The Office of the Building Official issued a building permit Tuesday to the city government for the construction of the Bacolod Government Center project.

OBO head engineer Teresita Guadalupe yesterday said the processing of the building permit was delayed due to the lack of an Environmental Compliance Certificate.

The ECC had only been granted the city by the Department of Environment and Natural Resources last week.

Bacolod Vice Mayor Renecito Novero, meanwhile, said there is nothing irregular in the approval of the Sangguniang Panlungsod Wednesday of the request of the Mayor for a supplemental appropriation of P98.5 million, which includes the 15 percent mobilization fund to be paid by the city to Hilmarc's Construction Corp.

HCC had written the city twice asking for the release of the 15 percent mobilization fund of P59,243,568.15 after it had a security bond.

Novero said these are legitimate obligations of the city and if they do not pay their obligation under the contract, HCC can file a case against them.

He said the amount will be deducted from the project cost, so this means that they have saved the city from the burden of paying interest on P59.2 million.

In his letter to the SP, Mayor Evelio Leonardia said the PNB has informed the city that, based on its internal policy, it could not release the 15 percent mobilization fund within 90 days prior to elections.

He said any delay in the release of the loan will expose the city to a possible damage suit from HCC, since it has already complied with its obligation.

Records show that the city has an available amount of P43.4 million from its Internal Revenue Allotment and P55 million representing its 2006 net income (surplus), or a total available amount of P98.5 million.

To claims that there was "juggling", Novero said juggling of funds only occurs when a fund has already been appropriated. He said the supplemental budget passed by the SP was an appropriation passed at the first instance. One cannot juggle funds that have not been appropriated yet, he added.

Novero said the money is available but has not yet been obligated. He said the city's services are covered by the general budget for 2007 amounting P750 million.

City Legal Officer Allan Zamora said the Department of Budget has issued a local budget memorandum dated Jan. 5, 2007 which showed that Bacolod City has an IRA of P470.2 million.

He said the 2007 budget was submitted by the Executive Department to the SP in October 2006.

Leonardia said that, in an appropriation ordinance, what is necessary is qualified majority and that the majority of 14 councilors is eight.

Nine councilors had voted in favor of the passage of the supplemental ordinance, three abstained, one voted against it and one was absent during their session Wednesday.

Meanwhile, Novero said the donors have filed a petition for the reconstruction of the original title of the property, which was discovered missing from the Register of Deeds. However, they have the owner's copy, he said.

After the title has been reconstituted, it can be transferred in the name of the city, he added.*CGS

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