CDC allows Waterfront to bid anew for Mimosa

CLARK FREEPORT, Pampanga — The Clark Development Corp. (CDC) has kept its doors open to Waterfront Philippines, Inc. (Waterfront) in yet another bidding to privatize the 215-hectare Mimosa Leisure Estate here as it stood pat against passing on to the winning bidder a P300-million debt owed by the former owner of the estate.

CDC president and chief executive officer Benigno Ricafort told The Star he will meet next week with officials of the Philippine Gaming and Amusement Corp. (Pagcor) to thresh out the problem on the P300 million owed by Mondragon Leisure and Resorts Corp. (MLRC) which used to operate Mimosa.

“We will not allow that the P300 million owed to Pagcor be passed on to the winning bidder,” he said.

Waterfront won the bidding for the estate in June last year, but the CDC later voided the award amid conflicts on the P300 million demand of Pagcor.

“The P300-million obligation was not included in the terms of reference (TOR) that led to Waterfront winning the bidding. It was imposed after Waterfront already won the bidding,” he said.

Ricafort said that MLRC had sustained debts of about P6 billion from various creditors and that allowing the P300 million to be passed on to the new management of Mimosa could open doors for other creditors to make similar demands.

Ricafort said that as soon as the issue with Pagcor is resolved, another bidding for Mimosa will be held. The new terms of reference for the new bidding are now being finalized, he added.

Waterfront can again participate in the bidding, he stressed.

The CDC took over Mimosa during the Estrada administration amid the failure of MLRC to settle its dues with the state firm.

Meanwhile, Ricafort warned workers at Mimosa against holding a strike amid prospects that the resort will finally be privatized anew this year.

Leaders of the Association of Clark Mimosa Employees (ACME) held here yesterday a “strike vote” meeting to demand their regularization, the granting of full 14th month pay, among other concerns.

“We never had security of tenure since CDC took over Mimosa,” said ACME leader Rey Jeron, noting that some 700 employees of Mimosa sign contracts for their employment every six months despite their having worked for as long as 10 years at the estate.

But Ricafort said that CDC officials had long ago settled the issue and even vowed to seek their continued employment undere whoever would win in the next bidding.

“We cannot regularize them under the CDC because of the privatization process,” Ricafort said.

Ricafort warned ACME officials against holding a strike which, he noted, would be illegal since the workers’ union has not been official recognized.

“Of course, the agitators would be the first to go should Mimosa be privatized,” he added.

At the same time, Ricafort assured Mimosa emloyees of gratuity should they not be rehired by a new management at the estate.

“We have decided that gratuity obligations should be shouldered by the CDC, and not by the winning bidder,” he said.