Romualdez pushing for SPV for gov’t properties abroad

WASHINGTON – The Philippines is looking at the establishment of a special purpose vehicle for the creation, development, lease, maintenance and disposition of overseas properties owned by the national government.

Philippine Ambassador to the US Jose Manuel Romualdez has proposed the creation of an Overseas Properties Management Board (OPMB) and establishment of the Philippine Center Management Boards (PCMBs) to take care of the properties owned by the government worldwide.

The proposed OPMB, he explained, would have oversight functions over the PCMBs in 85 Philippine overseas foreign service posts across the globe.

Romualdez told visiting Filipino journalists the proposed body would formulate, implement and coordinate policies with regard to the acquisition, development, lease, maintenance, and sale of all overseas properties.

In Washington alone, the Philippines owns three key properties including the Philippine Embassy, the Philippine consular office, and the Residence of the Philippine ambassador.

Presidential Decree 487 issued in 1974 authorized the acquisition of properties strategically located in New York, San Francisco and Sydney.

According to Romualdez, most properties owned by the Philippines abroad are not properly maintained while some are being disposed of including those in prime locations.

“The properties are not maintained because it is not the business of the DFA. Their business is diplomacy and consular work. So I think if we put up company with a specific purpose to manage and maintain all government properties, I think it will be better,” he said.

He said the OPMB under the proposed Philippine Overseas Properties Management Board Act would be mandated to take care of the maintenance of building services and real property management.

At the same time, the OPMB will be empowered to approve the acquisition, major repair and renovation as well as development, construction and disposal of real properties.

The body, he said, would also allocate funds for the property management and development projects proposed by the PCMBs using the funds sourced from the Department of Foreign Affairs (DFA) Building Fund.

The DFA secretary would chair the OPMB, while the head of the Department of Trade and Industry (DTI) would serve as vice chairman. Members include representatives from the departments of Budget and Management, Finance, Tourism, Agriculture as well as Labor and Employment.

Under the proposed bill, Romualdez said the disposition of properties abroad would have to be approved by the President upon the recommendation by the OPMB in consultation with the PCMBs.

Likewise, Congress should be vested authority to approve or disapprove the acquisition or sale of properties.

“This is to discourage any businessman-diplomat who want to sell a building such as what almost happened in Japan,” he said.

For one, he cited the sale of the property in London near the Kensington Palace that was later purchased by Indian billionaire and steel tycoon Lakshmi Mittal.

Senator Panfilo Lacson is likely to sponsor the bill at the Senate, while Leyte Rep. Ferdinand Martin Romualdez would sponsor it in the House of Representative.