Scrutiny urged over South Road Properties contract

By Marian Z. Codilla, Reporter

A critic of Cebu City’s transactions over the South Road Properties (SRP) has questioned the joint-venture contract that City Hall signed with Filinvest Land Inc.
Tinago barangay councilor Joel Garganera said he wanted more scrutiny over the contract. He questioned the contract’s legality and as well as City Hall’s transparency in handling the contract, which is now pending with the City Council’s committee on laws.
“The public has to know (the details of the contract) as well because if they are not going to deliberate on the contract very well... it is not far fetched that there might be someone who will file a case. But I am not saying it’s going to be me,” Garganera told Cebu Daily News.
Garganera attended the council’s regular session last Wednesday on the hopes that the contract would be discussed, but was disappointed that the matter was not raised.
He said he then visited the City Secretary’s Office to get a copy of the contract, but was denied.


He said he would have wanted to scrutinize the contract himself as a “concerned citizen.” He wondered how an initial offer of P80 billion worth of developments for a portion of SRP went down to P25 billion.
Garganera also cited inconsistencies between the published invitation to challenge the Filinvest contract on Dec. 8 and Dec. 15 last year and stipulations in the contract.
The invitation sated that one of the commitments of Filinvest is to give the city a minimum of P1.5 billion in cash payable within the first three years for the sale of a 10.6-hectare seafront property at the SRP.
The contract submitted to the City Council stated that Filinvest, upon signing of the contract, will pay P348 million as first payment and the remaining balance will be payable in six years with a five percent interest every year.
Garganera also wondered if Filinvest’s development plan was economically advantageous to the city since Tristan Las Marias, Filinvest Vice President for the Visayas and Mindanao, said the company was going to build hotels, office spaces, and condominiums on what Garganera described as the “Crown Jewel” area of the SRP, while only medium-rise commercial buildings and a retirement facility would be constructed on the 40 hectare joint venture property.
“Filinvest has the prime lots, all their properties are surrounded by bodies of water and the cost of such properties must be very high. Why is it that only medium-rise buildings are going to be built in the joint venture (agreement)? The council should discuss the merits of the contract. If it is grossly disadvantageous to the city then it is illegal,” Garganera said.
He said he was worried that the city may not get a fair deal on the properties if the council would not be critical in discussing the contract.
Garganera said he did not mind what the administration thinks of his criticisms since he only wanted what is best for the city.
“They can always say it is politically motivated, then let it be. But this is economic in nature. The basic services are being neglected because of the debt servicing. I am only hoping that the council should discuss it properly and not to hurry this up. Basin dinha nata manguros kung nangilat na (Maybe we'll only make the sign of the cross once the lighting strikes),” he said.