Negotiation for Capitol property to push through

Friday, July 15, 2011

NEGROS Occidental Governor Alfredo Marañon Jr. declared Thursday that the negotiated bid for the Provincial Government's 7.7-hectare prime lot surrounding the old Capitol building will proceed as scheduled Friday.

Marañon made the statement after Judge Estefanio Libutan Jr. of the Regional Trial Court branch 50 denied the Temporary Restraining Order (TRO) sought by SM Prime Holdings Thursday.

Have something to report? Tell us in text, photos or videos.

The court said that it should not intervene in the bidding process of the Provincial Government, as long as it follows the legal process.

Marañon said that he is thankful that the court has given due course for the interest of the province.

He added that SM Prime can still participate in the negotiation Friday, provided that they should sign a waiver stating that they should not file any court proceedings to question the outcome of the negotiation.

Marañon also noted that SM Prime proclaimed itself as the winner in the bidding conducted in July 7. "Who proclaimed them as winner in that bidding? They made a self-proclamation," Marañon said.

The governor said it was for the best interest of Negrenses and of the province that the committee declared the bidding in July 7 a failure after both SM and Ayala submitted bids, which were below the floor value or appraised value of the property.

Vince Bayhon, SM Prime's counsel, claimed SM Prime won that bidding. He pointed out that SM's bid was higher at P18,888 per square meter than Ayala’s P17,719.50 per square meter. “We’re entitled to be declared as the winning bidder,” he declared.

Capitol placed the floor price of the subject property at P19,500 per square meter.

“If you follow the rules, the highest bid should be declared as the winner for the auction. There was no failure of bidding and the court will have to decide on that,” Bayhon said.

Capitol offers for lease 4,000 square meters of the property located beside the Philippine National Bank building and those surrounding the capitol building while the Provincial Government offers for sale the 3.6 hectares located at the back portion of the demo farm of the Provincial Agriculture Office.

Bayhon pointed out that SM Prime brushed aside the unsolicited bid it previously submitted to Capitol and it joined the bidding last July 7, believing that the public bidding would be fair and a genuine effort to obtain competitive bids and would be conducted in accordance with law.