CDC Board OK’d Fontana lease deal – former exec

CITY OF SAN FERNANDO – The board of directors of the Clark Development Corp., as part of the process, approved the lease contract of Fontana Development Corp. which is the subject of a legal complaint filed by two losing proponents, according to a former top executive of the state-owned firm.

“The Fontana lease contract went through rigorous evaluation and the required legal process before it was unanimously approved by the CDC Board,” Liberato Laus, former CDC president and chief executive officer, said.

The CDC Board is headed by former Trade and Industry Secretary Rizalino Navarro as chairman.

Laus, who relinquished his CDC post on July 31, also debunked allegations by Anteva Group Corp. and New Kanlaon Construction Inc. that the government was deprived of some P2 billion in revenues as a result of the Fontana contract.

“That is ridiculous, inconceivable and without factual basis,” Laus, who was given a “Most Outstanding Award” by the CDC Board at the end of his term, said. The award was a first in the history of CDC.

In addition to the lease revenues from Fontana, CDC also stood to earn additional income from the percentage gross revenues (PGR) on intended use of the property and value of improvements to be introduced.

Laus said that, among other factors, the CDC Board took into account the track record and background of the proponents in awarding the lease contract.

Laus described the cases filed against him and two other CDC executives by AGC and NKCI as pure harassment.

“We’re ready to face them in court and we’re very confident that we will be cleared of these nuisance and malicious litigation,” Laus said. Laus said he is contemplating on filing a case of malicious prosecution against AGC and NKCI and their officers.