Capitol warns SM on SRP deal

CEBU, Philippines - Saying that if it does not want to end up like the Filinvest Land Inc. which now has a pending case before the Office of the Ombudsman-Visayas, the provincial government yesterday warned SM Properties that it should carefully review the contract it will sign with Cebu City for the sale of a portion of the South Road Properties.

“We welcome them. It will be good for everybody concerned. Ang amo lang they make sure to read carefully or they can take a copy of our complaints with the Ombudsman unsa among legal ug factual position,” said Capitol Consultant Rory Jon Sepulveda in a press conference at the governor’s office.

SM Properties had earlier proposed to purchase 30 hectares of the SRP at P2.7 billion.

Early last month, Governor Gwendolyn Garcia charged Mayor Tomas Osmeña, Vice Mayor Michael Rama and Cebu City council members and FLI vice chairman Andrew Gotianun Jr. for what she described as a “grossly disadvantageous” joint venture agreement between the city and the private land developer.

Garcia filed criminal and administrative complaints, and sought the preventive suspension of the respondent Cebu City officials.

In that complaint, the province alleged that FLI “acted and conspired” in a deal which was “greatly prejudicial to the interests of the City of Cebu”. 

Sepulveda said that as stated in that complaint, SM should take note, among other reasons why it was filed, that private corporations cannot buy reclaimed lands owned by the government.

The city and FLI entered into a joint venture agreement to develop the 50-hectare portion of the 295-ha SRP. FLI has agreed to pay the city P25 billion for the reclaimed property, where an outright purchase of the first 10 hectares and the installment basis were agreed upon, the same with the profit-sharing scheme with the city.

The province questioned the “outright purchase” of the 10 hectares by FLI as it was without a sealed bidding.

Also, Garcia contended that the city government cannot sell reclaimed lots without the authority of Congress as stated by the Commonwealth Act No. 141.

Sepulveda said that they are “not discouraging” SM to purchase parcels of the SRP, but it should also take note of the legal procedures upon which FLI has failed to consider.

“We are not against SM, we welcome them. Our unsolicited advice; they should carefully review the situation—the joint venture ordinance, the Supreme Court pronouncement on reclaimed properties. We’re not discouraging them, we are helping them to ensure di mo-violate the same thing we raised against FLI,” he said. — Liv G. Campo/BRP (THE FREEMAN)