By Danny
Dangcalan (The Philippine Star) Updated October 06, 2012 12:00 AM
BACOLOD CITY
, Philippines – After 14 months, the
Commission on Audit (COA) finally approved the contract between Ayala Land Inc.
(ALI) and the provincial government of Negros Occidental for the sale and lease
of the 7.7-hectare prime property in this city.
The
long-awaited COA approval came three weeks after ALI “disengaged” from its
proposed P6-billion development project in the said property due to alleged COA
inaction on the deed of conditional sale (DCS) and contract of lease (COL) for
the property, which were submitted to them in July 2011.
In a 20-page
resolution dated Sept. 21, 2012, a copy of which was distributed by Gov.
Alfredo Marañon Jr. to the media Thursday, COA stated that considering the
favorable recommendations of the COA audit team leader (ATL), the provincial
government of Negros Occidental, the COA regional director in Western Visayas,
the DCS dated April 26, 2012 is approved.
The DCS
states that ALI will purchase from the provincial government 3.6587 hectares of
land worth P750 million subject to an initial payment of 50 percent, with the
balance to be paid on a quarterly basis over a one-year period.
However, the
request for approval of the COL is hereby “remanded” to the ATL and provincial
government “for contract review on post-audit basis,” the COA resolution
further stated.
COA said the
request for approval for the COL is not within the jurisdiction of the
commission proper because it does not convey the title or ownership to Ayala
Land.
However, the
lease contract will be subjected to a contract review, it said. To be leased is
4.0481 hectares at P2,955,133 a month, with rent increasing at 10 percent every
five years. Ayala will deposit P35,461,356 covering one year rent, the
contracts stated.
Assistant
provincial legal officer Mary Ann Manayon-Lamis said the provincial government
will earn from Ayala Land P2.7 billion over the 50-year lease period, and P750
million from the sale package, or a total of P3.5 billion.
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