FLI pays Cebu City P224.4M share

CEBU, Philippines - Filinvest Land Incorporated (FLI) has paid the Cebu City government the P224.4 million amortization for the 10-hectare Pond F at the South Road Properties (SRP).

This was confirmed yesterday by Cebu City Mayor Michael Rama after City Treasurer Diwa Cuevas received the check on Tuesday. The check represents payment for the final installment for Pond F.

The 10-hectare land is part of the first phase of the 40-hectare joint venture development between the city and FLI.

"Gi-receive na ang check. Ang Pond F payment non-debatable man to… now, we are back to our beautiful relationship," Rama said.

The "beautiful relationship" hit a bump recently after the city alleged FLI failed to meet the March 15 deadline for its payment.

In a statement sent to The FREEMAN, however, FLI Cebu FVP Tristan Las Marias clarified it has not been remiss in its obligations.

"FLI has in fact paid part of the minimum guarantee payment last December. While the joint venture terms do not require us to pay this amount at this point in time, in order to assist the city in their funding requirements, we have agreed to accelerate payment of the minimum guarantee.  Filinvest has a 50-year excellent track record and have never been remiss in any of our obligations," Las Marias said.

Las Marias said FLI has engaged the services of SGV & Co, as an independent auditor, to review the accounting records related to the joint venture agreement. The records reportedly prove that FLI is advanced as far as payment is concerned.

"We started discussions with the city as early as February in order to finalize their requested payments and we are currently in the process of documenting the closure of the first development phase of the SRP," Las Marias said.

"We have previously remitted P1.95 billion which includes the P309.71 million representing the city's gross revenue share, part of which is the accelerated payment of the minimum guarantee, and P 1.65 billion for Pond F," he added. — (FREEMAN)