Cebu City may lose P300 million to private lot owners

THE Cebu City government will lose at least P300 million to private lot owners who won expropriation cases against the city.

Rep. Tomas Osmeña of Cebu City’s south district said this would have been avoided if Mayor Michael Rama agreed to an amicable settlement with the lot owners.

“But it now goes to show that Mike Rama did not study the case because now the city has been asked to pay P240 million for the Rallos case,” said Osmeña.

Osmeña said negotiations on the Rallos and Ting lots were made when Rama was still presiding officer of the City Council.

But since no settlement was reached, the lot claimants sued the city.

The Supreme Court (SC)  directed the city government to pay P240 million to the heirs of the late Vicente Rallos whose lot in barangay Sambag I was expropriated  the city government  for the opening of a road in 1963.

Regional Trail Court Judge Soliver Peras is waiting for a copy of the entry of judgment from the SC for him to issue a writ of execution of the judgement.

Another P50 million would have to be paid to Roque Ting for the expropriation of his lot  at the right side of the bridge, which connects the South Coastal Road to Talisay City.  The Ting property, which included a portion of the channel, is now made part of the South Road Properties (SRP).

The Court of Appeals upheld RTC decision on the Ting lot case. Both Ting and the city are only waiting for the SC decision.

Vice Mayor Joy Augustus Young met with council members at his office yesterday afternoon to discuss the Rallos case.

Councilor Jose Daluz III said  he would still opt for a settlement with the Rallos and Ting lot claimants to save the government’s money.

“This is something that should already be resolved because every day the interest rises,” he said.

The city government was made to pay an interest of  12 percent per annum on the Rallos lot and another 6 percent per annum for the Ting lot.

Councilor Daluz said the Ting lot only cost P9 million. But the Regional Trial Court asked the city to pay Roque Ting P39 million and a 6 percent interest per annum, which is computed since the release of the RTC decision on the expropriation case in 2007.

The city is paying about P2.3 million interest per year for the Ting lot  or a total of P9.2 million accumulated during the last four years.

However, Rama said he would continue to explore options available to the city.  The mayor said  he intends to tap the free services  of private lawyers to review the expropriation cases. /Chief of Reporters Doris C. Bongcac