MABALACAT CITY, Pampanga – Mayor Geld Aquino has formally scrapped the ₱2.7-billion loan agreement with Land Bank of the Philippines (LandBank) intended to fund the construction of a new Mabalacat City Hall in Barangay Camachiles.
The project was initiated in 2023 under former mayor Crisostomo “Cris” Garbo, but its release was immediately put on hold after then-councilor and now Vice Mayor Jun Castro filed a complaint before the Ombudsman questioning its legality. The case remains pending.
“Hindi po dumaan sa tamang proseso itong loan sa LandBank at walang bidding,” Castro said, stressing that the transaction bypassed standard government procurement rules.
Loan scrapped, hospital expansion prioritized
Mayor Aquino confirmed he already canceled the LandBank loan, saying the city will no longer pursue the new city hall project.
“Hindi po matutuloy ang pagpapatayo ng city hall, at inaayos po natin ang pag-extend ng Mabalacat District Hospital,” Aquino said, adding that health infrastructure is the more urgent need for Mabalacat’s growing population.
According to Aquino, the project’s contractor already spent ₱300 million for site mobilization and partial groundwork despite the loan’s non-release.
“Hindi po puwedeng bayaran ng city government ang ginastos ng contractor dahil ang pondo nito nandoon sa loan agreement na hindi natuloy,” the mayor explained.
Instead, Aquino said the city will negotiate with the contractor to dismantle the existing steel structures and clear the lot for possible hospital expansion.
A project mired in controversy
The Mabalacat city hall in Camachiles project was envisioned as a modern government complex featuring a multi-level main building, satellite offices, and a central business-like hub to replace the existing city hall in Xevera Barangay Tabun
However, the project drew criticism for its hefty price tag, lack of transparency, and alleged circumvention of government procurement laws. Critics argued that the budget would have been better allocated to health, education, and social services programs.
For now, the future of the unused Camachiles lot remains uncertain, but Aquino emphasized that the city’s priority will be to expand and modernize its district hospital to improve healthcare access for Mabalaqueños. The construction was stopped after the election.