Rama gives ultimatum vs FLI on non-payment

CEBU, Philippines - Cebu City Mayor Michael Rama has issued Filinvest Land Incorporated  an ultimatum for it to settle its monetary obligation to the city government this week.

“I extended too much patience already. FLI has to pay within this week, so that we can proceed beyond,” he told a press conference yesterday.

The city earlier billed FLI at least P800 million for its joint venture agreement at the South Road Properties.

Rama is hoping that FLI would follow what they have agreed upon during a previous meeting, whose details he refused to divulge.

“They should do what we have discussed. They ought to do something.  I don’t want to be too detailed because I have promised to them that we should maintain our cordiality and diplomatic positions. And, as joint venture partners, we should be extra circumspect para walay (so there is no) miscommunication and misapprehension,” he said.

Rama said FLI, one of the biggest investors in the city, should make a final position to settle everything before this week ends.

“They are expected to do something. Let them do their act first,” he said.

In response to what Rama said, Cerwin Eviota, who heads FLI publicity and promotions, said the company “will keep a stand on what was stressed before.”

Eviota was referring to FLI’s recent statement that the “P730.13 million city’s gross share in the joint venture for the first 10-hectares of SRP will only be paid as soon as the city completes its review and executes the documentation requirements for the release.”

He said the city, through the City Treasurer’s Office, has to reconcile the records together with FLI after it was reported that there were discrepancies on the figures recorded by CTO and FLI.

“Both parties have to review the records para mo-jive ang CTO and FLI records para klaro,” Eviota said.

“Naa man ang funds for the payment of the JV agreement ; but we want to know the right amount. We are very careful in the disbursement of funds,” he added.

Tristan las Marias, FLI first vice president for Visayas and Mindanao, said earlier that “as a publicly listed company, it is our responsibility that any fund releases are properly reconciled and documented by both paying and receiving parties and done in accordance with the joint venture agreement,” he had said.

FLI recently paid Cebu City Hall P224.4 million for the amortization of the 10-hectare Pond F lot at the SRP. FLI bought Pond F in 2009 at  a price of P15 per square meter.

Meanwhile, Rama is asking the City Council to expedite approval of the proposal of Japanese investors to build a P1.4 billion retirement facility at the SRP.

“It (proposal) has to be looked into in its entirety, especially with the project’s multiplier effects. It should be expedited as much as possible,” Rama told reporters.

The council is set to conduct an executive session at 2 p.m. on Thursday, May 8, to tackle the final proposal of the Japanese investors.

Rama might be attending the session along with I Land Way Phils., Inc President Kazuhito Matsuda, BETA Aquila Primary Corporation president William Liu Jr, SRP Management Office head Roberto “Bu” Varquez, City Administrator Lucelle Mercado and Atty. Jose Daluz III of the City Bids and Awards Committee.— /RHM (FREEMAN)