Notice issued to banks; city to contest case

A NOTICE of garnishment was issued by the court to Cebu City’s four depository banks to enforce payment of money claims of the  Rallos family.

Cebu City Mayor Michael Rama, who received the garnishment notice at his office yesterday, questioned the haste in the issuance of the notice.

He said there were typo errors on the document that bore the date May 29, 2009. “There is bad faith here,” he said.

Councilor Jose Daluz III said the wrong date  appeared on the notice indicating  lack of review and prudence in the issuance of said notice.

Rama  insisted that the city shouldn’t pay for the Rallos lot, which is assigned as a road lot.

“I have read the case and the decision several times and  my view remains that there is no reason to make us legally bound to  pay compensation,” he said.

Court sheriff Antonio Bellones yesterday served the notice of garnishment to four banks where the Cebu City government keeps its  funds.

The notice also mandated the banks “not to deliver, transfer, or dispense of the properties belonging to the City of Cebu to any person, entity, without an order from the court that issued the writ of execution.”

The notice was sent to the Land Bank of the Philippines and Philippine Postal Bank  located along P. Del Rosario Street and Development Bank of the Philippines and Philippine Veterans Bank along Osmeña Boulevard in Cebu City.

By Oct. 1, 2011, the city government would owe the Rallos family P133,469,962.55, including the principal amount of P44,213,000 plus interest accumulated through the years.

Proceeds of any city property that may be levied by the court in case of failure to pay would be delivered to the Rallos family.

About P39.4 million in City Hall funds were  garnished in 2002 for the Rallos property.

The city government already paid P56 million for the Rallos lot expropriation case, which included the garnished money.

Rama said there is no appropriation in the city’s P4.5-billion annual budget for garnishment.

“You cannot automatically garnish public funds,” he said.

City Treasurer Tessie Camarillo said the garnishment isn’t automatic since the depository banks would have to  relay the court order to the city and comply with documentary requirements.

Rama said  the city is not yet giving up on the lot case.

“No retreat. No surrender (on the part of the city government).  But as much as possible, we don’t want to bring out what we are supposed to do next,” he said.

For his part, Rep. Tomas Osmeña of Cebu City’s south district blamed Rama for refusing to follow the court order to pay the heirs of Rev. Fr. Vicente Rallos the P133.46 million for their property used for the right of way.

“He should pay, or else he should not be surprised if we won’t own City Hall anymore,” Osmeña said. With Correspondent Patricia Andrea Pateña