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Mayor ‘threatened to cancel’ contract to get developers to pay city

By: Jose Santino S. Bunachita August 14,2015 - 02:56 AM

The Bando-Osmeña Pundok Kauswagan (BO-PK) bloc in the Cebu City Council yesterday said they are not against the sale of South Road Properties (SRP) lots  per se.

“We want to help Cebu City. We are not against this sale outright. We just want to make sure that the sale is done properly and without doubts,” they said in a  statement read by Councilor Alvin Dizon.


According to  Councilor Margot Osmeña, the mayor went to Manila and threatened to cancel the contract between the city and the developers.

In a post in her official Facebook page, Councilor Osmeña said she got reports that Mayor Michael Rama and Vice Mayor Edgar Labella were “knocking” on the doors of the winning bidders, SM-Ayala and Filinvest Land.

“Sources inside have told me that Mayor Rama is threatening to nullify the whole contract, making it impossible for them to retrieve their P 1.6B peso down payment unless he gets what he wants.

READ: Mayor Rama collects P6.7-B downpayment for SRP lots | SM-AYALA WINS BID: P10 BILLION | Rama pulls surprise; serves SRP lot awards in Manila |

This is likely the reason Mayor Rama flew to Manila last week in a rush to give them the notice of award, despite DILG’s statement that effectively says that the transaction may not be legal,” Osmeña said in her Facebook post.


She criticized Rama for pushing the sale of the SRP lots “secretly” and “recklessly.”

In a press conference at her office, the BO-PK bloc said the legal opinion of the Department of Interior and Local Government (DILG) regarding the sale of the SRP lots should be treated seriously.

The DILG said last year’s resolution which authorized Mayor Michael Rama to negotiate for the sale of 45.2 hectares in the SRP cannot supersede City Ordinance 2332 which requires bidders to submit unsolicited proposals to the city as a preferred mode of disposal.

“The DILG statement that effectively says that this transaction may not be legal is a serious matter that should be looked into, instead of being treated lightly as a mere technicality. Prudence dictates that we must respect DILG’s statement, especially since the transaction is worth P16 billion,” the BO-PK statement said.

Dizon said the same statement was supported by Councilor Mary Ann De Los Santos.

De Los Santos, Osmeña, Dizon and Councilors Eugenio Gabuya Jr., Roberto Cabarrubias, Nestor Archival Sr., Sisinio Andales, Nida Cabrera, Lea Japson and Alvin Arcilla all voted in favor of the resolution passed by the council last August 5.

READ: Bidders call off awarding of contract

The resolution asked Rama to defer any action on the SRP sale due to the DILG legal opinion. All nine BO-PK councilors attended the press conference.

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TAGS: BOPK, Cebu City, government, investor, politics, real property, South Road Properties, SRP, Team Rama

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