The Commission on Audit has held five former officials of the Presidential Commission on Good Government, including ex-chair Juan Andres Bautista, liable for selling three sequestered properties at undervalued prices from 2012 to 2014, causing government losses of over P190.1 million. Coa rejected their petitions in a 16-page en banc decision released on October 24. Auditors questioned the sale prices based on a new appraisal by the Coa's Technical Services Office.
The Coa decision stems from the sale of three sequestered properties in Baguio and Parañaque between 2012 and 2014. First, on December 11, 2012, the 2,677-square-meter Banaue Inn Compound along Baguio-Itogon Road in Pucsusan, Baguio City, was sold to Love Development Corporation for P10 million, though Coa assessed its value at P16.5 million, resulting in a P6.5 million loss. Second, on June 14, 2013, the 4,038-square-meter IRC Mapalad Property at the corner of Roxas Boulevard and Librada Avelino Street in Parañaque City was sold to Ciriaco Realty and Development Corporation for more than P247 million, while its value was P306.888 million, a shortfall of P59.778 million. Third, on July 25, 2014, the 17,516-square-meter JY Campos Compound on Outlook Drive in Pucsusan, Baguio City, was sold to Smi Development Corporation for P160 million, against a Coa appraisal of P283.829 million, with a P123.829 million difference.
Total loss: P190.107 million due to undervaluation. The officials—Juan Andres Bautista, Richard Amurao, Nelson Acebo, Alfredo dela Paz, and Ronald Chua—maintained they followed proper procedures, secured approval from the Privatization Council, and relied on independent appraisals. They noted the properties underwent several failed biddings that still generated government revenue.
However, Coa stated there should be no major discrepancies in appraisals if the same valuation methods were used. “As shown from the NCs (notices of charge) and the corresponding TSO reports, the significant undervaluation of the subject properties was the main basis for the issuance of the same. It is worth noting that the TSO reports were done independently and accomplished in accordance with generally accepted standards in property valuation by certified appraisers,” the en banc decision read. It added: “Due to these unexplained discrepancies or undervaluation of the assets sold as determined by the COA TSO, the NCs should be affirmed. Petitioners cannot take refuge in the presumption of good faith and of regularity in the performance of official functions. As officers who were responsible for the undervalued selling price of the subject properties, they should be held liable for the under-collection of said government revenues.”