Emano: Why another ₱8.5-B loan?

Councilor Yevonna Yacine B. Emano questioned the practicality of the city government’s proposed ₱8.5-Billion loan for the planned 22.9-hectare government complex in Uptown Cagayan de Oro, citing the city’s existing financial obligations and unfinished projects.

During the 54th regular session on Monday, Emano cited the 2025 Commission on Audit (COA) report, which she said reflected about ₱3 Billion in city liabilities, including about ₱1.6 billion in project-related obligations.

She questioned the need to contract another substantial loan while several projects funded through the city’s General Fund for 2025 and 2026 remain unfinished.

Among the projects she cited were the Pagatpat Public Market and Macanhan Super Health Center and raised concerns over projects that have been started but remain incomplete or are reportedly being prepared for termination.

She also questioned why contractors and suppliers remain unpaid despite financial statements presented to the laws and rules committee indicating that the city has borrowing capacity.

The councilor raised further concerns about the city’s ability to meet existing financial commitments, including instances when salaries of employees and job order workers were reportedly delayed.

On the proposed government complex, Emano said improved services should not necessarily on constructing a new building, arguing that efficiency is more closely tied to office management and discipline than the age or condition of the facility.

She also flagged the reported increase in the project cost from an earlier ₱2.7 billion estimate. According to Emano, the previous allocation covered around ₱1 billion for the building, ₱250 million for land development, and ₱1.4 billion for property acquisition.

Emano sought clarification on the basis for the nearly threefold increase in the proposed financing, noting that the same property is being considered and that only a portion of the 22.9-hectare site is reportedly buildable due to its terrain.

She also questioned the plan to acquire the entire property when the proposed complex would initially occupy only about three hectares and whether other government agencies had been consulted about putting offices in the area.

The proposed financing will cover land acquisition, site development, building construction, and furniture and fixtures.

The 21st City Council approved Mayor Rolando A. Uy’s urgent request to negotiate with a bank for a loan of up to ₱8.5 billion, with 15 majority councilors voting in favor, three minority members against, and Councilor Jonjon Rodriguez abstaining. (JAO/SP)