BACOLOD CITY—The Commission on Audit (COA) decision is finally out, but is it too late?
Gov. Alfredo Marañon Jr. has announced that the COA has approved the deed of conditional sale of 36,587 square meters of prime property in Bacolod City by the Negros Occidental government to Ayala Land Inc.
In its decision dated Sept. 21, the COA also remanded to state audit team leader Ernie Villa and the provincial government the latter’s request for approval of its contract of lease for 40,481 sq.m with Ayala Land for contract review on a post-audit basis.
Ayala Land proposed to invest P6 billion in the mixed use development of the 7.7-hectare property owned by the Negros Occidental provincial government.
But the property firm, citing the delay in the approval of the project, had withdrawn from the undertaking. Ayala Land also cited the pending case filed by SM Prime Holdings Inc. (SMPHI) against the awarding of the project to Ayala.
In a case filed with the Bacolod Regional Trial Court, SM Prime Holdings claimed that it should have been awarded the project because its bid was higher than that of Ayala Land.
The Negros Occidental provincial government had declared a failure of bidding and called for another bidding, which SMPHI did not join because it insisted it had won. The project was then awarded to Ayala Land on a negotiated sale.
But the COA ruled that it did not find merit in SMPHI’s contentions. It also ruled that the declaration of a failure of bidding was in order because the offer of SMPHI was lower than the appraised value of the property set by the committee on awards and disposal.
Marañon said the decision of the COA was a vindication “because, all the time, we have been saying that what we did was within the bounds of the law.”
The rules and procedures of the bidding were followed, he added. “It was transparent and above board.”
On the other hand, Marañon was not giving up on the project. “We will try to convince Ayala to reconsider their letter of disengagement.”
The governor also called on Negrenses to help convince Ayala and pray that it will change its mind.
“We will write to Ayala informing them that, at last, COA has approved our request and ask them to reconsider their decision to pull out from the project,” he said.
Marañon said Ayala and SMPHI could amicably agree to share in the development of the 7.7-hectare property.
If Ayala would not agree to return and continue the project, the provincial government could hold a rebidding for the sale and lease of the property where it stands to earn more, he said.
That is because the price of the property has gone up since ALI made its offer last year, Marañon explained.