KNP: Arroyo selling gov’t assets to fund drive against FPJ

A "midnight madness sale" of prime Philippine government assets in Japan is part of last-ditch efforts by Malacañang to raise campaign funds and bankroll a grand conspiracy to weaken the opposition and boot out Fernando Poe Jr. from the presidential race, the political opposition said yesterday.

Koalisyon ng Nagkakaisang Pilipino (KNP) senatorial candidate Juan Ponce Enrile said Vice President Teofisto Guingona has confirmed reports about a "hush-hush" plan by the Palace to award a 50-year lease to foreign companies to develop and manage Philippine properties in Japan without the consent of Congress.

"This operation, which is tantamount to practically selling these assets without congressional approval, is illegal and unconstitutional," he said.

"We are not surprised to learn that Malacañang has been quietly moving to dispose of these state-owned properties, without any regard whatsoever to their historic and patrimonial character.

"These are all part of its last-minute operations to finance a grand conspiracy to disqualify FPJ and weaken the opposition in the runup to the May 10 elections."

Enrile also questioned Malacañang’s rush in selling the state’s power transmission and generation facilities held by the National Power Corp. despite being fully aware that these would only fetch bargain-basement prices in a non-receptive global market wary of the country’s economic woes.

"Malacañang is already in panic mode, especially after the overwhelming success of the FPJ-led KNP sortie in its first week alone," he said. "That’s why it is now desperately trying to raise more funds on the sly to bankroll efforts to derail FPJ’s imminent victory in May even though it would mean bleeding the treasury dry and disposing of government assets at dirt-cheap prices."

Enrile said the Arroyo administration has long been trying to sell the assets of the National Transmission Corp. (Transco), Napocor’s spin-off firm, despite several failed biddings.

It has even mulled disposing them through a negotiated sale, although it is fully aware that the market remains lukewarm to such offers, he added.

Sen. Manuel Villar Jr. has vowed to resume the Senate investigation on reports that the government is accepting bids for the sale of three Philippine properties in Japan for a total of 1.78 billion yen.

On other hand, Sen. Joker Arroyo said the administration is violating the law for embarking on a 50-year lease of government properties in Japan. The transaction can already be considered a "sale" due to the length of time involved, he added.

Villar, who chairs the Senate committee on foreign relations, said the government cannot approve the sale — scheduled next month — without approval from Congress.

Villar said the Supreme Court ruled in Laurel vs. Garcia in July 1990 that the executive department has no right to dispose of properties belonging to the public domain. "The Supreme Court ruled further that state-owned properties in Japan cannot be sold without congressional approval," he said.

The government’s plan to bid out the Philippine properties under a build-operate-transfer (BOT) scheme may already be considered a form of disposal, he added.

Senator Arroyo accused the government of planning to use a portion of the proceeds from the "sale" of the Japan properties to fund President Arroyo’s campaign.

Senator Arroyo said the executive department must cease and desist from embarking on a long-term lease because it violates the 1990 SC ruling.

"But the (SC) even then had decreed that the failure by the government to repair the building is not abandonment since there simply was shortage of funds...," he said.

"Obviously, any property outside the commerce of man cannot be tapped as a source of funds."

Senator Arroyo also said that the administration is echoing the claims made by the executive department in 1990 that the properties must be disposed as they are in a state of disrepair.

"There is an obvious intention by the executive department to go around the Supreme Court injunction by negotiating a 50-year lease instead of an outright sale," he said. "A lease that long is pretty much the same as a sale. Acts of dominion and ownership will be exercised by the lessee for a period that would last a generation."

However, the Department of Foreign Affairs (DFA) said the three government properties in Japan will only be developed, not sold.

Foreign Affairs Undersecretary for Administration Franklin Ebdalin said the bidding being conducted by the DFA and the Department of Finance is for the development of the properties for semi-commercial use under a BOT scheme. "We are not selling any properties in Japan," he said. "These are only in the process of being bidded out so that the government can get revenue from these alienated properties."

Ebdalin said the Kobe properties are being used as mere parking lots, while the one in Tokyo is old and "underutilized."

He said an executive order authorized the bids and awards committee to solicit for proposals for the development of the properties. "We want to maximize the use of the properties," he said. "The government has a lot of properties that are considered eyesores by the public."

Ebdalin said the plan is to construct a building with the first two floors to be used by the government, while the rest will be leased out to clients.