Filinvest Land clarifies side on Citta de Mare project in Cebu

We are writing on behalf of our client, Filinvest Land Inc. (FLI), in connection with the item, in the “Biz Buzz,” titled “‘Team Megawide’ hits back” (Business, 3/24/14). Under the byline of Daxim Lucas, it took note of the profit-sharing arrangement and sale of properties under the Joint Venture Agreement entered into by FLI and the city government of Cebu on Feb. 3, 2009. This was referred to by Lucas as the Citta de Mare project at the South Road Properties (SRP) in Cebu.

We would like to clarify and correct certain information in that item:

First, for the period Jan. 1, 2010-Dec. 31, 2013, FLI had already remitted to the city government of Cebu a total amount of P1.735 billion, which includes the P309.71 million representing the city government of Cebu’s revenue share in the Joint Venture Agreement, and P1.42 billion for the purchase of certain properties.

Second, FLI does not have any obligation to pay the city government of Cebu P500 million by the end of 2013 as claimed in Lucas’ article. On the contrary, FLI is advanced in its payments to the city government by P217.54 million as of Dec. 31, 2013. A careful perusal of the Joint Venture documents and confirmation with us would clearly show this.

Third, SGV & Co. (Ernst & Young), which was engaged by FLI as an independent auditor to review the accounting records related to the Joint Venture Agreement for the period Jan. 1, 2010 to Sept. 30, 2013, mentioned in its report that for the period Jan. 1, 2010-Sept. 30, 2013, FLI is required to remit to the city government of Cebu a total of P78,841,822, net of creditable withholding taxes of P5,287,562, while the actual remittances made by FLI amounted to P159,714,691. The figures indicated in SGV & Co.’s report do not yet include additional advanced payments made by FLI to the city government of Cebu from Oct. 31, 2013, to Dec. 31, 2013, based on FLI’s records.

Fourth, in a joint press release on Dec.  20, 2013, published in the major Cebu dailies, Cebu City acknowledged and confirmed that Filinvest Land Inc. was not remiss in its financial obligations to the city.

All these facts are readily available and can easily be verified. Had Lucas taken the time to verify these facts, he could have easily done so. But by maliciously, recklessly and erroneously issuing the story, without making any attempt to contact our client to ascertain the truth or to validate the information he purveyed to the public, Lucas grievously damaged FLI’s  reputation, which we hold sacred. We, therefore, demand that an apology be issued and the column correct its erroneous report. Otherwise we shall be constrained to take all necessary legal action to protect the interests of our client.

—AVELIO L. SALCEDO,

Flores Salcedo Marasigan & Partners

Previous to the item in question, Biz Buzz and the business section had published several articles airing Filinvest’s side. In addition, Biz Buzz also carried Filinvest’s reply in the following edition of the column.

—DAXIM L. LUCAS