CIPC may be disbanded

CEBU, Philippines - The marketing arm of the South Road Properties (SRP), Cebu Investment Promotions Center (CIPC), might shut down soon due to the lack of funding and manpower.

 This was revealed by CIPC managing director Joel Mari Yu to the Cebu City council during a public hearing last Monday.

 CIPC only has four personnel left after six of its board of trustees resigned from their posts reportedly due to “internal and political conflicts.”

The council earlier appropriated a total of P5.4 million as financial assistance to CIPC of which only P4 million was originally proposed by the executive department.

 But due to the conflict between its members, Cebu City Mayor Michael Rama refused to sign the Memorandum of Agreement (MOA) with CIPC in order for the financial assistance amounting to P5.4 million would be released.  

 On the other hand, Rama said the possible closure of  CIPC will not hinder Cebu City from promoting its biggest asset which is the SRP, since they have partners to support them in pushing for SRP’s promotion like the provincial go-vernment, the Department of Trade and Industry (DTI), National Economic and Development Authority (NEDA) and the Cebu Chamber of  Commerce and Industry (CCCI). 

 Meanwhile, Rama brushed off the statements of Yu and Mactan Cebu International Airport Authority (MCIAA) General Manager Nigel Paul Villarete on their opposition on repealing the ordinance protecting the sale of the SRP.

“Are they the mayor now? Do they know where we’re going? … What plans do we have?” Rama pointed out.

He added that the purpose of selling SRP lots is to generate employment and increase the city’s revenues.

 â€œI don’t think I should be listening to them because no matter what, SRP is a city property. There are investors and developers, so what’s the problem? If we wanted to pay for the amortization of the SRP, we can sell (the whole) SRP,” Rama said.

He pointed out that the contract with the bank regarding the terms and commitment of  amortization did not go well.

 â€œThe bank would not agree to that, di man sila mohatag of rebates. They will rather be collecting the amortization according to the years which is not a really good contract at all,” Rama said, further blaming his predecessor, former Mayor Tomas Osmeña, for agreeing with the provision of loan terms to “double the floor price of SRP.”

 â€œWrong term of provision because nahulog siya nga wala’y kaundangan, if naa’y currency fluctuation mo double (amortization),” Rama explained.

 Rama is set to talk with the president of Open Source Application Foundation (OSAF) in Yokohama to discuss the terms and provision on selling the SRP lot without approval from the Cebu City Council as indicated in city ordinance 2332 which protects the SRP from “unlawful transactions.” (FREEMAN)