CEBU, Philippines — An incumbent barangay official in Cebu City has asked the Regional Trial Court to stop the city government from entering into a Joint Venture Agreement (JVA) with Universal Hotels and Resorts, Inc. (UHRI).
Amilo Lopez, Busay barangay councilman identified with Barug Team Rama, has asked the court to issue a temporary restraining order and/or writ of preliminary injunction before the RTC last Tuesday.
The city government scheduled the signing of the JVA with UHRI for the P18-billion integrated resort and casino to be constructed on the Kawit Island at the city’s South Road Properties this Friday 5 p.m. at Crowne Plaza Galleria in Ortigas in Manila.
Lopez has cited three causes of action: UHRI does not have the technical capacity to undertake the project provided under the Joint Venture Ordinance; UHRI does not have the financial capacity to undertake the project prescribed under the same ordinance; and City Council did not give authority for City Mayor Tomas Osmeña to sign the JVA with UHRI officials.
Osmeña invited Vice Mayor Edgardo Labella and other opposition officials to attend the signing of JVA this Friday.
But Labella said they will not attend because it would be ironic for them considering that they believe the City Council did not authorize the mayor to sign the contract.
Osmeña, for his part, said the signing will push through unless there’s a TRO that will be issued. As to the filing of the case, the mayor believed that it’s just “harassment” of the other party.
“We will let our lawyers handle that. We’re entitled to answer. It’s just harassment because they will lose the elections if we will have this project. It’s the biggest single employment of the south district. They want to stall it. It’s a matter of political survival for them,” the mayor told reporters.
In his 10-page complaint, Lopez narrated that the City Council had sessions last August 7 and August 8.
During those sessions, he said City Councilor Jose Daluz III raised the propriety of the inclusion of Councilor Eugenio Gabuya Jr.’s resolution authorizing the mayor to sign the JVA with UHRI.
“The Sangguniang Panlungsod of the City of Cebu did not give its imprimatur or authorization for the City Mayor to enter into the subject Joint Venture Agreement notwithstanding the irregular session conducted by the Sangguniang Panlungsod’s majority bloc,” read a portion of the complaint.
Lopez said the query of Daluz led to the ruling of Vice Mayor Edgardo Labella that the subject resolution cannot be tackled by the council as it would give retroactive effect to the new Rules of Procedure of the City Council.
After Labella’s ruling, Lopez said the session was adjourned. However, members of the majority bloc, with the absence of quorum, took over the session hall and conducted their own session and approved the resolution of Gabuya.
Lopez added that the city should not enter into the JVA which is “grossly disadvantageous,” adding that the city and UHRI reportedly failed to comply with the provisions of the Ordinance No. 2154 which governs joint ventures between a private sector and the city government.
“Respondent UHRI is disqualified from entering into a Joint Venture Agreement with the City of Cebu because it does not have the technical capacity prescribed under City Ordinance No. 2154. By pursuing the joint venture, respondent Cebu City does not only promote disobedience of its own Joint Venture Ordinance, but it also places the Cebu City Government in a disadvantageous position for dealing with unqualified proponents like UHRI,” the complaint further read.
Under the Joint Venture Ordinance of the City, Lopez said the Section IV 2 (b) of the ordinance provides technical requirements before the city could enter into a joint venture with prospective partners wherein the proponent “must have completed a project of similar land use and costing at least 75 percent of the JV activity.
For this transaction, Lopez said UHRI, which was incorporated on August 2017, submitted the unsolicited proposal on October 24, 2017 that did not contain the projects of similar land use costing 75 percent of the JV activity.
As to the financial capacity of UHRI, Lopez said the Joint Venture Ordinance provides that the city shall determine before evaluation of eligibility, the minimum amount of equity needed for the JV activity.
“As culled from the records, the unsolicited proposal categorically declared that the proposed joint venture for the establishment of Cebu City integrated resort and casino will entail P18 billion worth of investment on the part of the private sector proponent,” read a portion of the complaint.
Lopez alleged that JV failed to submit needed financial documents required under the Joint Venture Ordinance like the audited financial statements for the past three calendar years, tax returns, among other documents.
Osmeña said the opposition is just looking for technical disqualification, stressing that UHRI is affiliated with Gokongwei group of companies. The mayor said the Gokongweis will also be present during the signing of the contract this Friday.
“If there’s a TRO, then we cannot sign. But the TRO is only a few days. It’s called temporary restraining order but we don’t want to have that,” the mayor said.
He said the family of the late City Bantay Dagat former project director Elpidio 'Jojo' de la Victoria will also be present during the signing as the P18-billion project will be named after him.
The project will be named Isla de la Victoria.
To recall, de la Victoria was killed because of his crusade against illegal fishing during his time as Bantay Dagat head. — GAN (FREEMAN)