Did anybody gain from the Balili deal?-A A +A
Friday, August 17, 2012
IN THEIR counter affidavits, those involved in the Balili property controversy denied that the deal was highly anomalous and claimed that they did not gain from it. Of course they won't admit benefitting monetarily form the transaction. Admitting such is like pleading guilty. But just the same, we will give them the benefit of the doubt and accord them with due process.
I will share with you papers I received to help answer the question of whether nobody really gained from the deal. The four-page document has the signatures of lawyer Romeo Balili and Amparo Balili, plus a group of real estate agents who sought authority from the Balilis to look for buyers of their controversial property. The authorization letter was dated December 2003, five years before the Capitol deal was consummated.
“Upon your request, the following authorization is herein given subject to the following terms and conditions:
“1) Nature of authority. This is an authority for you to look for a buyer only (but not to sell) the properties described herein below. The right to sell and agree on the final terms and conditions of the sale remain with the undersigned executor of the estate of the deceased Luis V. Balili.
“2) Properties for sale. The properties offered for sale are those mentioned in the 'Motioin to Sell Assets of the Estate (beach resort in Naga, Cebu) dated February 1997 and filed with the RTC Branch 6, Cebu City on 25th February 1997 in SP Proc. No.5929-CEB and approved by the court under the terms and conditions of the order dated 14 May 1997 covering an estimated area of twenty-five (25) hectares more or less.
“3) Selling price. The selling price is P85 million and the seller shall receive the net amount of P65 million and the margin of P20 million shall be deposed in the manner described herein below. If the purchased price is less than P85 million, the net price still due the seller is P65 million and the remaining margin shall be disposed in the manner described below.
“4) Division margin. As your incentives, the sum of P10 million out of the margin shall be for your group and the balance shall be appropriated for necessary expenses, such as, capital gains tax, documentary stamp tax, transfer tax, real estate tax and representation expenses which shall be liquidated to determine the excess amount. After netting out said expenses, the excess amount shall be divided equally among the seller and your group on a per capita basis.
“5) Bank deposit. The P65 million due the seller and the P10 million due to your group or the total of P75,000,000 shall be jointly deposited in the bank and shall not be withdrawn and distributed until after the consummation of the deed of absolute sale and titles transferred in the name of the buyer. The interest on said deposit shall pertain to the seller and to your group in the proportion of the ownership of the joint account deposit. The signatories of the joint account deposit and Romero J. Balili and Amparo G. Balili, for the seller and for the group.
“6) Other matters. This letter also approves your request that your incentive as broker will be governed by this letter and not by the five percent commission mentioned in the letter of the same date.”
A friend who is in the insurance industry and who is sidelining as real estate broker told me that Mrs. Balili asked him to dispose of the property and she will only receive P250,00 per square meter. Did the Balilis make the same offer to the Capitol? That was in the 2005. Three years after, without any development, Capitol bought the property at P400 per square meter.
Would you believe that nobody gained from the transaction?
Published in the Sun.Star Cebu newspaper on August 18, 2012.