Virtual gold mine

Can there be plunder and graft and corruption by non-action?

This seems to be the issue that the Office of the Ombudsman will have to resolve when it looks into a recent complaint filed against former and present executives of the Public Estates Authority, now Philippine Reclamation Authority.

Consumer activist Rodolfo Javellana Jr. has filed plunder and graft charges against these public officials for their alleged conspiracy with a private developer to defraud the government when the former sold in 1998 a 41-hectare reclaimed property in Parañaque City at outrageously low prices, and then failed to enforce the developer’s commitment on the project.

Javellana has included in his rap sheet the officers of the developer Manila Bay Development Corp. (MBDC) who, he claimed, have conspired with past and incumbent PEA executives in violating the anti-plunder and anti-graft laws (Republic Act no. 3019 and RA 7080, respectively) over the MBDC’s failure to develop this estate located next to the Cavite Expressway (Cavitex).

He claims that no development has taken place in this property now known as Central Business Park II, close to three decades after PEA and MBDC signed a deed of sale for just P470 million, on condition that MBDC would develop it into a commercial-cum-shopping complex in five years’ time.

It is estimated by some quarters that this 41-hectare property is actually worth a lot more than P41 billion, as it is on the southernmost tip of this premiere district that hosts the City of Dreams, Solaire Resort and Casino and SM’s Mall of Asia.

Javellana noted in the affidavit-complaint that this deed of sale has proven to be “grossly disadvantageous” to the government and the people because first, MBDC was able to acquire the lot for a relatively small amount, on condition that this firm would fully develop it into a business-commercial complex in five years’ time; and second, past and incumbent management of PEA (PRC) have done nothing  to take punitive steps against MBDC such as cancelling the contract for this serious breach.

Respondents include former PEA general manager Eduardo Zialcita, who executed the deed of sale in 1988; incumbent chairman Roberto Muldong, general manager Peter Anthony Abaya, and directors Virgilio Ambion, Manuel Medina, Edilberto de Jesus, Reynaldo Robles, and Rene Enrique Silos; and MBDC president George Chua, who signed the contract with Zialcita in 1988, as well as unnamed MBDC directors.

Javellana recalled that it was only in 2014 when a paid newspaper advertisement came out urging PEA to take back this property estimated at P41 billion but which MBDC had purchased for only P470 million that they learned of such. 

The property was sold to MBDC for just P1,100 per square meter but on condition that the private firm would develop the lot into a business or commercial complex within five years, based on the approved Parcellery Plans and Urban Design Guidelines attached to both parties’ deed of sale.

However, MBDC had reneged on this commitment to undertake a five-year development program and despite this clear contractual violation of MBDC, PEA did nothing to enforce its rights under the deed of sale for more than 21 years, Javella said.

Javellana said past and incumbent PEA and MBDC officials are guilty of violating the Anti-Graft and Corrupt Practices Act, which declares as unlawful or corrupt, and subject to criminal prosecution, any and all official transactions by public officers that are manifestly or gross disadvantageous to the government.

Worse, he added, these officials have also violated the Anti-Plunder Law, owing to their apparent conspiracy “to commit one goal which is to amass billions of pesos at the expense of the Filipino people.”

The government, through the PEA or PRC, is sitting on a virtual gold mine but what’s the use of a potential if it is not being harnessed as in this case.

Other side of the Alliance coin

In connection with what this columnist recently wrote regarding leading canned tuna manufacturer Alliance Select Foods International and the resignation of some of its key officials, no less than Alliance’s new president, Raymond See, sought us out to clarify if not correct certain misimpressions we may have about the company.  

First, See dispelled any negative notion about the departure of the vice-president for international and domestic sales, Juan Salcedo III, after only two months with the firm. As it turns out, Salcedo’s departure was for purely personal reasons and does not involve any contentious issue whatsoever, as painted by detractors of the company.

As for the series of executive departures late last year, it was explained that almost all of them actually involved redundancies (likely a result of the reorganization) and retirements, not resignations. These redundancies and retirements may be inevitable given the change in the complexion of the board and the appointment of a new management team.

On the matter of financial losses which Alliance Select has experienced over the past two years, See acknowledged them but was quick to add that are already being addressed as he carries out his mandate to further enhance the firm’s efficiencies, streamline operations and maximize the synergies offered by Alliance’s global presence.

See also mentioned about a number of opportunities available to Alliance, including the GSP+ status recently granted to the Philippines by the European Union Parliament, the impending integration of the ASEAN economic community which will make it easier to penetrate neighboring markets in the region with more competitively priced, tariff- free food products, among others.

The European Parliament granted the Philippines GSP+, a mechanism that will allow duty free entry to the EU for some of the most important Philippine exports. The Philippines is the only beneficiary country of the scheme in Southeast Asia.

Philippine products that may avail of the duty free access into the EU include prepared food and marine products, processed fruit, coconut, animal and vegetable fats and oils, textiles, garments, headwear, footwear, furniture, umbrellas, and chemicals.

Even the EU Ambassador to the Philippines, Guy Ledoux, explained that apart from giving a dramatic and immediate advantage to Philippine exports, the EU concession significantly improves the attractiveness of the Philippines as a source for new agricultural and manufacturing facilities for products that will now enjoy duty free access to the EU.

The integration of ASEAN economic community meanwhile will transform the entire ASEAN region into a single market and production base in a highly competitive economic region fully integrated into the global economy.

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