FLI wants refund to revoke SRP lot sale

CEBU, Philippines - Cebu City Mayor Tomas Osmeña said the officials of Filinvest Land Inc. (FLI) will ask the city government to refund the down payment amounting to P4 billion to P5 billion to complete the revocation of the South Road Properties (SRP) lot sale contract.

Under the Deed of Sale on Installment, Osmeña said the city government is obligated to pay at least P380 million or six percent of the deposits of the FLI since it was the city government that allegedly failed to comply with the obligations which include the turnover of title of the lots.

“It says if they will exercise that default clause, which they want to do, the city must pay them 6 percent interest on their deposits which comes to P380 million. So, ok we will withdraw the sale. We will exercise our option and under that option, you don’t need council approval,” he told reporters.

Osmeña, however, emphasized that there are legal discussions on the validity of the deed of sale signed by former Mayor Michael Rama because Rama was not given authority by the City Council to sign the contract.

Osmeña clarified that it is not during his administration that the city defaulted in its obligations with FLI.

Because of the discussion that the deed of sale is invalid, the mayor said he cannot pay the six percent interest to FLI.

“So, the irony, if I pay the P380 million, I might pay the disallowance because the COA (Commission on Audit) would say there was no contract,” he said.

Osmeña said he does not mind paying P380 million to FLI as interest of its deposit since he can sell the 19.2-hectare at P110,000 per square meter. He said getting back the property could generate more funds for the city.

If the 19.2-hectare will be given to the city, he said he will make a P20 billion profit in the sale.

In 2015, the city government declared the consortium of Ayala Land, Cebu Holdings Inc. and SM Prime Holdings as the highest bidder with P10.009 billion for a 26.3-hectare property, while FLI was the highest bidder with P6.7 billion for a 19.2-hectare property.

Osmeña said the contract with SM and Ayala with the city government on the sale is also similar to that of FLI’s.

When asked if he will revoke the SRP lot sale with the SM-Ayala consortium, Osmeña said he will let things unfold step by step.

“People would say it’s a done deal. No, it’s not a done deal. It’s a dead deal,” he told reporters.

He said he just want to “play our cards carefully and do it step by step, but I will get our property back.” (FREEMAN)