THE Commission on Audit (COA) has denied Philippine National Bank’s (PNB) P63-million claim against the municipality of Matanog, Maguindanao.
PNB filed the petition against the municipality in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) for payment of P63.09 million in its outstanding loan, including interests, penalties, and other charges.
The COA en banc maintained its previous finding that the claim was filed prematurely since there was a big difference between the sum being claimed by the bank and the amount acknowledged by the local government unit as its obligation.
Before it can acquire jurisdiction over the claim, the commission said the amount subject to the claim must first be ascertained either based on reliable documents, including receipts, invoices, and a copy of the contract or through a judicial process.
The PNB is seeking payment of P62.69 million representing the outstanding loan obligation plus interest and charges and P400,000 as attorney’s fees.
However, per the books of the municipal government, the outstanding balance as of December 31, 2019 was only P10.53 million.
In its motion, the bank insisted that its filing of the claim was “not premature, proper, timely and legal” as it is the COA that has the power to resolve the issue.
It said the commission has primary jurisdiction to hear and decide the municipality’s non-payment of its monetary obligation. It likewise disputed the pronouncement that the claim is unliquidated, noting that the amount may be easily determined from the loan documents, demand letters, and the statement of accounts.
The PNB added that the municipality did not deny having obtained the loan or that the obligations remain unsettled.
The Matanog LGU said it was former mayor Hadji Nasser Imam who drew the bank loan in 2005 to fund the construction of the 19.1-kilometer Upper Bayanga-Kabaniyawan farm-to-market road.
The bank said the loan was released on October 27, 2005 with a five-year payment term but Matanog stopped payments on January 26, 2007.
“While this Commission exercises general jurisdiction over settlement of all debts and claims of any sort due from or owing to the government or any of its subdivision, agencies and instrumentalities, the State’s liability must first be settled and determined with finality,” the COA said.
