Fund squeeze for CIPC

The squeeze is on. The non-release of a P5.4 million subsidy from the Cebu city government has left the Cebu Investment Promotions Center (CIPC) struggling to operate.

The June 30 resignation of five trustees led by its chairman Geronimo Sta. Ana prompted the City Council yesterday to inquire what was going on.

“We have to know why these gentlemen have tendered their resignation without conveying to the city their problems if there are any,” said Councilor Nendell Hans Abella in a privilege speech.

Others who resigned were Augusto Go as vice chairman, Sabino Dapat as treasurer and trustees Rogelio Lim and Enrique Benedicto. The resignation was filed with the Securities and Exchange Commission (SEC) and took effect on June 30.

CIPC which functions as the marketing arm of the South Road Properties (SRP) was set up 20 years ago during the administration of former mayor Tomas Osmeña.

Mayor Michael Rama in a press conference said he prefers to have a new office to handle the SRP, whose lots he wants to sell as soon as possible.

“Kinahanglan na ma handle ug tarong (It has to be handled properly.) Megaworld should be handled properly because investors interested in SRP have arrived,” the mayor said.

Rama was on his way to a lunch meeting with Andrew Tan, founder of Mega World Corporation which is building the 16-hectare Mactan Newtown in Lapu-Lapu City, an investment of over P10 billion.

Asked why the P5.4 million subsidy for CIPC was not released, Rama said he didn’t know the reason but said he was interested to hear why the CIPC trustees resigned.

He said they should be allowed to appear before the City Council “kay daku ta ug gasto nila.”

“I can’t be the one to speak for them pero naa nay problem ngano nang resign man?”

The Council voted 14 to 4 yesterday to ask CIPC managing director Joel Mari Yu to submit a report on the status of the center and how it has spent the city’s annual P5 million assistance.

Four councilors allied with Mayor Rama wanted an executive session with Sta. Ana.

“We are concerned with the resources of the city and how this has been used,” said Councilor Margot Osmeña who reported the non-release of this year’s P5.4 million assistance to CIPC.

She said the Memorandum of Agreement (MOA) needed for the release has not been signed.

“The Cebu Investment Promotions Center played a vital role in attracting foreign investors and make Cebu City and Cebu province their haven,” Councilor Abella said in his speech.

He said CIPC was instrumental in bringing job opportunities to Cebu City including investors in the BPO industry.