GSIS wants P101-million unpaid rentals from hotel firm

MANILA, Philippines — The Government Service Insurance System (GSIS) wants Philippine Plaza Holdings Inc. (PPHI), the owner of Sofitel Philippine Plaza, to pay the state fund P101 million in unpaid rentals for two of its properties in Manila.

GSIS president and general manager Jesus Clint Aranas said the state fund seeks to collect rentals from the hotel operator as it has been using its Lot 19 and Lot 41 despite not being under the parties’ lease contract.

Aranas said the 7,393-square meter property has been used by the hotel as valet parking space, site of cistern tanks, a cooling tower and a tennis court since 1991.

He said total unpaid rentals from the PPHI reached P101.57 million based on the current market value of the property.

On April 13, the GSIS issued a notice to PPHI to vacate the property within 30 days if it does not pay back rentals.“The two parcels of land, which are classified as commercial are being used by PPHI with no lease contract with the GSIS,” Aranas said.

‘Misleading’

In a statement sent to The STAR, the PPHI decried the misleading and false reports about Sofitel.

The GSIS claim that the PPHI is liable for unpaid back rentals is baseless, Sofitel said.

These reports supposedly originated from an interview of Aranas with Anthony Taberna over dzMM on April 20.

The PPHI said the reports cast doubt on the hotel’s ability to continue its operations, thereby negatively affecting its business reputation.

Sofitel said Aranas was probably misinformed when he said that the lease contract has expired.

“The truth is that the use by PPHI of the lots is covered by a valid and existing contract. The lease contract was renewed by GSIS and PPHI in 2016, and is effective until 2041. The PPHI has not committed any breach of contract that would justify the termination of the agreement,” it said.

It stressed that the PPHI has been complying with its obligations to the GSIS. It has been paying rent in accordance with the terms of the original lease contract.