Tagum Agricultural Development Co. Inc. of the Floirendo family welcomed the call of the government to review their joint venture agreement, saying it has always been transparent with its dealing with the state.
Tadeco issued the statement following reports that the Department of Justice had sought a review of the lease contract with the Bureau of Corrections, after receiving complaints that Tadeco’s annual lease payments and profit sharing were just a fraction of the prevailing market rate.
Tadeco president Alex Valoria said the contract with the government had been the subject of three congressional hearings by the committee on agrarian reform of the House of Representatives since 2012.
“Our relationship with Bucor (Bureau of Correction) is a joint venture, not a lease agreement,” Valoria said.
Tadeco said the executive department had also conducted its own review of the contract.
Valoria said even before the call for review was made, Tadeco and the government, represented by Bucor, were scheduled to sit down for their quarterly meeting next month to discuss the agreement and other related issues.
The agreement with Bucor resulted in the formation of a management committee to oversee quarterly the implementation of the joint venture and address concerns.
The company and government officials also meet every month to tackle day-to-day issues.
“During the past administrations, the company has always been open to any call for adjustments in the benefits that the government derives from the joint venture as well as the benefits that go to the community and the inmates,” Valoria said.
“In the past when government asked for adjustments, the company readily accommodated them, noting that the times are changing, although the contract provides for escalation clause,” he added.
Valoria said a year after the 2003 renewal of the joint venture agreement, the values of guaranteed income and profit sharing were increased as indicated in the amendment to the joint venture agreement dated November 27, 2004.