Local News: Guv to Ask P-Noy’s Help
INTERVENE ON STALLED AYALA DEAL
If worse comes to worst, Governor Alfredo Marañon Jr. will ask President Benigno Aquino III to intervene in the stalled contract between the Negros Occidental provincial government and Ayala Land Inc. on the sale and lease of 7.7-hectare prime property that is now pending before the Commission on Audit (COA).
It will be our last recourse, he said.
Marañon lamented that it has been almost seven months since the case was brought to COA Head Office in Manila, but until now COA has not come out with the decision on the said contract.
The governor said he has written COA last year to follow up the status of the case, but the commission did not respond.
He added he has again written the COA last week to follow up on the agency’s decision, but he has not yet received a reply.
The governor said he will invite Aquino to the yet unscheduled inauguration of the extension of the Teresa L. Jalandoni Provincial Hospital in Silay, and on that meeting, he will bring up the COA matter to the President. Even COA provincial head Ernie Villa said he has not gotten any communication from their head office regarding the contract between the provincial government and Ayala Land.
In July last year, the provincial government awarded for sale and for lease to Ayala Land its pieces of property situated adjacent to the Provincial Capitol along Gatuslao and Aguinaldo Sts., and North and South Capitol Roads.
Both contracts for sale and for lease amount to about P3.5 billion.
However, its legality is being questioned in court by rival SM Prime Holdings Inc., the other bidder to the property.
The provincial government then sent the Deed of Conditional Sale and Contract for Lease to the COA Head Office for approval.
Subsequently, SM Prime also asked the COA to defer the approval of the negotiated sale and lease until questions on the validity of the transaction is resolved.
SM Prime also secured a temporary restraining order from the Court of Appeals in Cebu City but it was later lifted.
Marañon, the other members of the Committee on Awards and Disposal of Real Properties, and members of the Provincial Board said the Ayala Land proposal is “more advantageous” to the province.
They said the provincial government stands to receive almost P3.576 billion from Ayala Land while from SM Prime, only P3.112 billion.
Meanwhile, Ayala Land is proposing to develop the 7.7-hectare property into a Capitol Civic Center with P6 billion in investments.*
