Tuesday, December 12, 2017
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Balat lang ng saging tinira: Floirendo’s TADECO paying token rental, zero profit share to govt

Tagum Agricultural Development Company, Inc. (TADECO) of bilyonaryo Tonyboy Floirendo is not only paying token rental to the Bureau of Corrections (BuCor) for the use of 5,308-hectare prison land in Davao.

Tadeco has also deprived the government of share of profits from its lucrative banana exports in violation of its joint venture agreement with BuCor.

Surigao Rep. Johnny Pimentel, chair of the House committees on good government and public accountability, said Tadeco’s audited financial statements clearly showed that its remittances to BuCor “is not profit sharing but only land rental, which is a violation of the joint venture agreement.”

“Tadeco listed the rental expense under JVA as part of the cost of sales under the line item Land Rentals during years 2002 to 2013. While for years 2014 to 2016, TADECO listed Production and Profit Share under the JVA as part of the cost of sales,” he said in a statement.

“For 2016, Tadeco reported the production and profit share of P44.9 million given to BuCor which was .63 percent of the reported revenue of TADECO. For 2015, the production and profit share of BuCor was P44.7 million which was .65 percent of the revenue of Tadeco,” Pimentel said.

“This information reflects on the relationship of BuCor and TADECO under the JVA whether it is a partnership or a lessor-lessee relationship,” he added.

The House is conducting a probe into the alleged grossly disadvantageous contract between BuCor and Tadeco on the Davao penal colony.

Speaker Bebot Alvarez initiated the move to voide the Bucor-Tadeco contract because it was disadvantageous to the government and the contract did not go through public bidding.

“Well, malinaw dito na talagang agrabyado ang gobyerno. Why? Kasi, yung binibigay sa gobyerno, compared doon sa kinikita nila, eto, year 2016 pa lang ha? Tingnan nyo yung submission ng Del Monte Fresh. Yun lang yun ha? Isa lang yun ha? Yung buyer nila. It runs into the billions of pesos. Ang share ng gobyerno, mga hundred plus pesos lang. Malinaw yun,” Alvarez said.

“Hindi valid, sabi ng DOJ (Department of Justice), sabi ng COA (Commission on Audit), sabi ng SolGen (Solicitor-General). Tingnan mo yung Constitution, you cannot lease more than 1,000 hectares of land ng gobyerno. At yun ay 5,308 hectares,” Alvarez said.

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