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Friday, May 26, 2006
City Council in stalemate over Bredco issue
By Erwin Ambo S. Delilan
THE Bacolod City Council is in a standoff when it tackled anew the proposed ordinance to take over the city port operations and management from the Bacolod Real Estate Development Corporation (Bredco).
The six-man minority group led by independent Councilor Lyndon Caña moved for a discussion on his proposed revised takeover ordinance for the port saying there are "interesting" matters that need to be discussed in his measure.
Caña's group is composed of Councilors Homer Bais, Greg Gasataya, Al Victor Espino, Jude Thaddeus Sayson and Dindo Ramos.
But the majority bloc, led by Councilor Ann Marie Palermo, also insisted on discussing her own version, which proposes a 30-day continuation of the renegotiation or at least a tripartite consultation with the Bacolod City Government, the Bredco and the Public Reclamation Authority (formerly the Philippine Estate Authority).
Palermo's allies include Councilors Catalino Alisbo, Reynold Iledan, Arturo Parreño, Elmer Sy, Max Louie de la Rosa and Napoleon Cordova.
Cordova, who earlier signed for Caña's revised takeover ordinance, affixed on Thursday his signature in Palermo's proposal for another renegotiation.
When asked, he said he is not in favor of a takeover and wanted a negotiation all along.
Independent Councilor Jocelle Batapa-Sigi, on the other hand, still abstained. She said, "I will stand pat to my decision that I won't take part on the issue." Councilor Ramos, meanwhile, said that he's very excited to take up the revised takeover bill. He refused to elaborate.
The revised takeover measure was born a month after the original bill was "killed" by the majority bloc on March 10.
The proposal was endorsed to the City Council last May 7 following the consolidated efforts and decision made by the members of the Comprehensive Revised Reclamation Agreement (CRRA) Negotiation Panel, which looked into the issue from October 12, 2005 until the last week of February this year.
They recommended a takeover of the port management after the renegotiation failed within the 60-day period given them.
It stemmed mainly from the refusal of Bredco management to pay the proposed upward adjustment of about P17.5 million in terms of monthly tax revenue for the city.
Bredco president lawyer Simplicio Palanca described the proposal as being "out of the world," claiming Bredco cannot afford to pay the amount.
His firm is paying P800,000 per month as based on the 1995 computation and is willing to increase it to only P1.4 million monthly.
Beyond that amount, he said, Bredco could no longer afford it.
Given the scenario, Palanca believes that any negotiation or renegotiation on the issue maybe rendered useless.
He also dared the City to go to court if they want to force Bredco to pay the amount they proposed. Palanca said his firm is ready for a court battle at any time.
If not, Palanca is willing to give up the port altogether for as long as the City reimburses all their expenses in developing it, including their existing loan with a bank.
"If they will pay Bredco, we will move to Silay City," said Palanca in a previous interview.
Palanca anchors his defense and statements on the existing CRRA of 1995, which states that Bredco still has 25 years to develop, operate and maintain the Bacolod Port.
If a party commits any violation to this agreement, Palanca said it will not be the City Council that will decide on the issue but the courts.
Caña however hinted that his proposed ordinance only aims to protect the interest of the City.
Palermo countered by stressing in her new proposition that a new 30-day period of the renegotiations with the City, Bredco and PRA may simply solve the row, with all three parties aiming to settle the problem amicably.
The parties, added Palermo, may also call upon experts to guide them in the determination of the upward adjustment rental fee, tool fees and other issues.
She also said that there's a need for the parties involved to convene an Arbitration Committee immediately after the expiration of the 30-day Tripartite Consultation, the membership composition of which shall be agreed upon by all the parties concerned, for the purpose of submitting any matter or issue not agreed upon during the tripartite consultation for arbitration.
The period for arbitration, stressed Palermo may depend upon the Parties and Arbitration Committee members but not to exceed 60 days from the convening of said committee.
Palermo said in case no agreement can be reached amicably by the parties, the City Government can seek and/or file the appropriate judicial action or remedies as the contracts, circumstances, and best interest of the City government may warrant under the premises.
Earlier, the port takeover issue also "rocked" the business sector in the City prompting some of them to give their unsolicited advise to Mayor Evelio Leonardia not be harsh to the business sector.
Vice Mayor Renecito Novero also believes that the issue could only draw a long court battle to the detriment of the City government and the people of Bacolod City.
The vice mayor is suggesting for continued negotiation until a win-win situation for both the City and Bredco shall be met.
Leonardia, on the other hand, is now dependent on whatever decision the Council will have on the issue.
(May 26, 2006 issue)
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