FINDINGS OF THE UCCP FACT FINDING COMMITTEE RE: ALLEGATIONS AGAINST PCU PRES. OSCAR SUAREZ BY ATTY. LARCIA. ISSUES NPC-PCU DEAL MDP ISSUE III. P32 MILLION LOAN & INVESTMENT ISSUE. ISSUE I: THE NPC- PCU DEAL (RIGHT-OF WAY CASE).
ALLEGATIONS AGAINST PCU
PRES. OSCAR SUAREZ
THE NPC- PCU DEAL
(RIGHT-OF WAY CASE)
In the absence of any official interpretation, below is the Fact-finding Committee’s interpretation of the Quiambao Contract:
Issues and conclusions
Extraordinary compensation higher than the standard broker’s fee or commission is not justified.
There are three possible scenarios in the determination of the selling price:
1.) The whole process was an honest-to-goodness procedure where NPC files the case, the court intercedes, the prices are negotiated, the commissioners make a recommendation, the court approves final price.
If this was the scenario, then there was no need for a broker to intercede because the process eventually come to a conclusion.
2.)Similar to the scenario 1 but in this case, the broker pays off the judge and/or the commissioners.
It was common knowledge will that NPC was paying between P1,000 per sq. m. to P1,500 per sq. m. According to NPC, nearby residential lots were being paid P1, 500 per sq. m.
The court’s first decision on the case was for NPC to pay UTS/PCU P1,500 per sq. m. plus an interest of 12% P.A. until the amount shall have been paid by NPC.
This decision was appealed by NPC. The court upheld NPC’s motion for reconsideration and finally awarded the reduced price of P1,300 per sq. m. plus a reduced interest rate of 6% P.A.
Clearly this decision was to UTS/PCU’s disadvantage. This scenario is improbable.
If indeed the judge was paid-off, why the reduction from P1,500 to P1,300 and from 12% to 6%? Why was the commissioner’s report of P2,200 to P4,000/sqm shot down by the judge?
It is possible that only the commissioner’s were paid off that is why a high price was recommended to the court.
If this was the case, the broker was still not doing his job and was wasting bribe money, because at the end of the day, the judge still had the final say.
Knowing our justice system, this is possible.
All the parties, PCU (through Quiambao), NPC, commissioners and the judge may have gone through the motions but colluded with each other and had in fact already agreed on P1,300 per square meter.
The first award of P1,500 per sq. m. was part of the moro-moro to protect NPC. To make it appear that NPC was doing its job, it will appeal the first decision. The appeal will be favorably decided upon by the court and a lower price will finally be awarded. PCU will no longer contest the second decision.
Everyone comes away looking clean.
GENERAL CONCLUSIONS AND RECOMMENDATION necessary legal contract review—a necessary step before signing any contract or document that would bind PCU to any obligation.
The FFC does not claim competence in determining the degree of morality or immorality of an act. We do not know whether, in fact, morality comes in degrees or just a simple case of “black an white” and no gray area. However, being willing and knowing participants in a transaction where bribes will allegedly be made and conveniently “looking the other way” does, indeed, bring into the fore the “morality” issue.
The fact that the board authorized the president to enlist the assistance of persons and sign the contracts to facilitate the NPC case, points to the fact that the contract was within the President’s authority to sign. However, it is clear from the beginning that the contract was grossly disadvantageous to PCU. Whether we can question the legality of a duly signed but grossly disadvantageous contract is something the PCU’s lawyers should look into.
Broker’s Fees necessary legal contract review—a necessary step before signing any contract or document that would bind PCU to any obligation.
The FFC concludes that the fees being charged by the broker are too high and undeserved. The FFC is recommending payment only of the standard broker’s fee of 5% plus receipted out-of-pocket expenses. It is strongly suggested that the BOT invite Mr. Quiambao and negotiate for the above recommendation. The BOT should ask the PCU lawyers to study the possibility of settling the issue judicially as a last resort, if necessary. It may be worth the expense.
The broker, Mr. Raymundo Quiambao, somehow did some work related to the UTS/PCU property in regard to the NPC case. However, whatever work was done was in no way an uncommon broker’s task and, therefore, should not be compensated in an extraordinary manner. Mr. Quiambao may be:
1.) Compensated by not more than 5% of the total amount to be paid by NPC
to UTS/PCU, assuming he has the necessary realtor’s license.
2.) The out-of-pocket expenses may be reimbursed to Mr. Quiambao upon
presentation of proper receipts and documents.
