Malonzo welcomes Gotesco report

Caloocan City Mayor Reynaldo Malonzo welcomed yesterday a recommendation by a joint Senate committee for the reinvestigation and possible prosecution of persons responsible for the alleged multimillion-peso Gotesco land scam.

"I welcome a re-investigation into Gotesco so the matter can finally be clarified," Malonzo said.

The mayor, however, urged the Senate Blue Ribbon and the committee on justice and human rights, headed by Senators Joker Arroyo and Francis Pangilinan, respectively, to name names since the issue has put several city officials in a bad light.

"They should name names for clarification and in the interest of justice," Malonzo said, as he denied any involvement in the scam.

He said the National Bureau of Investigation has never included his name among those who should be held liable for the disputed sale.

"I have in fact opposed the sale by vetoing an ordinance approved by the City Council," he said.

In a 14-page joint investigation report, the Senate committees said the alleged Gotesco scam was consummated in conspiracy with local officials, registration officers, and court personnel which deprived the people of Caloocan of the property that rightfully belongs to them.

The committees also recommended the criminal and administrative prosecution of past and present public officials and persons involved for the "acts and omissions" that divested Caloocan City of its revenues from the property in question.

Records showed that in 1990, the city government, under then Mayor Macario Asistio Jr., executed an absolute deed of sale for the 22,685 square-meter lot on Rizal Avenue Extension, which was the former site of the Cecilio Apostol Elementary School.

The lot was leased by the city government to Gotesco Investment Inc. in 1983 for a period of 25 years.

The sale, however, was aborted after the Commission on Audit claimed that the P6,000 per square-meter price was P10,000 lower that the land’s appraised value.

In 1995, Gotesco sought a reconsideration of the 1990 COA ruling under its new chairman, Celso Gangan. It was then that the city government changed leadership after Malonzo defeated Asistio in the polls.

In 1997, COA approved the sale provided that it would be increased to P8,026.39 per square meter for a total contract price of P182,085,078. Through City Ordinance 0237 series of 1997, adopting the COA decision, the City Council authorized Malonzo to execute the sale. The resolution was vetoed by Malonzo but he was overruled by the City Council.

On April 15, 1998, the Register of Deeds under Yolanda Alfonso, issued a title to the disputed property to Gotesco and canceled the title of the Caloocan City government "without any payment or consideration," the joint committee report said.

On March 17, 1998, Gotesco tendered a full payment of P182,085,078 for the purchase of the lot which Malonzo refused to accept. Gotesco then deposited the said amount with the court in the form of two personal checks in the name of Jose Go and Elena Go which according to the Senate committees were "stale and had no value" for they could not be encashed.

Gotesco allegedly owes P200 million in unpaid taxes to the city government.