Tadeco welcomes gov't review on JV

The Tagum Agricultural Development Co., Inc. (Tadeco) welcomed the call of the government to review their joint venture (JV) agreement.

Alex N. Valoria, Tadeco president, said since 2012, the contract has been subject of three congressional hearings by the committee on agrarian reform of the House of Representatives.

“Our relationship with Bureau of Correction (Bucor) is a JV, not a lease agreement,” Valoria said.

The result of the first review in 2012 stated the JV was in order and was important to the government, as the company “contribute to the Department of Justice (DOJ) and Bucor and provide trainings and incomes to the latter’s inmates,” said the government agencies in their position paper.

The executive department has also conducted its own reviews of the contract.

Valoria pointed out that before the call was made, the company and the government, represented by Bucor, were scheduled to meet for their quarterly meeting next month to discuss the agreement and other related issues.

A provision of the agreement created the joint venture agreement management committee to oversee its implementation and address concerns.

Valoria said the company has always been open to call for adjustments in the benefits that the government derives from the JV as well as the benefits that go to the community and the inmates.

"In the past, when government asked for adjustments, the company readily accommodated them, noting that the times are changing, although the contract provides for escalation clause," he said.

On the participation of Rep. Antonio Floirendo Jr. in the company, company documents showed he resigned from his position in 1999 when he became a member of Congress.

“He never participated in the negotiations while serving as member of Congress,” Valoria said.

The JV, which covers 5,308 hectares at the Davao Prison and Penal Farm reservation, has benefited about 3,500 inmates every year with an average daily deployment of about 1,000 inmates every day under the Inmates Farm and Training and Exposure Program.

On financial benefits and assistance to Bucor, the JV resulted in about P1.642 billion in financial benefits until 2016, about P15.432 million in fixed program assistance during the period, P3.831 million in infrastructure assistance, and P2.205million in other forms of assistance.

On employment generation, about 18,580 jobs were created for inmates and other workers and resulted in about P3.1 billion in annual salaries.

Valoria said figures that came out of a recent news report were wrong because it only pertained to the 2003 guaranteed income and excluded the profit sharing and other benefits.