NEWS AROUND SUBIC BAY

SBMA Board gives Lyceum Ultimatum: Pay by Friday

Posted 4 months ago


THE SUBIC Bay Metropolitan Authority (SBMA), on last Thursday’s Board meeting, has given Lyceum of Subic Bay, Inc. (LSBI) until Friday, August 18, 2017, to pay over P43 M it owes the agency.

“We gave Lyceum of Subic one week to pay in full what it owes SBMA, by Friday,” SBMA Director Benny Antiporda said, “or else risk possible sanctions that may include cancellation of its Certificate of Registration and Tax Exemption (CRTE).”

Documents obtained by Subic Bay News show that on July 12, 2017, SBMA issued a Notice of Default against Lyceum of Subic addressed to Alfonso E. Borda, president & CEO, giving it 30 days or until Aug. 13, 2017, to correct its deficiencies.

The outstanding obligation of Lyceum of Subic stems from unpaid lease rentals, Common Use Service Area (CUSA) fees and other charges on the 3.4-hectare former American International School of Subic (AIS) campus in Upper Cubi and Lot 73, Central Business District, Rizal Highway, across Harbor Point Mall.

In February 15, 2017, then already deep in debt to SBMA, Borda wrote Administrator Wilma T. Eisma seeking a “six (6) month extension… for the payment of its dues.”

“The facility has yet to continue undergoing massive construction, renovations and repairs, to be on top shape for its full operation this coming academic year,” Borda told Eisma.

On March 27, 2017, Eisma responded to Borda’s letter, denying the latter’s request for extension.

“We regret to inform you that we cannot accede to your requests,” Eisma told Borda, “please note that the lease over the …facility was awarded on the basis of a competitive evaluation process which took into account the financial offers and development commitment proposals of competing proponents.”

Eisma also warned Borda “we have received reports that even though the facility is not yet fully operational, LSBI (Lyceum) is operating the rooms of the former Legenda Suites as a dormitory and for short term rentals to some Chinese nationals despite the fact that said activity is not part of the approved purpose of the lease and intended use of the facility.” (read related story at http://subicbaynews.net/?p=14578)

Eisma cited that among other concessions, “said lease was eventually awarded to LSBI by reason of the latter’s offer to pay the monthly financial obligations after a six (6) months grace period (which already lapsed on 3 August 2016) in conjunction with the LSBI’s representation that it shall introduce developments on the facility at the minimum renovation cost of Ten Million Pesos (P10,000,000) within one (1) year from the commencement of the lease (which period already lapsed on 3 February 2017).”


AIS turn over to Lyceum of Subic Bay
Then SBMA Chairman & Administrator Roberto V. Garcia (right) with Alfonso Borda (left) of Lyceum of Subic Bay during the turn-over of the former American International School (AIS).

Garcia allowed the take-over of Lyceum in April 2016 despite the lack of payment of the required security deposit and advance rentals in the amount of P9.8M. Instead, Borda used, and SBMA accepted, a check which bounced on May 4, 2016.

It took a partner, the APG International Aviation Academy, after two weeks of SBMA inaction, to pay the P9.8M, saving the day for the now still beleaguered Lyceum of Subic Bay.

In November 2015, SBMA, under then Chairman & Administrator Roberto V. Garcia, after rejecting a proposed payment scheme, terminated the lease of Global Daeil Subic, Inc., operator of AIS in the former Legenda Suites, for a mere P16.5M debt, despite advanced rentals and security deposits of some P14M.

In early 2016, Garcia awarded the 3.4 ha. property, the six (6) buildings on it composed of former hotel rooms turned classrooms, a Cafeteria and an auditorium, and everything in them, to Borda, his former co-employee in a private company in Metro-Manila.

Records show Lyceum of Subic offered to lease the property for some P2.4M a month, but after six (6) months, the rent would be lowered to P1.2M a month, on top of a grace period of six (6) months free use before starting payments.

Lyceum also committed to infuse a minimum of P10M in development on the property on its first year of operations and pay the unpaid rentals of Global Daeil and the unpaid salaries of its displaced teachers.

Aside from Lyceum of Subic, other entities submitted proposals, including a faction of the former leaseholder Global Daeil, which committed to “pay the unpaid rentals, teachers’ salaries, and development worth $2M (P100M),” among others, at the same monthly rates.

Edupia, a Korean company, committed a proposal similar to Global Daeil’s, but with an attached Korean bank certificate equivalent to P80M, with another bank certificate coming for P20M, as proof to support its P100M first year development commitment.

Like Edupia, Westbridge International School also committed to pay the unpaid rentals, displaced employees’ salaries and submitted bank certificates as proof of funds with the total amount of some P58 M.

However, only Lyceum of Subic’s proposal was taken up by the SBMA’s Accounts Evaluation Committee, which submitted a favorable report to the Garcia-led SBMA Board that apparently turned a blind eye on what appeared as unfair treatment of the other proposals.

As of July 2017, aside from the total of some P43M pesos, Lyceum of Subic also owes SBMA another over P4M in rentals for the various equipment and furniture of AIS, which were not factored in in the computation because SBMA’s Procurement & Property Management Department (PPMD) did not report Borda’s refusal to pay, nor sign the Property Accountability Receipt, for the movable properties. (read related story at http://subicbaynews.net/?p=16938)

Antiporda said Lyceum may be able to continue to operate if it makes good its promise to pay all its debt to SBMA by Friday.

Eisma was not present in last Thursday’s SBMA Board Meeting, which decided to give Lyceum of Subic another week to comply after its Notice of Default has expired.

First Published: subicbaynews.net

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