THERE is more than meets the eye in the proposal of property developer Primestate Ventures to convert a major portion of Broadcast City—3.64 hectares to be exact—owned by sequestered firm IBC 13 into a mixed-use commercial and residential project.

It appears the government stands to lose billions in potential revenues from this transaction involving the prime property fronting the posh Ayala Hill Side golf subdivision and Ayala Heights village in Capitol Hills, Quezon City. It has raised quite a stink that is now the subject of intense public scrutiny.

It will be recalled that in the last few days of the Arroyo administration, the previous management of the sequestered agency entered into a “fast-break” deal with Primestate for the disposition of the property in favor of the developer.

“Fast-break” is a term coined for government projects approved hastily without going through the proper review process and procedures, usually to the detriment of the public.

The government will only be compensated the paltry sum of P278 million and offered some P75 million a year for the next six years by selling condo units and commercial spaces in the property.

We checked with our friends in the real-estate industry and we found out that the going price in the area is P40,000 per square meter. Had government sold the property at the current fair market value, it would have made P1.456 billion.

Why the government agreed to this one-sided transaction baffles me. The property, in the heart of Quezon City, is right in front of a well-manicured 18-hole golf course and is surrounded by the toniest and most expensive residential enclaves where the rich and famous live.

I think there is something irregular, to say the least, in the way the the government gave away one of its most valuable pieces of real-estate property for a song. Just imagine how much the country’s coffers stood to gain if the full amount of P1.456 billion was invested in secure financial instruments. The government would have gotten much more than what was promised by Primestate.

At a time when the perennially cash-strapped government is scrounging around for much-needed revenues to plug the yawning hole in the budget deficit, this deal with the developer smacks of highway robbery with rag-tag beggars as victims.

It also runs counter to the daang matuwid agenda of the Aquino administration. For the information of the Palace, coffeeshop habitués are shaking their heads and wondering if there were other more compelling considerations in play during the review process.

But it is not yet too late. Our government can still remedy the situation by simply following the recommendations of government lawyers to cancel the transaction.

The Office of the Government Corporate Counsel (OGCC), the Presidential Commission on Good Government (PCGG) and the Office of the Solicitor General (OSG) have already recommended the nullification of the deal entered into by the previous management of IBC 13 and the developer “for being contrary to the law.”

OGCC Chief Raoul Creencia was more forthright in declaring that the deal had already been scrapped “and we have a previous directive for it [IBC board] to recall the notice of award issued to the developer.”

The OGCC told the IBC management to withdraw the notice of award to ensure that its interests are not prejudiced. It added that the developer would be courting legal action if it were proved that it was pushing through with the construction of a “residential community” at the property covered by the voided contract.

But the Presidential Communications Operations Office, headed by Secretary Herminio Coloma, stubbornly maintains that the deal is still under review by an inter-agency committee and, thus, cannot yet be considered nullified. IBC 13, being a government television station, is under the jurisdiction of Coloma.

Why Secretary Coloma is taking his sweet time reviewing the transaction is beyond me.

His students at the Asian Institute of Management have told me that an analysis of this case study is a very simple task for Coloma. Well, it has been more than a year since the transaction has been under review. What’s taking him so long?

All he has to do is compare the amount the government stands to get under the onerous contract and the fair market value of the property and evaluate which is more advantageous to the Filipino people.

We ask him the following questions: Was there a public bidding for the transaction? Was the sale approved by the Department of Finance and the Privatization Council, as required by law? Did it comply with the joint-venture guidelines prescribed in Executive Orders 323 and 423?

Meanwhile, Primestate is already pre-selling condo units that it intends to build in the controversial property. If the transaction is still under review, why is this being allowed by government?

Creencia has urged IBC 13 to look into the pre-selling report. He even reminded the TV station’s board of directors to remain guided by the government’s opinion that the deal was null and void. But if finally, Coloma gives in to the legal opinion of government agencies junking the transaction, what will happen to the consumers who bought units in the IBC 13 property?  Will they get their money back or will they be left holding the proverbial empty bag?

I wish these government agencies would all get their acts together. The OGCC and the OSG have already spoken as advisers on legal matters pertaining to government transactions. Secretary Coloma and his office have no recourse, really, but to respect these agencies’ legal opinions on the IBC 13 property deal. Unless, of course, they can magically produce a legal justification to pursue the project.

So scrap the deal. Order a re-bidding. Make the process more transparent. And to those thinking of buying condo units at pre-selling prices, remember this: if something is too good to be true, it probably is.