Osmeña asks COA to junk P16B SRP lot sale in 2015

CEBU, Philippines — Cebu City Mayor Tomas Osmeña has asked the Commission on Audit to disapprove the 45.2-hectare lot sale at the South Road Properties (SRP) bought by three giant developers three years ago.

Osmeña said he has more reason to rescind the contract entered into by the previous administration after knowing the “real valuation” of SRP lots as offered by Federal Land which proposed to buy it for P115,000 per square meter compared to the P38,000 per square meter price in 2015 when the city sold the lot.

The mayor said he would follow-up his letter to COA last September 7, 2017, since he has yet to receive a reply from the agency.

“I'm going to file a case eventually against them. I'm just waiting for COA to make a move. But I believe I have a very strong case,” he said.

The mayor said he will give COA more time to answer his letter before making a move.

If he will not get an answer from COA, he will also file charges against them considering that there’s a law mandating all government agencies to respond within 15 days from receipt of the letter, Osmeña added.

In 2015, the city sold the 45.2-hectare lot at SRP amounting to P16.7 billion.

But, Osmeña said the city will get P50 billion if the price will be pegged at P115,000 per square meter as proposed by a private firm.

In his letter to COA-7 Director Eden Rafanan, Osmeña said there are nine “fatal defects” found in the SRP lot sale.

The mayor said there was a resolution by the previous member of the City Council to disallow the sale.

He said former mayor Michael Rama had no authority from the City Council to sign the Deed of Sale and that the City Council issued a resolution not to conduct public bidding.

“Government procedures require posting of transaction in a public place with the Secretary of the Committee on Awards certifying to its compliance. The transaction was not posted and the Secretary of the Committee on Awards did not certify the compliance,” Osmeña said.

The mayor said there was no evidence that the giant developers formed a consortium to purchase the city’s properties.

Also, Osmeña said the sale of government properties does not fall under the procurement laws that allows single bidder.

The mayor said he is hoping that COA will act on his letter as soon as possible and will not “sleep on it.”

Rama, for his part, said it was a “valid sale” because the public bidding was transparent.

“Kanang tawhana (Osmeña) gud, his master is criticism. His mastery is fault finding. His mastery is filing complaints,” Rama said.

He urged the mayor to focus on problems of the city like garbage, housing, environment, traffic, among others. (FREEMAN)