PB eyes ending 2 MOAs with CFI

CEBU, Philippines - The Provincial Board is eyeing the termination of at least two memoranda of agreement entered into by the Province of Cebu and the Cebu CFI Community Cooperative during previous administrations.

During yesterday’s PB session, provincial legal officer Orvi Ortega told the members that they can issue another resolution terminating the agreements.

“The same being a bilateral act of the parties thereto, it can be said that the same can also be reformed, rescinded and terminated by either of the parties thereto,” Ortega said.

The PB sought clarification from Ortega whether or not the Province of Cebu can revoke through a resolution the MOA executed by and between the Province of Cebu and the CFI on October 8, 1987.

The said agreement was entered into by then governor Osmundo Rama and CFI president Esperanza Garcia establishing a tie-up with the cooperative in order to provide better credit facilities to the Capitol employees.

The said agreement provides that separate payrolls for Capitol employees who have outstanding loans with the cooperative shall be prepared and that this shall be forwarded to the cooperative two days before payday.

The salary of a member-borrower employee is collected through the cooperative and no longer from the paymaster of the Capitol in order to ensure prompt payment of the loans.

Ortega said that the PB should authorize the governor to revoke the agreement through a resolution.

Board Member Peter John Calderon suggested that the office of the governor initiate the move to which Ortega agreed saying that the PB can always ratify.

PB Member Raul Alcoseba raised suspicions that somebody at the Provincial Treasurer’s Office is earning from the proceeds of the CFI for taking extra effort to deduct salaries of the employees.

Board Member Jude Thaddeus Sybico also suggested that if CFI is enjoying the privilege, this should also be extended to other lending institutions who would like to give a lower interest rate than CFI.

“The Capitol should be opened to other lending institutions,” said Vice Gov. Agnes Magpale in support of Sybico’s suggestion.

Ortega warned the PB that majority of the Capitol employees are members of the CFI and the move might affect their financial situations knowing that many of them have been relying on the CFI for their financial needs. 

Another MOA being considered for termination is the authority given to CFI to use 13 parking slots beside its new building for its clients and employees granted last August 1, 2008 during the time of former governor and now third district Rep. Gwendolyn Garcia.

Garcia is the daughter of Esperanza, the founding chairwoman of CFI. — /BRP (FREEMAN)