BCDA: 'Swiss challenge' for Bonifacio South prioritized profits over AFP modernization

The Bases Conversion and Development Authority on Friday said the recent Supreme Court decision place Bonifacio South Pointe under a "Swiss challenge" based on SM Land Inc.'s proposal seemed to have prioritized the commercial interest of the company over the Armed Forces of the Philippines' modernization. 

 

"We find the decision to be quite disturbing considering that commercial interest has been prioritized over national security and the lives of the soldiers who defend and protect our country, not to mention threatening the level playing field for business," BCDA president and CEO Arnel Paciano D. Casanova said.

 

The 13-page decision penned by Associate Justice Presbitero J. Velasco Jr. of the SC Special Third Division affirmed its August 13, 2014 decision and denied with finality the BCDA's motion for reconsideration to refer the case to the SC en banc. 

 

The decision compels BCDA to subject the property to a Swiss challenge rather than a public and competitive bidding. A Swiss challenge is when a government agency gets an unsolicited proposal for a project, publishes it and invites other parties to match or exceed the proposal. 

 

"A Swiss challenge will discourage the participation of other players because it creates a scenario where other players are playing catch up instead of being co-equals in a level playing field," Casanova said.

 

AFP modernization

 

Casanova said that the SC decision stands in the way of efforts to generate the much needed funds in modernizing the Armed Forces of the Philippines. He said the government will lose some P12 billion when it disposes the 33.1-hectare Bonifacio South Pointe through a Swiss challenge. 

 

The AFP stands to get 50 percent of the proceeds from the sale of the property.

 

"In light of the territorial dispute the country is facing in the West Philippine Sea,  military hardware worth P6 billion will go a long way to protect and defend the country," Casanova  said.

 

He said the current zonal value of the Bonifacio South Pointe property is P100,000 per square meter while Cuervo Appraisers appraised its market value conservatively at P78,000 per square meter. 

 

However, SM Land Inc.’s offer at P38,500 per square meter is barely half the current market value, according to the BCDA. – Trisha Macas/VS, GMA News