MANILA, Philippines — The Department of Finance (DOF) has sought a review of the Philippine National Construction Corp.’s (PNCC) plan to lease a government lot in Pasay City at P300 per square meter for a period of 25 years.
The DOF’s Privatization and Management Office (PMO) yesterday announced it filed a review against the legal standing of state-run PNCC to manage and develop a government-owned 9.9-hectare property in Pasay City.
Likewise, the PMO seeks to adjust the PNCC’s proposed rates for leasing the property, as the prices it listed may disadvantage the government.
In a letter, PNCC president and CEO Miguel Umali asked the PMO to comment on its proposal to lease the property along Macapagal Avenue at P300 per square meter, inclusive of value added tax. Umali said the plan would allow the tenant to rent the land for 25 years.
Further, the tenant may renew the contract with PNCC for another 25 years. The rate goes up by just three percent every two years to account for changes in valuation.
In a reply, PMO chief privatization officer Gerard Chan reminded the PNCC to settle its existing and unpaid obligations to the government as flagged by the Commission on Audit (COA) in its 2018 report of the state-run firm.
Chan said the PNCC’s outstanding debts to multiple state agencies should be identified in its proposed lease of the Pasay property.