THE Commission on Audit has given the green light to the proposal of the provincial government of Misamis Oriental to dispose of parcels of land it owns in Cagayan de Oro City through a negotiated sale for P281.68 million.
In a five-page decision released this week, the COA en banc granted the request filed by Governor Peter Unabia to sell four lots with a total combined area of 4,024 square meters located in Poblacion, Cagayan de Oro City.
The offer to acquire the parcels of land was made by A. Brown Company, Inc. with a valuation of P70,000 per square meter, the total value payable in five years from the issuance of the Notice to Proceed.
According to the Sangguniang Panlalawigan, the property developer has committed to invest up to P2.5 billion to develop the property into a modern urban center with high-rise structures for mixed use as offices, commercial centers, dormitories, parks, and parking facilities.
Unabia submitted the request to the COA on January 22, 2024, noting that the offer was higher than the assessment made by the Provincial Appraisal Committee at P60,000 per square meter.
“This Commission rules to grant the disposal, through negotiated sale, of the 4,024 sq.m. lot of the province to ABCI. In this case, the negotiated price of P70,000 per sq.m. is not underpriced but is more than the appraised value of the Provincial Appraisal Committee …which was confirmed by the COA Regional Office No. X, Technical Audit Group,” COA said.
It noted that while a public auction is the preferred mode of sale of government properties, a negotiated sale is permissible when a public auction is not practicable.
“This Commission finds no opposition to the proposed negotiated sale and hereby grants the request for approval of the same,” it said.
It added that the approval of the subsequent sale of the property does not affect encumbrances or annotations in TCT No. T-204428, which shall be carried over and stated in the new certificates.
