City can reclassify SRP lots, VM says

There is a way out for Cebu City Hall as far as sparing the South Road Properties (SRP) from the payment claims of the Rallos heirs is concerned.

Cebu City Vice Mayor Joy Augustus Young said the City Council could reclassify the parcels of land at the SRP into a public lot or park.

The vice mayor issued the comment amid charges filed by one of the Rallos heirs to one of the city’s depository banks.

Young said public lots won’t sell quickly and cannot be used for commercial purpose.

“This (putting the SRP on levy) is not a very good move for the Rallos. They should go for cash (payment instead),” Young said.

A court sheriff recently issued a notice of levy to the Register of Deeds covering two lots of the SRP and other real properties owned by the city to satisfy the city’s debts to the heirs of the Rev. Fr. Vicente Rallos.

Unless the city government settles its P133-million debt to the Rallos heirs, the court sheriff will auction off two SRP lots.

Young said the mayor should settle the debt issue with the Ralloses.

“We wanted to settle this during the time of (former mayor) Tommy (Osmeña) but Mike refused,” said the vice mayor.

Rama remained adamant in his stance against paying the Rallos heirs.

He said the city could still file a motion for reconsideration of the Supreme Court decision, which directed the city to pay the Ralloses.

Rama said he welcomes any suggestions from the City Council, an invitation Young rejected.

“We cannot talk to him because he gets angry,” said Young.

The council dominated by members of the administration Bando Osmeña-Pundok Kauswagan (BO-PK) are at political odds with Rama, who left the group recently.

Rama said the recent decision of Regional Trial Court Branch 9 Judge James Stewart Ramon Himalaloan to deny the city’s motion could not be implemented immediately.

Rama cited section 305 of the Local Government Code, which stated that “no money shall be paid out of the local treasury except in pursuance of an appropriations ordinance or law.”

Rama said all money claims against a local government unit (LGU) should first be filed before the Commission on Audit (COA).

For her part Lucina Rallos, one of the heirs, filed charges against top officials of the Philippine Veterans Bank (PVB) for not releasing payment despite being issued a notice of garnishment by a court sheriff.

Lucina requested the Regional Trial Court of Cebu to order the bank officials to pay at least P30,000 each and sentence them to six months imprisonment for not complying with the notice.

The notice of garnishment was issued by the court sheriff to four depository banks.

Also included were companies that are in business with the city such as three SM companies. The court denied the city’s request for reconsideration.

Under the law, Lucina said the respondents are required to deliver the garnished amount within 10 working days from the date the notice was served to the bank.

Cebu City was earlier ordered to pay P133 million to the Rallos family as compensation for the lot it expropriated as a road in 1963.

Lucina said Rama requested Philippine Veterans Bank (PVB) not to deliver the garnished amount and wait for the court to resolve the city’s motion to quash the Writ of Execution and Notice of Garnishment.

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