Caloocan court orders Gotesco owners to vacate mall

MANILA, Philippines - Owners of the Gotesco Grand Central Mall in Caloocan City were ordered yesterday to vacate the mall premises within the next 24 hours after the Caloocan City Regional Trial Court (RTC) granted the petition of the Caloocan City government to take over the property.

Gotesco Investments, Inc., the mall’s owners, failed to pay outstanding real property taxes for the last 23 years, according to the ruling of Caloocan RTC Branch 126 Judge Oscar Barrientos, who issued a writ of possession last Friday. Court sheriff Nicolas Ramos served the notice last Monday.

Caloocan RTC Branch 126 clerk of court Ivy Mabansag told The STAR Gotesco only has until tomorrow to act on the order.

The Caloocan City public information office declined to comment on what the city government might do next should Gotesco continue to defy the court order.

Meanwhile, Gotesco has questioned Barrientos’ decision before the Court of Appeals on grounds of grave abuse of discretion amounting to lack or excess of jurisdiction.

The Grand Central Mall opened for business at around 10 a.m. yesterday, with 30 to 50 security guards deployed at the mall’s lobby since Monday night.

Court records showed Gotesco leased more than two hectares of land once occuppied by the Cecilio Apostol Elementary School, bounded by Bustamante street and Rizal Avenue.

The contract covered 25 years from June 14, 1983 until December 31, 2008. The original price was P136,144,800 (P8,026.39 per square meter), later adjusted to P182,085,078.30.

Gotesco erected a mall on the property, ownership of which would revert to the city after the lease expires in 2008.

On Sept. 6, 1990, during the term of then mayor Macario Asistio Jr., the Caloocan City government issued a city ordinance to execute a deed of absolute sale in favor of Gotesco. Mayor Reynaldo Malonzo, after taking over from Asistio, refused to accept Gotesco’s payments, forcing the latter to file a case of payment by consignation (payment through the courts).

This paved the way for the transfer of the property from the city government to Gotesco.

In a petition filed before Branch 11 of the Manila Regional Trial Court, Gotesco claimed that without its knowledge, the city government charged Gotesco in 2007 for alleged non-payment of real property taxes.

Later, the city government transferred the title of the mall and the land to itself, Gotesco said, adding that the city government also initiated talks with mall tenants and told them to renew their lease contracts with the city government, threatening them with non-renewal of their business permits if they did otherwise.

On May 7, 1998, Malonzo filed for annulment of the sale and cancellation of Gotesco’s title over the property.

On Dec. 13, 2006, Caloocan levied upon Gotesco unpaid taxes amounting to P388 million, which has since ballooned to over P722 million.

The property was forfeited in favor of the city on Dec. 22, 2007, and Gotesco had one year to redeem the property but failed to do so.

The city government then placed the property on the auction block. In the absence of bidders, the city government assumed ownership of the property.

In a statement issued yesterday, Gotesco assured its patrons, clientele, staff and the general public that the mall remains open for business.

“Contrary to initial media reports, the mall is still being operated by the Ever Gotesco group, pending the resolution of legal matters,” read the statement, referring to the opposite rulings issued by the Manila and Caloocan courts.

The Manila court issued a writ of preliminary injunction prohibiting the city government from taking over the property last Dec. 24, a move that was allowed by Barrientos, the statement read.