Rotary Park 'rob-out'

Sumagaysay

PPA port manager for Panay and Guimaras, Rosenda Sumagaysay says the construction of a mall with a ferry terminal at the Fort San Pedro area, is in full swing despite opposition to the privatization scheme that exposes government and taxpayers at the receiving end.

Sumagaysay however, denies the PPA has a hand on the mall with a ferry terminal being built on a 1.8 ha.prime property that government owns.

PPA used to administer the property before, the area called "Rotary Park" where small businesses thrived. Government spent millions clearing the area by relocating more than 50 stalls and houses.

In 2010, newly installed President Benigno Aquino issued a proclamation handing over ownership of the property to the city government. The DOTC, mother department of the PPA, spent P125M to erect a berthing and landing area for small crafts. However, after completing the job, it issued a waver in favor of Double Dragon empowering the latter to manage it and charge and collect landing and berthing fees from small ship operators -- mostly those connecting Iloilo and Guimaras.

People like Manuel "Boy" Mejorada questioned the privatization, euphemistically called Public-Private Partnership (PPP), for violations of procedures. Mejorada tags it "disproportionately loopsided against the government".

In 2010, newly elected Kagawad Plaridel Nava exposed the PPP deal saying the city government would only get a pittance in the "sharing scheme".

"In the first five years, the city government will be getting as share about P16-18,000 monthly, equivalent to one percent share, which is too measly," said Nava. The contract spans 25 years. The first five years, the city gets 2% share from the revenues of the passengers' terminal, to increase by 1 percent every five years until it reaches 5%.

The contract, loopsided to government and taxpayers, is extendible at the option of the favored beneficiary, Double Dragon.

Nava told this reporter that if the city government would just lease the space to small and medium entrepreneurs they would be getting many times more in rent.

Double Dragon, under the deal, will be building a structure to house the terminal, while the rest of the spaces will be leased to grocery and department stores.

The memorandum of agreement between Double Dragon and Iloilo City though has not been made public. It is not clear whether the city is entitled to share from rents paid by other lessees of the mall.

Here is one instance where govenment poured P125M developing a wharf for small ships only to hand it over to a private group after completion.

Here is one instance where the Iloilo City government is given a rare opportunity to own a prime land of 1.8 ha. only to hand the same gratis et amore, de facto, to the same beneficiary of the free wharf.

Ka-cute noh?

Bwisit nga Franklin Drilon!