CEBU, Philippines – Cebu Governor Gwendolyn Garcia yesterday said she is preparing a presentation of the “anomalous and highly questionable” agreement entered into by the Cebu City government and the Filinvest Land Inc. to develop the South Road Properties.
In yesterday’s press conference, Garcia is responding to the call of Mayor Tomas Osmeña for the public to scrutinize developments at the SRP.
“I will help him. Ako’y mohimo og PowerPoint. We will invite the public nga iyang giawhag to scrutinize,” Garcia said.
The governor said she wants the public to scrutinize the transactions believing that the agreement entered into by the city and FLIT is disadvantageous to the city.
Third District Rep. Pablo John Garcia, the governor’s younger brother, will be filing the resolution before the House this coming April 20 asking for an inquiry into the joint venture. He said his colleagues in the House already promised support for the inquiry.
At least five congressmen in Cebu including the Rep. Antonio Cuenco confirmed to attend a dinner meeting with Gov. Garcia on Wednesday where she will be presenting irregularities and “anomalies” in the joint venture.
Cebu City north district Rep. Raul del Mar is still out of the country.
Rep. Garcia said that among other issues he wants to check is the veracity of the information he received that the lawyers of FLI were the ones who drafted the agreement while City Hall had no output at all.
The joint venture with FLI includes the outright sale of 10.6 hectares of beachfront lots at P15,000 per square meter and the joint venture of a 40-hectare portion.
Rep. Garcia also lashed out at Osmeña after FLI admitted that they have with them the two-hectare portion of the SRP and denied receiving the entire 10.6 hectares of land that they bought from Cebu City.
Osmeña have said that the city cannot turn over titles of SRP lots to FLI until they have paid for it, which Land Bank of the Philippines will guarantee.
“So, there is now an admission… This is significant because this refutes the claim of Tomas that the city still holds the title. It is Filinvest calling Mayor Osmeña a liar,” Pablo John said.
According to Rep. Garcia the release of the two-hectare title is irregular as it violates government rules that states that no transfer of title will be made until after the full payment.
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.
Based on Capitol’s computation, the ownership of the 10.6-hectare lot will already be transferred to Filinvest in 2013 after they have paid a total of P1 billion, leaving behind a balance of P4.45 million which is payable until 2015.
“This is a piecemeal delivery of title,” Pablo John said.
Meanwhile, the continuing payments of FLI for the 10.6-hectare outright purchase will not be hampered should the provincial government push through with the congressional inquiry.
Cebu City Administrator Francisco Fernandez yesterday said under the Joint Venture Contract only litigation in the court may stop FLI from making further payments.
“That provision is a protection for Filinvest, it is just an option for them,” Fernandez said.
He said that a Congressional inquiry is a welcome development which will give them time to tell the Cebuanos that FLI in SRP is a great project.
FLI paid P348 million to Cebu City last month and in return got two titles for two hectares of the 10.6-hectare outright purchase. — Garry B. Lao and Ferliza C. Contratista/BRP (THE FREEMAN)