Comment from a reader on SBMA's losses:
The
increase in SBMA’s income stream in 1999 and 2000 was likely a result of Felicito
Payumo’s initiative, who was then, the relatively new SBMA Chairman and
Administrator. In his attempt to increase SBMA revenues, chose to divest
SBMA’s interests in Freeport
housing and encourage the “sale” of residential units in the Zone. SBMA’s
original acquisition of housing units, after the departure of the US Navy, totaled
1867 units. Apart from units already privately leased, and those
earmarked for senior SBMA officials other government agencies (BI, BoC and
Customs), the remaining housing units were offered to the public in an
attractive range of between $27,300.00 to $40,000.00 each, on a long term lease
basis of 25 and 50 years. Several independent developers obtained
clusters of derelict units for discounted prices and many individuals acquired
them with the intention of renting out and/or reselling at a substantial
profit. Needless to say, they were all snapped up in a relatively short period
of time thus contributing significantly to SBMA’s revenue.
From the Bugle: Thanks for the excellent analysis!
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