Rama pulls surprise; serves SRP lot awards in Manila

Cebu City Mayor Michael Rama

Back from his Manila trip, Cebu City Mayor Michael Rama yesterday surprised everyone by declaring that City Hall already awarded the top bidders in the sale of two lots in the South Road Properties (SRP) last Wednesday, August 5.

August 5 was the same day the Cebu City Council voted 10-3 urging the mayor to defer any action on the sale because of some doubts about his authority to hold a public bidding last June 30.

Rama told reporters that he flew to Manila to hand the Notice of Award for the sale of the lots to property developers SM Prime Holdings Inc. in consortium with Ayala Land Inc. and to Filinvest Land Inc.

READ: Bidders call off awarding of contract | SM-Ayala wins bid: P10 billion

City Hall sources said he was accompanied to Manila on Aug. 5 by City Treasurer Diwa Cuevas and City Legal Officer Jerone Castillo.

But Mayor Rama remained tight-lipped about who he met with in Manila and when Cebu City would receive the 50 percent donwpayment of P6.75 billion from the top bidders.

Duly served
“We were able to serve the Notice of Award both to SM-Ayala and Filinvest. That’s as far as I am at liberty to be sharing with you. We just hope that now and probably in the days to come, I can complete my information to all of you,” Rama told reporters.

Notice of award issued to the winning bidders with proof of receipt.

“The Notice of Award has been duly served, received and accepted,” he said.

Rama said he would thresh out related details “in due time.”

It’s now up to the winning bidders to come across with the 50 percent downpayment.

Under the Terms of Reference in the City Council’s resolution last year authorizing the mayor to dispose of two SRP lots, the 50 percent down payment for the lots should be done “immediately” after the awarding of the contract.

An awarding and payment turnover ceremony was scheduled last Friday at City Hall.

It was called off at the last minute on Thursday evening. City Administrator Lucelle Mercado said the developers had asked to defer the ceremony.

Councilor Sisinio Andales, one of those who voted to defer action on the sale, yesterday described the Notice of Award as a desperate move.

“Again, it was highly irregular in violation of the guidelines for the sale of the SRP lots. It is a desperate move on the part of the executive department and damage control of the mayor’s office,” Andales said.

“This is highly irregular because payment should have been made last Friday. But now, the notice of award came first before the payment of the bidders. I don’t know how it will affect the validity of the transaction,” Andales said.

At the city legal office, reporters were shown a copy of the Notices of Award dated August 5 and signatures of persons who received the documents.

The notice for Filinvest Land was addressed to Filinvest board chairman Jonathan Gotianun. It was received by Joseph Yap on Wednesday morning.

The notice for SM-Ayala consortium was addressed to Ayala Land Inc. board chairman Fernando Zobel de Ayala, Cebu Holdings Inc. board chairman Bernard Vincent Dy and SM board chairman Henry Sy Sr.

It was received by Jane Navarro from Ayala Land Inc. and Ryan San Juan from SM in the early afternoon of August 5.

The City Council deliberated on its resolution to defer the sale in the afternoon of August 5. The next day, August 6, was a holiday.

In his news conference yesterday, the mayor said his office is studying whether to file a case against the 10 councilors who voted for the deferment of the sale.

He said their action appears to be ”economic sabotage” or “economic terrorism”.

He described the action as “unfriendly to investors” and worse.

“For me this can constitute treason because that is disloyalty,” he said.

One of his allies, Councilor Mary Ann deLos Santos was among the 10 who voted to defer the sale. The mayor said her involvement would be handled another time.

The council’s doubt is based on a legal opinion of the Department of Interior and Local Government which said the 2014 council resolution authorizing Rama to sell the SRP lots cannot supersede a 2012 ordinance that states that the preferred mode of lot disposal was an unsolicited proposal.

City Hall lawyers supporting Mayor Rama insist there is no conflict between both measures.

Mayor ama also showed yesterday a comparison of what Cebu City gained before his administration when the SRP lots were sold through unsolicited proposal to the price the city got this year through public bidding.
Cebu City sold the 10.6 hectare Pond F to Filinvest at P15,000 per square meter and P10,000 per square meter for the other 10-hectare lot which is being developed by Filinvest through a joint venture with the city in March 2009.

He said records also showed that the city sold the 30.4-hectare lot which is being developed as the SM Seaside City Complex in January 2010 at a price of P8,910 per square meter.

Rama said the two newest lots sold this year fetched a higher price.

SM-Ayala’s bid was priced at P38,001.55 per square meter for the 26-hectare Calungsod lot while Filinvest gave a bid of P35,128 per square meter for the 19-hectare lot.