Ecija gov’t in debt of P1 B

BY LIAM ANACLETO

PALAYAN CITY – The past provincial administration has incurred huge debts estimated at P1 billion and how to pay it is now the problem of newly installed Gov. Aurelio “Oyie” Umali and the Isabela government.

Initial reports submitted to Umali’s office by a transition team formed by the governor stated the provincial government had P155-million arrearages to the Government Service Insurance System (GSIS).

The debts piled up the last nine to 10 years during the incumbency of former Gov. Tomas N. Joson III, the team reported.

Among the guests who paid their courtesy calls on the new governor were “visitors” bearing, not gifts, but “demand letters” asking the provincial government to pay its debts.

The “guests” included representatives of the GSIS and the Pag-IBIG Fund.

It was learned that among the benefits accruing from the government pension fund are life and retirement benefits of the employees, with the arrearages of P141, 374, 630, which piled up from 1997 to 2006.

The outstanding balance is reportedly P99.3 million, and the remaining amount, P42, million, represents interest charges.

Alex Valencerina, GSIS senior vice-president of the field operations groups reportedly briefed Umali that Joson had entered into a settlement agreement through a memorandum of agreement with the GSIS for monthly payments of the arrearages from May to December 2004.

Valencerina said the Joson administration had even offered to settle the arrearages by paying P500, 000 a month.

But the MoA was rendered “useless” when the provincial government reneged on its obligations after making only two remittances.

This reportedly prompted the GSIS to re-impose the suspension of the loan privileges which was lifted following the MoA signing.

Umali reported the P141-million arrearages ballooned to P155 million because the provincial; government failed to remit current premiums until June 30, this year.

The past administration was also asked to pay 6.8 million by the provincial canteen concessionaires, and the Cabanatuan Electric Corporation (CelCor) sought payments of P600,000 for unpaid electric bills of the Sen. Benigno Aquino Freedom Park in front of the old provincial capitol in Cabanatuan City.

On top of the past huge financial obligations are 32 pieces of heavy equipment and vehicles “donated” during the last remaining days of the past administration to the local government officials of Palayan City, and the towns of Quezon, Guimba, Bongabonm Cuyapo, and San Leonardo.

The road-building equipment and luxury cars were reportedly purchased with loans in 1992, 1998, 2002, and 2003.