A sad reality for Mandaue business
“It’s a matter of principle,” a source close to the Ngo family said. They could have succumbed to the City, but they refuse to because they firmly believe the first contract was aboveboard, legal and moral
So, the management of Cenore Inc., proprietor of Big Hotel, decided to close down the establishment within three months following the controversy with the Mandaue City Government because of an allegedly highly questionable contract with the previous administration and for supposed lack of authority from the City Council. The City Government already sent a closure order against Travelbee Inc., which manages the operation last month following the non-renewal of its business permit.
City Hall was waiting for the proposal of the management for a new lease contract to correct the old contract, which was disadvantageous to the interest of the City Government. But the management opted not to give in to the present administration for a new lease contract, standing pat on its principle that there was nothing irregular with the old contract signed during the administration of then mayor and now Sixth District Rep. Jonas Cortes.
Mayor Luigi Quisumbing and Cortes will be facing each other in the mayoralty race this May elections. Some kibitzers say the hotel management was just caught in the “political crossfire” between the two political giants who were allies in the 2016 elections. Because of the intense political rivalry, it is unfortunate there are businessmen doing legitimate businesses in the city who get caught in the crossfire. Because of political uncertainties, this will discourage other investors from putting up businesses in the city.
Roderick “Rod” Ngo, Cenore’s chairman of the board, wrote to Quisumbing about the company’s decision to close shop. Ngo is asking for a threemonth leeway to iron out some internal problems like informing the Department of Labor and Employment (Dole) about their closure decision, which will displace more or less 300 employees, their separation fees and other benefits.
The company will still have to inform its suppliers and other stakeholders and their creditor banks for possible loan restructuring. Ngo said that since the controversy cropped up, the hotel has been losing an average of P3 million in daily operations because of cancelled bookings and drastic reduction of occupancy rate. Big Hotel, which is strategically located in highly developed commercial complex Parkmall in Barangay Tipolo, has been the venue of business and religious gatherings and parties.
“It’s a matter of principle,” a source close to the Ngo family said. The Ngos could have succumbed to the present administration, but they refuse to re-negotiate because they firmly believe the first contract was aboveboard, legal and moral. The Ngos, who are in the business of hotels and pension houses and low-cost housing in Metro Manila, are active in the Brotherhood of Christian Businessmen and Professionals.
As what I have said in previous columns, this issue can be settled without any political and personal pressures on the side of the business establishment. I don’t even want to entertain the insinuations circulating around, especially in the social media, that the present administration is exerting financial pressure on the businessman for election campaign fund purposes. This accusation is politically motivated and very unfair to Quisumbing. I think the mayor is not that desperate. He can raise campaign funds by not resorting to “extortion.”
The management put up a huge investment and complied with one of the requirements of the contract for at least P90 million in capital. The management invested P250 million to develop the area, which used to be dump site and was occupied by informal settlers. Of course, the City Government will repossess the property and any improvement thereat. Does the City have the capability to manage it? Now, who will help the 300 employees once the hotel closes? Can the Mandaue City Government accommodate them or provide them with financial assistance and job opportunity? A sad reality for Mandaue City business.