Sale of 19.2-hectare lot; Cebu City, FLI now working on revocation of contract

CEBU, Philippines - After agreeing in principle to rescind the South Road Property lot sale, Cebu City Mayor Tomas Osmeña said the city and the Filinvest Land Inc. management are in the process of consolidating all legal options to successfully revoke the contract.

In a press conference yesterday, the mayor said it will still take at least 30 days to finish the legal positions and considerations in cancelling the sale, which costs P4 billion to P5 billion that FLI paid to the city for a 19.2-hectare lot.

“I have prepared plans for that property ten years ago. It’s going to be the best part of the SRP –the Pond A and the area that Filinvest bought. I’m very happy that we got it back,” he told reporters.

He said the city’s plan to refund the amount paid by FLI will also be included in the discussion of the legal positions and options of both parties.

Osmeña said the city government will push through with the reclamation of the 60-hectare Pond A located at the back the 19.2-hectare lot.

As to the statements by opposition city councilors that he needs council approval prior to the rescission of the sale, he said it depends on the situation.

He said the matter has yet to be discussed and deliberated with FLI, but the direction is the rescission of the contract.

“Yes and no (if he will ask the approval of the council to rescind the contract). Depending on the situation. It may or may not, whatever it is. But in effect, it's going to be rescinded. On how we will go about it, it's still has to be decided,” the mayor said.

He said he is open to answer queries of the opposition-dominated City Council on updates on the cancellation of the contract in the “proper time.”

FLI recently announced that it would return the lot it bought from the city in 2015 for alleged non-compliance of the city in surrendering related legal documents like the title of the property, among others.

As to the allegation by a few councilors that FLI has succumbed to the pressure of the executive department, Osmeña said everyone is entitled to his own opinion.

The mayor said he is targeting the best interest of the city in the agreement, saying that revocation of the contract would be “advantageous” to the city because of the opening of Pond A.

Osmeña said he had initial plans on the utilization of Pond A and the 19.2-hectare lot in the next 10 years.

“We have plans. But we will get to that later on. But basically, it’s a radical waterfront development design,” he said, adding that a small river will be made from Pond A to the main road of SRP.

He said it will be a long process as the city is yet to process the title of Pond A after it will be reclaimed. (FREEMAN)