By SEN GUINGGUING

It was complete paralysis as far as far as money matters are concerned in Corella town. Thus declared Corella Mayor Jose Nicanor Tocmo whose running war with V-Mayor Vito Rapal has reached alarming proportions resulting in a standstill of monetary transactions involving the town. This developed as the municipality received a writ of execution of all the goods and chattels of the Municipality of Corella in favor of PhilKonstruct Development Corp., a supplier and heavy equipment provider contracted by the municipality during the incumbency of mayor Vito Rapal. The following items are ordered garnished in favor of the complainant: P8,233,000.00 representing claimant’s claim for unpaid billings for work done and material supplied; P4,000,000 representing claimant’s claim for materials purchased and delivered but not installed; P611,650.00 representing claimant’s claim for accrued interest; and P87,721.00 as reimbursement of the amount advanced by claimant representing one third of the total arbitration fees.

The respondent municipality was liable of paying the claimant after a decision was promulgated on Nov. 8, 2011 by the Construction Industry Arbitration Commission, an arbitral tribunal under the Department of Trade and Industry. The writ of execution was to be returned to its issuing entity within 15 days from receipt of the order. However, the writ said if sufficient personal property cannot be found to satisfy the execution and lawful fees thereon, the municipality through Mayor Tocmo and v-mayor Rapal in his personal capacity were commanded that of the lands and buildings of the respondent “you make the said sum of money in manner required by the Rules of Court and make return of your proceedings with the writ within 30 days from receipt hereof”.

With the writ now in force, Mayor Tocmo is in a quandary whether to follow the order or not. He said what is at stake now is the bank deposit of the municipality in the Lank Bank of the Phils. With the bank presumably in possession of the writ, Mayor Tocmo wondered if the town is allowed to withdraw its deposit thereby paralyzing all its pecuniary transactions. The arbitration arose from a contract of agreement sometime in October 2009 entered by then mayor Rapal with PhilKonstruct for the procurement of materials, equipment and labor for the waterworks project of the municipality. Rapal’s support in the procurement of material and services was Municipal Ordinance No. 2010-02 which was later found to be illegal because the sixth mandatory vote to satisfy the requirement of the law was made by the presiding officer (vice mayor) officer even if there was no tie to break as shown in the voting sheet.

According to Mayor Tocmo, these transactions were highly irregular because there was no available funds that would support the invitation for bids; notice of award and the contract agreement. The problem cropped up when the supposed loan the municipality had applied in the amount of P12 million was not released by Land Bank. The loan release was supposed to finance the project. The bank withheld release of the loan pending compliance of requirements particularly the endorsement from the Sangguniang Bayan and the Sangguniang Panlalawigan. Although no money was yet in sight to finance the delivery of equipment and services, the contractor-supplier went ahead with its part of the deal. One component of the package was the delivery of a road roller which for sometime being exposed to the elements after Mayor Tocmo ignored its delivery. With the supplier holding the empty bag given the refusal of the Tocmo administration to acknowledge delivery of the equipment, the company was forced to sell it to another party to cut its losses.

In his own answer to the arbitration proceedings, Mayor Tocmo said he was consistent in his position that Rapal did not get the authorization from the SB to enter into a loan with Land Bank for failure to get the qualified majority vote of six members as mandated by Article 107 (g) of the Implementing Rules and Regulations of Republic Act 7160 as shown in the voting sheet of the enabling municipal ordinance. At the same time, Mayor Tocmo also denied that his refusal to pay the alleged obligations of the complaint was not grounded on the political differences with former mayor Rapal. The mayor said he was not under obligation to pay the contracted supply and services because there was no loan that was released from Land Bank. For his part, former mayor Rapal declared that there was nothing irregular in the municipal ordinance that he used in support of his plan to borrow money from the Land Bank to finance his pet project involving the improvement of the Corella Waterworks System.