MABALACAT CITY—Newly elected Vice Mayor Jun Castro announced that the city government will cancel the P2.7-billion loan agreement entered into for the construction of a new government center in Barangay Camachiles.
Castro revealed that the loan agreement with Land Bank is under review and cancellation discussions have already taken place with newly elected Mayor Geld Aquino.
“Napag-usapan na namin ni Mayor Geld na ika-cancel na ang loan agreement sa Landbank at pag-aralan muli kung ano ang nararapat gawin sa site ng itinatayong bagong city hall,” Castro said.
The loan became a major campaign issue during the elections. In 2023, Castro filed graft charges against Mayor Crisostomo Garbo before the Ombudsman in connection with the project.
Records show that the city government acquired the proposed site for P610 million but paid only P527 million. The discrepancy is part of an ongoing Ombudsman investigation.
Castro said the new administration will prioritize more pressing projects. “Ang priority natin ay ang pagpapatayo ng public hospital at ang bagong palengke,” he added.
The cancellation marks a shift in focus for the new city leadership toward essential services and infrastructure that directly benefit residents.