THE Court of Appeals (CA) has denied the motion for reconsideration filed by former Cebu City mayor Tomas Osmeña against dismissed mayor Michael Rama, City Council, and several private firms regarding the sale of lots at the South Road Properties (SRP).
Key points
The CA rejected Osmeña’s “very urgent omnibus motion” for “lack of merit,” upholding the validity of the lot sale.
The court reaffirmed its earlier decision on Sept. 27, 2023, validating the sale contract between the City Government and SM-Ayala Consortium for Lot 8, and the City and JG Summit and Filinvest Group for Lots 7 and 17.
The total area of the sold lots is 455,769 square meters, with the sale occurring during Rama’s second term on Aug. 7, 2015.
The 15-page CA resolution was signed by Associate Justice Mercedita Dadole-Ygnacio on Aug. 29, 2024
Reasons
The CA provided several reasons for denying Osmeña’s motion:
Not a taxpayer’s suit: The case was deemed not to be a taxpayer’s suit as it involved a sale contract between the City Government and private entities.
Lack of standing: Osmeña failed to establish his standing as a concerned citizen or demonstrate any direct injury resulting from the sale.
Mayoral authority: The SRP lot falls under the patrimonial property of Cebu City, and under the Local Government Code, the mayor has the power to enter into contracts with proper City Council approval.
Proper authorization: The City Council authorized Rama through Resolution 13-0418-2014, which conformed with City Ordinance 2332, which was enacted to protect the SRP and its stakeholders from unlawful and unauthorized transactions. It aims to regulate the sale and development of SRP lots.
Timeline
Aug. 7, 2015: Rama entered into a negotiated sale on installment contract with Filinvest Land Inc. (FLI) and the SM-Ayala consortium.
Sept. 2, 2019: Osmeña questioned the validity of the lot sale. He filed a petition for declaratory relief against several respondents. Osmeña argued that the committee on awards in 2015 had no authority to bid out the SRP lots because it was not authorized by the 13th Sangguniang Panlungsod.
January 2024: Regional Trial Court Branch 10 Judge Soliver Peras dismissed Osmeña’s petition due to lack of legal standing. The court also denied Osmeña’s application for a temporary restraining order and writ of preliminary injunction.
Aug. 29, 2024: CA issued a 15-page resolution denying Osmeña’s motion for reconsideration. / EHP