SRP deal heads for showdown: Barbs fly on FLI

CEBU, Philippines - The joint venture agreement between Cebu City and Filinvest Land Inc. is keeping both city and provincial officials busy.

Cebu 3rd District Rep. Pablo John Garcia, who believes the deal is anomalous, cites similarities with the controversial Philippine International Air Terminals Corporation (PIATCO) contract for the construction of Ninoy Aquino International Airport Terminal 3.

According to Rep. Garcia, the Supreme Court voided in the case of Agan Jr. versus Piatco as contrary to public policy because there was a question on Concession Agreement as it contained material and substantial amendments that deviated from the original terms that makes it an entirely different contract from the subject of the bidding.

While the officials from the province are pointing out the problems, the city officials are also busy parrying the accusations and saying that everything is above board.

 In the case of Filinvest deal, the congressman said the joint venture agreement “differed on all material points from the terms of the invitation to bid published by the Cebu City Government, which urged potential challengers to submit comparative proposals.

In a local newspaper publication, the City Government posted an invitation to apply for eligibility and to submit a Comparative Proposal for a central business district type development over the 50.6 hectare area.

Also, it was stated that Filinvest has to compensate the city government in the amount of not less than P1.5 billion in cash payable within three years.

But Garcia said that contrary to what has been published, the unincorporated joint venture is not for the 50.6 hectares but only for 40 hectares, with the 10.6 hectares sold through outright purchase.

Garcia pointed out that the joint venture development is no longer for a central district type, but for an integrated and well-planned clusters of medium rise residential buildings and retirement and congregate care complexes, which is inconsistent with a central business district type of development.

Garcia also questioned the term of payment by FLI that instead of being payable in three years, it is now payable in six years.

“The deviations from the published invitation directly result in the language of the Supreme Court in the Piatco case – concrete financial disadvantages that were previously not available during the bidding process,” Garcia stressed.

Garcia further said that “in the Piatco case, the contract still called for an airport terminal. In this case, it’s totally different type of development.”

Garcia lashes out to the city officials who haven’t answered specific questions that were raised earlier because they have not read all provisions of the joint venture agreement.

If the councilors read the provisions, according to Garcia, those who are lawyers will have a hard time defending the agreement, because they are afraid of Osmeña.

Don’t Act As Judge

Acting Mayor Michael Rama yesterday advised the Cebu provincial officials to refrain from acting as a judge.

Rama said the provincial officials have no concrete basis to call the deal anomalous.

According to Rama, he, being the signatory of the Joint Venture Agreement on behalf of the City of Cebu, is very willing and always ready to appear if he will be asked to explain about the issues surrounding the transaction.

Rama further explained that before he signed the joint venture agreement with Filinvest Land Inc., the provisions of the transaction were first subjected to a thorough study by the members of the Joint Venture Selection Committee, which included somebody from the city attorney’s office.

City administrator Francisco “Bimbo” Fernandez, who chaired the Joint Venture Selection Committee, has assured that there is nothing anomalous nor are there provisions that are disadvantageous to the city.

Fernandez said the provincial officials should be worried because the joint venture contract between the city and Filinvest Land Inc. would be subjected to post audit by the Commission on Audit.

Rama did not make a categorical answer when The FREEMAN asked him to comment on the claim of Congressman Garcia that the piece-meal payment and the staggered granting of the titles for the 10.6 hectare lot — part of the 50.6 hectare SRP lots — violates existing state audit rules.

The FREEMAN called up the COA-7 regional office, but the state auditors are hesitant to say whether such kind of deal is legal or illegal pending the outcome of their post audit.

Congressman Garcia reportedly is set to deliver a privilege speech in the House of Representatives to ask for a congressional inquiry into the deal.

Rama said he was not surprise when he learned that Cebu City South District Rep. Antonio Cuenco, who is not in good terms with Osmeña, had supported Garcia’s call for a congressional inquiry.

Aside from Cuenco, 6th District Rep. Nerissa Soon-Ruiz also supports the holding of a congressional inquiry in Cebu to tackle the issue.

The Capitol officials would also try to convince Cebu City North District Rep. Raul del Mar, an ally of Osmeña to support the congressional inquiry. —/NLQ (THE FREEMAN)