The Cebu City government will not pay the Palicte family even if the court ordered the City Hall’s four depository banks to garnish the city’s accounts to be used as payment for the expropriated lot.
This after the city learned that the ownership of the property is still under question and is still being decided by the Supreme Court.
City administrator Francisco Fernandez said they learned the lot is subject to court litigation because of the case filed by the Sotto family, which is also claiming the property. The case is now pending before the Supreme Court, he added.
“This is very important because if the court decides in favor of the Sotto family, then the Palictes are not the owner,” Fernandez said.
“In the meantime, the city will defer the payment of the property. Unless of course the court says we pay,” he added.
Recently, Regional Trial Court Branch 9 Sheriff IV Antonio Bellones ordered the city’s four depository banks to freeze about P20.6 million of its assets to be used as payment for an expropriated lot.
Bellones notified officials of a branch of the Development Bank of the Philippines, Postal Bank, Banco de Oro and Philippine Veterans Bank about the garnishment of the city’s deposits.
But upon receiving the copy of the garnishment order from the court, the city immediately wrote the managers of the bank in an attempt to keep access to the funds.
The Cebu City Attorney’s Office had also filed a motion in court to stop the four banks from freezing its assets because it is still negotiating with the heirs of the late Matilde S. Palicte for the payment of the expropriated property. A court hearing on the motion is scheduled today.
Fernandez said yesterday that they have received a letter from DBP informing the city that the bank has decided to withhold the implementation of the garnishment because of the motion filed by the city.
He also said that the bank’s management failed to notify the city of the garnishment order issued by the court.
“Part of the issuance of the garnishment is that the LGU should be notified. Banks are considered debtors as far as a client is concerned. They should protect the depositors unless ordered by the court,” he stressed.
He said that another option that the city has is to file the petition for annulment of judgment, questioning the court appraisal committee’s decision when it pegged the Palicte property at P4,500 per square meter, when the city had proposed to buy it at P2,800 per square meter.
The city is negotiating to immediately pay the balance of the lot amounting to P14 million, provided the Palictes waive P6.1 million in interest and legal fees.
Last year, the city offered to pay the P20.1 million balance and interest for a period of three years, but the Palicte heirs rejected the offer.
The city filed an expropriation case against the Palictes for the purchase of the lot located in barangay Capitol Site, which the city is using as an on-site relocation for informal settlers. — Wenna A. Berondo/LPM