House probes lease of DTI property for P1,000

MANILA, Philippines — The government has been leasing a five-hectare property along Roxas Boulevard in Pasay City to a private entity for only P1,000 per year since 1996.

During a hearing by the House committee on good government last week, officials of the Department of Trade and Industry (DTI), which owns the lot, told congressmen that property value in the area is worth at least P150,000 per square meter.

“That puts the market value of the property at P7.5 billion and yet the government rented out that lot for a measly sum of P1,000 per year, earning only P21,000 since 1996,” Eastern Samar Rep. Ben Evardone said.

He called on President Duterte to revoke an executive order signed by  former president Fidel Ramos that provided for the rental fee of only P1,000 per year.

Evardone, who chairs the House committee on banks and intermediaries, said the government lost at least P11.6 million in revenue due to a contract signed with Philippine Exporters Confederation Inc. (Philexport) on Jan. 23, 1996.

The DTI property was leased to Philexport with a term of 50 years, renewable for 25 years.

Evardone said Philexport in turn subleased the property to Manila Exposition Complex Inc., which built an exposition hall and structures for offices and commercial establishments.

He suggested that the government sell the property and add the proceeds to projected revenue from tax reforms that it intends to allocate for its Build, Build, Build infrastructure program.

A resolution filed by Evardone and Rep. Salvador Belaro Jr. of party-list group Ang Edukasyon prompted the inquiry.

Belaro said it is not fair that private lessees are apparently earning a huge sum from the deal while paying only P1,000 a year to the government.

DTI Undersecretary Rowel Barba said the department started reviewing the lease agreement when the two congressmen sought the investigation.

“We have sought clearance from Executive Secretary Salvador Medialdea. We hope we would be able to do something about it. We are asking for time to submit our position paper,” Barba said.

In its latest report, the Commission on Audit said the contract entered into by the DTI with Philexport was grossly disadvantageous to the government.