The Quezon City government has announced that it has received P172.8 million from the Land Bank of the Philippines (LBP) as settlement in a civil collection case.
According to the city government, the settlement put an end to a three-decade long pending issue with the bank.
Mayor Herbert Bautista said he pushed to settle the case in a bid to recover local government funds that have been elusive for 33 years.
The settlement is part of a compromise agreement signed between the QC Local Government and the LBP on May 29.
Aside from the payment, the agreement would also enable the city government to assign to LBP the disposal and sale of the Wilmag Iron Mines Inc. (Ramawil) property to informal settlers or any interested parties.
The Ramawil property, consisting of 157 parcels of land with an area of 96,169 square meters, was collected by the LBP to satisfy a judgment by the Pasig Regional Trial Court in March 1981.
The judgment ruled in favor of the QC government to recover the money it had invested in the LBP, including legal interest and other expenses that amounted to P142,800.
The case stemmed from the P30,000,000 invested by the city government in 1980 in the bank, which granted a loan to Ramawil.
Ramawil, however, failed to pay and settle the amount based on the loan agreement with the LBP, prompting the city government to file a case against the bank to recover its investment.
In 1982, the city government filed a collection case to collect the amount but for more than three decades, no agreement was reached on the amount that could be collectible, including interest.
In 2014, Mayor Bautista directed a team led by City Administrator Aldrin Cuña to resolve the issue through negotiations with the LBP.
Secretary to the Mayor Tadeo Palma and Ramon Asprer of the Housing Department handled the social preparations with the property’s occupants who had been residing in the property for 30 years and were willing to pay for their property share.
By virtue of City Council Resolution No. SP-6188, series of 2014, a compromise agreement was signed by the city government and the LBP.
On September 29, 2015, Regional Trial Court Presiding Judge Aurora Hernandez-Calledo approved the compromise agreement, requiring the bank to return to the city government the P30 million placed in trust, plus P142,800 million in interest, amounting to a total of P172,800,000.