The leader of the House of Representatives has recently filed a resolution investigating the “grossly disadvantageous” 25-year lease contract signed by the Bureau of Corrections (BuCor) and banana firm Tagum Agricultural Development Co. Inc. (Tadeco).
In House Resolution 867, Speaker Pantaleon D. Alvarez has directed the House Committee on Good Government and Accountability to look into the lease agreement where the government would get a guaranteed payment of P26.542 million per year for using the Davao Penal Colony’s 5,308 hectares of land. Tadeco is owned by the family of Davao del Norte Rep. Antonio Floirendo Jr., the biggest campaign financier of President Duterte.
According to Alvarez, Tadeco and the BuCor entered into a joint- venture agreement (JVA) on July 11, 1969, allowing the company to lease from BuCor land located in the Davao Penal Colony for the former’s banana plantation.
“Tadeco and BuCor executed a consolidated JVA dated September 26, 1979, in which the former leased 5,212.46 hectares of land from the latter, and combines the provisions of said joint-venture agreement and all its amendments and supplements into a single instrument that will serve as the sole repository of the terms and conditions thereof; and extended the lease period to 25 years, interestingly, instead of the reported prevailing practice of leasing with a term of just 10 years,” Alvarez said.
In 1989 Alvarez’s resolution said the consolidated joint venture agreement was amended to escalate rates in land rentals, royalties and profit shares.
On May 21, 2003, Alvarez said it was renewed, and based on the new contract, the BuCor shall receive a guaranteed annual production share of P26.54 million, which will automatically increase by 10 percent every five years.
2 comments
It seems that Alvarez is gunning after everybody, even his own friends. This agreement between the Bucor and Floriendo’s company have been in place for too long and it has worked for both parties because it actually benefits both of them. Maybe Alvarez wants a piece of the pie or maybe he is just too power hungry.
Alvarez is suddenly looking into this simply because he wants the profit all to himself. The motives of our (dis)honorable power hungry, greedy and corrupt Speaker of the House is all too obvious.