Cebu City now owns Rallos lots

CEBU, Philippines - The controversial lots claimed by the heirs of the late Rev. Fr. Vicente Rallos in Barangay Sambag II are now legally owned by the Cebu City government after the claimants failed to redeem the properties when these were subjected to public auction last year. Cebu City Treasurer Ofelia Oliva said her office will issue a Final Deed of Sale in favor of the city government next week.

Lots 485-D and 485-E which were claimed by the heirs of Rallos were auctioned on May 27, 2011 along with 268 other real properties whose owners failed to pay real property taxes to the government.

The two Rallos lots became so popular after the heirs of the late priest demanded P44.2 million from the city in 2001 as payment of the portion of the lots that was used for public road.

But Mayor Michael Rama refused to pay the amount after having secured an old court document called “convenio” or agreement entered into by the Ralloses before the now defunct Court of First Instance that they will donate a portion of the property for public use.

Despite the agreement which was entered into in 1940 before Huez Benito Natividad, the heirs of the late priest filed a case in 2001 demanding payment from the city.

The Regional Trial Court ruled in favor of the Ralloses and declared that the just compensation of the lot is P44,213,000 at P9,500 per square meter. The court later ordered the garnishment of the P34,900,000 from the city’s depository banks.

However the balance of the court-approved just compensation has increased through the years because of the interest. At present the amount has grown to P133 million.

Rama insisted that the city is not paying the amount citing the convenio that was entered into by the heirs. Rama said he is happy over the latest development but said he still have to discuss the matter with the city lawyers.

The city treasurer said the issuance of the Final Deed of Sale does not need the approval of the City Council because the one-year redemption period had already lapsed on May 26, 2012. (FREEMAN)