Ombudsman upholds Osmeña ruling

CEBU CITY — The Office of the Ombudsman has upheld its decision clearing Cebu City mayor Tomas Osmeña and others of irregularity in the development of Kawit Island at the South Road Properties.

Businessman Crisologo Saavedra, who filed the case, accused Osmeña and several officials of entering into an agreement which he claimed was disadvantageous to the city.

The Ombudsman's decision reaffirmed its earlier ruling that cleared Osmeña and his co-accused of criminal and administrative charges.

Saavedra claimed the Joint Venture Agreement (JVA), which involved a P10 billion contribution from Cebu City for the P18 billion project, would give the city only a 10-percent profit share, despite contributing more than half of the investment.

He also alleged that Universal Hotels and Resorts Inc. (UHRI) lacked the technical and financial capability to undertake the project.

However, the Ombudsman ruled that Saavedra failed to present new evidence, stating that his arguments were mere reiterations of those already addressed in previous complaints.

"The complainant failed to introduce any new facts or legal basis that would warrant the reversal of this Office's decision," the Ombudsman said.

The case dates back to 2018 when Osmeña's administration signed the JVA with UHRI to develop Kawit Island into a world-class integrated resort and casino.

The project, valued at P18 billion, promised to create jobs and boost Cebu's tourism and economy. Despite Saavedra's allegations, both the Ombudsman and the Regional Trial Court (RTC) Branch 23 in Cebu City found no evidence of wrongdoing.

The RTC also confirmed that UHRI, as part of the Gokongwei Group, had the technical and financial capacity to execute the project.

Saavedra filed criminal and administrative complaints against Osmeña and other city officials, including former councilors Margarita Osmeña, Sisinio Andales, Alvin Arcilla and Eugenio Gabuya Jr., as well as incumbent councilors Gerry Guardo, Joy Augustus Young, Mary Ann de los Santos and Franklyn Ong.

The charges also implicated UHRI president Frederick Go and other executives from the Gokongwei Group, including Lance Gokongwei, James Go, Robina Gokongwei-Pe and Patrick Henry Go.

The Ombudsman's decision noted that the RTC Branch 23 ruling from Jan. 20, 2019, already affirmed the legitimacy of the JVA and UHRI's capability to handle the project.

The council's resolution authorizing Osmeña to sign the agreement on behalf of the city was also upheld.

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