PSALM hires appraiser for Napocor art collection

The Power Sector Assets and Liabilities Management Corporation (PSALM) hired an appraiser for National Power Corp.'s (Napocor) 116 artworks ahead of their disposal in the next two years.   PSALM president and CEO Emmanuel Ledesma said they cannot say yet how much the artworks will cost if disposed of but that some of the paintings could be valuable.   "We have just procured the services of an appraiser. We have works done by Sanso, Joya, Baldemor, among others," Ledesma said, referring to famous Filipino artists.   PSALM hired Summa-Hana Arts and Language Foundation Inc., said Ronald Conquilla, the acting chief-of-staff of Ledesma, in a telephone interview with GMA News Online. Summa-Hana Arts is a non-stock, non-profit organization that promotes, develops and supports the arts. Among its specialized activities, the group sponsors art exhibits and markets Philippine art works.   PSALM conducted an inventory in August, which revealed that the entire collection comprised 116 artworks, with 60 paintings classified as done by professional artists, 55 paintings by amateur artists, and one painting unclassified due to unavailable information.   PSALM said Monday in a report that it officially assumed ownership of the artwork collection upon implementation of Napocor's asset and debt transfer in October 2008.   The artworks are included in the properties recorded by Napocor under the general plant equipment account. But the paintings are not yet part of the agency's book of accounts, according to PSALM.   As partial reconciliation and adjustments in its retained account, PSALM said the cost pertaining to Napocor’s artwork collection should be transferred and recorded in the PSALM book of accounts using the appraised value of the paintings.   "Considering that a number of the artworks have no cost, and those artworks with cost are not updated, appraisal/valuation is necessary in order to determine the market value of all the paintings which shall be used as basis the for transfer to the PSALM book of accounts, as well as to authenticate and update the specifications of the paintings," it said.   PSALM said the revised guidelines on appraisal of property under Commission on Audit Memorandum No. 98-569A — dated August 5, 1998 — do not cover the appraisal of real estate, antique property and works of art.   "As such, the services of a third party appraiser are necessary to carry out the appraisal of the artwork collection," it said.   The appraisal is in line with the agency's corporate target to dispose 50 percent of the artwork collection next year and the remaining 50 percent in 2013.   "The fair market value resulting from the appraisal of the artworks will be used as one of the reference values in determining the reserve price of the artworks," it said.   PSALM said the declared values of these artworks will be used to update the insurance cover and for other financial reporting purposes. It said the fair market value will also be used as one of the reference values in determining the reserve price of the collection in the event these artworks will be sold.   In a separate telephone interview, Napocor spokesperson Dennis Gana told GMA News Online the artwork collection was acquired over the years and money from the sale should be used to pay off NAPOCOR debts.    “Kung na-ayon [ang disposal of artworks] sa EPIRA (Electric Power Industry Reform Act), well and good, but if not, then some people should look into it, because these are priceless artworks, eh,” said Gana. — VS, GMA News