House probe into Filinvest deal eyed

CEBU, Philippines – A congressional inquiry into the alleged questionable contract with Filinvest Land, Inc. for a development project at the South Road Properties is seen to happen.

In a press conference yesterday, Cebu third district Rep. Pablo John Garcia said he is “very interested to know” the joint venture agreement between Cebu City and FLI because “there are points in the proposal that are highly questionable, he said.

Governor Gwendolyn Garcia is requesting for a copy of the said agreement, which includes all attachments and documents entered into by the city government and FLI providing for an unincorporated joint venture for a 20-year period of over 50.6 hectares of the SRP.

The letter signed by the governor was sent yesterday, which was addressed to Mayor Tomas Osmeña through city administrator and chairman of the joint venture selection committee Francisco Fernandez.

“We would like the copy within a week,” the governor said. The Province of Cebu, in the prequalification process, was declared by the city as ineligible to submit a comparative proposal to challenge the unsolicited offer of the FLI.

Gwen hopes that the city government will give them what they are asking for because “it’s a public document” that involves billions of pesos on a 50.6-hectare area.

If the province will not be given a copy of the documents, Pablo John said he will initiate an inquiry in aid of legislation in Congress and that they can subpoena the FLI, the mayor or the acting mayor.

“Let us conduct this investigation in aid of legislation…to give FLI a chance kung unsa gyod ang ilang role niini,” Pablo John said.

Yesterday, the Capitol made a second presentation to point out some of the questionable things they discovered after a thorough review of the SRP joint venture agreement.

Capitol consultant on information and revenue generation Rory Jon Sepulveda questioned the provisions of the agreement in the Master Development Plan.

Under the joint development, FLI will prepare and submit to the Cebu City government an “MDP for the development of the joint properties into a mixed use urban center” based on the technical proposal submitted by the FLI on October 16, 2008 within one year from the commencement date.

The MDP may be changed, amended, supplemented or altered by FLI by giving written notice to the city at least 90 days before such change, amendment, supplement or alteration is made.

Among the provisions in the agreement that Capitol is questioning is that of the sale of the 10.6-hectare lot itself to FLI.

Section 18 of the agreement states that FLI shall “purchase and acquire exclusive right” of the property while they will have “absolute ownership” of the structures or any developments that will be introduced into it.

This is reportedly contrary to Commission on Audit Circular 92-386 which requires bidding in the disposal of government-owned lots or structures.

Meanwhile, Mayor Tomas Osmeña in his press conference yesterday said that he has not received yet the request of governor Garcia for a copy of the FLI joint venture contract.

He added he is running out of time and that he has other important things to do. — Garry B. Lao and Ferliza C. Contratista/MEEV (THE FREEMAN)