Mayor Mauricio Domogan and City Legal Office chief Melchor Carlos Rabanes rushed to Manila, October 7, to meet up with City Rep Bernardo Vergara for a rendezvous with top dogs of the Government Service Insurance System (GSIS).

This, hoping to finally ink a deal that would end a pending legal battle over of the Baguio Convention Center (BCC).

The city now owes GSIS P316- million in unpaid amortizations, including 12-percent annual penalties.

During the 'Ugnayan' presser hosted by DZEQ last week, Domogan revealed GSIS president Roberto Vergara, March 18, confirmed possible condonation of P50-million in outstanding balance the city owes GSIS.

Earlier talks with GSIS revealed its board can stretch 'forgiveness' by another P8.5-million which could pull down unpaid GSIS amortizations to P207.5-Million. The City Finance Committee discovered there was a tender of payment in 1996 and 1997.

"Less the recent payment of P60-million by the city by way of its shares from Bases Conversion Development Authority (BCDA), the amount condoned, and about P7.8-million overpayment we've discovered for 1996 and 1997, we are looking at a P198.2-million balance," the mayor said.

He added, "We are now hoping to workout a compromise with GSIS regarding the balance to finally avert a GSIS takeover which they have already initiated in court," the mayor explained.

Domogan revealed a draft of the agreement was sent earlier last week and expressed confidence it would be inked.

The BCC buy was initially for P250-million which, by contract among the city, GSIS, and BCDA, was supposed to be paid from the city's 25-percent share from the lease of Camp John Hay (CJH).

"However," Domogan explained, "The bill placing unpaid amortizations and interests of the P250-million decrepit realty has now ballooned to P360-million as no [substantial] payments have been tendered by previous administrations."

The last payment was in 2007. But even then, the P50-million advanced was only enough to cover interests.

It could be remembered that GSIS housing group senior vice president Renato Santico, December 2006, made city officials skip a beat when he declared, "GSIS is bent on reclaiming the BCC... enforcing the acceleration clause of the purchase agreement it entered with the city."

He said, "We are ready to cancel the [agreement] because the city incurred default twice in its installment payments (2005 and 2006)."

Domogan said, "Hopefully once the compromise is signed, the court would immediately approve the same so we could now focus on the Convention Center rehab."