CEBU, Philippines - The Filinvest Land Inc. has finally paid P1.79 billion for a 10-hectare lot at the South Road Properties.
For Cebu City Mayor Michael Rama, however, “business is not yet done.”
He said the city will revisit the joint venture agreement for the development of condomi-nium units at the SRP that FLI and the Cebu City government signed in 2009.
“Until I will give my imprimatur that ‘final payment’ will never be final,” Rama said.
The terms and conditions, Rama said, should be carefully scrutinized to ensure that both parties have religiously complied with them.
“Necessary tan-awon. Wa ba nakalimtan pag-comply sa terms and unsa ang na-comply within the bounds of the law ba,” he said.
Rama said he will form a core group to have the contract looked into. He did not name who would complete the group, only saying the city treasurer and city attorney would be part of it.
“Check the terms and conditions if very much complied with aron way basol. If I have to look back there was pressure (to approve) at that time kay gustong dalion gyud ang contract,” he said.
“If there are changes, I’d like to check them if in accordance with the terms and conditions. Kun kuwang atong ipa-rectify,” he added.
Rama, as acting mayor, was authorized that time by the City Council to sign the agreement for the development of 50.6 hectares of the SRP with FLI president Andrew Gotianun. Rama’s former-ally-now-political-nemesis Tomas Osmeña, the then duly elected mayor, was on leave that time.
Based on the agreement, first phase of the development involves the outright purchase of 10 hectare. Second phase covers 40 hectares for residential condominiums to be built under a joint venture.
With the residential condominiums, the city is assured of either an income of 10-percent of gross sales of built up units or a guaranteed premium, whichever is higher.
Rama said the contract of the 40-hectare lot will be handled by a different group “so that it will all be subscribing to arm’s length transaction within the ambit of COA and lawyers.”
Sought for his comment, FLI communications consultant Cerwin Eviota said in a text message “it would be prudent for now that Filinvest would not make any comment. Hope you understand.”
The SRP is located on the east coast of Cebu City and would soon be the site of various mixed-use developments. — /RHM (FREEMAN)