Probe sought on lease of Roxas Blvd property

MANILA, Philippines - Two lawmakers are calling for a probe on Philippine Exporters Confederation (PhilExports)’s alleged “disadvantageous lease contract” with the Department of Trade and Industry (DTI) that involves the prime lot where the World Trade Center complex in Pasay City stands.

Eastern Samar Rep. Ben Evardone and Rep. Salvador Belaro Jr. of Ang Edukasyon party-list filed House Resolution 1188 calling on the House committee on good government and public accountability chaired by Surigao del Sur Rep. Johnny Pimentel to investigate PhilExports’ lease contract with DTI.

The lawmakers said the national government was “shortchanged” in the lease of a 50,642 square-meter prime lot along Roxas Boulevard in Pasay City.

Under the contract of lease signed in January 1996, the DTI rented the 50,642 square-meter prime lot to PhilExport for only P1,000 per year for a period of 50 years, renewable by another 25 years.  

Under the contract, PhilExport was also allowed to “sub-lease” the property to Manila Exposition Complex Inc. (MECI) based on a “fixed rate or on the latter’s earnings, whichever is higher.” 

The contract required MECI to establish the World Trade Center complex in Pasay City, which includes world-class exhibition halls and office spaces for government agencies in the building. 

“The rental of P1,000 per annum for a period of 50 years is grossly disadvantageous to the government, resulting in substantial loss in possible revenues considering the prime location of the property,” Evardone said.

Evardone and Belaro said the government has also been “shortchanged” because the leased property has not been developed in accordance with the intent of the contract and Republic Act 7844 or the Export Development Act of 1994.

They pointed out that the liberal terms of the lease had been intended to promote export development to transform the Philippines into an exporting nation. While the government held up its end, its private partners under-delivered on their commitments.

Last July 28, Solicitor General Jose Calida urged Sunvar Realty Development Corp. to vacate the 2.9-hectare Mile Long property in Makati City.