Court junks petition on Kawit island project

FOR lack of interest on the part of the petitioner to prosecute the case and utter lack of merit, Judge Generosa Labra dismissed the case filed by Busay Barangay Captain Amilo Lopez over the P18-billion Kawit Island project.

Mayor Tomas Osmeña welcomed the development, saying the project will “infuse P18 billion into Cebu’s economy.”

“They can file all the cases they want. I have nothing to hide. This deal was subject to publication and Swiss Challenge for months. No one else came forward with a better offer. Isla dela Victoria will survive any kind of scrutiny,” he said.

In a 20-page decision, Labra of the Branch 23 of the Regional Trial Court in Cebu City was convinced with the grounds pointed out by the respondent City Government and Universal Hotels and Resorts Inc. (UHRI).

“Wherefore, premises considered, the instant petition is hereby ordered dismissed for lack of interest on the part of the petitioner to prosecute and utter lack of merit. The petition being attended to with willful and deliberate forum shopping, this dismissal order shall be with prejudice,” read portion of Labra’s decision.

Lopez filed a petition for injunction with prayer for temporary restraining order (TRO) and writ of preliminary injunction before the court, saying the joint venture agreement (JVA) that the City Government entered with UHRI is grossly disadvantageous.

UHRI will develop an integrated resort, including a casino on Kawit Island in the South Road Properties through a JVA with the City.

Labra ruled the petitioner is guilty of forum shopping after the court was informed that a separate case was also pending before Branch 10.

Eight opposition councilors also filed a case that is pending before Branch 10 and asked the court to nullify the resolution that authorized Mayor Tomas Osmeña to sign the JVA with UHRI for being irregular and patently unlawful.

Lawyer Amando Virgil Ligutan, of SALiGAL Law Office, who also served as counsel for the majority bloc of the City Council said the development will bring good to residents of the city.

“Around 5,000 new jobs are waiting for them. Admittedly, we were expecting a resounding legal victory in this case because we raised valid and solid legal arguments,” he told SunStar Cebu.

On the issue of Lopez’s legal standing, the court explained that in a taxpayer’s suit, the party suing as a taxpayer must prove that he has sufficient interest in preventing the illegal expenditure of money derived from taxation.

The court added that a taxpayer is allowed to sue if there are public funds illegally disbursed, or public money is being deflected to any improper purpose, or that public funds are wasted through the enforcement of an invalid or unconstitutional law.

Lopez filed the case in his capacity as taxpayer of the city.

However, the court was convinced with the City's argument that there will be no public funds spent for the project since UHRI will finance the construction of the project.

Apart from it, the court also affirmed UHRI’s argument that it is not the first time for a newly-formed corporation develop and operate integrated resorts in the country.

UHRI earlier pointed out that even if it is a newly-formed corporation, it is financially capable of undertaking the project.

UHRI said Robinsons Bank guaranteed the Cebu City Government with P1.8 billion and JG Summit Holdings Inc. (JGSHI) issued a financial statement supporting UHRI amounting to P18 billion.

UHRI is an affiliate of the Gokongwei Group of Companies, which has investments in property development, food and beverage sector and airline industry.

“UHRI, as member of Gokongwei Group of Companies, is without a doubt, equipped with the needed technical and financial capacity to undertake a billion-peso integrated resort project,” read portion of the decision. (RVC)

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