Balili lot purchase probe: Was purchase done in haste?

CEBU, Philippines - The Cebu Provincial Government appeared to have been in a hurry when it purchased the controversial Balili property to the point of making the partial payment even before getting hold of the certified true copies of land titles.

Records also show that Governor Gwendolyn Garcia signed the memorandum of agreement for the purchase of the 25-hectare property located in barangay Tinaan, Naga on May 21, 2008 the same date that the members of the Provincial Board passed resolution no. 1781 authorizing her to enter into such agreement.

What is more questionable is that on the date that Garcia supposedly signed the MOA she was out of the country.

In fact, it was Vice Governor Gregorio Sanchez who approved the resolution on April 24 as acting governor because Garcia was in Guam together with some of the board members to forge a sisterhood agreement.

The MOA was also notarized on that same date before Atty. Donato Sevilla, Jr. of the Provincial Legal Office.

Board Member Jose Maria Gastardo, who was with Garcia in Guam, questioned how could it be possible for the governor to sign the MOA and swear in before the notary public when she was outside of the country.

Lawyer Romeo Balili, executor of the Balili Estate, yesterday told the members of the provincial board that he personally delivered the certified duplicate copies of the titles to Board Member Juan Bolo also on May 21, 2008 upon the instruction of the broker, Lumen Durano, because the Capitol wanted to inspect the property.

However, even before the Capitol got hold of the certified true copies of the titles and conducted the inspection it already issued a check amounting to P49,849,200 on April 28, 2008 as partial payment for the lot.

Provincial Treasurer Roy Salubre, however, said the check was withdrawn only on May 21, 2008 at the office of Bolo during the turnover of the certified true copies of the titles.

But still Vice Governor Gregorio Sanchez said that the basis for the issuance of the check is questionable as the final authority from the board and the MOA was only signed on May 21.

On April 4, 2008 the board also passed a resolution authorizing the governor to enter a MOA with the Balilis for the purchase of the 25-hectare property at P434 per square meter.

Another resolution was passed later in that month which gave the final authority to the governor to purchase the lost at P400 per square meter.

The Capitol made the full payment of P98.9 million to the Balilis on October 2, 2008 after the deed of sale was issued on June 11, 2008.

PERSISTENT BOLO?

Board Member Victor Maambong noted that the transaction was very fast.

He said this is all because Bolo “persistently” pushed for the transaction. In fact, Bolo did not consult the members of his committee which is supposed to render a committee report before the board can act on it.

Sanchez admitted that the committee on provincial and municipal properties of Bolo did not have a report before they passed a resolution granting the governor the authority.

He said they were made to believe that it already had the go signal of the governor.

Maambong on the other hand admitted that the members of the board where all misled by Bolo.

Although, Maambong said they could not totally wash their hands from any responsibility because they are part of the body that approved it.

Bolo admitted that he did not consult the members of his committee claiming that it is the practice that most committees are run only by its chairmen.

He also said that the deed of sale was not returned to the board for ratification because the terms were not in contrast with the authority granted by the board.

Another irregularity noted in the transaction is that it was not part of the province’s annual investment plan.

Maambong however said it is not illegal but it is also bad governance.

Not Straightforward

Balili was invited by the board yesterday in line with its fact-finding inquiry on the controversial lot purchase.

Maambong however observed that Balili was “not straightforward” in his answers even if he agreed to be under oath.

Sanchez also shared the same observation saying that Balili seems to be withholding information to them.

Balili reassured the members of the board that the money paid by the Capitol is still intact in the Banco De Oro accounts of the Balili Estate in which he is the court-appointed executor.

According to Balili, he will convince the heirs of Engineer Luis Balili to return the payment equivalent to that of the 9.4-hectares that is found by Capitol survey to be submerged in seawater and mangrove area.

The executor of the estate said that the widow, Amparo, has already expressed willingness to return the money, but he will still have to get the decision of the other heirs.

In a letter dated August 14, 2009, the provincial government demanded that Romeo Balili return over P37.8 million after they found out from a survey that 80,124 sq. meters of the area are underwater while the 14,402 square meters are mangroves.

Of the P98.9 million paid by Cebu Province to the estate last year, Romeo said the P38. 5 million was paid as court commission and the P5 million in bond due to the pending case before the Court of Appeals involving a creditor who he identified as Trade and Investment Development Corporation or TIDCORP.

According to Romeo, his uncle died in June 13, 1996 and he was administered as executor of the estate in December 3, 1996.

When asked how the broker, Lumen Durano, got into the picture, the executor said that she was referred to him by Amparo.

Romeo, however, said that there was no written agreement with Durano being the broker of the property. —/NLQ   (THE FREEMAN)