Subject deal to strict scrutiny

Cebu City Mayor Tomas Osmeña is in the process of selling to his constituents the unsolicited proposal of JG Summit Holdings to lease for 50 years and develop Kawit Island, which is now a prime lot that is part of the South Road Properties (SRP). JG Summit Holdings is, according to its company profile, “one of the largest and most diversified Filipino conglomerates” and was founded by John Gokongwei Jr. listed by Forbes magazine as among the richest Filipinos.

It is when he is on a marketing mode that the mayor is in his element. And it is also in this time when his constituents need to be more discerning. In his recent press conference, he mentioned everything positive in the proposal. “With this announcement, it will bring up the prices (of lots) at the SRP and we should put the focus back to SRP to the forefront of Cebu’s development,” he said.

This statement seems to be in keeping with Osmeña’s obsession to show to the public that he can market the SRP better than his predecessor, Michael Rama, and to prove that the city was at the losing end when Rama sold SRP lots to the oth- er business giants SM Prime Holdings, Ayala Land Inc. and Filinvest Land Inc. But too much optimism could also weaken people’s resolve to analyze the kind of deal that may be forged between the Cebu City Government and JG Summit.

On this, the setup at the Cebu City Council is crucial because the said legislative body would be tasked to look into the terms of the lease agreement and other essentials. But even with a sizable opposition in the city council, the question remains on whether opposition councilors are up to the task of studying the agreement and spotting the possible red flags there.

A vigilant public is also needed, especially those who can readily see through the sugarcoating that those with big stakes will eventually wrap the deal with. Admittedly, only few people are familiar with deals like this and their implications.

As proposed, this would be a 50-year lease and by the time the agreement is concluded most or all of the incumbent city government officials will no longer be around to answer for their failings, if any. That is why we must subject it to strict scrutiny now.