A broad coalition of civil society organizations, faith leaders, and advocacy groups is calling for an immediate special audit into Bacolod City’s multi-billion peso loans, projects, and long-term obligations.
In a joint open letter addressed to city officials, posted by the Caritas Bacolod Social Action Foundation Inc. on its Facebook page Friday, Nov. 6, the signatories called on the Commission on Audit (COA) to investigate the city’s financial obligations spanning both current and past administrations.
“We stand together in deep alarm over the staggering financial obligations tied to our city’s finances across successive administrations. Beyond multi-billion peso bank loans for various development projects, the City has entered into massive, long-term obligations funded directly from its General Fund, most notably the Php2.1 billion, 10-year agreement with High Data Infra Inc. for the Bacolod Super City Project,” they said.
“Let us call these initiatives what they are: ambitious undertakings that, unless they redound to clear and sustainable benefits for the people, will impose an unjustifiable and massive financial burden on the City and its residents,” they added.
They said they demand full transparency, the highest standards of integrity, and accountability when warranted.
They urged COA to conduct a special audit covering all loan contracts, bank disbursements, interest schedules, construction timelines, and long-term General Fund commitments, including project delays and financial spillage.
They cited loans and projects made under the administrations of former mayors Evelio Leonardia and Alfredo Abelardo Benitez.
Bacolod City is setting aside over Php560 million in next year’s budget purely for loan principal and interest payments – an amount large enough to run an entire municipality or two, they said.
“When City Councilors step up to defend taxpayers and ask tough but necessary questions, they should be met with clear answers, not hostility. Democracy breaks down the moment political loyalty to an administration replaces loyalty to the people,” they said.
The Sangguniang Panlungsod must exercise its responsibility to perform oversight duties when called for, they added.
When billions are poured into public works and burdensome long-term contracts, it is the low-income families, informal settlers, public transport drivers, vendors, and small business owners who end up squeezed, they said.
Future generations who had no voice in these deliberations will bear the weight of debt servicing that swallows up a massive chunk of City revenues and essential funds for public health, education, flood control, other basic services, and vital development programs. Government must balance its appetite for high-impact initiatives against the needs of the neediest, they pointed out.
They called for the immediate release of all signed loan contracts, repayment matrices, bank covenants, and long-term service agreements online in an easily readable format for public perusal and evaluation.
They also called for a freeze on all further loan disbursements pending completion of COA audits and reevaluation of unimplemented projects.
The signatories of the open letter include Fr. Julius I. Espinosa (Director – Caritas Bacolod Social Action Foundation Inc. Diocese of Bacolod), Rafael Coscolluela (founding president – Paghimud-os Negros Inc.), San Carlos Bishop Gerardo A. Alminaza (REpower Negros), Fr. Chris Gonzales (Parish Priest – Triumph of the Holy Cross Parish, Estefania), Fr. Aniceto “Mao” Buenafe (Parish Priest – Our Lady of Lourdes Parish, Bata);
Joy Jarabelo (Federation of Urban Poor – Negros), Jun Posadas (Freedom from Debt Coalition – Negros), Harry Pineda (Task Force Detainees of the Philippines – Negros), Ted Lopez (Alter Trade Foundation Inc.), Margie Janiva (Unified Facilities for Educational Support), Gualberto Dajao (Negros Organic Agriculture Movement), Carl Villa (Dakila – Bacolod), Kevin Gaitan (Executive Director – Negrosanon Young Leaders Institute);
Representatives from the Negrosanon Initiative for Climate and the Environment (NICE), SocFem Bacolod, Akbayan Youth Bacolod, Edwin Balajadia (Philippine Rural Reconstruction Movement – Negros), Corazon Aghon (Women’s Day Off Negros), Priscilla “Inday” Goco (Partido ng Manggagawa), Gil Portillo (Kaisahan – Negros), Lulu Tison (Paghiusa sa Paghidaet Negros), and Fr. Armando Onion (Parish Priest – St. Joseph Husband of Mary Parish, Henrietta).*
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