P18-B Kawit Project: Osmeña rants on Facebook

CEBU, Philippines — Cebu City Mayor Tomas Osmeña took to social media his disappointments after the City Council junked the proposed joint venture agreement between the city government and the Gokongwei-led firm for the P18-billion integrated development project on Kawit Island at the South Road Properties.

Osmeña lashed at the members of the opposition led by Vice Mayor Edgardo Labella for voting against the project. The mayor said the proposed project, a world class integrated development that includes restaurants, bars, mall, convention center, casino, park, theater, and hotels, was already scrutinized by the council’s adhoc committee.

In fact, he and the private proponent already agreed to the recommendations of the committee chaired by his nephew, Councilor Renato “Junjun” Osmeña Jr.

“After we agreed to all the committee’s recommendations, the Team Rama members of the committee still voted against the revised agreement. They in essence voted against their own recommendations,” Osmeña posted on his Facebook page.

He said the members of the opposition deprived the Cebuanos of the at least 5,000 jobs that are expected to be generated from the project.

It took over two months before the City Council finally made a decision turning down the proposal for allegedly being grossly disadvantageous to the city government.

Councilor Eugenio Gabuya Jr., an ally of Osmeña, moved to authorize the mayor to enter into a joint venture agreement with the Universal Hotels and Resorts Inc. In a vote of 8-9 with Labella as tiebreaker, the City Council junked the proposal.

“Now, you were the tiebreaker in making sure the City has no income to fund the thousands of City Scholars who dreamt of going to college. You are a liar and a coward, and the people of Cebu have to suffer because of your politics, the politics of destroying what others build because you can build nothing yourself,” Osmeña criticized Labella on Facebook.

Labella also posted on Facebook to defend the opposition’s refusal to grant Osmeña the authority to enter an agreement. He said the opposition recognized the good intention of the joint venture agreement, however, he believes that it was “grossly disadvantageous” to the city.

“If the council would give its assent to this grossly iniquitous contract, we will violate the provisions of the Anti-Graft and Corrupt Practices Act by causing undue injury to the City of Cebu and giving unwarranted benefit, advantage or preference to the proponent,” Labella said.

They objected to the proposed development for they wanted to have a straight lease instead of a 90-10 profit sharing arrangement in the contract.

Councilor Joel Garganera earlier pointed out that 90-10 profit sharing will depend on the project’s market performance, adding the 10 percent share of the city will only commence on the ninth year after the contract is signed.

Labella reminded Osmeña that it is the responsibility of the members of the City Council to maintain the check and balance.

“May the honorable mayor be reminded that we are elected to maintain check and balances in running the affairs of the city. He does not have the monopoly of knowledge in identifying what is good for the city,” Labella said. (FREEMAN)