COA scolds PRA for P1/year rent for its properties

MANILA, Philippines — The Commission on Audit (COA) has called out the Philippine Reclamation Authority (PRA) for allowing several entities to use a portion of its hangar properties in Parañaque and Las Piñas almost for free.

“The 21,611-square-meter portion of R-1 Landstrips were leased to various entities at a symbolic amount of P1 per year, contrary to the provisions of the Public Land Act,” the COA said in its 2018 annual audit report on the PRA.

The audit body pointed out that under Section 36 of Commonwealth Act 141, otherwise known as the Public Land Act of 1936, the annual rental fee for public land “shall not be less than three percent” of the value of the land based on the appraisal and reappraisal made, while for land reclaimed by the government, the rental fee “shall not be less than four percent of the appraised and reappraised value of the land.”

The COA said Section 37 of the Public Land Act of 1936 also states that “upon the final expiration of the lease, all buildings and other permanent improvements made by the lessee shall become the property of the government.”

“Per masterlist of PRA properties subject of Lease Contract as of December 2018, 10 properties with a total area of 21,611 sqm in R-1 Landstrips were under lease agreements with various entities at a symbolic amount of P1 per year contrary to the above-mentioned provisions of law,” the COA said.

One of the PRA properties identified in the report was located in Barangay Tambo, Parañaque City, which covers 1,500 sqm with the barangay captain as lessee. The contract is effective from Dec. 30, 1990 to Dec. 29, 2040.

Two properties in Barangay Don Galo, still in Parañaque, totaling 1,500 sqm, are also being leased to the barangay captain with one contract effective from Nov. 15, 1991 to Nov. 14, 2041 and another from December 1990 to December 2040.

Another property in Don Galo covering 1,980 sqm is being leased to the Philippine National Police with contract period from September 1992 to September 2042.

Meanwhile, a 167-sqm property, also in Don Galo, is being leased to the Philippine Coast Guard with a contract effective from Jan. 13, 1995 to Jan. 12, 2020.

The PRA is also leasing two of its properties in Barangay San Dionisio, also in Parañaque, totaling 12,445 sqm, to Our Lady of Peace Mission, with one contract effective from Aug. 21, 1990 to Aug. 20, 2015 and another from Feb. 6, 1996 to Feb. 5, 2015.

A 1,473-sqm property also in Barangay San Dionisio is being leased to the barangay captain with a contract effective from Nov. 15, 1991 to Nov. 14, 2041.

A 1,000-sqm property located in Barangay Ilaya in Las Piñas is also being leased to Philippine Councilors League of the Department of the Interior and Local Government with a contract effective from April 10, 1996 to April 9, 2046.

A 1,546-sqm property in Brgy. Pulang Lupa, also in Las Piñas, is being leased to the City of Las Piñas with a contract effective from April 28, 1995 to April 27, 2020.

“We recommended that the management re-examine the lease rate of P1 per year charged to various entities leasing PRA properties, and update the audit team of the latest status of the action taken by the management on the previous year’s recommendations,” the COA directed the PRA.