The city has more tax money for SRP
Taxes, as we all know, are forced contributions of the people. The citizens pay from their property the portions demanded in order that they may be secured in the enjoyment of the benefits of organized society. I had the opportunity to dwell on this topic with my young corporate boss, Sir Johnvic F. Gullas, while we were enjoying the comfy of his other muscle car, cruising along the South Real Properties, the name the Honorable Cebu City Mayor, Tomas R. Osmeña gave the south reclamation project.
True indeed, we just had our round of tax payments. From the money generated by our government from our taxes, we are supposed to receive the corresponding services.
This is not particularly the situation where a sizeable portion of the funds of the city, accumulated from our tax remittances, is used to pay for the humongous loan obtained by our mayor in order to reclaim the land. When tax money is appropriated to pay a debt, it reduces the amount available for basic services. Had the city been successful to sell some parts of the project, we no longer would have to continue to be burdened with the payment of the loan obligation.
Late last year, 2007, Mayor Osmeña released the news story, to our excitement, that he was on the verge of concluding sales agreement with several moneyed corporations, multi-nationals not excluded. In unmistakable language, our mayor assured us that before the end of that year, the city, under his able management, would generate enough cash from selling SRP lots to pay the loan. We held our breath to heed his request that we should refrain from asking him the details prematurely. I could remember the mayor saying that it was best for him to negotiate under that circumstance with a commitment that after the conclusion of any sale, he would make it public, all in the spirit of transparency.
When the mayor made such an exhilarating announcement in December 2007, I closed my eyes to the fact that in the weeks preceding the May 2007 elections, he made similar declarations. Really, when he then disclosed information that some buyers were negotiating for lots in the SRP, I had in mind that it was made more to boost his political campaign than anything.
It is not useful to point out that Mayor Osmeña was, in a number of incidents, proven to have blurted out a number of hot air balloons. We achieve nothing here if we show that the mayor misled us many times. To be fair to the mayor, let us acknowledge some points why we cannot as yet sell the SRP, in spite of the millions we have granted to a group called CIPC, which has been tasked with marketing the project.
One. The SRP is a generation ahead of its time. When it began, the North Reclamation Area had vacant lots in numbers that could answer the needs of investors. There was also a just-completed reclamation undertaken by
Two. Despite the years that passed after its “completion” (take note, I put it under quotation marks), the SRP remains bereft of necessary developments that stymie investors. Even as we speak, there are parts of the reclamation that are shallow ponds rather than reclaimed land. Try driving thru the main
Three. The infrastructure developments like road network and sewers are not yet in place. A would-be investor cannot buy a lot uncertain whether his land abuts a road and unequally unsure of the facility to dispose of his waste.
His Honor, the mayor must be responsible enough to admit that he missed considering the first factor. It was a judgment call when he insisted to go ahead with the plan. He is not a weakling to accept having made a very expensive mistake. The second and the third factors, however, are within his power to overcome. It being necessary, we just have to spend more for the SRP; after all, when the reclaimed land is ready to take in investors, the further taxes we pay may be put to better use than just pay debts.
* * *
Email: [email protected]
- Latest
- Trending
