City to earn P9M from time deposit of SRP lot payment

CEBU, Philippines - The Cebu City government is expected to earn another P9 million from the sale of the 45.2 hectare lot at the South Road Properties as the P6.5 billion it received from the buyers was placed in time deposit.

This was disclosed by City Treasurer Diwa Cuevas yesterday after she deposited the money in two accredited depository banks of the city government.

The P9 million is the interest that the city government will get with the down payment placed in a time deposit for 31 days.

Last August 11, the city government collected P6.5 billion, not P6.7 billion as earlier reported, after the investors who won the public bidding paid the 40 percent down payment on the sale of SRP lots.

Cuevas said that of the P6.5 billion, the city deposited P5.789 billion to one of the depository banks, which will have 1.875 percent interest annually or P9 million a month.

Meanwhile, the remaining amount was deposited in another depository bank under a current savings account.

“Atong gi-time deposit og 31 days lang. In the event nga mo-okay na (ang City Council) for the pre-payment (of the P2.5 billion SRP loan) makuha dayon nato,” Cuevas said.

Lawyer Jose Daluz, a member of the city’s Local Finance Committee, said putting the money in a time deposit for 31 days is a “very good move” as it will have higher yield in savings.

“Management of funds naman gud na, which is the treasurer’s duty to manage the funds. Siya man ang makatan-aw sa obligation due unya tan-aw niya nga wala pay 30 days, so iyang i-time deposit. Ipa- roll over nato kun walay bayranan,” he said.

The city government expected to receive the 50 percent down payment of the total bid price on August 7, but this did not take place after the Bando Osmeña-Pundok Kauswagan-dominated Cebu City Council passed a resolution asking the executive department to defer any act involving the SRP sale.

The City Council made the move after the Department of the Interior and Local Government opined that the resolution the Council passed in 2014, which authorized Rama to negotiate for the sale of SRP lots, cannot supersede the ordinance the body approved in 2012, which asked interested buyers to submit an unsolicited proposal.

“That is why there was damage sa mga Councilors because if wala pa nila pugngi tong August 7, nadawat na unta nato ang money (earlier) and nagsugod na unta ang interest,” he said, adding, that the executive department is still pursuing its complaint against the councilors who passed the resolution.

Last June 30, the city received 10 percent of the total bid price amounting to P1.8 billion, which is also the bid security bond.

The consortium of Ayala Land, Cebu Holdings Inc. and SM Prime Holdings were declared the highest bidder with P10.009 billion for a 26.3-hectare property, while Filinvest Land Inc. was the highest bidder with P6.7 billion for a 19.2-hectare property.

The remaining 50 percent of the P16.7 billion total sale will be settled in two to three years on installment basis.  Cuevas said the P1.8 billion bid security bond was placed under time deposit.

“Sa P1.8 billion bid bond deposited sa bank, nakakuha na ang city og P1.4 million interest in one month,” she said.

Daluz, in a press conference yesterday, said that the deed of installment was already signed as this was part of the 15-day requirement under the terms of reference.

He said there is a process for the final disposal of the property in 2018 when the other 50 percent will be settled.— Jean Marvette A. Demecillo/JMO (FREEMAN)