Duterte OKs probe of Ayala land deal
Credit to Author: Catherine S. Valente, TMT| Date: Thu, 23 Jan 2020 16:13:28 +0000
President Rodrigo Duterte has given the green light for the review of the lease contract between the Ayala Group and the University of the Philippines (UP), Malacañang said on Thursday, following allegations that the state university might be on the losing end of the deal.
Palace spokesman Salvador Panelo said the President agreed with his recommendation to look into the deal. He bared that the investigation might be initiated either by his office or the Department of Justice.
“Sabi niya kailangan talaga pag-aralan ‘yan (He said we really need to study that),” he added.
Panelo had claimed that the company is renting the 37-hectare property, but is paying a measly P22 per square meter (sqm) a month. Ayala Land, however, said it was paying P171 per sqm monthly.
“They’re saying that UP will receive P171 per square meter ang magiging renta (in rent).
And at the end of 25 years, UP retains the ownership, plus 16 commercial buildings. Even assuming that to be true, palagay ko may problema pa nga sila eh (they might still have a problem),” said Panelo, who also serves as Duterte’s top legal counsel.
“We will investigate. We will review para malaman namin kung totoo o hindi (so that we know if this is true or not). In other words we do know exactly what,” he added.
Meanwhile, Panelo assured the business community that Duterte would continue to respect the sanctity of contracts, except for those with alleged irregular provisions that violate the country’s laws.
“Let me allay the fears of foreign investors,as well as Filipino businessmen. You don’t have to worry about the review because if there’s nothing [wrong] with your contracts, there is nothing to worry about,” Panelo said.
“The President will certainly respect the sanctity of contracts except only when from the very provisions it appears to be contrary to law, contrary to public interest and public policy,” he said.
“Any pronouncement that says that the government will examine, evaluate or review onerous contracts is not something that businessmen should be afraid of. Because it is the duty of the government precisely to protect the interest of the Filipino people,” Panelo added.
Worried
The Palace announcement of a probe alarmed Technohub employees, who expressed fear that they might lose their jobs.
Ayala Land Inc. Technohub employees, particularly those in the business process outsourcing, admitted that they were worried that the investigation would adversely affect them.
“Sa mga nangyayari ngayon at sa mga nababasa mo, nakakatakot na baka isang araw magising ka na lang na wala ka na palang mapapasukan kasi ipinasara na (I’m afraid that one day I will wake without a job because [Technohub] has been closed),” said Virmel Villareal, 31, who works at Synnex-Concentrix.
Villareal said her colleagues were saddened upon learning that the UP-Technohub is facing investigation.
“Nananawagan po kami kay Pangulong Duterte, huwag naman sana kaming mawalan ng trabaho. Napakahirap mawalan ng trabaho sa panahong ito (We are appealing to the President, it is hard to lose a job),” he said.
Paula Biazon, another Synnex-Concentrix employee, expressed hope that the looming probe would not affect the workers.
Employees of Convergys also expressed hope that workers would not be affected by the probe.
UP Vice President for Public Affairs Elena Pernia said the university was willing to renegotiate its lease agreement with Ayala Land Inc.
In 2006, Ayala Land entered into a 25-year lease contract with UP to develop and convert the 37-hectare land near the Diliman campus.
WITH FRANZ LEWIN EMBUDO