Teves says FTI sale is on, but mum on buyer’s identity

The the Privatization Management Council, a unit of the Finance Department, is negotiating for the sale of Food Terminal Inc.'s 102-hectare property in Taguig, Rizal, but would not reveal the buyer’s identity. “Yes, government is pursuing a negotiated sale process and we are seriously considering a proposal which needs to undergo certain process for the privatization of FTI," Teves said in a text message Monday. Winston Garcia, president and of the government employees' pension fund Government Service Insurance Service (GSIS), is threatening to file graft charges with the Ombudsman against Teves and the council members should they sell the property. A negotiated sale of the FTI property constitutes graft, charges of which he would file against Teves and company before the Ombudsman the minute the transaction pulls through, Teves said. But Teves is claiming a negotiated sale is “in line with existing guidelines." The guidelines were observed to the letter and spirit “since the FTI property was previously subjected to a bidding process in the past but failed," the finance chief said. Bidders had backed out at the last minute of the sale, giving government no choice but to declare the process a failure. Such failures disturbed Garcia who, on behalf of the GSIS, has repeatedly offered to buy FTI for P7 billion in cash. His offer, however, was lower than government’s sale price of P13 billion for the property. Garcia pointed out that Teves and the PMO refused to entertain a serious offer from GSIS, but would now be disposing the property in a negotiated sale. Teves said the GSIS pension fund was given the chance to raise its offer with the Privatization Council which deemed P7 billion “way below the appraised value of FTI. This was properly communicated to them. Hence, the appropriate process was followed," he said. Garcia said he could not understand why Teves and the council were persistent in selling to the private sector, when here is the GSIS ready and able to pay P7 billion. “I never understood their motivation. The GSIS money could buy the same ice cream as the private proponents’ money," Garcia said. — VS, GMANews.TV