Row heats up as Pam raises Gwen's $900,000 bank loan

Local

CEBU Governor Pamela Baricuatro brought up a personal bank loan of former Governor Gwendolyn Garcia, intensifying a debate over the province’s finances.

Baricuatro during a press conference on Wednesday, September 10, highlighted Garcia’s $900,000 loan from Hong Kong Shanghai Banking Corporation (HSBC).

“Mao diay ang HSBC wala nabayaran kay di diay utang, payable diay,” she said, pointing out that the loan remained unpaid because it was considered a payable rather than a formal debt.

The governor’s remarks came as part of her response to Garcia’s earlier defense of the P1.1 billion “debt” cited during Baricuatro’s State of the Province Address.

Garcia, in a press conference last Monday, clarified that the P1.1 billion was composed of routine payables and not loans or contractual debts.

She explained that debts are formal obligations with banks or financial institutions, while payables are amounts owed to suppliers for goods and services already delivered.

These distinctions, she said, are important in understanding the province’s actual financial obligations.

Previously, Garcia already addressed her HSBC loan, which she took out in 1996 as a private entrepreneur managing her Ormoc City-based business, GGC Enterprising/Shipping.

She said that the 1997 Asian financial crisis made it difficult to pay the loan, resulting in a prolonged legal dispute.

She emphasized that the matter was private but felt compelled to speak publicly because her name and role as governor had been associated with the issue at that time.

Meanwhile, Provincial Treasurer Roy Salubre provided further clarity on the financial terminology. He stressed that Cebu currently has no debts.

“Debt [meaning] contracted [parehas] anang mangutang sa banko, if you talk about payables kanang mga suppliers,” he told MyTV Cebu.

Salubre explained that payables include obligations for purchases already made, supported by vouchers, and may also cover financial assistance or payments to suppliers.

He underlined that these payables are not considered debts because the province did not engage in bank or financial contracts for them.

Despite the technical distinction, Baricuatro emphasized the importance of settling all obligations, particularly those owed to suppliers and groups that have already delivered services to the provincial government.

She noted that, while these obligations are not formal debts, they remain the responsibility of the current administration and should be honored promptly.(MyTVCebu)