Controversial Pampanga lot sold to San Miguel subsidiary

CITY OF SAN FERNANDO, Pampanga — It was a deal Gov. Lito Lapid believes finally absolved him of allegations that he personally had profited from its purchase.

Last Wednesday, the provincial government sold to Right Pak International, a subsidiary of San Miguel Corp., for P142 million a 60-hectare property it bought for P104 million in 1997 for a low-cost housing project for provincial employees.

In 1999, graft charges were filed against Lapid over the purchase of the property in Barangay Maimpis, based on allegations by a broker that the lot only cost P5 million, not P104 million.

The governor’s accuser, however, later withdrew the document he had submitted to the Bureau of Internal Revenue supposedly showing the P5-million cost of the property.

The complaint led the Ombudsman to place Lapid under 60-day preventive suspension. He speculated though that the agency did so under pressure from then President Joseph Estrada to get back at him for failing to support his 1998 presidential bid.

"The property would not have been bought by a subsidiary of a big firm like San Miguel if it is way above land valuation. The purchase only confirms that the provincial government bought it at a reasonable price in 1997," provincial administrator Benalfre Galang said.

Provincial officials decided to bid out the 60-hectare property to help the provincial government settle its loan with the Philippine National Bank that was used in purchasing the lot.