2GO to refuse payment for 2 vessels
GO Group Inc., an affiliate of businessman Dennis A. Uy’s Chelsea Logistics and Infrastructure Holdings Corp., said it is waiving the P35-million rental fee that it was supposed to charge to the government for the use of its ships as quarantine facilities.
Uy, chairman of 2GO, said late Wednesday that he has “given explicit instructions to waive the P35 million expected payments from the government” and that he is willing to shell out an additional P35 million more “out of my own funds” to cover the expenses of the operations of the 2 ships.
“I apologize if this news has unduly offended some of our fellow Filipinos, so let me be clear, 2GO is providing 2 vessels to serve as quarantine facilities free of charge to the Filipino people. Even if the government offers to pay the P35 million, we in 2GO, in good conscience, have no intentions of accepting their offer,” he said.
The company received much criticism online on Wednesday afternoon, after Department of Transportation (DOTR) Secretary Arthur P. Tugade announced that the Philippine Coast Guard (PCG) will pay 2GO P35 million for the operation of the 2 quarantine ships.
“To set the record straight, actual cost to operate the 2 vessels as quarantine facilities is at P260 million.
But this was intended to be a donation. The P35 million was an offer made by the DOTR, for which we had no plans of accepting,” said Uy.
However, the transportation department was quick to dismiss this claim, saying that there was, indeed, negotiations for the cost of operations.
“There was a negotiation. To be clear, Mr. Uy was never a part of any of the discussion. The first rate quoted during the initial negotiation among DOTR maritime officials and 2GO was at P120 million for two vessels for two months.
Secretary Tugade did not agree with the initial offer and insisted that it must be for free. Sec. Tugade then instructed Coast Guard Commandant Joel Garcia and DOTR Undersecretary Artemio Tuazon Jr. to talk with 2GO and negotiate further to lower the amount,” said Transportation Assistant Secretary Goddes Hope O. Libiran.
She noted that 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 added. “No actual payment of rent has been made by the government to 2GO Group Inc., as it was Secretary 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.”
The quarantine ships are makeshift isolation facilities being used by overseas Filipino workers for free. The first quarantine ship has a capacity of 283 people, while the second quarantine ship can serve 143 individuals, following the Department of Health and Bureau of Quarantine protocols.