CEBU City Mayor Tomas Osmeña is asking the City Council to present a copy of the approved resolution that authorized former mayor Michael Rama to sign the deed of sale of installment agreement with the Filinvest Land Inc. (FLI) on the 19.2-hectare lot purchase at the South Road Properties (SRP).
In his news conference yesterday, Osmeña said that the City is studying if it can rescind the contract with FLI since the former administration has no authority to sign the agreement.
“The council never approved the contract. So we will be sending a letter to the council, asking where is the contract that you approved? How can you rescind a contract that does not exist?” he told reporters.
If the contract is not valid, Osmeña said that the lot sale should not be made. “That's why it’s very confusing. But it all boils down to the comedy of errors,” he added.
Sought for comment, Councilor James Cuenco said the contract was still valid since Rama was given the authority by the previous council to negotiate with the sale of SRP lots.
“My opinion is, the contract was already perfected. We can't do something about it. As to the need to pass through the council, I think there's no need,” Cuenco said.
Cuenco said lot buyers have their own lawyers, who can point out if there was an irregularly committed during the negotiation stage and payment period.
However, Cuenco, who serves as the majority floor leader in the City Council, said that he will ask the secretariat to check all the documents.