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Wednesday, August 20, 2003
No financial block for relocation lot purchase
By Fred P. Macaraeg

CONSTRUCTION of the bangus processing plant project will proceed before the year ends, as there is no financial problem for the purchase of a lot that would be developed into a relocation area for would-be displaced families at the project site.

Councilor Teofilo Guadiz III said this when he presented a resolution to the City Council last Monday that would give authority to Mayor Benjamin Lim to enter into a contract for the purchase of a 1.2-hectare lot in Bonuan Gueset. The move was opposed by some members of the body.

He said the proposed resolution did not have an attachment of the certification from city budget officer on the availability of the fund.

But upon inquiring with City Administrator Rafael Baraan, he allegedly presented the certification from a budget officer attesting to the sufficiency of fund to the city legislature.

Nevertheless, the Council failed to pass the measure due to lack of time to discuss other issues on the move to purchase a lot for the relocation of 286 squatter-families from Bagong Baryo in Bonuan Gueset, the site of the proposed processing plant.

Lim initiated the move to buy a lot because once the project is not started till the end of the year, the P50-million fund for the construction of the plant would be reverted back to national government.

The fund, as pledged by President Arroyo, was coursed through the Department of Budget and Management (DBM).

However, it would not be released unless the relocation site for the would-be displaced residents from the project site has been established.

Earlier, the City Government asked the President to segregate more than five hectares from the 72-hectare Tondaligan, a national park, for the resettlement area families that would be dislocated by city projects, squatters and urban poor.

But there is no assurance as to when Arroyo will act on the city's request.

Due to this predicament, the mayor approached University of Luzon President Luis F. Samson Sr., a lawyer, for the sale of their family's lot at the Gen. MacArthur site.

Samson purportedly agreed to sell their 1.2-hectare lot if the City Government could reach the amount of P1,200 per square meter as per assessed value.

Former Councilor Luis "Chito" Samson Jr. said Lim contacted him and asked that he convince his father to sell the property at half the price.

Chito said that as a counter offer, Lim vowed that the relocation area would be named after the late Doņa Josefa Mendoza Samson.

"So I convinced my father that the sale of the lot at half the price would also be a form of assistance to the city and he gave in," he said.

Chito said Lim likes the place because it is walking distance to the site of the project where one member of each of the would-be dislocated families would be employed.

The former alderman said the city should first enter into a contract with Samson Sr. for the purchase of the property and later on, the Council would pass a supplemental budget as payment for the would-be acquired lot.

Chito said the City Government should act fast because it is now almost the last quarter of the year and if the project is not started before the yearend, the P50-million fund might be reverted to the general fund of the National Government.

He pointed out that it is better for the city to lose P7 million as payment for the property rather than lose the P50-million fund for the project that would create more than 1,000 jobs for the Dagupeņos.

During deliberation of the resolution sponsored by Guadiz, Vice Mayor Alvin Fernandez said there is no problem to the proposed purchase of Samson property if there is financial backing.

Pointing out the need for knowing first the financial status of the city, Fernandez said that as a general rule there should be a certification of the availability of fund.

Baraan presented the city budget officer's certification of the availability of fund.

The vice-mayor also proposed that if the Samsons are willing to enter into a memorandum of agreement (MOA), the City Government would pay an initial amount of one-fourth the total cost of the property.

"The rest of the amount will paid depending on the availability of funds," he said.

Councilor Michael Fernandez, for his part, proposed that the contract should contain a conditional sale not absolute sale.

(August 20, 2003 issue)

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