A HOUSE leader on Tuesday called for a congressional inquiry into a disadvantageous lease contract involving prime government real estate stretching over five hectares on Roxas Boulevard.
Eastern Samar Rep. Ben Evardone, in filing House Resolution 1188, asked the House of Representatives committee on good government and public accountability to review the reported non-performance by private parties Philippine Exporters Confederation Inc. and Manila Exposition Complex Inc. of their obligations under the contract.
Under the Contract of Lease signed Jan. 23, 1996, the Department of Trade and Industry rented the 50,642-square meter lot to PhilExport for only P1,000 per year for 50 years renewable for another 25 years.
In the same deal, PhilExport was allowed to sub-lease the property to MECI based on a fixed rate or on the latter’s earnings, whichever is higher.
The contract required MECI to establish the World Trade Center complex which shall include world-class exhibition halls with office spaces for government agencies in the building.
But Evardone said the government appeared to have been shortchanged because the leased property had not been developed in accordance with the intent of the contract and R.A.7844, or the Export Development Act of 1994.
Evardone said the liberal term of lease was intended to promote export development to transform the Philippines into an exporting nation but while the government held up its end, its private partners underdelivered on their commitments.
“The rental of P1,000 per annum for 50 years is grossly disadvantageous to the government resulting in substantial loss in possible revenue considering the prime location of the property,” said Evardone.