THE Commission on Audit has recommended that the Privatization Management Office (PMO) investigate agency officials responsible for the non-implementation of foreclosure proceedings to collect P190.122 million from a firm owned by a former Marcos crony.
The 2022 audit report on PMO released last May 30 disclosed that foreclosure proceedings against the remaining mortgaged properties of Pamplona Redwood Veneer, Inc. (PARVI) were approved on February 10, 1999.
PARVI was a wood-product company held and controlled by Alfonso Lim Sr., a former crony of the late strongman Ferdinand E. Marcos whose various companies held 533,880 hectares of timber concessions during the Martial Law years.
Despite the foreclosure approval, however, auditors said the Assets Privatization Trust (APT), the forerunner agency of the PMO, did not enforce the foreclosure until its term ended on December 31, 2000 as mandated by RA 8758.
“Thus, the balance of P190.122 million transferred/assigned to the NG [national government] for disposition remained uncollected for more than 23 years, depriving the government of the expected economic benefits,” the Commission on Audit said.
Records showed PARVI agreed to a direct debt buy-out scheme with the APT on August 9, 1990 with a settlement price of P419.621 million.
The claim against PARVI previously belonged to the Philippine National Bank, formerly a state-owned bank, which was acquired by the APT through a 1987 deed of transfer.
PARVI’s obligations were reduced to P190.122 million through P101.745 million cash from the PNB, P135.443 million cash payment by Fuga Island Holdings. Inc., P52.514 million purchase of March Rich Pape, and P9.52 million cash payment by PARVI itself.
This left a balance of P120.398 million which went up to P190.121 million due to interest totaling P69.723 million.
During a conference with state auditors, the PMO’s Chief Privatization Officer agreed with the audit team’s recommendation to “pursue expeditious collection of the unpaid receivable of P190.122 million …to protect the interest of the government.”
Besides pursuing the collection, however, auditors said the PMO should likewise hold accountable APT and PMO officials who neglected to implement the foreclosure for more than 20 years.
“We also recommend that Management require the Deputy Privatization Officer for Legal Services to consider the conduct of an investigation on the unenforced foreclosure proceedings on the PARVI’s remaining mortgaged properties …to determine accountability thereon,” the COA said.
