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Friday, December 15, 2006
Gov't insurance firm to seize Baguio convention hub
By Rimaliza Opiña
BAGUIO CITY -- An official of the Government Service Insurance System (GSIS) said Thursday the agency would sequester the Baguio Convention Center (BCC) if the City Government still fails to pay the facility's annual amortization.
In a meeting with acting Vice Mayor Leandro Yangot Jr., city councilors and members of the local finance committee (LFC), GSIS senior vice president Renato Santico said they are ready to cancel the memorandum of agreement (MOA) with the City Government because of the delinquencies incurred.
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Reiterating a condition of the agreement, which states that failure to pay even just one annual amortization would result in the termination of the agreement, Santico said the GSIS would have taken over the BCC the first time the City Government failed to pay.
However, he said they decided to reconsider in light of the highly publicized non-remittance by the Bases Conversion and Development Authority (BCDA) of the city's shares from the lease rental of Camp John Hay (CJH).
While aware of the situation, Santico said the GSIS could not interfere in whatever agreement the City Government has with the BCDA.
The City had issued demand letters to the BCDA in 2004 and 2005.
Santico said the 2006 amortization was due last January yet but GSIS, apart from the P50-million down payment, has not received any more payments.
Under the agreement, the city will pay P25 million annual amortization to GSIS for a period of 11 years.
If no payment is made, a 60-day grace period is observed before GSIS terminates the MOA. After 30 more days and due notices, physical possession of the facility would then take place.
BCDA officials' abrupt cancellation of their commitment to attend the invitation of the City Council to a meeting to thresh out Camp John Hay issues irked city officials.
"They (BCDA officials) can't make it today for reasons known only to them," Yangot said prior to the executive-legislative meeting Thursday afternoon.
City officials, who practically begged GSIS representatives to hold in abeyance their takeover of BCC, said aside from issuing a "strongly worded" demand letter to BCDA, they would schedule an appointment with President Gloria Macapagal-Arroyo to discuss the unpaid lease rentals when she comes over to Baguio for her Christmas vacation.
In the meantime, Santico said he would report the results of his meeting with City Government representatives to other GSIS officials, assuring that whatever would be agreed upon at the central office would immediately be relayed to the City Government.
The City Treasurer's Office (CTO) said that in its computation, the 25 percent share of the city from CJH's operation as of 2006 stands at P590,131,245. (Sun.Star Baguio/Sunnex)
For more Philippine news, visit Sun.Star Davao. (December 15, 2006 issue)
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