BCDA remittance to gov’t up 25% to P4 B in 2015

BAGUIO CITY, Philippines – State-owned Bases Conversion and Development Authority (BCDA) recently remitted P4 billion to the national treasury last year, up 25 percent from the P3.2 billion it remitted in 2014.

The amount represents the National Government’s (NG) dividends share, the share of government beneficiary agencies from BCDA’s asset disposition proceeds, and payment of other obligations to the NG.

BCDA president and CEO Arnel Paciano Casanova said the latest remittance reflects the solid and consistent financial performance of the BCDA in generating billions for the government.

“The increase was due to successful business ventures, resolution of some problematic accounts with the private sector, more efficient collection and management of contracts, as well as good financial housekeeping. In effect, it’s good governance translating to good economics,” Casanova said.

Since the start of the Aquino administration, the BCDA belonged to the so-called ‘Billionaires’ Club’ or the top government-owned and -controlled corporations (GOCCs) that remitted P1 billion or more to the National Treasury.

The BCDA has consistently remitted over P2 billion yearly to the BTr. It remitted P2.11 billion in 2010, P2.32 billion in 2011, P2.74 billion in 2012, P2.21 billion in 2013, P3.2 billion in 2014, and P4 billion in 2015.

Casanova said of the P4 billion remitted to the Treasury, P3.47 billion was the share of several government beneficiaries from the proceeds generated from existing joint venture and lease agreements, and assets disposed in 2015.

The remaining amount represented dividends, DOF guarantee fees, and return of initial capital contribution to the NG pursuant to the BCDA charter.

Of the P3.47 billion remitted as share of several government beneficiaries, the Armed Forces of the Philippines (AFP) got the lion’s share at P3.39 billion.

The share of the other government beneficiary agencies amounted to P71.905 million. The remaining P6.94 million comprised the share of the local government units of Taguig, Pateros and Makati.

Under AO 236, certain government beneficiary agencies are entitled to the disposition proceeds.

Meanwhile, Presumptive President Rodrigo Duterte is being urged to appoint responsible and dedicated officials of the BCDA and its subsidiary, the John Hay Management Corp. (JHMC) address the issues and concerns at the 247-hectare John Hay Special Economic Zone (JHSEZ) in Baguio City.

Mayor Mauricio Domogan expressed disappointment at the non-fulfillment by BCDA and JHMC of the 19 conditions imposed by the city government for the development of the former American recreation center.

Only 26 percent of the special economic zone over the past two decades since the lease agreement between BCDA and the private developer was signed was developed.

Under the lease agreement, the city government is entitled to have a share of 25 percent from the annual lease rentals to paid by the developer to BCDA which will be used to fund other priority development projects in the city but the same was never realized because of the conflict between BCDA officials and the developer that resulted to the filing of an arbitration case which is now questioned before the Supreme Court (SC).

Domogan said the new set of city officials were willing to sit down with the new BCDA and JHMC officials in order to iron out their respective positions before they meet with the developer.