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THURSDAYtanuary:o,zozo
Review onerous deals,
Congress prodded
THE House of Representadves was
prodded on Wednesday to rwiew
alleged onerous deals and contracts
between the govemment and pri vate
companies in order that these could
be rectified.
Former Bayan Muna party-list
representative Neri Colmenares said
Congress should look into question-
able contracts.
"Congrcss must investigate these
onerous contracts to identify those
responsible forsuch one sided con-
tracts. Review of onerous contacts
must not be left to the unilateral
discretion of Malacaiang," Col-
menares said.
He issued t}Ie statement after Fi-
nance Secretary Carlos Dominguez
3rd described as'onerous" t}te con-
tact entered into by the National
Development Co. (NDC) with
Chevron Philippines (Caltex) for
the lease of a 120-hedare property
ofthe Batangas Land Co lnc.JBLCI)
in Bafangas City which serves as the
company's main depot.
Dominguez said last week that the
BLCI will be abolished in 2021. He
explained that this action would al-
low the govemrnent "to exercise full
ownership, control and ghts over
this prime lot and other real estate
propenies occupied by Chewon.'
According to Dominguez, Chev-
ron will rent the property for 50
years at P0.74 per square met€r
instead ofP17.90 per square meter.
In 44 years, Chewon has only paid
P146.51 million or P3 million every
year for the lease ofthe property. The
Financt driefsaid the ralue ofthe land
in the cunent market would reach
P4.9 billion thus, ia lease price should
be P257.7 million arnually.
Chewon, howevet clhimed that
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its lease contract with BLCI 'was
entered into in compliance with all
Philippine laws and regulations."
Colmenares said if Chevron's
contmct was onerous, it should be
rectified. He however, added that his
group was opposed to the govern-
ment's plan to recover tle Batangas
property in favor of President Ro-
drigo Dutene's "cronies. "
There had been reports that Davao-
based businessman Dennis Uy was
interested in the Batangas property.
Uy's Udenna Corp. owns 45 per-
centshare of Malampaya Cas in
Palawan.
A resolutiqn seeking an inves{i-
gation, in aid of legislation, of the
concession agteements between the
govemmeIlt and Manila Water Co.
Inc. and Maynilad Water Services
Inc. ilp€nding at the House.
The resolution was filed on Dec. 4,
201 9 by BaFn Muna Partylist Repre-
sentatives Carlos Isagani Zarate, Ferdi-
nand Gaite and Eufemia Cullamat.
New agreement
Meanwhile, the Department of
Trade and Industry said Chevron
may enter into a leasing agreement
or renegotiate another joint venture
with the govemment.
Trade Secetary Ramon Lopez said
selling the 120-hectare Batangas
property was not an option as the
government would like to b€nefrt
on its appreciating value.
A liquidation committee will be
formed upon the dissolution ofBLCI
next year, lopez said, to consolidate
company assets and gain full owner-
ship, buying out Chewon shares.
REINA TOLENTINO
AND TYRONE C. PIAD