Financial Adviser
Palace steps into Palawan’s P1-B loan row
PUERTO PRINCESA CITY, Palawan, Philippines—Malacañang has directed the Philippine Veterans Bank (PVB) to answer the issues raised by a civil society group that plans to sue for graft key officials of the provincial government if it pushes ahead with a P1.1-billion bank loan.
The Kilusang Love Malampaya (KLM), which monitors the Malampaya gas project in northern Palawan, said in a letter complaint to the Palace that the loan deal was tainted with irregularities.
It asked the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines, which the provincial government earlier approached to borrow the amount, to explain their stand on the controversy.
The KLM noted that the loan package was being proposed in the last 10 months of the current provincial administration and would fund projects that, it said, did not follow government procedures.
A major chunk of the loan will fund the completion of a flagship project, a 40-hectare reclamation in Coron Bay to boost tourism development in northern Palawan.
The KLM said the loan violated the 20-percent debt cap on local government loans allowed under the Local Government Code and compromised the province’s future revenues.
1 2 3 Next >>Copyright INQUIRER.net and content partners. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.