CIAC hit for ‘runaround’ on buildings lease plan

• Source:http://www.sunstar.com.ph/pampanga/local-news/2015/12/10/ciac-hit-runaround-buildings-lease-plan-446276
• Friday, December 11, 2015

By Reynaldo G. Navales

ANGELES CITY -- Owners of a premier casino-hotel at the Clark Freeport assailed the Clark International Airport Corporation (CIAC) for its alleged runaround in connection with the leasing of three buildings inside the aviation complex.

Former Angeles City Mayor and Congressman Carmelo “Tarzan” Lazatin, chairman of the Amalgamated Builders and Contractors Inc. which operates the Stotsenberg Hotel and Casablanca Casino in Clark, said CIAC Marketing Officer Jesus Abelardo Punzalan did not allow the corporation to operate idle buildings beside the hotel.

According to Lazatin, they followed proper procedures regarding their request to lease the property.

“Worse, we are receiving reports that the CIAC is waiting for a favored foreign investor to lease the buildings,” Lazatin added. “As far as I know, we local investors deserve equal treatment but the CIAC is playing favorites to a reported generous foreign firm.”

In November 2014, Lazatin said he wrote CIAC head Emigdio Tanjuatco III about their firm’s intention to rent or lease the property with the three buildings along Gil Puyat Avenue.

“Rest assured that we are willing to comply with all the requirements that your good office deem necessary for this endeavor,” said Lazatin in the letter.

He told Tanjuatco in a separate letter that their firm will invest a minimum of P100 million and provide employment for some 300 persons.

Lazatin said Punzalan had earlier told him the CIAC will put the area for bidding. He added that after one year, not even the initial stages of the bidding happened.

In August 2015, Lazatin wrote to Tanjuatco making a new offer for the buildings. He offered to lease the area for the next 25 years with a minimum guaranteed lease of $1.60 per square meter.

“The escalation of the minimum guaranteed lease for the property shall be 10 percent compound every five years thereafter,” the letter of Lazatin added.

In December 2014, Lazatin offered to lease the area and give CIAC a percentage share of “five percent from the casino gross revenues from the own casino operations (slots and tables) of the lessee, plus those arising from transactions entered into by the lessee and/or assignee with any third party chip-washing, junket operator, or casino-related gaming operator.”

“Progress is delayed at Clark due to the incompetence of the CIAC heads. We offered all options allowed by law. What’s more insulting is that we followed all their requests but came up empty handed after many months of waiting,” said Lazatin.

Tanjuatco dismissed Lazatin’s accusation, saying “there is no favoritism in CIAC."

"We only consider what is for the best interests of CIAC," Tanjuatco said, adding there is a process which the state-owned corporation follows in approving lease contracts.