Government to audit local, offshore assets

The Department of Finance will conduct an audit of its domestic and offshore assets to rationalize their disposition and allocation of the proceeds to various government commitments, including veterans’ benefits and agrarian reform.

Finance Secretary Jose Isidro Camacho said yesterday that he has ordered an inventory of all idle government properties, including four real estate assets in Japan earlier marked for evaluation, assessment and possible disposition.

During last week’s celebration of the Fall of Bataan, President Arroyo made a promise to World War II veterans that government would sell its assets in Japan to finance their retirement benefits. So far veterans’ retirement benefits have not been appropriated in the budget. Camacho said these benefits amount to roughly P14 billion.

"To start with, we need to evaluate these assets and determine whether it is even double to sell or perhaps go into joint ventures to develop them," Camacho said. "The objective is to reactivate these assets and make them generate income."

Camacho said government is looking at several ways to dispose of the assets in Japan and whether it is advisable to do so at this time when the Japanese economy is in recession.

After closing the joint-venture deal for the controversial Roponggi property, Camacho said the government still had four disposable real estate assets in Japan, two of them in Tokyo, one in Kobe and one in Osaka.

Camacho said one of the properties in Tokyo is currently being used as the official residence of the Philippine ambassador to Japan with the other being the former location of the Philippine Embassy.

The finance chief said that since the Philippine Embassy is already located in the Roppongi estate, the former location could now be disposed of, depending on the outcome of the review process.

Camacho has assigned newly appointed finance undersecretary Inocencio Ferrer Jr. to conduct the inventory and evaluate what options were available to the government. – Des Ferriols