After two-year wait COA allows city  to sell NRA lot

The Commission on Audit has given the go signal for the city to finally close the deal with the Robinsons Land Corporation on a 4.6-hectare property at the North Reclamation Area.

The city made the sale to Robinsons in June 2006 but the transaction was stalled after COA was prompted to have the property appraised owing to reports that the lot costs P15,000 per square meter, as opposed to the city’s selling price of P12,500 per square meter.

Robinsons made a down payment of P180 million with the agreement that the balance of P400 million will be paid once the sale is finalized after COA signs the contract of sale.  It was only recently when COA approved it after being convinced that the city’s selling price is valid.

COA has also assured the setback experienced by the transaction will not happen with the South Road Properties but Mayor Tomas Osmeña remains apprehensive.

“I asked them, what about the SRP?  They said it will not happen again,” Osmeña said.

The mayor said COA explained that the case of the NRA property “was a particular case beyond the normal workload” because COA does not really audit revenues but expenses.

This is reportedly the reason why COA had to seek opinions from various experts before coming up with a decision.

Osmeña said they already told COA that delaying transactions for so long is disadvantageous to the government, which runs contrary to the thrust of the commission to protect the interest of the state.

“It’s very disadvantageous to the government if you’re not letting us get paid,” Osmeña quoted his statement to the commission.  — Joeberth M. Ocao/BRP