Council to verify funds for P20-M excavator purchase
THE Bando Osmeña-Pundok Kauswagan (BO-PK) bloc of the Cebu City Council will ask the City Treasurer’s Office if the city has funds to buy the P20 million walking excavator for use in clearing landslides areas.
“We have to consider the availability of funds. Even if the purchase was already budgeted, but the availability of funds is one thing that we wanted to clarify first from the City Treasurer’s Office,” Councilor Noel Wenceslao said.
Arturo Bartiquin, Kaiser Inc. chief representative to the Philippines, said the city government will have to open a letter of credit with one of its depository banks to act as importer of the equipment.
Upon delivery of the 4×4 multi-function walking excavator, the city has to deposit the full payment to its chosen bank within a period of 30 days.
Councilor Margot Osmeña, who chairs the finance committee, said the city previously opened a letter of credit worth P38 million for another equipment purchase with another supplier last year. But the purchase was never delivered.
Bartiquin said the city will save 15 to 17 percent of the purchase cost if they open a letter of credit.
He said Section 382 of the Local Government Code allows tax exemptions for local government units for their foreign purchases.
Bartiquin said he first proposed the purchase of the Kaiser walking excavator to former mayor Tomas Osmeña in 2010. But it was only under Mayor Michael Rama’s term when the purchase was authorized.
Bartiquin said the excavator is useful in clearing a landslide affected area.
It has concrete scissors and can climb even on slopes to clear an earthquake affected area.
Bartiquin said Kaiser will provide training to operators and the equipment has a one year warranty. Correspondent Edison delos Angeles
