Court orders council to answer Daluz case

CEBU, Philippines - The Regional Trial Court has ordered the Cebu City Council to answer the case filed by former city councilor Jose Daluz III over Supplemental Budget No. 1 the city’s executive department proposed last year.

 Acting Judge Marivic Trabajo-Daray gave the Council 10 days to file its response. 

Daluz has asked the court to compel Councilors Nestor Archival, Sr., Lea Japson, Mary Ann de Los Santos, Sisinio Andales, Alvin Arcilla, Roberto Cabarrubias, Ma. Nida Cabrera, Alvin Dizon, Eugenio Gabuya, Jr., and Margarita Osmeña to act on SB-1.

 SB-1 seeks to provide appropriation for the prepayment of the city’s outstanding loan to the Japan International Cooperating Agency (JICA) for the development of the South Road Properties (SRP), among others.

Daluz alleged that the council chose not to deliberate on the proposed budget without just cause.

 “There is a legal mandate for respondent Sangguniang Panlungsod (SP) to act and on SB-1 and not just sit on it without justifiable ground,” Daluz’ complaints reads, adding, that the council has powers, duties and functions to enact and approve ordinances and resolutions and appropriations of funds for the general welfare of the city.

 Daluz said that since the city government received P3,819,272,000 from Ayala land-Cebu Holdings, Inc. - SM Prime Holdings Inc. and P2,699,450,422 from Filinvest Land Inc. over the sale of SRP Lots, there are funds to pay for the loan amounting to P2,488,409,886.

 The council allegedly suspended the deliberations because the source of funds for the said SB-1 is the sale of lots in the SRP.

 Daluz, however, said there was no basis for the councilors to hold the deliberation in abeyance on the ground of “judicial courtesy” due to the pendency of the civil case filed by Torres.

 He claimed there was no doubt that the sale of the SRP lots were legal, valid and regular, thus, there was no legal impediment to utilize the proceeds of the sale.

Romulo Torres, a resident of Sitio Panaghiusa, Barangay Basak San Nicolas, Cebu City, filed a case before the court to enjoin the council from using the money from the SRP sale.

Torres questioned Cebu City Resolution No. 13-0418-2014, saying it violates Cebu City Ordinance No. 2332 or “An Ordinance protecting the South Road Properties and its Stakeholders from Unlawful and Unauthorized Transactions and Dealings.”

 It was Rama who issued the resolution to authorize the sale of the SRP lots.

 Judge Alexander Acosta of the Regional Trial Court, however, dismissed the case filed by Torres, saying the sale was valid. Torres filed a motion for reconsideration, which is still pending in court. — (FREEMAN)