Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator
Jonathan D. Tan led the repossession of a 1,500-square meter land area from an
erring company as part of the agency’s thrust to regain areas for reutilization
for other investors.
“We are repossessing leased areas of companies that do not
comply with the agreement between them and the SBMA, and offer these areas to
other investors,” Tan said.
The repossession of property transpired today at the
Silver Arrow Import and Export Services, Inc. located at Lot 1, Boton Area,
Argonaut Highway. The 1,500-sqm. land area of the company was repossessed due
to contractual defaults.
According to Tan, the company failed to comply with its
Investment and Development Commitment as provided in Section 7, Article II of
the Lease Agreement between the company and the SBMA. Part of the said default
is the failure of the company to develop the area with a funding allocation of
at least US$1,000,000.
He added that the development commitment on the Leased
Property should have a minimum cost of US$500,000 which includes the
construction of a warehouse within two years from the issuance of its building
permit.
“Aside from the Investment and Development Commitment, the
company’s contractual default also includes non-compliance with the Omnibus
Policy on Performance Bond, and failure to submit documents for the issuance of
a building permit,” he said.
The said building permit is for the construction of a
warehouse as stated under the company’s Development Commitment. Tan added that
this is so despite the unreasonable length of time that had already lapsed
since the execution of the lease agreement last July 28, 2015.
The SBMA had already served two notices before executing
the repossession, with the Final Notice of Default with Demand to Pay dated
June 19, 2023 that was served on June 26, 2023; and the Notice of
Pre-termination and Repossession dated July 28, 2023.
“We are following President Ferdinand Marcos Jr.’s mandate
to streamline operations within the Subic Bay Freeport Zone, and fully utilize
land areas that are not being developed. But we are leaving space on the table
for negotiations with the erring company so that they may continue with their
operations efficiently,” Chairman Tan said.
The official said that this is the first of many
repossessions that the SBMA will conduct as the agency clamps down on erring
companies who have skimped on their obligations to the SBMA. (MPD-SBMA)
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