CEBU, Philippines - The Commission on Audit has rejected Mayor Tomas Osmeña’s proposal to swap the 3,682 square-meter lot presently occupied by the Banawa Elementary School in barangay Guadalupe with the city-owned lot adjacent to the gate of the Waterfront Hotel and Casino in barangay Lahug.
The state auditors are afraid that the transaction between the City of Cebu and Felix Gochan and Sons Realty Corp. might be disadvantageous to the government, which is why they want that if the city really wishes to acquire the lot Osmeña should expropriate the property.
Osmeña explained the proposed land swapping cannot be disadvantageous to the city because if it will be realized, the pupils of the Banawa Elementary School will no longer be displaced.
The city council had already endorsed the mayor’s proposal four years ago and allowed Osmeña to enter into a negotiation with Felix Gochan and Sons Realty Corp. for the land swap.
The proposal was that the realty corporation will swap its two lots —a 4,955 square-meter lot in barangay Lorega-San Miguel and the 3,682 square-meter lot that is occupied by the Banawa Elementary school— for a city lot in Lahug.
The city lot near to the main entrance of the hotel is only 2,357 square meters, it used to be a provincial property before it was donated to the city.
City south district councilor Jose Daluz III said that with the exchange, Cebu City will save 13 school buildings housing 36 classrooms from possible demolition.
Although the city lot in Lahug is much smaller than the property of the realty company, the city appraisal committee earlier pegged the worth of the lot at P18.8 million, while the Gochan properties are only P17.2 million, including the one occupied by the school.
Daluz earlier said the city stands to gain from the proposed land swapping because it will no longer spend for the construction of a new school building. — Rene U. Borromeo/BRP (THE FREEMAN)