Sequestered asset sales to raise P23B

REPORT FROM BUSINESSWORLD A GOVERNMENT AGENCY tasked with recovering the Marcoses’ ill-gotten wealth is planning to sell some P23 billion worth of recovered assets over the next three years. "We have to generate income for the government under terms advantageous for us, subject to the final approval of the Privatization Council," said Alfredo dela Paz, director of the Presidential Commission on Good Government’s (PCGG) asset management department director. PCGG documents show over half the assets (63.55%) as real property worth P14.91 billion, a little under a fourth (22.72%) comprising shares of stock worth P5.33 billion, and the rest involving broadcast assets worth P3.08 billion. Another P137.5 million is expected to be raised from the sale of jewelry. The shares sales are to be prioritized, Mr. dela Paz told BusinessWorld, with a start before the year ends a possibility. "Inuuna namin ang walang masyadong problema (We are prioritizing the sale of assets with minimal issues)," he said. "Maganda ang market (the market is good) for mining shares. This year, we want to sell the mining shares and all listed shares," he added. Mr. dela Paz said the PCGG would seek the Privatization Council’s approval and was coordinating with sequestered Independent Realty Corp. (IRC), which holds the mining shares, on the submission of a sale proposal. "It is important to submit the proposal to the Privatization Council this year. If this gets approved, we can start November to December...," he said. IRC was surrendered to the PCGG by businessman Jose Yao Campos, who admitted that he had been holding it for the late president Ferdinand E. Marcos. The PCGG documents show that among the sequestered holdings, and their estimated worth, are: - 253,044 shares in Atlas Consolidated Mining & Development Corp. (P3.29 million); - 1,811 shares in Baguio Gold Holdings (P1,811); - 159.55 million shares in Lepanto Consolidated Mining Co. (P36.19 million); - 225.85 million shares in Oriental Petroleum Minerals Corp. (P4.51 million); - 1.25 million shares in Philex Mining Corp. (P6.74 million); - 15.4 million shares in Philippine National Construction Corp. (P154 million); - 24.03 million shares in Philodrill Corp. (P456,570), and - 28,195 shares in Trans-Asia Oil & Mineral Corp. (P28,195). Mr. dela Paz said a 2.34% stake in Manila Electric Co. (Meralco) was also expected to be sold as part of the effort to raise more revenues. Asked about nonlisted entities, he said a bidding or negotiated sales could be staged depending on the mode approved by the Privatization Council. The PCGG has a 72.4% stake in Radio Philippines Network, Inc. (RPN-9) with an estimated value of P1.3 billion but 40% of the firm is subject to a pending case. It also has a 34.9% stake in Philippine Overseas and Telecommunications Corp. (POTC) equivalent worth P1.41 billion. The Senate, however, has recommended that the POTC stake be handled by the Privatization and Management Office. The PCGG documents also list the following assets as up for privatization: - 204,000 shares in Acoje Oil Exploration & Drilling Co. (P204,000); - 8.4 million shares in Chemfields, Inc. (P210 million); - 2.65 million shares in Eastern Telecom Phils., Inc. (P106.08 million); - 129,375 shares in Imperial Insurance (P1.29 million); - 12,445 shares in Oceanic Wireless Network, Inc. (P80.27 million); - 3,700 preferred shares in Philippine Long Distance Telephone Co. (P37,000); - 15.4 million shares in Philippine National Construction Corp. (P154 million); - 26 million shares in Philippine Oil Geothermal Energy, Inc. (P260,000); - 35,000 shares in Port Center Development Corp. (P350,000); - two membership shares in Puerto Azul Golf and Country Club (P150,000); - 60,014 shares in Razon International Stevedoring Corp. (P6 million); and - 562,715 shares in Benguet Consolidated, Inc. (P14.22 million). The PCGG is also proposing a negotiated sale for a 50% stake in Showa United Food, Inc., which has not been operating for 30 years. The Camposes, through Greenfield Development Corp., want full ownership of the firm since it has parcels of land in Bataan. "A negotiated sale is simpler. If you bid it out, who will be interested in a nonoperational company?," Mr. dela Paz said. "Only 50% of the company was surrendered. That is why we have very limited options here." Sequestered broadcast station IBC-13, meanwhile, has an estimated value of P3.07 billion which covers its physical assets and franchise, while DWAN Radio was said to be worth P1.36 million including broadcasting and office equipment. Among its list of real properties, the 184,891-square meter Payanig property in Pasig City was said to be worth the most at P13.87 billion, followed by the 46,688-square meter Bredco property in Bacolod City worth P280.13 million and the 4,038-square meter Mapalad property in Parañaque City worth P246.96 million. Other properties include: - a 2,012-square meter Wack-Wack property (P80.48 million); - a 480-square meter lot on Kingswood St. Emerald Court in Caloocan City (P1 million); - a 300-square meter lot along Maligaya St. in Pangarap Village, Caloocan City (P250 million); - the 2,677-square meter Banaue Inn Compound in Baguio City (P5.35 million); - 65,669 square meters of IRC reconveyed land in Cavite (P32.33 million); - 1.52 million square meters owned by Piedras Petroleum Corp. in Mariveles, Bataan (P70.02 million); - 42,043-square meters of land in Tagaytay City (P98.8 million); - the 17,516-square meter J.Y. Campos Compound in Baguio City (P130 million), - 3,875-square meter Hans Menzi Compound in Baguio City (P34.66 million); and - the 1,146-square meter Wigwam Compound in Baguio City (P14 million), among others. — R. A. M. Rubio/BusinessWorld