Rama confident Filinvest pays share in joint venture

Posted on November 29, 2012

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CEBU City Mayor Michael Rama said he is hopeful the Filinvest Land, Inc. will honor its obligation in its joint venture with the city.

He said he does not have to compel Filinvest pay the city under the terms of the JV because the land developer knows its duty.

Rama’s P6.7 billion budget proposal for 2013 identified proceeds of Cebu City’s joint venture with FLI in the South Road Properties as a revenue source for about P1-billion.

City Treasurer Emma Villarete earlier told the City Council’s budget review hearing that her office can only collect P4.8 billion, with the rest to come from other income sources like the FLI joint venture and sales of City Hall properties.

The mayor allayed fears that the city’s income will not be able to support his ambitious budget.

“As long as taxpayers continue to pay their dues, the city will never go bankrupt,” Rama said.

He appealed to the City Council to support his budget proposal but the legislature remains stacked with his political opponents in the Bando Osmena Pundok Kauswagan.

Councilor Margot Osmeña, budget committee chairman, remains unconvinced that the city can raise P1 billion from FLI joint venture shares next year when the city has not collected the P600 million share FLI promised this year.

The council will continues its review of the 2013 executive budget on Monday and look at outlays proposed by roposed by the office of the mayor and divisions under the said office. /Doris C. Bongcac, Chief of Reporters

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