Cebu City Legal Officer Joseph Bernaldez warned two banks against releasing any of the city’s cash deposits to satisfy the notice of garnishment in the Rallos lot case.
In a letter to the Philippine Postal Savings Bank (PPSB) and Philippine Veterans Bank (PVB), Bernaldez said the banks should “act with prudence and refrain from hastily releasing the funds of the City of Cebu” for they would be held liable.
Bernaldez said the city is preparing to file an administrative case against sheriff Eugenio Fuentes for trying to “cut short” the garnishment proceedings to guarantee his commission.
“We would like to inform you that the issuance of the Final Notice is highly irregular and tainted with bad faith. While sheriff (Eugenio) Fuentes was sending Final Orders of Delivery of Garnished Amount to Postal Savings Bank, Cebu Branch and Philippine Veterans Bank, Cebu Branch, he has likewise levied upon the real properties of the City of Cebu and scheduled a public auction on April 10, 2012, at 10 o’clock in the morning,” wrote Bernaldez.
He said the city government’s consent is required so it could be held liable for the execution of the judgment rendered against it.
Lawyer Janeses Ponce, consultant of Mayor Michael Rama, said Postal Bank Manila officials visited Bernaldez on Thursday to clarify the city’s stand on the garnishment as well as a certification by the City Council records section that there was no ordinance allocating the city’s bank deposits for this.
The March 1 certification was issued at the request of Glenn Canete, lawyer of the heirs of Vicente Rallos.
Ponce said the city legal officer will be asking the employee who issued the certification, Perseveranda Baculi, to explain her action, which runs contrary to the earlier statement of assistant city treasurer for operations Tessie Camarillo that the city’s deposits with both banks were already appropriated for specific projects and programs.
“We have to let you know about this because we are alarmed. There seems to be people who are working from behind who want this (claims of garnishment) paid,” said Ponce.
Ponce said these actions affect the city government’s defense in the Rallos lot case.
Baculi, who works in the City Council staff, said in an interview that there was some confusion in the issuance of the certification but that she would explain this to Bernaldez.
During their visit, PPSB officials gave a copy of a secretary’s certificate, which contained resolutions passed during the banks Feb. 28 board meeting.
The March 1 secretary’s certificate signed by Eva Luz Berenguer, acting corporate secretary for PPSB, informed Cebu City that the bank received a sheriff’s order for the release of bank deposits garnished for implementation of the court’s judgment in the Rallos lot case, which is contrary to the mayor’s order.
“In view of conflicting directives, the bank has deemed it prudent to seek independent counsel’s opinion for guidance on the appropriate action that it should take on the matter,” said the corporate secretary.
The bank said the sheriff’s concerns should be referred to the Government Corporate Counsel.