House: What is extent of Tadeco-BuCor deal?

House members want to know the full extent of the land deal between the Bureau of Corrections (BuCor) and Mindanao-based banana company Tagum Agricultural Development Company, Inc. (Tadeco).

“It is imperative that the Committees be clarified on these aspects of the investigation to find out whether or not the government was at a disadvantageous position on the implementation of the subject of the joint venture agreement (JVA),” said Surigao del Sur 2nd district Rep. Johnny Pimentel.

Pimentel, chairman of the Committee on Good Government and Public Accountability, made the observation when his panel resumed its hearing into the 25-year JVA contract earlier this week.

He directed the Department of Environment and Natural Resources (DENR) to provide the answers.

The House inquiry is being done on the basis of House Resolution (HR) No. 867 filed by House Speaker Pantaleon Alvarez of Davao del Norte’s 1st district.

Alvarez’s province mate, billionaire Davao del Norte 2nd district Rep. Antonio Floirendo Jr., owns Tadeco. Alvarez and Floirendo are both friends of President Duterte until they had a highprofile falling out a few months back.

The Pimentel panel as well as the Committee on Justice have heard various claims on the land of the Davao Prison and Penal Farm (DPPF), which is being leased to Tadeco.

The committees found that the metes and bounds of the property were disputed and even the portion of the land occupied and utilized by Tadeco is unclear.

“The Committees also received different statistics on the actual gain obtained by the government from the operation of the JVA vis-a-vis what should be the accruing to the government in terms of guaranteed income and production shares from the operation of Tadeco in the Davao Penal Colony (DAPECOL),” Pimentel said.

He added that the legislators need to look at the documents from the DENR to determine how the property is actually being used.

The JVA contract, while guaranteeing the BuCor a share of 126.5 billion per year for 5,308.36 hectares, shortchanges the government by as much as 1106.167 million per year because the prevailing lease contracts in that area is 125,000 per hectare per year, according to Alvarez.

The deal was signed in 2003.

Tadeco has an estimated sales of 30 million boxes per year, earning an annual revenue of 118 billion.

The DENR Regional Officer, Felix Alicer, said department has submitted its report. But the problem, he said, pertains to the extent of the actual occupation, considering that this is so vast and covers four municipalities.

Alicer made a slide presentation of the area to show its extent of the property and its actual use. Aggregated land area as provided in Proclamation 414 covers 28,826 hectares. The DENR found that the land area is 30,907 hectares based on the technical description in the proclamation.

Pimentel expressed hope that this would be the last hearing before the committees render a report.

“But there are still some documents that we are requesting that we have not yet received. So we can wrap up all the hearings and make the committee report,” he said.