Going after SM, Filinvest
IT WAS in December 2015 when a government agency, the Department of Public Works and Highways, first noted the alleged violation by Filinvest Land Inc. (FLI) of the National Building Code in the construction of Il Corso, which is part of FLI's City di Mare project at the South Road Properties (SRP). A DPWH official noted that the construction violated the setback provision of the building code.
A Sun.Star Cebu editorial on Dec. 30, 2015 even had a description for it: the project was choking instead of giving “enough space to what should have been a cozy sidewalk.” That editorial also criticized then mayor Michael Rama's reaction to the DPWH report, which was to criticize the agency and even going to the extent of citing its failure to secure building and occupancy permits for its office at the SRP.
That was almost a year ago when the construction of the Il Corso structure was still in its early phase and with a friendly administration at City Hall. But Rama was defeated in the May elections by Tomas Osmeña, who has suspended the release of building and occupancy permits to FLI until it corrects the alleged violation in its Il Corso project. The correction should be more costly now.
The FLI is the second SRP investor being targeted by City Hall. Osmeña filed criminal charges against four officials of SM Prime Holdings, claiming the firm misrepresented the size of the building housing the SM Seaside City mall at the SRP to reduce its tax obligation. Also, the release of occupancy permits for SM Seaside City and its tenants has been put on hold because the mall is supposedly partly built on setback property.
Incidentally FLI, together with SM Prime Holdings, which formed a consortium with Ayala Land Inc., were the buyers of SRP lots under the Rama administration, a transaction that Osmeña and members of his Bando Osmeña-Pundok Kauswagan (BOPK) in the Cebu City Council questioned. Osmeña had earlier announced his intention to rescind the sale, saying the deal disadvantaged the city.
So while the move to go after FLI and SM Prime Holdings may have basis, Osmeña targeting the two firms could also be seen as being ill-intentioned. That will be proven if he still gets overly harsh even if the two firms already acted to correct the alleged violation.