Ombudsman urged: Probe Kawit deal

CEBU, Philippines — The P18 billion project may not have materialized but a taxpayer is asking the Office of the Ombudsman to investigate the alleged “sweetheart deal” between the Cebu City government and Universal Hotels and Resorts Inc.

It was only last month when the City Council junked the resolution authorizing the mayor to enter into a joint venture agreement on the development of what once Kawit Island at the South Road Properties.

Crisologo Saavedra, the complainant in the Ombudsman case, said Mayor Tomas Osmeña and the members of the Joint Venture Selection Committee abused their authority when they declared UHRI as a qualified proponent despite the company’s lack of track record in undertaking an integrated resort and casino project.

“It is further prayed for, that the Ombudsman should look for the culprits behind the wanton abuse of authority and violation of the law and charge them in court to protect the taxpayers of Cebu City from being victims of similar future abuses by government officials who “enjoys,” violating the laws and the provisions of the Constitution,” reads a portion of the complaint.

The Ombudsman received the complaint early yesterday afternoon.

Saavedra said UHRI cannot use its being affiliated with the Gokongwei Group to establish a track record.

UHRI was incorporated only in 2017.

Saavedra said further the officials violated the Anti-graft and Corrupt Practices Act and City Ordinance No. 2154, the detailed guidelines and procedures for competitive selection for joint venture with private companies.

Saavedra said Osmeña and the selection committee should not have accepted the unsolicited offer of UHRI and should have disqualified the company automatically.

Under the Detailed Guidelines and Procedures for Competitive Selection for joint venture with private entities, Saavedra said one of the technical requirements is that the proponent must have completed a project of similar land use.

“The prospective JV Partner shall submit statement of all its ongoing and completed government and private contracts (especially business track record on the Casino operations which is part of the proposed project),” Saavedra’s complaint reads.

He said the technical requirement on track records was never submitted and complied by UHRI during the competitive selection for the joint venture agreement with the city.

Saavedra also alleged that the city did not consult the Commission on Audit on the valuation of the SRP lots, nine hectares in all, that were supposed to be used in the project.

Saavedra said the Notice of Award issued by the city’s executive department should be declared null and void because the non-compliance of the UHRI in the technical requirement cannot be cured.

Sought for comment, Osmeña simply reiterated UHRI’s affiliation with the Gokongwei group.

“Thrower of five star hotels, shopping malls, and the biggest Philippines is not qualified?” the mayor said in a text message to The FREEMAN.

Rejection

Osmeña said earlier that the city lost 5,000 jobs for its residents.

When it rejected the proposed project, the council, through Vice Mayor Edgardo Labella, said: “After hearing the pros and cons, the intention is good but considering that it’s a contract wherein it will be subjected to market forces as what is happening now in the JV agreement with Filinvest, there could be a possibility that this contract is disadvantageous to the city and giving unwarranted benefits to a particular party, the chair is constrained to vote in the negative.”

In its proposal, UHRI would lease the city’s nine-hectare property by paying 10 percent of the gross real estate rental revenues from commercial/shopping center and the parking lots; 10 percent of gross real estate rental revenues from the integrated resort; 15 percent of gross real estate rental revenues from the casino facility; and 10 percent of the gross real estate rental revenues from hotel rooms. —/JMO (FREEMAN)