CEBU, Philippines – “Another act of retaliation against the city.” This is how Deputy House Speaker and Cebu City north district Rep. Raul del Mar described the move of Cebu third district Rep. Pablo John Garcia to seek for an inquiry into the joint venture deal between the Cebu City Government and Filinvest Land Inc.
“The congressional investigation then sought by my esteemed colleague came as no surprise to many in Cebu even as they look upon it as yet another act of retaliation against the City,” Del Mar said in a speech he delivered during yesterday’s session of the Congress.
A known ally of Mayor Tomas Osmeña and a member of the Bando Osmeña-Pundok Kauswagan, Del Mar said he decided to deliver a collective privilege speech on the matter after waiting several days to interpolate Garcia, who earlier gave a privilege speech attacking the joint venture deal over the 50.6-hectare area at the South Road Properties (SRP).
“It is incumbent upon me as a congressman of Cebu City to air the side of Cebu City since they have no voice in Congress, it is my job,” Del Mar said in a phone interview with The FREEMAN last night.
To begin his 30-minute speech, Del Mar first questioned Garcia the reasons why he is seeking a congressional inquiry into the SRP deal.
This, Del Mar said, despite the fact that most of Garcia’s questions were already answered by Cebu City in a full page advertisement that came out for two days in the local papers.
“But why the particular interest in the Filinvest deal with the City of Cebu? Surely the gentleman has his reasons and I’d like to venture an explanation for everyone’s better appreciation in order to put things in proper perspective,” the House deputy speaker said.
Del Mar then briefed the 165 present members of the Congress about the real scenario, emphasizing that all is not well between the city and provincial governments of Cebu brought about by the failed land swap agreement four years ago.
He narrated that shortly after the abortion of the land swap was the city’s declaration of moratorium on commercial development in Banilad area meant to ease traffic congestion.
Viewing the move as an effort to stop the construction of its commercial and tourist oriented facility, the “Ciudad” project, the province retaliated by recovering several of its lots and properties that are located in the city including some access roads, the Cebu City Zoo and even the famous Fuente-Osmeña circle.
Measures that the city wanted to impose to solve traffic problems, Del Mar said, were met with vigorous opposition by the province that lately sought Congressional inquiry into the deal between the city and FLI for the sale of SRP lot.
“Let not what I have said however be viewed as adding fuel to fire. Let me say that I am one of the majority of Cebuanos who believe that it his continues, it will only work to the disadvantage of both the City and the Province,” del Mar said.
The city’s north district congressman then defended the join venture deal by answering the questions raised by Garcia.
According to Del Mar, the joint venture deal is a contractual arrangement distinct from a straight sale of government land.
As to why the city chose Filinvest, Del Mar said the city believed that the deal would be beneficial besides complying with all the eligibility, financial, technical and legal requirements set. Filinvest offered a price much higher than the valuation made by the Commission on Audit (COA).
Del Mar admitted that the province applied but was promptly disqualified because it was not a private developer, within the meaning of the city’s Joint Venture Ordinance.
“Not only that, it failed to produce audited financial statements and could not show proof it had the minimum required capitalization,” Del Mar said.
As to the deviation mentioned by Garcia of the deal from the published invitation to bid stating the city’s effort to do away with “sealed public bidding,” Del Mar said that such was a contractual arrangement which was distinct from a straight sale of land.
He said there was also no deviation as the intention on undertaking a central business type development stated in the invitation, which in the agreement now made mention of 875,000 square meters of building space.
As to the payment of P1.5 billion not in three years but in seven installments, del Mar said Filinvest chose to meet the P1.5 billion by paying the initial 10.6 hectares to pay for its obligations with Japan Bank for International Cooperation.
Del Mar stressed that contrary to Garcia’s assertion, there are penalty clauses that is structured for eventual default. The city, he said, only issues the titles o Filinvest only upon full payments.
The city also followed the National Internal Revenue Code when it undertook to shoulder the capital gains tax and the documentary stamps while foreshore leases were still to be decided by the city if it will be granted to FLI or not and the city’s compensation package assures revenues whether or not FLI makes money from the 40 hectare joint venture or not.
However, Garcia said that Del Mar prefaced his arguments on what “city officials say,” “according to city officials,” and “city officials maintain that,” which, he said, was a safe speech, which no one can argue with.
“When I chose to attack the contract, I took responsibility for my statements. I didn’t say, according to Gwen (Cebu Governor Gwendolyn Garcia) or according to the province. When del Mar rose to defend it, he prefaced his arguments with ‘according to city officials’ 31 times in 30 minutes,” Garcia said.
The governor’s younger brother emphasized that his motives were relevant and that what was important are having the said allegations investigated which is already achieved. —with Garry B. Lao/WAB (THE FREEMAN)