MANILA, Philippines – Ayala Land Inc. (ALI) reportedly has P209.2 million worth of unpaid obligations to the University of the Philippines, covering the lease of the two properties owned by the educational institution, according to the Commission on Audit.
Based on its latest audit report on UP which was released last week, the COA claimed ALI owes UP P129 million in supposedly guaranteed rent income, P4.2 million interest for late payment for UP Town Center along Katipunan, and P76 million supposedly for UP Technohub along Commonwealth Avenue.
In a statement, ALI said it is in discussions with UP to review if there are variances that need to be addressed.
ALI stressed it has made regular rental payments for the UP-Ayala Technohub and UP Town Center based on the terms agreed upon by the company and UP.
On the UP Town Center, COA said the “laxity in the enforcement of the terms and conditions in the lease Agreement for the UP Diliman East Campus (UP Town Center) resulted in underpayment by ALI of P129 million guaranteed rent income and P4.2 million interest for late payment.”
COA said a comparison of the guaranteed revenues and actual revenues collected showed an underpayment of P129 million. The guaranteed revenues per lease agreement and financial proposal for 2011 to 2012 amounted to P400 million while actual revenue collected was P400 million.
However, for 2013, the guaranteed revenues were supposedly P23.94 million but actual revenue collected amounted to only P17.28 million or an underpayment of P6.65 million.
In 2014, guaranteed revenues amounted to P191.5 million but actual revenue collected reached only P69.13 million.
In computing its monthly rent beginning October 2013 to December 2014, ALI used gross usable area of 26,713 square meters, representing the first parcel portion of the leased property. According to COA, this is contrary to the lease agreement.
Given its latest findings, COA has instructed UP to bill ALI for the shortfall in revenues, saying the university can use the amount as additional resource that can be utilized for its academic, research and extension functions.