Bank: City has funds to pay Rallos heirs

CEBU, Philippines - Despite Cebu City Mayor Michael Rama’s letter to all the city’s depository banks seeking defiance of the court’s notice of garnishment against its accounts, the Philippine Veterans Bank has manifested before the court that they “cannot dishonor legitimate disbursements.”

The bank’s chief legal counsel informed the Regional Trial Court in Cebu City that the city government has “sufficient funds to cover the judgment debt” amounting to P133,469,962.55, which the court has awarded to the heirs of Rev. Father Vicente Rallos.

The Rallos’ property in Barangay Sambag II was used by the city government for public road without just compensation.

Lawyer Roel Custona said they received the notice of garnishment served by Sheriff Antonio Bellones of RTC Branch 9 dated September 28, 2011. But, Costuna said the bank also received a letter from Rama in September 27 informing them “that all funds deposited with the bank under the account of the City of Cebu are exclusively restricted for specific purpose for which the same have been appropriated or allocated.”

In his letter, Rama said the account balances are intended to cover the city’s current operating expenses for personnel services, maintenance and other operating cost, capital outlays and continuing appropriations for CY 2010 and below.

“The release and/or disbursement of such funds may be valid only if covered with a duly approved negotiable instrument such as check or authority to debit account, signed by the City Treasurer and City Administrator or by their authorized signatories,” Rama’s letter reads.

But, Custona said the bank cannot dishonor any legitimate disbursements against the city’s account.

Custona, however, pointed out in their manifestation an administrative circular issued by the Supreme Court that gives guidance to the lower court judges in the issuance of garnishment orders.

Administrative Circular No. 10-2000 guides lower court judges to “exercise utmost caution, prudence and judiciousness in the issuance of writs of execution to satisfy money judgments against government agencies and local governments units.”

Custona also pointed out that all money claims against the government must be filed first with the Commission on Audit.

Aside from the Philippine Veterans Bank, a notice of garnishment against the city government was also served by Bellones to Land Bank of the Philippines, Development Bank of the Philippines and Philippine Postal Bank. — (FREEMAN)