City Hall given until Dec. to pay Rallos heirs

A court  sheriff is preparing to hold  a public auction on Dec. 13 to sell  properties of the Cebu city government unless P133 million is immediately paid to  Rallos family heirs.

This developed after the Regional Trial Court (RTC) denied the city’s request to quash a writ of execution and to set aside the notice of garnishment issued to four banks and SM companies.

RTC Judge Ramon Hamalaloan said the orders “stand valid and subsisting.”

He affirmed an earlier court ruling in favor of the heirs of Fr. Vicente Rallos over a private lot expropriated for a road in the 1960s.

The previous ruling ordered the City of Cebu to pay just compensation to the Rallos heirs with 12 percent interest.

“It shall be noted that the judgment sought to be executed in this case is the decision of the Court of Appeals….  The defendants’ motions sought to change or alter the decision of the Court of Appeals, which the Supreme Court 3rd division did not even disturb in the exercise of its discretionary appelate jurisdiction,” said the judge.

No comment was immediately available from City Hall on this latest setback, which may  force the city to seek relief from the Supreme Court.

“I’m caught by surprise,” said lawyer Jade Ponce, one of the consultants of Mayor Michael Rama.

He said he hasn’t read the judge’s ruling yet.

City Attorney Joseph Bernaldez also declined to comment until he reads the court decision.

Cebu Daily News  read a draft of the notice of execution sale at public auction set for Dec. 13, 2011, prepared by Sheriff Eugenio Fuentes Jr.

It said that if  the  public auction won’t push through as scheduled, it will be reset to  Dec. 20.

The notice announces the sale for cash to the highest bidder of various real properties of the city government, including a sizeable area in the South Road Properties (SRP), at the Sheriff’s office in the Palace of Justice.

In an interview, sheriff  Fuentes said the Rallos heirs still  have  to pay a fee  to the Register of Deeds for the “levy on execution,” a requirement before public auction will be made.

He said notices will be posted in  three “public conspicuous places” and published in three newspapers of general circulation two weeks before the scheduled public auction.

During the auction, the “highest” bidder will get a chance to own the properties owned by the city government.

In an order dated Sept 23, 2011, Judge Himalaloan gave the go signal for the  sheriff to issue a writ of execution against the City of Cebu.

If the city government “cannot immediately pay all or part of the money judgment and lawful fee,” it can choose from any of its patrimonial properties that it may prefer to be levied for payment.

Patrimonial properties refer to those not used for public purposes.

City lawyers earlier argued that  government funds covered by the notice of garnishment  have long been appropriated for government operations and social services.

Notices of garnishment were sent to the Land Bank of the Philippines, Philippine Postal Bank, Development Bank of the Philippines and Philippine Veterans Bank.

The same notice was sent to SM Prime Holding Inc., SM Development Corp. and SM Investments Corp. at their offices in the Mall of Asia Complex in Pasay City, Metro Manila.

SM is building a mall at the South Road Properties (SRP) of  Cebu  City.

At least two of the banks said the city has enough funds to pay the P133 million it owed to the Rallos heirs.

In refusing to pay the Ralloses, the city government secured an old document that showed that the family ought to donate a part of the family’s property to the Cebu City government for road purposes.

A “convenio” or a compromise agreement approved by the court in the 1940s revealed the family’s arrangement regarding the road, which is now being used by  the government.

City lawyers said a Commission on Audit (COA) circular stated that all money claims against the government must first be filed before their office for resolution within 60 days.

“If rejected by the COA, claimant may elevate the matter to the Supreme Court on certiorai and in effect sue the state thereby,” the circular said.

In a letter to COA Regional Director Delfin Aguilar, Rama said the city wanted to know whether or not previous garnishment in relation to the Rallos case was done in compliance of the circular.

During the period Dec. 28, 2001, to Jan. 30, 2002, ex-court sheriff Antonio Bellones made several garnishments amounting to P34,905,000.