Nalzaro: Capitol’s legal move (South Road Properties)

THE Chinese community is celebrating new year today. Aside from celebrating at home, some families will flock to various Chinese temples for a bigger and more colorful celebration and to offer prayers. Like, our New Year, the Chinese New Year was also greeted with a big bang before midnight last night.

A traditional dragon dance will be held at the downtown area where majority of establishments owned by Chinese businessmen are located. Decorations are usually in red. Establishment owners will also distribute money wrapped in red envelop, called angpao, to performers. To our Chinese friends, Kung Hei Fat Choi! I hope the Year of the Ox will bring progress and prosperity to all of us.

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So Cebu City Hall has finally awarded Filinvest Land Inc. the right to develop a 50-hectare portion at the South Road Properties (SRP), 10 hectares of which is an outright sale while the 40 hectares is a joint venture. This after the joint venture selection committee and acting Mayor Michael Rama denied the appeal of the Provincial Government that challeges Filinvest’s unsolicited proposal.



What is now needed to formalize and legalize the deal is a City Council resolution authorizing Rama to enter into a contract with Filinvest. Once sealed, City Hall will receive several millions as advance payment. This will solve the financial woes of the City Government, brought about by the debt-servicing to the Japan Bank of International Cooperation, which financed the development of the multi-billion peso SRP project.

But it’s too early for City Hall and Filinvest to rejoice, as there might be some legal hitches in the days to come. I can only surmise that as of this time, Capitol legal minds are mapping out some legal plan to stop the deal. While the transaction was still with the joint venture selection committee, Capitol lawyers had already raised some legal questions that might be their basis in going to court.

If the Capitol decides to go to court, of which I am almost one hundred percent sure, we can expect a protracted legal battle.

If there is a pending case, or worse, if the court issues an injuction, the project cannot commence on time. That will also delay the payment by Filinvest to City Hall. If I were Filinvest, I will not release any amount due to the uncertainty of the project. What if the court declares the contract illegal? There have been several government transactions, which were declared illegal.

Again, I may sound like a broken record but I have a long suspicion that the Capitol’s move to challenge the Filinvest proposal is just a strategy so they can acquire a legal personality to intervene in the deal. Because if they do not show interest and just go to court, they can be accused of politicking. Now, they have that “window of opportunity” to question the deal because they are already part of it.

Capitol owns vast properties that are ideal for development. Why the sudden show of interest in the SRP? And why be interested in the lots that Filinvest wants to develop? It’s plain and simple; sabotage. The SRP covers 300 hectares. And if the Province is really interested in developing there, why not just ask City Hall for another portion?

I have said this before and I will say it again. Capitol will only stop harassing City Hall and Filinvest with a barrage of legal suits if the City Council lifts or repeals the resolution prohibiting a Capitol development in the Banilad area. With the lifting of that resolution, the Province can start its multi-billion peso Ciudad project in consortium with a China-based company.

Capitol should not wait for a change of leadership at City Hall before negotiating to pursue the Ciudad project. As what I have been saying, as long as Tomas Osmeña is alive he will always be calling the shots at City Hall, especially if his replacement is a political ally. Kana si Mike Rama ug mamayor na mora ra unya na siyag tawo-tawo sa humayan. Believe you me. Tsur gyod ko ana.