BENECO directors in an interview during their regular meeting last Tuesday defended their purchase of the P183.4 million South Drive property in 2009.
Directors led by president Joey Marrero claimed transactions involving the purchased lot were above-board and underwent feasibility studies.
The South Drive lot will be the site of a new substation facility of the power utility firm.
The board has been preparing for the use of the lot in the past years contrary to claims of Councilor Fred Bagbagen, in his privilege speech to the Council, that it is “the most expensive parking lot in the city.”
Directors stressed the feasibility of their purchase, in terms of savings they will incur due to the proximity of the lot to their existing facilities, were all based on electrical engineering studies.
“We are only preparing for the electric needs of the consumers in the next 20 to 30 years,” general manager Gerardo Versoza said.
The general manager also said the credibility of realtors contacted by Bagbagen on the alleged overpriced purchase of the South Drive lot is also questionable, especially if the realtors were among the 70 realtors in the city who offered lots to Beneco.
The board was also solid in claiming the South Drive lot is not overpriced and that they have paid the right taxes to the Bureau of Internal Revenue (BIR).
They also said they paid the P14.4 million in under declared taxes slapped to them by the BIR in contest with the Department of Justice claiming the owner of the lot, the Jacinto family and the bank, and not them who should be paying these taxes.
The board discussed issues that should be explained fully by their technical study such as the conflicts of the development of their property with the city’s comprehensive land use plan.
Versoza claimed they will be able to secure exemptions and land reclassification from the city planning and development office considering them as an institutional entity as the South Drive property is classified under a residential zone.
He also said hotels and other businesses were also mushrooming over South Drive notwithstanding that the Department of Environment and Natural Resources also allowed the power utility firm to come up with a substation facility in Lamut, Ifugao even if it is inside a forest reservation.
They added their technical study contains measures to reduce impact of development to the environment as portions of it lies inside the forested area near the Forbes Park reservation.
The board of directors was unanimous in challenging Bagbagen to court if only to get fair chance to explain compared to being invited again in the City Council where parliamentary procedures and timed questioning often lead to them not explaining extensively issues asked of them.
Board member Alfredo Santos also explained questions of the councilor on the payment of retainer’s fee to lawyer Emiliano Gayo, which they claimed are more advantageous for the firm as it incurred savings from what could have been a bigger loss from labor case.
These were also paid on a staggered basis and on a reduced price in agreement with the lawyer, he said.
That is why the power utility firm’s board stressed they have been explaining issues in the form of writing to the City Council as it involves technical and financial reports.
They added to have not been missing chances to reply to the council whenever they can even agreeing to the opening of the board meetings to the media coverage. (JM Agreda)