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No proceeds have been distributed yet to heirs of the Balili Estate for the controversial P98.9 million land sale to Cebu province, its executor said yesterday.
But “a portion of the broker’s fee already paid to the broker has also to be recovered.”
With this lawyer Romeo J. Balili, executor of the estate, assured Gov. Gwen Garcia he would “try his best to convince the heirs” to agree to demands of the province to return P37.8 million in partial sales proceeds corresponding to 9.4 hectares which a recent Capitol survey showed was submerged in seawater or filled with mangroves. The total land sale was for about about 25 hectares.
Balili asked for more time to consult the heirs about a refund, longer than the 15-day deadline of the province.
In a separate certification, Balili denied that Provincial Board Member Juan Bolo “or anybody else” received any sum of money from the estate. The executor said he dealt “solely with the broker and nobody solicited from me any monetary consideration” for the sale of the Balili Beach Resort. He did not identify the broker in his letters.
Meanwhile, Bolo tendered his immediate and “irrevocable” resignation as chairman of the PB committee on provincial and municipal properties during the regular session of the Provincial Board in the afternoon.
No reason was cited in his letter.
Bolo told reporters later he was willing to submit himself to investigations that may be called on the purchase of the Balili beach lots in Naga.Vice Governor Sanchez took over as committee head.
In last Saturday’s press conference Gov. Gwen Garcia accused Bolo of misrepresenting her in media reports. She pointed to Bolo as the one who met with the broker, Lumen Durano, introduced the property deal to the Capitol, negotiated the terms and closely followed up the purchase.
(The standard broker’s fee for a land sale is 5 percent of the total purchase price.)
In Balili’s written reply to the governor’s Aug. 14 demand letter for a P37.8 million refund, he said the sale was on “lock-stock-and-barrel basis” at a uniform price of P400 per square meter.
“Since rescission involves mutual restitution, and the titles on the affected properties are already transferred in the name of the Province of Cebu, kindly initiate the return of the Estate of Luis V. Balili the titles on the areas rejected by the province,” he wrote.
He also said there was a need to recompute the capital gains tax, documentary stamp and transfer taxes on the sale.
“A portion of the broker's fee already paid to the broker has also to be recovered,” he added without identifying the broker.
The provincial government is moving to recover the amount after its survey showed that 9.4 hectares was not supposed to be titled in the first place.
Majority Floor Leader Victor Maambong said the “minor reorganization” was a first after the controversy broke out.
Governor Garcia said it was “only proper” that Bolo quit the post.
“I think he should take responsibility for a proposal he initiated,” she said.
“I would like to express that my resignation as chairman of the committee on real properties would not affect my function as Provincial Board member and my relationship with other board members,” Bolo said.
The executor’s certification distanced Bolo from the deal.
“My dealing was solely with the broker and nobody solicited from me any monetary consideration relative to the sale of the Balili Beach Resort to the Provincial Government (of) Cebu,” said lawyer Balili.
Of the P98.9 million paid by Cebu province to the estate last year, P38.5 million was paid as court commission and P5 million in bond due to a pending case before the Court of Appeals involving a creditor whom he identified as Trade and Investment Development Corporation (TIDCORP).
“I have not disbursed any sum of moeny to anybody else out of the proceeds of the sale of the Balili Beach Resort. The accusation and innuendo that Atty. Juan Bolo, or anybody else, received any sum of money from the Estate of Luis V. Balili is herein denied as false and malicious.”
“As executor, I have not yet filed with the Court the declaration of heirship and project of partition because of the undecided claim of creditor TIDCORP now pending with the Court of Appeals. Until the approval of the declaration of heirship and project of partition the heirs of the late Luis Balili would not get in the meantime their respective shares as provided in the last will and testament of the testator.”
Board Member Gastardo questioned why the certification was not notarized. Board Member Victor Maambong said the certification had “many loopholes,” among them the failure to inform the board of the pending court proceeding. He said it was also difficult to believe that Balili did not deal with anyone from the Capitol.Bolo later told reporters that he knew of the court proceeding when Balili visited his office before the signing of the Memorandum of Agreement on the acquisition of beach lot.
