Pimentel warns of another scandal vs gov’t

Senate Minority Leader Aquilino Pimentel Jr. warned the Arroyo administration that it could face another scandal with its decision to award the development of the government-owned 2,488-square meter Nampeidei property in Tokyo to another party instead of a Japanese consortium that originally won it.

In a statement released yesterday, Pimentel advised Malacañang and other officials concerned not to revoke the development right over the Nampeidei property of Nagayama-Teisei Consortium.

The Bids and Awards Committee (BAC) formed by the Philippine government awarded the deal to the consortium on Oct. 26, 2006. This would have earned P5 billion for the Philippine government in development fees.

The Nampeidei property, located in the Shibuya District in Tokyo, was among the properties acquired by the Philippine government as part of Japanese war reparations.

All six members of the BAC signed the award order. They were Undersecretary Gabby Mendoza of the Department of Finance, Undersecretary Manuel Gaite of the Office of the President, Undersecretary Franklin Ebdalin of the Department of Foreign Affairs, Assistant Secretary Laura Pascua of the Department of Budget and Management, Undersecretary Ernesto Pineda of the Department of Justice and Assistant Secretary Bashir Rashuman of the Department of Public Works and Highways.

Subsequently, Nagayama Consortium signed a power of attorney in favor of Masaichi Tsuchiya for the development of the property. However, Nagayama and Masaichi later quarreled over the deal, prompting Nagayama to revoke the power-of-attorney.

Despite the revocation, the Arroyo government still opted to recognize the right of Masaichi to develop the property. This was spelled out in an order signed on June 26 of this year by Executive Secretary Eduardo Ermita based on a resolution signed by only three members of the BAC - Mendoza, Gaite and Ebdalin.

Pimentel said the Ermita order, in effect, reversed the BAC’s original decision awarding the development of the Nampeidei property to the Nagayama Consortium.

But the original contractor for the project is questioning the validity of the reversal, especially considering that only three of the six BAC members – and therefore not a majority – signed the resolution recognizing the power of attorney of Masaichi. – Aurea Calica