Parañaque goes on purchase binge

The Parañaque City government has completed another huge purchase, in what a city official described as "exercising the right to collect taxes."

At a public auction yesterday, the city government bought more than 280 hectares of reclaimed land owned by the Public Estates Authority (PEA) worth P265.2 million.

"Parañaque is exercising its right to collect taxes. Our auctions have shown that we have the political will to collect taxes," city legal officer Leo Luis Mendoza, said in a phone interview.

Last February, the city government purchased large portions of Ninoy Aquino International Airport (NAIA) property and several pieces of machinery amounting to more than P700 million in an auction.

Sec. 263 of the 1991 Local Government Code allows a local government unit (LGU) to purchase properties if there are no bidders for them at an auction, Mendoza said.

PEA’s tax delinquency amounted to P267 million, accumulated since 2000, forcing the city government to put the agency’s property on the auction block.

The reclaimed land stretches from the Coastal Mall to the boundaries of Parañaque and Pasay.

Mendoza added the city government is still trying to determine if the auctioned PEA land includes the area where the controversial President Diosdado Macapagal Boulevard, a Catholic church, and a gasoline station are situated, among others.

"We’re still trying to plot if they are included in the (auctioned) area because the auction was based on the tax declaration of the PEA," he said.

At yesterday’s auction, two city businessmen, Elizabeth del Mundo and Michael Lagman, separately bidded for small portions of the PEA land, Mendoza added.

Combined, the businessmen’s bids amounted to P1.8 million.

Mendoza added that last March 31, PEA filed a prohibition with temporary restraining order (TRO) before the Regional Trial Court Branch 195.

But this was denied by presiding Judge Aida Macapagal paving the way for the auction, the lawyer added.

Aside from the PEA land, the city government also purchased properties of FilStream, a privately-owned company. Several others bidded for and were awarded the company’s properties, which include condominium units, Mendoza said.

PEA and other companies can redeem their auctioned properties after a year by paying their tax obligations.

Mendoza said that if PEA fails to redeem the property, the city government would allot it for socialized housing and other projects that would benefit residents of barangays in the area.

PEA got embroiled in several graft allegations, most notably the alleged overpriced PDMB.

President Arroyo has ordered PEA’s abolition as a result of the reported controversies but it has yet to be carried out.

Mendoza said that the next public auction would be held on April 31. Among those on the auction block are properties of the Olivarez Group of Companies, owned by former city mayor Pablo Olivarez.

The conglomerate has a total of P40 million in unpaid real property taxes, said Mendoza.