MANILA, Philippines - The government is losing millions of pesos every year if it will not recover a substantial equity stake in Harbour Centre Port Holdings Inc. (HCPHI), an official of the state-owned Home Guaranty Corp. (HGC) said.
"The government has been shortchanged millions and millions of pesos every year because Mr. Reghis Romero doesn't want to recognize our remaining 32 percent share in HCPHI," HGC president Manuel Sanchez said.
"All these years he is acting and benefiting as a full owner of HCPHI. We don't have any seat in the board although we own 32 percent of the company. They don't give us a copy of the records. So, we don't know how much they are making a year and how much we are entitled every year," he said.
Romero is the chair of the board of R-II Builders, which currently holds the remaining 68 percent.
In 1993, the government and R-II Builders had formed a joint venture to develop the Smokey Mountain Housing project wherein the government got a 60 percent stake in a partnership while Romero got the remaining stake.
But according to Sanchez, Romero claimed for additional works for the project and was approved by the Governing Board of Smokey Mountain, bringing down the HGC shares by 28 percent.
At present, HGC has a pending case before the Court of Appeals to recover the 28 percent stake in HCPHI.
Sanchez also said HGC rejected the offer to compensate the government for the controversial Smokey Mountain Development and Reclamation (SMDR) project.
"Mr. Reghis Romero is making an offer which is not acceptable to us, primarily because number one -- the amount that he is offering and number two, because of the conflicting claims and most of these claims are actively being pursued in different courts," Sanchez said.
In a letter dated June 10 to HGC, Romero has offered P2.9 billion to reimburse the state-owned firm's exposure to SMDRP.
"He offered P2.9 billion for the whole area, which is worth P9.5 billion. Romero also wants mutual withdrawal of cases. If we do that, the claims of the government will be lost forever," Sanchez said.