CEBU, Philippines - Cebu Province 3rd District Rep. Pablo John Garcia yesterday asked the House of Representatives to do an inquiry into the mult-billion peso deal entered into by the City of Cebu and Filinvest Land Inc. for the South Road Properties.
Garcia delivered a privilege speech at the House of Representatives and asked that the probe be made in aid of legislation.
The city and FLI have signed a deal for the outright sale of 10.6 hectares of the SRP and the joint development of another 40 hectares, which the first-term congressman said is highly anomalous.
“I rise today on a question of personal and collective privilege, on a multi-billion pesos controversy that has rocked the city and entire province of Cebu, and assaults, in a direct way, the authority of this House, and of the Congress of the Philippines,” Garcia said.
The congressman, who is a younger brother of Gov. Gwendolyn F. Garcia, said there is an urgent and compelling need for the conduct of an investigation in order to set the parameters within which local government units may enter into joint venture agreements with the private sector.
He also emphasized the strict compliance of the requirement for congressional approval in the sale of lands of the public domain as well as to provide stiffer penalties for violation of the Constitution on the disposition of such lands.
The call for inquiry will be referred to appropriate committees, but only after the interpolation that is due to continue this afternoon.
Garcia called the deal of the city and FLI as the “single bright promise of salvation for a debt-ridden city.”
He however added that no one knows the exact debt of the city since the Commission on Audit (COA) cited its failure to reflect the full extent of the obligation in its books.
The congressman also said that the officials failed to read the contract, study its provisions and protect the interest of the city of Cebu.
“As one of the very few who have had the opportunity to scrutinize the Joint Venture Agreement, I have been asked to summarize my objections to the deal. And I have answered: There are only a few things terribly wrong with this contract — what it purports to be, what it actually is, and what is not,” Garcia said.
Cebu City South District Rep. Antonio Cuenco, who used to be an ally of Cebu City Mayor Tomas Osmeña, supports the call of the young Garcia.
Cuenco said, “I was deeply shocked by the revelation concerning the reclamation project that belongs to my district. Those allegations must be answered because it is grave.”
The SRP has been touted by observers as the new battle ground of the provincial and city officials.
This bitter fight started with the interest of the province to retrieve its land that have not been paid by those beneficiaries of a land acquisition program for the urban poor covered by Provincial Ordinance 93-1. The city proposed a land swap deal that was about to materialize, but was aborted when Vice Mayor Michael Rama called it as unfair for the city.
Rama, in a privilege speech in the city council said that the provincial government, which was to get several hectares of lots from the North Reclamation Area, would be spared from the trouble of working to collect from the beneficiaries, which would have been the city’s part in that proposed deal.
The deal did not push through and the province, which was to develop a property in Apas was foiled by the city when a moratorium on development was issued in the area due to the severe traffic situation.
The province also moved to retired its other properties within the city including the Fuente Osmeña.
When the proposal of FLI for the SRP came, the city was mandated to allow other entities to challenge the bid and the province expressed interest to do so.
The province was however disqualified by the committee tasked to accredit bidders due to technical issues.
Then Garcias came out with gun blazing against the deal citing the various lapses.
Cebu City Administrator Francisco Fernandez, said the city and its officials are willing to face any inquiry believing that no irregularity has been made over the contract.
“We had explained everything, the mayor (Tomas Osmeña) had even been pointing all issues from the very beginning, so we are ready, thats a welcome development,” Fernandez said.
Acting Cebu City Mayor Michael Rama echoed the sentiments of Fernandez.
Rama also denied that he was at the Lower House last Sunday trying to meet with the Committee on Laws members, allegedly in order to try to stop any inquiry.
“That’s of course false, how can I be there when I was at the landfill the whole day,” Rama said.
In the deal with FLI, the company is committed to compensate the city in a period over 20 years a minimum of P1.5 billion payable in cash for the next three years and 10 percent of the Gross Revenues of built up units or a pre-determined minimum guaranteed return.,
The over all project investment of FLI is P25 billion.
FLI has already paid P348 million as downpayment for the outright purchase of 10.6 hectares and the titles to two hectares have been released to the company. — Gary B. Lao and Ferliza C. Contratista /NLQ (THE FREEMAN)