Mike fails to get authority to sign Hotel Asia deal

CEBU, Philippines - Cebu City Mayor Michael Rama yesterday failed to get an authority from the City Council to enter into and sign a Deed of Absolute Sale and Deed of Conditional Sale with the Hotel Asia Incorporated.

According to Councilor Gerardo Carillo, the members of the council decided to “lay on the table” a proposed resolution that seeks to consummate the sale of a city-owned Lot 917 in Barangay Lahug, considering that there is still a pending case before the court.

“Let’s table it first pending the verdict of the Regional Trial Court on the issue,” Carillo, who authored the resolution, said.

For his part, Rama said he will discuss the matter with the City Legal Office.

“As far as I am concerned, that matter belongs to the council.  It does not stop the mayor’s office to discuss with my lawyers. We cannot be just watching and ended up like what happened sa MCIAA enhancement project which was delayed due to a case,” Rama told reporters.

Waterfront Cebu City Hotel and Casino filed a case against the City Government. It questioned the way the advertisement for the public auction sale of Lot 917, which allegedly came out only two days before the auction date.

Lot 917 is adjacent to the Waterfront Hotel’s property.

Waterfront alleged that City Hall failed to comply with the requirements under Section 79 of the State Audit Code of the Philippines which requires that the notice of bidding should be advertised by printed notice for not less than three consecutive days.

But for Rama, the case will not be a “good picture” knowing that Hotel Asia has already made a down payment after the property was bid out to the latter.

“It is not a good picture. I don’t have to be naïve about it,” he said.

Without the passage of the resolution, the 2,357-square meter lot which was awarded to Hotel of Asia cannot be consummated yet.

Hotel Asia has posted a winning bid of P35,000 per square meter, P500 higher than the floor price recommended by the Committee on Awards.  (FREEMAN)