outbrain
Close  

NHA warned on deal to settle Smokey Mountain row

By: - Reporter / @daxinq
/ 05:30 AM October 25, 2018

The government’s corporate lawyers have warned the state housing agency against a P1.1-billion settlement deal with businessman Reghis Romero II meant to settle a compensation dispute over the latter’s controversial redevelopment of Smokey Mountain in the 1990s.

In a letter to National Housing Authority General Manager Marcelino Escalada sent last week, chief government corporate counsel Elpidio Vega cautioned the agency about the “variance” between its own computation and the proposed settlement with R-II amounting to P1.12-billion plus five hectares of government property in Vitas, Tondo.

ADVERTISEMENT

Vega said earlier computations presented by the housing agency’s accounting department to the NHA board indicated that it allegedly “overpaid” Romero’s R-II Builders by as much as P300 million.

“Given the manifest variance in the findings of NHA’s accounting department as well as [NHA] board resolutions [authorizing the settlement], such findings and resolutions have to be harmonized and justified for the benefit of both the NHA and its board,” the lawyer from the Office of the Government Corporate Counsel (OGCC) said.

FEATURED STORIES

Last Oct. 3, the NHA’s board passed a resolution to implement a revised P1.12-billion settlement with R-II Builders involving a 2011 Smokey Mountain housing case.

This settlement was supposed to be presented to the Court of Appeals, which mandated both parties  to explore the possibility of an amicable settlement.

But aside from citing the alleged variance in computation, Vega urged the NHA to defer its mediation with R-II, stressing that any possible settlement should involve proper computation of interest and proper valuation of the Vitas property.

He said the NHA board should consider OGCC’s position to apply the 6-percent legal interest versus the asserted 12 percent on NHA’s obligation to R-II, if any.

Finally, Vega said that  the OGCC advised NHA that any possible settlement “should be conditioned on the settlement of all … cases filed … against the NHA [by R-II Builders], and R-II’s waiver of any and all claims.”

ADVERTISEMENT
Subscribe to Inquirer Business Newsletter
Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: National Housing Authority, P1.1-billion settlement deal, reghis romero ii, Smokey Mountain
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.