To ensure better direction Rama: Separate body to run SRP

CEBU, Philippines - Cebu City Mayor Michael Rama wants a special body to manage the multi-billion South Road Properties in order to give it direction.

He said the development plan of the SRP cannot just stay in the head of one person, who he said, is claiming to be the best man on earth and wants to rule over the property at the expense of the constituents who are deprived of services.

Although he did not mention any names, Rama was obviously referring to south district Rep. Tomas R. Osmeña.

Rama said the special group shall consist of experts from different agencies and different sectors and the city government and the CIPC will just be a part of it.

“More heads to contribute for the development of the SRP is always better. Lisod man gud na nga usa ra ka tawo ang nakahibaw, mag-ilis ilis ra ba ang leadership,” Rama said.

Transparency

The mayor said he wants transparency in all transactions involving and has involved the SRP which he intends to make public soon.

Rama said he wants to present to the public soon how much the SRP has earned so far, how much of which went to services, how much went to the payment of loans and how much will be received in the future.

“We want to show to the people that the money earned by SRP does not go to the pockets of the politicians but to the delivery of services,” he said.

Rama is determined to make the SRP an economic hub in Cebu City with the primary goal to create 80,000 jobs.

In the past, there was also a proposal to create a Project Management Authority that will manage the SRP, but it was opposed by former Mayor now Representative Osmeña.

The PMA, according to CIPC would bring more investments to SRP especially that some investors prefer to deal with an independent body to brush aside any possible political interference.

Osmeña opposed the creation of the authority then because he said it will prevent the city from benefiting from its own property.

He said the authority will eventually take away the power from the city government to control the SRP.

But Rama said the special body will not be an authority. He said he has to discuss first with the appropriate people the organizational structure of the group he wants to be created.

BIR woes

Before all of these, however, Rama said the city will solve the issue it is trying to resolve with the Bureau of Internal Revenue.

Rama is set to meet with BIR Commissioner Kim S. Jacinto-Henares tomorrow to discuss again the appeal for tax exemption that the tax body wants to impose against earnings from the SRP.

Rama said his stand on the matter is very simple, that the city government is not liable to pay taxes because the sale of SRP lot is not proprietary in nature since the proceeds from sales are used to pay for the loan and to fund programs such as scholarships for Cebu City High School students.

“When we created SRP, ang huna-huna sa gobyerno dili para negosyo, but to create jobs,” Rama said.

He assured that somebody is complying with the requirements asked by BIR that will be used to support their claim that they are entitled to a tax exemption.

Rama will be going with a representative from SM.

Rama has already followed up the case in the BIR office in Manila thrice.

The city government has barely a month to secure exemption before SM withholds its payment and remit it to BIR directly to pay taxes.

SM as an authorized withholding agent has the duty to withhold its payment and pay it to BIR to satisfy the demand of the bureau.  –/NLQ (FREEMAN)