Councilors ask Rama: Where’s the SRP money?

CEBU, Philippines -  "Where is the money?"

This was the question raised by some opposition councilors after learning that Mayor Michael Rama issued notices of award to the winning bidders of the 45.2- hectare lot at the South Road Properties even before the City Council passed a resolution asking the deferment of any act involving the sale.

“Where’s the money? So why do you give a notice of award if you don’t get the money?" Councilor Margarita Osmeña asked the executive department.

The city government is expected to receive the P6.75 billion, which covers 50 percent of the total bid price on Friday last week and just two days ago, Rama announced in his regular press conference that a notice of award was given to the consortium of Ayala Land, Cebu Holdings Inc. and SM Prime Holdings and by Filinvest Land Inc.

Earlier, the city received a bid bond totaling P1.63 billion as part of the 50 percent down payment. The other 50 percent will be settled in two to three years, on an installment basis.

Rama, though, declined to answer queries regarding the payment.

Section 15.3 of the terms of reference on the sale of SRP require the winning bidders “to tender full payment of the amount equivalent to 50 percent down payment of the offered price shall be paid immediately upon the receipt of the Notice of Award which will be issued not earlier than 30 days from the opening of bid.”

These developers will take possession once they were able to pay the 50 percent down payment.

This section was cited by Councilors Osmeña and Sisinio Andales.

“What was all the preparation last Friday for?  Weren’t they (investors) supposed to come? We all know that even if it came out in the agenda Wednesday, of course we have a copy of the agenda a day before (August 4). Siguro they were just trying to timing ba,” Osmeña said.

“And if we got the money, where’s the money? Is it proper that you give a notice of award without being paid?” she added.

Andales, for his part, said the executive department’s move of issuing the notices preempted the move of the Council.

In its August 5 regular session, 10 councilors voted to pass the resolution asking the executive department to defer any act involving the SRP sale because of an “adverse” legal opinion from the Department of the Interior and Local Government.

DILG Undersecretary Austere Panadero has said that the resolution the Council passed last year, which authorized Rama to negotiate for the sale of SRP lots, cannot supersede the ordinance the body approved in 2012, which asked interested buyers to submit an unsolicited proposal.

“Ang 50 percent of the offered price shall be paid immediately upon receipt of the notice of award. Wa man. It should be kaliwaan ba. It goes to show nga ilang gi-preempt ang among move. Beforehand kahibaw na sila nga naay DILG opinion,” Andales said.

He said the executive department issued the notice of award to “control the damage,” adding, that the mayor should not blame the Council because the councilors are just upholding the rule of law.

Sought for his comment on the plan of the executive department to sue the 10 councilors who passed the second resolution, Andales said, “I don’t know ilang case. We are just following the opinion of DILG. That is not our opinion. We are requesting hold in abeyance. If ang bidders ni back out. Di nana among sala uy.”

He said the executive department should question DILG instead.

The councilors who voted for the passage of the resolution were Andales and fellow City Councilors Margarita Osmeña, Eugenio Gabuya, Alvin Dizon, Roberto Cabarrubias, Nida Cabrera, Lea Japson, Nestor Archival, and Alvin Dizon.

City Councilor Mary Ann de los Santos, who has been invited to join BOPK, also voted in favor of Andales’ motion for approval.

Team Rama councilors Gerardo Carillo, Noel EleuterioWenceslao, and Nendell Hanz Abella voted against, while Councilors David Tumulak, Richard Osmeña, James Cuenco, and ex-officio member Philip Zafra of the Association of Barangay Captains were absent during the session.

Osmeña said the council is just “protecting” the investors. — (FREEMAN)