Metro Manila (CNN Philippines, September 6) — The Philippine Amusement and Gaming Corporation (PACGOR) is raising legal issues that could scrap its lease contract to a 15-hectare property with Philippine Airlines (PAL).
In a press statement on Wednesday, PAGCOR said they just learned the government corporation “is not yet the absolute and registered owner of the property”.
“Since PAGCOR has no absolute authority to lease out the property, PAL does not acquire any right to the possession or enjoyment thereof, notwithstanding the Contract of Lease executed between the two parties,” the statement said.
Last week, PAL president Jaime Bautista announced a proposal to build a P20-billion extension terminal to the Ninoy Aquino International Airport.
Read more: PAL offers to build new P20B air terminal next to NAIA Terminal 2
The terminal was to be built on the 15-hectare land where Nayong Pilipino used to stand.
PAGCOR said the flag carrier pays only P40 per square meter to lease 10 hectares of the property under a contract that expires on July 2033, an amount it found” grossly disadvantageous to the government.”
“The ultimate aim of PAGCOR’s current management is to ensure that all dealings entered into by the agency will be advantageous to the government,” it said.
The gaming regulator said it has asked for an opinion from the Office of the Solicitor General on this matter.
CNN Philippines reached out to PAL for a comment, but the airline has not responded as of posting.
