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AN
official of the Department of Foreign Affairs (DFA) has
admitted an irregularity was committed in the
government’s move to rescind the P5-billion award to
Japanese firm Nagayama Teisei Consortium (NTC) to
develop the Philippines’ Nampeidai property in Tokyo,
and to subsequently award the developing rights to
Nagayama’s erstwhile consortium partner Tsuchiya.
“I must
admit, there was indeed an anomaly. I believe the
government should give the award to Nagayama because
it’s the one which won in the bidding, and not
Tsuchiya,” said an official of the DFA, who requested
anonymity.
A
Philippine court last week issued an injunction against
officials in Manila who sit on the bids and awards
committee (BAC), notably officials from the finance and
foreign affairs departments; and stopped Tsuchiya from
demolishing the existing structure on the Nampeidai lot
and developing the area, as the BAC had earlier allowed
it to.
Nagayama
had gone to court after the Philippine government
ignored its move to rescind the special power of
attorney (SPA) that Nagayama had given to Tsuchiya after
their falling out. The BAC—or only half of its
members—acceded to Tsuchiya’s representation to be
designated the virtual awardee, and then took steps to
start developing the property.
Senate
Minority Leader Aquilino Pimentel Jr. recently warned
the Philippine government that if it fails to promptly
and satisfactorily resolve the issue, such questioned
shift in bid award could taint its image in the global
community. The standoff is also seen derailing Manila’s
efforts to bid out developing rights on its other prime,
war-reparations properties in Japan—a crucial aspect in
its privatization and revenue-buildup program in 2008.
Meanwhile, the DFA official told the BusinessMirror the
government continues to lose millions of dollars in
revenues from the delay of the disposition of the
Nampeidai property.
He said
the government is currently reviewing the terms of
agreement entered into with Nagayama to rescind the
contract and conduct a new bidding.
But, the
official said, the government is in a bind over the
issue because Nagayama had already paid ¥480 million
(about P186 million at the current exchange rate) last
year as development fee.
“The
terms with Nagayama include the payment of ¥480 million
development fee; and then, to develop the property.
Under the agreement, the Philippine government shall
have two floors of the building, and after 20 years, the
state shall acquire the whole property,” said the
diplomat.
Nagayama
won the rights to develop the Nampeidai property in
2005, and consequently issued a special power of
attorney to Tsuchiya that enables the firm to negotiate
a service and development agreement with the government.
But in
March 2006, Nagayama revoked the SPA it issued to
Tsuchiya, citing loss of trust and confidence.
The
decision prompted Malacañang to rescind the contract
with Nagayama and recognize Tsuchiya as the winning
developer for the Nampeidai property.
Two
government officials did not sign in the renewed
contract with Tsuchiya, however.
“We are
not saying that Tsuchiya could not develop the property.
We just go by the law. It was Nagayama that won the
bidding, and awarding the project to Tsuchiya is not
just fair and legal,” conceded the DFA official.
“We
really need to settle this issue because it is the
government that’s losing money,” said the DFA official. |
