ON Sept. 17, 2015, lawyer Romulo Torres sued the Cebu City Council and Vice Mayor Edgar Labella to stop them from appropriating funds out of the P8.35 billion that was paid by Filinvest, Ayala and SM as down payment for 45.2 hectares of land in the South Road Properties (SRP) that they had won in a public bidding. Torres, who once served as an assistant Cebu City fiscal (prosecutor), said he was suing as a taxpayer whose interests have been violated by the sale. There were suspicions, however, that he was acting at the bidding of then ex-mayor Tomas Osmeña although these have never been proven.
Torres asked for the issuance of a temporary restraining order and a writ of preliminary injunction but was rebuffed by Cebu Regional Trial Court Judge Alexander Acosta on both counts. Worse, Acosta eventually dismissed the complaint, in the process upholding the validity of the sale and removing all impediment to the use of the sales proceeds. The City never got to touch the money, however, as the Bando Osmeña-Pundok Kauswagan (BOPK)-dominated council prevented it, afraid that then mayor Michael Rama would use it for his reelection.
Rama lost to Osmeña in their rematch in 2016. As soon as he was elected, Osmeña announced his intention to invalidate the sale to Filinvest et al. because it was done through public bidding instead of an unsolicited proposal, echoing the position of Torres, who had in the meantime elevated the RTC decision to the Court of Appeals.
Sometime in the second week of October this year, Councilor Dave Tumulak, who was elected under Barug but crossed over to the BOPK to become Osmeña’s deputy mayor for police matters, proposed a resolution that would authorize Osmeña to amicably settle all cases affecting the SRP. Tumulak said his proposal was for the best interest of the city.
Osmeña, however, declared that he was not keen on entering into any compromise agreement without the approval of the people. “It has to be approved by the people. The moment you hear compromise, it means nakakwarta si Tomas. That’s why I’m paranoid about it,” he said in an interview with the media. He added though that he cannot stop his councilors from initiating such move.
Four days later, BOPK councilors approved the resolution, filed by Tumulak and Osmeña’s running mate Mary Ann delos Santos, authorizing Osmeña to settle with Torres and, in another case, with the buyers in the disputed SRP sale by the Rama administration. Opposition Councilors Joel Garganera and Raymond Garcia blasted the move, claiming that it was a money-making venture in preparation for the elections.
Armed with the council authority, Osmeña signed a compromise agreement with Torres and submitted it to the Court of Appeals. Why he would settle with Torres, who already lost his case in the lower court, is intriguing, especially since the terms of the compromise agreement have not been disclosed. And why prioritize Torres over the buyers?
In any case, the Court of Appeals (CA) disapproved the compromise agreement because, among others, “it is contrary to law and public policy.” There are parties to the case who are not represented by Osmeña, the court noted, and besides, he is not even a party litigant.
The Freeman reported yesterday that the compromise agreement that the CA disapproved was supposed to be a shortcut to “nullify the 45-hectare lot sale” to SM, Ayala and Filinvest. That’s a novel approach that is honestly beyond my comprehension. But then I am just an ordinary lawyer. Will Tommy’s legal advisers please explain this for our education?