Press Release No. 133-03
3 April 2003
ON PHILIPPINE REAL PROPERTIES IN THE US : ALL PROCEDURES TO BE OBSERVED, TRANSPARENCY WILL BE THE RULE - OPLE

No final decision has yet been taken on the handling of Philippine real properties and any such decision will be made in accordance with established procedures and everything will be above board, according to Foreign Affairs Secretary Blas F. Ople.

“RP assets in the US will not be sold per se, but will be administered with the end in view of maximizing their use and value” the Secretary said.  “Some of the properties owned by the Philippine Government in the United States are underdeveloped, underutilized and in deteriorating condition”, he added.

“There is thus a clear need to administer them under established guidelines that are uniform, standard and consistent, and which ensures transparency and efficiency,” he said.

The Secretary made this statement in response to former Senator Francisco Tatad’s calls for the Senate to conduct an inquiry into the “particularly indecent haste with which the government wants [the proposed sale] consummated.”

The Privatization Council (PrC), which is in charge of maximizing the values of government assets, during its meeting of 21 February 2003, approved the proposed guidelines for the disposition of the properties in the US.  “Disposition under the guidelines refers to sale or other modes of privatization, including but not limited to joint venture arrangements, management contracts, concession, and BOT schemes and its variants,” Secretary Ople clarified.  

“The success of privatization and BOT schemes in addressing needs of Government has been established. These successes, such as the development of our Roponggi property in Japan under a BOT scheme, has moved us to study its applicability in administering our properties in the US, some of which are vacant, undeveloped, unutilized, underutilized, or deteriorating,” Secretary Ople said.

The Guidelines also ensure transparency and participation of the public through the various Government agencies.

Under the Guidelines, the Department of Foreign Affairs shall submit to the Bids and Awards Committee (BAC) a disposition plan for each specific property sought to be disposed of under the Guidelines.  The BAC is chaired by the Secretary of Foreign Affairs or his representative, with Undersecretaries of the Finance and Justice Departments as members.  At least two (2) COA representatives will be invited to observe BAC proceedings.

The BAC reviews the proposals and recommends the disposition plan to the Privatization Council.

The Privatization Council is chaired by the Secretary of Finance. Its members are the Secretary of Trade and Industry, the NEDA Director General, the Secretary of Budget and Management, the Secretary of Justice, the Treasurer of the Philippines of the Bureau of Treasury, and the Chairman of the PCGG.

Secretary Ople also pointed out that as a general rule, disposition will be through competitive and transparent public bidding.  “The Guidelines ensure that we will be able to maximize the use and value of our properties in the US through methods that are transparent, efficient, collegial and participatory, and have been proven effective,” he added.

END.