Navy wants to be paid ‘in kind’ for leased properties

The Philippine Navy prefers equipment over cash as payment for the planned long-term lease of their headquarters in Manila and of the Bonifacio Naval Station in Fort Bonifacio, according to Armed Forces chief Lt. Gen. Ricardo David. “The proposal of the Navy is goods, items, and not money. It should be Navy assets because under the Philippine laws, it’s hard to procure," David told reporters in Camp Aguinaldo on Wednesday night. He said accepting equipment from the firms that will lease the naval properties will also spare concerned officials from the intricacies of procurement, like cases that may be filed by losing bidders or allegations of corruption. Navy spokesman Lt. Col. Edgard Arevalo said they prefer to be paid “in kind" because it wouldn’t require them to undergo the long and tedious process of bidding that comes with procurement. “If we are to be asked which option, we prefer in kind because we will be avoiding long processes like the bidding process," he said. In his first State of the Nation Address (SONA), President Benigno Aquino III said the private firm that is interested in renting the two naval properties committed to give the government an outright payment of $100 million and a portion of its profits. Finance Secretary Cesar Purisima said the government has promised to complete the process for the lease to the private sector within six months. Arevalo said there is nothing definite yet on the lease of the Navy properties. Navy chief Rear Admiral Danilo Cortez said at least three firms have shown interest in renting their properties, but refused to identify them. At present, he said they are still evaluating the firms’ proposals. - KBK, GMANews.TV