The Daily Tribune | Written by Pat C. Santos | Mar. 12, 2016
Former Manila Mayor Alfredo Lim went on a borrowing spree during his last years in office to fund a number of projects because the city government was already in the brink of financial paralysis back then.
This according to Councilor Bernardito “Bernie” Ang who claimed Lim made the sneaky move to hide from the Manileños the miserable financial standing of the city government.
“May napakalaking utang noon ang Maynila. Figures will not lie naman eh. Ang sinasabi niya (Lim) na may iniwan siyang pera, totoong may iniwan siya pero yun ay mainly restricted funds. Like yung mga SEF fund, yung mga pondo sa special education, those are considered restricted funds. You cannot just use them for any purpose,” Ang said.
The councilor added: “Ang sinasabi natin, magkano iniwan ni Lim sa general fund…yun ang pang-operation ng City Hall. Ang iniwan niya was not even enough to pay for the one-month salary of city hall employees. On top of that, yung mga tubig at kuryente na hindi nabayaran.”
In 2013, at the time of transfer of accountability from former Mayor Lim to then incoming Mayor Joseph Estrada, Manila City Hall was saddled with huge debts. The Commission on Audit reported that Manila City Hall had a debt of P3.533 billion. City hall even also had an unpaid electricity bill of almost P1 billion and P58 million in water bills. Also that year, the Government Service Insurance System and Bureau of Internal Revenue sent collection notices to city hall for unremitted benefits and withholding taxes of the employees from the previous administration.
Ang recalled how Lim resorted to excessive borrowing in order to fund projects, deceiving Manileños with a lie that he was improving the city when, in reality, he was pulling it down with heavy debts.
“Wala ka na ngang pera, gusto mo lang pakita sa mga tao na may ginawa ka kunwari, nagpatayo ka (Lim) ng dalawang hospital na wala namang pera.
So nangutang siya (Lim), at lalo namang lumubog ang city hall, lalong na-bankrupt,” Ang said.
Estrada said: “Parang kailan lang, may kinakaharap akong bayarin na umaabot ng P5.5 billion. That was roughly the sum of our city’s total unpaid obligations in 2013 when I took over as mayor.”
“We needed to implement drastic solutions to put our city back on track, and upgrade its services, infrastructure and facilities as soon as possible. And so the decision was made. Despite the expected outcry and protests, we had to raise our real property taxes…If I may briefly explain, the fact remains that the previous administration refused to raise taxes dahil sa iisang kadahilanan: nagpapa-pogi sa mga botante,” he added.
“Updating land values was a risk I was willing to take. The decision had basis under the law, and provided the most effective solution to our city’s imminent collapse. With the decision in place, I made a promise that before the end of my second year in office, wala nang utang ang Maynila. I have delivered on that promise: Manila is now debt free,” Estrada stressed.
Ang backed Estrada in blaming Lim for the city government’s bankruptcy. Ang chairs the city council’s committee on appropriation since 2010 and sits as the vice chairman of the committee on ways and means. During the 2013 election year, Ang led efforts in the city council to stop Lim from continuously draining the city coffers. Ang and his colleagues scrapped the P191.5-million intelligence fund initially placed under Lim’s discretion in the 2013 budget. The money was instead realigned for the use of public hospitals and for land purchases.