The House of Representatives will invite anew Trade and Industry Secretary Ramon Lopez to its inquiry, in aid of legislation, on the allegedly grossly disadvantageous lease contract entered into by the Department of Trade and Industry (DTI), the Philippines Exporters Confederation, Inc. (PHILEXPORT) and the Manila Exposition Complex, Inc. (MECI).
The House committee on good government and public accountability chaired by Rep. Johnny Pimentel (2nd District, Surigao del Sur) will invite anew Lopez to its inquiry after the DTI official failed to attend its hearing last week.
Rep. Doy Leachon (1st District, Oriental Mindoro) presided the hearing when Lopez was absent. The inquiry is based on House Resolution No, 1188 authored by Rep. Ben Evardone (Lone District, Eastern Samar) and Salvador Belaro Jr. (Party-list, 1-ANG EDUKASYON).
The hearing was attended by resource persons from the DTI, Commission on Audit (COA), Office of the Executive Secretary, Office of the Government Corporate Counsel (OGCC), Philippine Exporters Confederation, Inc. (PHILEXPORT) and Manila Exposition Complex, Inc. (MECI).
During the hearing, Evardone asked why Lopez was not around despite an invitation earlier sent to him by the committee secretariat. “May we ask for the reason why the DTI Secretary is absent for the second time around in connection with this proceeding?” Evardone said.
DTI Assistant Secretary Ireneo Vizmonte said “The Secretary is not available for this week and he gives his apology. I am not exactly aware of the reason why he is not available today, but I know for sure that he has another meeting or activity to attend.”
Evardone said the committee could not proceed with the hearing without the presence of Lopez.
“Unless you are ready to present the Secretary’s position on the EDC,” he told Vizmonte.
But Vizmonte said they could not speak in behalf of the Export Development Council.
Leachon asked the committee secretariat to send another letter of invitation to Lopez to attend the next hearing.
HR 1188 provides that the Accredited Export Organization (AEO) is a single umbrella organization selected by the Export Development Council (EDC) to represent the concerns and interests of the export sector. The accreditation shall be for a period of three years which may be renewed upon review by the EDC, In this regard, Republic Act 7844, otherwise known as otherwise known as the Export Development Act of 1994,” allows the AEO to, among others, manage the Philippine Trade Centers (PTC) and the authority to enter into contracts with promotion facilities or functions;
It further states that Rule HI, Section 1 E of the Rules and Regulations to Implement the “Export Development Act of 1994” allows an organization to be selected as the Accredited Export Organization if it is the dominant one among the existing export organizations. In this regard, the AEO should be a non-stock and non-profit organization championing the interests of the private sector exporters, and representing the biggest number of active and multi-sectoral membership of direct, indirect, and service exporters.
PHILEXPORT was selected by the EDC as the AEO in accordance with RA 7844.
In furtherance to the purpose of RA 7844, Executive Order No. 289, s. 1995, identified the parcel of land to be leased by PHILEXPORT. Accordingly, the parcel of land identified consists of 50,642 square meters, more or less, and is covered by the Transfer Certificate of title (TCT) No. 34996. The subject property is situated along Sen. Gil Puyat Avenue corner Macapagal Boulevard and Roxas Boulevard, and had been occupied by the Center for International Trade Expositions and Missions (CITEM), an attached agency of DTI, in accordance with E.O. 989, series of 1984.
Section 3 of E.O. 289 provides that land shall be leased for a fixed amount of P1,000 a year and shall house the PTC and other complexes, including the World Trade Center (WTC) to serve primarily as the venue for international exhibitions.
On January 23, 1996, the Contract of Lease was entered into by the Government of the Philippines as represented by DTI, PHILEXPORT as the Lessee, and MECI as the Sublessee. The Contract of Lease has a term of 50 years and may be renewed for another 25 years. Accordingly, the rental fee is in the amount of P1,000 per year.
A Contract of Sublease between PHILEXPORT and MECI was executed by PHILEXPORT and MECI on the same date. The Contract of Sublease also has a term of 50 years and may be renewed for another 25 years. However, the rental fee to be paid for by MECI to PHILEXPORT shall be based on a fixed rate or on revenues received by MECI, whichever is higher.
As provided in the Contract Lease and Contract of Sublease, MECI is obligated to establish the World Trade Center Complex which shall include an office-cum-commercial building. In this regard, the Government intended to occupy office spaces in the building and to shoulder the costs proportionate to the space occupied.
The leased property does not appear to have been developed in accordance with the intent of R.A.7844, E.O. 289, the Contract of Lease and the Contract of Sublease dated January 23, 1996.
According to resolution authors Evardone and Belaro, the rental of P1,000 per annum for period of 50 years is grossly disadvantageous to the Government resulting in substantial loss in possible revenue considering the prime location of the property.
They cited that due to the non-compliance of PHILEXPORT and MECI, the Government has been deprived of office spaces to be used by various government agencies, and more importantly, the Filipino exporters have been deprived of the much-needed government support as intended by RA 7844. (CONGRESS-PR)