He said the widow,Amparo Balili, signed the deed of sale in his presence and was notarized by Arquillas.
Provincial Treasurer Roy Salubre said a check for P49.8 million as partial payment was released to lawyer Balili in his office in April 2008.
Bolo told colleagues he was not privy to how Balili distributed the sales proceeds. He said it it was “unfair” for media reports to refer to him as a recipient. He said the purchase was “above board”.
“If some portions were submerged, I didn't know about that,” he said in Cebuano.
Capitol probe has 30 days
Governor Garcia formed a three-member investigation committee with a 30-day deadline to get to the bottom of the “fiasco”.
She said a private lawyer would lead it “to send a signal to the public that we are serious with this (investigation) and we will get to the bottom of this.”
Capitol consultants Rory Jon Sepulveda and Manolette Dinsay, who are both lawyers, and Provincial Planning and Development Officer Adolfo Quiroga will sit in the committee on behalf of the governor.
Board Members Victor Maambong, Agnes Magpale and Peter John Calderon will represent the legislative department.
Garcia yesterday called a luncheon meeting with board members at her office to discuss the creation of an investigation committee. Board Member Juan Bolo was not around.
“If he (Bolo) wants to talk to me, I'll have that in the presence of other board members kay basin ako na pud iyang balihon (because he might twist my words),” said Garcia.
During the session in the afternoon, the Provincial Board passed a resolution, authorizing Garcia to take legal action to ensure a refund of P37.8 million for the 9.4 hectares of land found to be under water.
In another resolution, the board invited lawyer Romeo Balili to appear in the Aug. 24 session.
Also invited were Naga Mayor Val Chiong, the land broker/s and lawyer Nyassa Orquillas, Bolo's chief of staff, who notarized the beach lot's deed of sale.
Board Member Gastardo also asked for minutes of their July 27 session when the provincial appraisal committee members appeared to answer questions about the beach property.
DENR tried to annul Balili lot titles
The Department of Environment and Natural Resources in Central Visayas (DENR-7) had tried eight years ago to annul titles of land owned by the late Luis Balili in Naga City, southern Cebu.
Filemon Alberca, DENR-7 legal division head, however, said he could not tell if these lots were the same ones bought by the Province of Cebu in barangay Tinaan, Naga since he did not have a copy of the Deed of Sale between the Balilis and the province.
He said the DENR had earlier sought to reverse the titles issued to the Balilis from Alienable and Disposal to coastal timberland after these were found to be either submerged under water or planted to mangroves.
“As early as 2001 in September, we already included some properties belonging to the Balilis. These were submitted to the central office for possible filing of reversion cases,” said Alberca.
“Usually, it is the central office that will refer the cases to the Office of the Secretary General for the filing of cases.”
The move to annul the titles was in line with the agency's fight against fake or illegal title red as one of the priority programs.
The 2001 DENR recommendation said “we respectfully transmit herewith the case folders with draft complaints for annulment and reversion of titles with pertinent documents/records.”
Augustus Momongan, then DENR-7 regional executive director, submitted the memorandum to the central office in Manila to seek the annulment of titles of the Balili properties.
It listed one lot under the name of Amparo Balili and seven lots owned by her late husband, Luis, all in barangay Tina-an.
“This means we (DENR-7) investigated the properties and recommended that appropriate cases be filed for reversion,” said Alberca.
No status update of the case was received by the legal division since Momongan sent the letter almost eight years ago.
“Until now, we are not aware of the action concerning the cases sent to central office,” said Alberca.
Alberca said he couldn't tell if these referred to the same controversial lots bought by the Province of Cebu for P98.9 million last year.
“We need documents, such as the Deed of Sale to determine that,” he said.
Alberca said the Balili land titles were issued several years back.
Before the DENR was organized in the 1980s, the land titling was done through the Bureau of Lands and was referred to Manila for action./Editorial Assistant Bernadette Parco
