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Monday, May 16, 2005
Gov't help sought in review of mall contract
By Dante M. Fabian
ANGELES CITY -- Local officials of this city are set to appeal to President Gloria Macapagal-Arroyo to order a review of the contract allowing SM to establish a mall in the Clark economic zone.
The City Council passed a resolution recently urging Arroyo to direct the Bases Conversion Development Authority (BCDA), Clark Development Corporation (CDC), National Economic Development Authority (Neda) and other concerned government agencies to conduct the assessment.
The measure, authored by Councilor Jay Sangil, sought a review of the agreement entered into by Premier Central Inc. of the SM mall chain and Emmanuel Y. Angeles, former CDC president and chief executive officer.
Sangil said there is a need for the review, citing persistent claims of dislocation of local businesses and deprivation of much-needed revenues for local government units surrounding the zone.
He said specific provisions of the SM Clark agreement are still kept hidden from the public and local officials in Angeles City who will be affected by the establishment of SM Clark Mall.
"Long after the heated discussions through rallies, public forums, and radio and television shows have gone down, there remains to be an overwhelming public clamor for the government to reconsider its decision to allow the establishment of SM Mall in Clark," Sangil said.
"The clamor from local businessmen and traders who have banded themselves together doesn't remain to be an empty call, but a valid claim where livelihood and the future of local retailers are at stake. We wish to make clear at this point that we are not anti-development or anti progress," the councilor said in his privilege speech delivered during the session.
"We welcome progress but not at the expense of many of our Cabalens, the local traders who will be affected by the mall project in Clark," he emphasized.
Sangil said the government should address apprehensions and claims that given the locator-status, SM Clark Mall will put at a great disadvantage local retailers and traders.
He echoed apprehensions among the local business sector that this locator-status of SM Clark Mall means the grant of privileges of exemption from taxes and duties including being exempted from paying value-added tax (VAT) and other forms of local and national taxes.
Sangil observed that this arrangement creates an uneven playing field, putting local traders at an unfair competition against a giant commercial entity.
"Aside from locator privileges and issues of taxes, there remains to be unanswered questions as to payment of permits and licenses to the local government units that host the Clark Special Economic Zone," Sangil said.
"For these reasons, there is an imperative need to address all these concerns, if only to manifest government sincerity in creating equal opportunities and transparency in all of its transactions," Sangil further said.
Sangil clarified that as a Clark Ecozone locator, SM Clark enjoys incentives such as VAT exemption, non-payment of sales and business taxes, amusement taxes, and real property taxes, among others, to the local government units.
He said with privileges granted to SM Clark, an inequitable situation exists in the commercial market of Angeles City.
(May 16, 2005 issue)
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