, and future government and development sites, these projects are also an investment, Benitez said.
The lands we purchased are expected to triple its value in the next 10 years, and will have numerous gains and advantages to our constituents, Benitez said.
“This loan therefore will never affect the social services of the city”, he stressed.
Familiaran at a press conference on Friday said the city government will have to start paying P600 to P700 million annually starting next year for an P8.2 billion loan – P6.5 billion incurred under the Benitez administration and P1.7 billion from the Leonardia administration.
He said the annual payments could have instead been used for services for Bacolodnons *