COA to province: Why sell lots at Maria Luisa?

CEBU, Philippines - The Commission on Audit has directed the provincial government to explain why it needs to dispose of lots at Maria Luisa and where the proceeds of the sale would go.

COA’s directive came after Capitol requested for approval of the sale of 11 parcels of lot covering an area of 11,246 square meters, which is worth at least P140 million.

 The letter from the agency dated July 2, 2015 was signed by Lolita A. Mercedes, Audit Team Leader.

 COA noted that as of March 31, 2015, the province’s cash on hand in its General Fund in banks aggregated P1.4 billion against current liabilities of P.588 billion. On cash in banks, P.476 billion is still under time or special savings deposits.

 The lots in Maria Luisa are under a Joint Venture Agreement with MRO Development Corporation, thus, COA asked if the agreement has been terminated and if so, a copy of a document to support such termination can be submitted to the agency.

 COA observed that the one who requested to dispose of the lots is not the Local Chief Executive (LCE), contrary to what is mandated in section 164 of COA Circular No. 92-386. The circular states that the LCE shall be responsible for the disposal of real property, buildings and other physical structures.

 COA asked further if the lots do not fall under any classification covered by the Free Patent Act (R.A. 10023) signed into law by former President Gloria Macapagal-Arroyo. The agency asked Capitol to issue a certification to this effect.

Provincial Administrator Mark Tolentino said earlier the proceeds of the future sale of the Capitol-owned lots in Maria Luisa will be used to repair province-owned buildings such as the Legislative Building, the Cebu Cultural Center, the Museo sugbo and other provincial structures damaged by the 2013 earthquake and typhoon.

 The statement was criticized by former governor, current Third District Rep. Gwendolyn Garcia, saying it exposes another controversy of the current administration not insuring province-owned buildings.

 “This is grave dereliction of duty and further exposes his criminal neglect. This is becoming a bad habit of the present administration,” Garcia said.

 Garcia also criticized Tolentino for saying there is a need to sell the lots in Maria Luisa so that the same would not be a white elephant when the value of land continues to increase and the prices of property have doubled in the last years.

 When she was governor, Garcia made it a policy not to sell or donate land in order to maintain the province’s assets and financial equity.

 In fact, she made several successful moves to recover properties that were donated to other agencies but were no longer used for the purpose stated in the deed of donation. Among these are the Department of Agriculture lot along M. Velez Street, the Boys Scouts property in Sudlon, and the military camp in Lahug.   (FREEMAN)