FLI's P245M needed soon

CEBU, Philippines - The delay in the payment of Filinvest Land Inc. for its property at the South Road Properties amounting to P245.2 million has not affected the city’s operations just yet, but will do so in the long run.

This was the statement of city treasurer Ofelia Oliva yesterday, saying the city is currently using other revenue sources to deliver basic services, but will eventually need the money from Filinvest come August.

This is because the amount has been earmarked, among other sources, for the payment of the city’s loan to the Japan Bank for International Cooperation.

The loan was incurred in 2005 for the Metro Cebu Development Project now known as the South Road Properties.

The city pays almost P300 million twice every year to the JBIC.

Last February, the city paid P276.5 million. The next installment schedule is on August.

Oliva said that the income generated from the SRP which includes the payment from FLI is one of the major revenue sources of the city.

FLI has a P1.5-billion deal with the city government.

FLI was supposed to pay P245.2 million for their 2012 installment for the outright sale of 10-hectares of lot at the SRP, but the latter refused to pay due to the annotations registered on the lot titles supposed to be released to FLI.

The annotations were the Notice of Levy on Execution and Notice of Lis Pendens.

City Lawyers earlier said there is no legal basis to withold payment since the annotations does not constitute an encumbrance or lien. (FREEMAN)