It’s harassment: Tom on threat of House inquiry on FLI deal (South Road Properties)

HARASSMENT. That’s how Mayor Tomas Osmeña described Rep. Pablo John Garcia’s vow to initiate a House inquiry into the Cebu City Government’s agreement with Filinvest Land Inc. (FLI) on the sale and development of South Road Properties (SRP) lots.

He, however, was unconcerned, saying the Capitol can keep and scrutinize its copy of the joint venture agreement with FLI.


“I’m not happy with harassment. But let me tell you that Congress is not a court. They want to use Congress as a court because maybe they can influence the congressmen, but Congress is not a court,” Osmeña said.



Several Cebuano lawmakers support the proposal to conduct a House inquiry on alleged anomalies in the joint venture, Garcia (Cebu Province, 3rd district) said.

“They said they’re ready to sign any resolution to that effect. It encourages me because without my asking them, they volunteered to help,” Garcia said in a press conference yesterday.

He said the House inquiry will become a venue for the public to check whether the multi-billion-peso deal conforms with the law. If the sale and joint venture agreement are proven to be irregular, City Hall officials might even be held liable for plunder, he added.

Gov. Gwendolyn Garcia, the congressman’s sister, has also asked Mayor Osmena to furnish the Provincial Government with a copy of the signed agreement.

Terms

Osmeña reiterated there are safeguards in the agreement, particularly on the need for FLI to construct buildings instead of merely selling lots.

The City stands to earn from the outright sale amounting to P1.546 billion for the first three years, and from its 10-percent share in the sale of built-up units in the 40-hectare area, or a minimum guaranteed return, whichever is higher.

The properties covered by the joint venture are supposed to be developed in 20 years, at 10 hectares for a maximum of five years.

Last March 6, FLI turned over to the City a P348-million down payment for the SRP lots it will develop.

“The Filinvest deal is a very unique joint venture that is designed to improve our economy,” Osmeña said, explaining that unlike other transactions, that with FLI prevents the company from merely selling lots.

“They cannot earn money selling land. So to make money, they have to build,” Osmeña said.

Bad mood

This way, he said, jobs are created since construction workers, security guards and maintenance personnel would be needed.

He also questioned the Capitol for criticizing the arrangement—10 hectares in outright sale and 40 hectares in joint venture with Filinvest—saying it was the offer the City received.

“Are we going to go kill a 50-hectare transaction because the Province is in a bad mood, that we have to separate them (10-hectare sale and joint venture) as if they (Capitol officials) own the property? We were interested in the joint venture because that joint venture is the one that will really start to create livelihood for the City of Cebu,” he said.

City Hall earlier declared the Province ineligible when it participated in the pre-qualification to challenge Filinvest’s offer.

Reached for comment, Rep. Nerissa Soon-Ruiz (Cebu Province, 6th district) promised to support Garcia’s proposal for a House inquiry “for transparency’s sake.”

Rep. Ramon Durano VI (Cebu Province, 5th district), however, said he will reserve his comment until he gets the details of the agreement.

Guide

Congressman Garcia said a House inquiry will guide future investors to steer clear of anomalous government deals or irregular provisions.

He criticized the mayor for saying that the Commission on Audit (COA) is studying the joint venture contract as part of the post-audit process before it approves the transaction.

“What is he talking about? If they don’t have the approval (of COA), how can they peg the price at P15,000 per square meter? COA needs to approve it,” the congressman said.

Whenever government disposes of property, the congressman explained, among the requirements is an assessment by state auditors of the property’s value.

“If the mayor says the COA does not approve it, then they have no business entering into this deal. That’s another strange revelation,” said the congressman. (RHM/GMD)