City optimistic to collect P400 M from Robinsons

The Cebu City government is now optimistic that it can collect soon the remaining P400 million from Robinsons Land Corp. after the Commission on Audit approved the sale of the lot in North Reclamation Area.

Mayor Tomas Osmeña yesterday announced that he received feedback that the commission has approved the deal and only needs the signing of the documents to formalize everything.

“It’s approved na kuno, it’s just the signing of the documents. They are okay with the P12,500 per square meter…They can’t adjust the price. Even if they go to court, they can’t win,” the mayor said, referring to the COA.

Osmeña explained that the COA has no reason not to sign the sale contract because the city has bid out the property twice and only Robinsons participated in the two public biddings.

The mayor has blamed COA for the delay because of its alleged refusal to sign the papers.

Almost two years ago, the city government awarded the sale of the lot to Robinsons, which was the only bidder during the two public biddings that it conducted.

City administrator Francisco Fernandez said the COA met last Thursday with the independent appraiser it has commissioned to re-assess the value of the property.

The city sold the 4.6-hectare lot known as the City Hall Block to Robinsons in June 2006 at P12,500 per square meter.

The buyer made a down payment of P180 million, with an agreement that the balance of P400 million will be paid once the sale is finalized after COA signs the sale contract.“

But reports came out that the property costs P15,000 per square meter, prompting COA to have the property appraised.

However, the city asked for reconsideration, which made COA decide to seek a second opinion.

Fernandez said the commission is now convinced that the property costs P12,500 per square meter. The city is now waiting for the COA to finally sign the sale contract, he said.

He would be meeting with the COA officials in Manila this Thursday to discuss the matter.

Osmeña has earlier admitted that John Gokongwei of Robinsons has been calling him often lately to follow up the sale of the lot because he has already made a 20 percent advanced payment.

Once the COA approves the sale contract, he said the city will sign the deed of sale and collect the remaining balance of P400 million.

Osmeña said he has not decided what to do with the money, saying “let’s get the money first and discuss what to do with it later.” – Wenna A. Berondo/LPM