ISSUE II: necessary legal contract review—a necessary step before signing any contract or document that would bind PCU to any obligation.
MASTER DEVELOPMENT PLAN
Atty. Sofronio Larcia in his Letter of Complaint alleges that the developments in PCU in the last four years present a “disturbing picture of a reign of corruption and incompetence.”
- the University has already spent 39 million in favor of contractors and consultants chosen and recommended by the PCU Board without bidding nor objective selection processes and in utter disregard to standard practice of requiring submission of performance bonds.
- once the MDP materializes, the architects get at least 28 million professional fee and the financial consultants 250 million commissions.
Prof. Aniceto B. Fontanilla Mr. Dave Santos
Dr. Oscar Suarez (Ex-Officio)
of Arch. L. De la Rosa’s four children enrolled in PCU)
who will conduct preliminary assessment of PCU
qualification for a possible grant for PCU campus dev.
program (US$25,000 of the budgetted US$50,000)
Total Expenses: P5.969 Million
Architects’ Professional Fees
engineering designs for Taft, Dasmarinas and Malvar. As
of reporting date however, there is no showing as to
whether or not this has already been paid.
SALCEDO-DE LA ROSA CASE “initiatives of the financial consultants”, loans will constitute 20% of the MDP funding, while 80% will come from bonds, grants, donations etc.
The FFC finds no reason to discuss this matter, this issue being hearsay in the absence of a written complaint from Architect Leah De la Rosa herself.
III. P32 MILLION LOAN & 2005 but there was no provision nor safety measures formulated to ensure that the initiatives so far undertaken will not go to waste should the Board decides not to renew the contract.
“4. Trading Corp., a stock corporation established in December of 2004. It was incorporated with an authorized capital stock of One Million Pesos and a paid-up capital of P62,500.00. The primary purpose of the corporation is to engage in the business of trading of goods such as industrial goods, petroleum on wholesale or retail basis. Matthew Salcedo and Marlene Suarez are the primary owners with 2,125 of the 3,000 subscribed shares.Mr. Salcedo reported the following with regard to the investible funds:
4.1 . PHP 34 Million has been deposited with Banco de Oro. PHP 30 Million will be maintained with Metrobank and where appropriate, funds may also be moved to EPCI.
The funds were moved to enhance income from investments. These will also secure the credit lines that were given by these banks as discussed in item 2 and 3 above. The funds themselves will not be used for project purposes.
4.2. Since PCU is a non-stock/non-profit organization, the IMC deemed it is best to transact revenue enhancement programs through financial advisors who could utilize appropriate vehicles to insulate the University from the possible effects or repercussion related to corporate liabilities, tax implications, voluminous corporate documentation and the like.”
GENERAL RECOMMENDATIONS University to clearly set forth policies or parameters as to the nature of investment that the university can make.
For immediate implementation
It is strongly recommended to withdraw the investment or require the payment of the loan from Terra Nova;
Offer to Mr. Quiambao the amount equivalent to a Broker’s Commission and reimbursement of all receipted expenses connected with the NAPOCOR case.
4) University to clearly set forth policies or parameters as to the nature of investment that the university can make. Institute more control mechanisms especially particularly in financial transactions.
5) In relation to nos. 2-4, involve people with diverse experience or expertise so that the overall operation of the school is seen from different perspective.
6) Come up with a Comprehensive Development Program that does not only include real property development but total or holistic development.
THE INVESTMENT STRUCTURE University to clearly set forth policies or parameters as to the nature of investment that the university can make.
No BOT Action
P32-M EPCIB BACK-2-BACK
(Money Max Rate +___%)
P32-M EPCIB MONEY-MAX
Qrtrly Interest Earned- P 720,000.00
Qrtrly Interest Paid - (P 921,195.48)
Shortfall - (P 201,195.00)
Terra Nova Adv. - P 201,195.00
Int. On Investment - P1,718,805.00
Net Int. Earned(18%)- P1,920,000.00
Only pres. Signed
-Paid up 62.5k
-Inc. Jan 05
POOL OF FUNDS
Salcedo Advise University to clearly set forth policies or parameters as to the nature of investment that the university can make.
advanced in 12/04
MDP Financial Consultant
/ Dia / Torres
P400k Acceptance Fee + P50k a month
Loan- P32 M
- No BOT approval
Salcedo - 45%
Suarez - 40%
Saludo - 5%
Singson - 5%
Loan proceeds credited