THE Caloocan City government has to pay a group of property owners more than P355.67 million as compensation for its takeover of nine lots with a combined area of 39,374 square meters in 2002.
In a decision released last January 28, the Commission on Audit said claimants Patricia Tiongson et. al. and the heirs of the late Rosa Manotok are entitled to payment of P255,107,500 as just compensation and another P100,561,279.73 as interest.
The city government’s obligation is bound to increase even further as the COA said the claimants are entitled to six percent interest computed from the time the petition was filed with the commission on May 25, 2018 until compensation is paid in full.
Records showed the Sangguniang Panlungsod passed Ordinance No, 0332 series of 2000 on June 22, 2000 authorizing then mayor Rey Malonzo to initiate expropriation proceeding on nine lots then collectively known as the Manotok Properties.
The city council said the area was needed for the city’s socialized housing program that will benefit urban poor residents.
Malonzo filed the expropriation case at the Caloocan City Regional Trial Court branch 121 on January 24, 2001. After depositing P8.102 million based on the assessed value of the property, the city government gained possession of the lots on February 14, 2002.
Upon completion of the expropriation proceedings, however, the RTC set the value of the property at P263.21 million.
In its decision dated February 28, 2005, the court ordered the city to pay the property owners the balance of P255.107 million within 30 days from finality of decision, plus legal interest.
The city officially received the ruling on May 12, 2005, and without lodging an appeal, the decision became final and executory 15 days later.
The lot owners were allowed to withdraw the initial payment of P8.102 million in September 2005 but the balance remained unpaid, prompting them to file a court petition to compel the city to pay its obligation.
After battling the city government before the RTC and the Court of Appeals over the execution of the 2005 ruling, the property owners were told by the appellate court to file a claim with the COA, which they did on May 25, 2018.
In its response, Caloocan City did not contest the P255.107 million valuation by the RTC but argued that the interest should be limited to the period from 2002 when it took possession of the property until 2005 when the RTC ruling became final. It said it cannot be validly obliged to pay interest from 2005 because it was the claimants who made no move to assert their claim.
The COA sustained the city government, saying it is liable only for the unpaid balance of P255.107 million and the interest computed from February 14, 2002 to May 28, 2005 at 12 percent equivalent to P100.56 million.
“It should be noted that during the trial, both the city and the petitioners did not have any objection to the said valuation of the property, thus, it was the price at which the petitioners were willing to sell the property and the price at which the city was willing to purchase said property,” the commission said.
