Cebu CIty Michael Rama expressed displeasure over the press release of Filinvest Land Inc. (FLI) that said it has been “advanced in its payment” of obligations for its joint venture with City Hall.
Rama said he was “surprised” by the statement of Filinvest first vice president for Visayas and Mindanao Tristan las Marias because all the while he was under the impression that both parties have agreed on the need to pay the city’s money claims.
With this development, the mayor said yesterday that he is considering “taking over” discussions with Filinvest on the city’s demand for payment of its guarantee fee shares from the development of a 10-hectare lot at the South Road Properties (SRP).
Rama said Filinvest’s recent statement was unnecessary since he had a “clear discussion” with the Gotianuns and Las Marias when he met with them in Manila last month.
Las Marias said Filinvest recently paid P224 million in March 2014 representing the installment for Pond F.
“We have remitted P1.95 billion to date which includes the P309.71 million representing the city’s gross revenue share, part of which is the accelerated payment of the minimum guarantee, and P 1.65 billion for Pond F.”
But Mayor Rama said ,“I do not know what documents they are talking about. I will have to check that with Tristan.”
The press release said Filinvest hired SGV & Co. to review their joint venture account and “the records attest to the fact that we are advanced in our payments as of the last audit date.”
“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 to the joint venture agreement,” read the FLI press statement.
OIC City treasurer Diwa Cuevas earlier billed FLI P803 million as JV share from the sales of their condominium units. The city government is expecting a P1 billion JV share from Filinvest this year which is one of the fund sources for its P5.9 billion budget this year.
Rama said that he was expecting FLI to honor their “modus vivendi” or the agreement even if they have differences.
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