Baguio gov’t pools fund to save convention center

By Aileen P. Refuerzo

BAGUIO CITY - The city government is working out the release of city funds to complete the purchase of the coveted Baguio Convention Center (BCC) amid pressures from property owner Government Service Insurance System (GSIS) over the city’s unpaid obligations and violation of the purchase agreement that dates back to 2004.

Mayor Mauricio Domogan Monday urged the city council to act on his request for the realignment of P200,185,882.05 which was pooled from unused funds from the city coffers to pay the city’s outstanding balance to purchase the convention facility.

The city council included the mayor’s request for deliberation in its regular session tomorrow, Monday.

The mayor said it is now up to the city government to save the convention facility with the still unresolved issue on the payment of the city’s share from the lease rental of Camp John Hay from which the city was supposed to get the payment for the BCC as per the 2004 tripartite purchase agreement with the GSIS and the Bases Conversion Development Authority (BCDA).

He said the GSIS has sued the city “to enforce its right to take over the BCC due to the default of the City to pay its obligation” amounting to P318 million but the said case is now under mediation.

“The mediation gave way to negotiations that we must take advantage of to keep the property. But not for long since the GSIS has given us until the end of the month (May) to decide,” the mayor noted in his letter to the city council dated May 13.

The mayor said that GSIS expressed willingness to condone P50 million in the accumulated interest thus leaving a balance of P268 million.

From the amount, the following were deducted: P60 million representing the BCDA’s latest payment of the city’s share from CJH rental; and P7,814,117.95 representing the city’s premium overpayment as employer’s share thus leaving a balance of P200,185,882.05.

He said the city has to act on the matter as further delay would mean either losing the BCC to its owner or continuing to accrue interests that cost P2 million per month.

“It is with great exigency and deep concern that we come to seek your immediate action relative to our unpaid obligation with the GSIS… I appeal that we treat this with utmost priority and settle the outstanding balance before the set deadline,” the mayor appealed to the city council.

“The city has to decide once and for all whether or not to keep this prime property which we need very badly for our City activities and which is of great significance both for tourism and as a symbol of the City as a Convention City of the North. We have paid P160M thus far (most of which went to accumulated interests which has become an unnecessary expense should we have been prompt in settling our obligation),” the mayor said.

The Local Finance Committee has certified the availability of P200,185,882 culled from various sources from the city’s budget.