Cebu City to sue FLI over P500M share

CEBU, Philippines - The City Legal Office has threatened legal actions against Filinvest Land, Inc. after failing to remit the city’s share from developed units in the Joint Venture Properties despite the demand letter.

City Attorney, Atty. Jerone Castillo, said that as of now, Filinvest owes the city government P500 million, but remitted only P159 million.

Mayor Michael Rama, however declared his marching order to City Legal Office to collect the same amount pronounced by Castillo.

The Joint Venture Agreement (JVA) specifically provides that the Cebu City shall receive a share of the profits from the sale of developed units in the Joint Venture Properties in an amount equivalent to 10 percent of the gross sales proceeds, which amount shall be remitted by Filinvest to Cebu City on a quarterly basis.

Castillo stressed that within this week if  Filinvest will not comply their contractual obligations, the legal office will make “meaningful” resolution regarding this matter.

When asked about the possible reason of the failure of remittance of Filinvest, Castillo said he sees no justifiable reason.

However, he said that Filinvest sent letter to them informing that they will pay their balance. But since it has issues there, it needs comprehensive legal study, though, Castillo added.

“Some provisions there were stated and we feel dili na mao’ ang naa sa original nga JVA,” said Castillo.

The legal office will withhold the document until they undergo legalities by the propositions and conditions stipulated on the said document.

Castillo added that partially, they should pay because it has been months and along the way they will make discussions since on March 2014 is the official termination of  the contract.

He said that Filinvest requested to sit down with them before the legal office will appear before the press which they did, but still there are not clearing resolutions.

“We treated them as our partners, we even gave them ample time from September this year until today,” said Castillo.

Though, Castillo is hopeful that this would not reach to legal actions like cease and desist order as long as Filinvest will respond positively regarding this matter.

“If they will honor their contractual obligation, then Filinvest will not force us to do legal actions and we will be meaningful partners then,”  he said.

Castillo said that they have to inform the public about this because they owe it to the City and by doing this, they are protecting the right of the City with respect to the JVA.

“What is due the City, is due the City,”said Castillo. (FREEMAN)