PDIC eyes P1.7 B from record auction

MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) is set to hold its biggest auction wherein it intends to raise at least P1.7 billion from the sale of forfeited assets of foreclosed banks.

PDIC will hold its biggest public bidding on May 16 where prime residential and commercial properties will be up for grabs.

These include various condominium units with parking slots at Exportbank Plaza in Makati City, One McKinley Place in Taguig City and Victoria Plaza in San Juan City.

Also up for bidding are 10 parking slots at One McKinley Place.

Furthermore, the PDIC would also bid out vacant residential lots and commercial properties with improvements located in Metro Manila and in the provinces of Albay, Bulacan, Camarines Norte, Camarines Sur, Cavite, Leyte, Nueva Ecija, Negros Oriental, Pangasinan, Quezon and Tarlac.

Two motor vehicles, a Hyundai Tucson and Nissan Pathfinder, would also be auctioned.

The bidding will be on an “as-is, where-is” basis.

Prospective buyers are also advised to physically inspect the properties they are interested to buy, examine and verify the titles and other evidence of ownership, and determine any unpaid taxes, fees, charges and expenses before submitting their bids.

Bids should be accompanied by a bond or deposit equivalent to at least 10 percent of the submitted bid. The winning bidder should pay the balance of the bid no later than May 25.

PDIC also clarified the value added tax (VAT) corresponding to the bid price of PDIC-owned properties would be shouldered by and collected from the winning bidder in addition to the bid price in accordance with the regulations of the Bureau of Internal Revenue (BIR).

The expeditious conversion and resolution of assets are among the strategic directions outlined in PDIC’s roadmap.

PDIC, as liquidator of closed banks, conducts various asset disposal initiatives such as biddings, auctions and negotiated sale. Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors in accordance with the rules on concurrence and preference of credits.

The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds.

Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payment of valid deposit insurance claims.