Iriga City told to return lot buyer’s P18.36M

THE Commission on Audit has ordered the city government of Iriga, Camarines Sur to refund P18.36 million to a private firm after the botched sale of a property in 2015.

In a five-page decision, the COA en banc granted the petition of Iriga Ventures Inc. to compel the city government to return the sum it paid for a 1,224 square meter lot that was never turned over to the buyer.

According to the claimant, it bought the local government’s property located next to the City Hall Annex in San Francisco, Iriga during a public auction in 2015.

The mayor, Ronald Felix Alfelor, executed the deed of absolute sale in favor of Iriga Ventures after payment was made.

However, even after the Sangguniang Panlungsod had appropriated the proceeds of the property sale to various expenditures, the city did not turn over the copy of the deed as well as possession of the lot.

After waiting for four more years, the buyer sent another letter demanding that the city just return the amount it paid for the lot.

But in an audit report, the sale transaction was tagged as “premature and invalid” in the absence of the required prior approval of the COA.

In its ruling, the COA pointed out that the sale does not require its approval since the purchase was made in a public auction.

However, it agreed with the claimant’s contention that the turnover is not possible after site inspection by the audit team revealed that the lot is occupied and being used by the Commission on Population.

The Iriga Venture’s claim included P4.39 million as interest and another P100,000 as litigation expenses.

The COA, however, said it can only grant the return of the amount paid since the claimed interest and litigation cost are matters for the lower courts to determine.