DOTr says there’s negotiation to rent 2GO ships; Dennis Uy says it’s intended for donation

The Department of Transportation (DOTr) and 2GO Group Inc. chairman Dennis Uy have issued contradicting statements regarding the P35-million rent for the use of the logistics firm’s vessels as floating quarantine facilities for COVID-19 patients.

Responding to queries via Viber, Transportation Assistant Secretary Goddess Libiran said that “there was a negotiation.”

This after Transportation Secretary Arthur Tugade disclosed that the government is renting two ships of 2GO for P35 million.

“The first rate quoted during the initial negotiation among DOTr maritime officials and 2GO was at P120 million for two vessels for two months,” Libiran said.

“Secretary Tugade did not agree with the initial offer and insisted that it must be for free,” she noted.

The Transportation official further said that Tugade then instructed Coast Guard Commandant Joel Garcia and Transportation Undersecretary Artemio Tuazon Jr. “to talk with 2GO and negotiate further to lower the amount.”

“[The] amount was eventually lowered to P35 million to cover the necessary costs to operate the vessels, including its fuel, electricity, water, maintenance, supplies, and actual salaries of manpower of the crew and hotel staff to effectively run the ship. Secretary Tugade said that if it is the best offer, then go ahead, but without prejudice to him asking the principal for concession,” Libiran said.

In a late night statement on Wednesday, however, Uy said the “P35 million was an offer made by the DOTr, for which we had no plans of accepting.”

“To set the record straight, the actual cost to operate two vessels as quarantine facilities is at P260 million. But this was intended to be a donation,” the Davao-based businessman said.

Nevertheless, Uy said he has conferred with other shareholders of 2GO and have given explicit instructions to waive the P35 million  expected payment from the government, “and if necessary make good the said amount out of my own funds to cover for the expected expenses to operate the said ships.”

In a separate statement, the DOTr thanked 2GO and Uy for publicly announcing the waiving of rental fees for the two vessels that were mobilized as quarantine facilities.

“This is a most welcome development, and this magnanimity of Mr. Dennis Uy and 2GO all the more reinforces the BAYANIHAN spirit that prevails in this monumental effort of both government and the private sector to fight the COVID-19 pandemic,” it said.

“We take pride in this shared endeavor of the DOTr and 2GO, both of which recognized the urgency to put up the ‘Quarantine Ships’ to augment the need for quarantine facilities. And in the most transparent manner, Secretary Tugade himself laid down the terms and conditions of the lease agreement, including the negotiated rental fee, in the LAGING HANDA online public forum shown live in both mainstream and social media,” it added.

Uy not part of discussion

The Transportation department emphasized that Tugade and Uy never met, talked, and discussed the matter as “negotiations were made through proper channels.”

"To be clear, Mr. Uy was never a part of any of the discussion," Libiran said.

No actual payment

Libiran noted that “no actual payment of rent has been made by the government to 2GO Group Inc., as it was Sec. Tugade’s intention to talk with the principal of 2GO to ask for concessions.”

“Until that happens, and up to now, no payment has been made,” she said.

Meanwhile, Uy has said that “even if the government offers to pay the P35 million, we in 2GO, in good conscience, have no intentions of accepting their offer.”

The DOTr expressed gratitude to Uy and 2GO for their “generosity and upholding their social responsibility.”

“This is truly the essence of BAYANIHAN as we jointly commit to help heal our nation,” it said.—AOL, GMA News