The privatization of the Puerto Princesa old and new public markets, transport terminal and slaughterhouse to Areza Cruz Realty Development Co. Inc. (ACRDCI) since 2012 has incurred P350 million in losses to the city government for seven years, based on the report from the Commission on Audit (COA), Mayor Lucilo R. Bayron told his constituents on Tuesday.
The COA report said that each year, the city losses P50 m.illion
He proudly announced during his State of the City Address (SOCA) that the Supreme Court decided on their favor and it was taken over on August 26, 2019 from Areza-Cruz. Since then, these facilities are now under their control and supervision
“Ayon sa COA na nalugi ang city ng P50 Million a year. Dahil dito umabot ang pagkalugi ng P350 Million in seven years. Umabot pa sa Supreme Court ang usaping ito at ayon sa Supreme Court na null and void ang pagsasa-pribado,” Mayor Bayron said.
To recall, a privatization agreement was forged with the previous administration between Areza-Cruz and the city government. It was, however, questioned by COA for lack of bidding and did not undergo proper procedures.
In 2016, the legal battle started between the city government and the contractor in the city’s bid to get back the authority to manage the facilities.
The 11th Division of the Court of Appeals issued its decision on May 30, 2018 ordering ACRDCI to voluntarily vacate and peacefully turn-over the management of the old and new public markets and the slaughterhouse to the City Government of Puerto Princesa.
The CA ruled the city government has the power over the two public markets, terminal and the slaughterhouse, however, ACRDCI appealed the decision.