Pimentel seeks probe of Citem lease
SENATE Minority Leader Aquilino Pimentel III on Tuesday called for an investigation into a deal in which the government leased out a prime 4.9-hectare lot to a private organization of exporters for only P1,000 a year starting in 1996. At a budget hearing, Pimentel questioned the 50-year deal between the Center for International Trade Expositions and Missions (Citem) and the Philippine Exporters Confederation Inc. (Philexport), saying it was "grossly disadvantageous" to the government. He said the long-term lease contract was entered into or authorized by then Trade and Industry secretary Rizalino Navarro during the Estrada administration on Jan. 23, 1996. The lease covers a period of 50 years and is renewable for another 25 years at the option of the lessee, Philexport. Citem is a government-owned or -controlled corporation that is mandated to develop, nurture, and promote micro, small and medium enterprises, brands, designers, and manufacturers. "Citem is the owner of a prime lot with an area of 4.9 hectares from which it is not earning reasonable revenues, which should and could have been used for its operation," Pimentel said in a resolution he filed Monday seeking the inquiry. He also raised concerns over Citem's alleged practice of passing at least 80 percent of its exhibition costs onto exhibitors in the form of participation fees, which has made it difficult for many small businesses to participate in overseas trade shows. Under the 2024 national budget, Citem is allotted a government subsidy of P195.6 million. However, Citem promotes Philippine products in only six countries such as Germany, France, Japan, Malaysia, the United Arab Emirates and China, covering only two product sectors, namely home and fashion and processed food — leaving other sectors unrepresented. Pimentel said Citem "seems to be encountering a lot of issues and challenges preventing it from fully functioning and fulfilling its mandates." He also saw duplication of functions as there are other agencies that conduct their own promotional events abroad, such as the Department of Trade and Industry, Department of Agriculture, and Department of Science and Technology. Additional challenges include structural issues in Citem's building, which the Department of Public Works and Highways has declared to be "structurally precarious."
Tomas Kauer - Moderator 
SENATE Minority Leader Aquilino Pimentel III on Tuesday called for an investigation into a deal in which the government leased out a prime 4.9-hectare lot to a private organization of exporters for only P1,000 a year starting in 1996.
At a budget hearing, Pimentel questioned the 50-year deal between the Center for International Trade Expositions and Missions (Citem) and the Philippine Exporters Confederation Inc. (Philexport), saying it was "grossly disadvantageous" to the government.
He said the long-term lease contract was entered into or authorized by then Trade and Industry secretary Rizalino Navarro during the Estrada administration on Jan. 23, 1996. The lease covers a period of 50 years and is renewable for another 25 years at the option of the lessee, Philexport.
Citem is a government-owned or -controlled corporation that is mandated to develop, nurture, and promote micro, small and medium enterprises, brands, designers, and manufacturers.
"Citem is the owner of a prime lot with an area of 4.9 hectares from which it is not earning reasonable revenues, which should and could have been used for its operation," Pimentel said in a resolution he filed Monday seeking the inquiry.
He also raised concerns over Citem's alleged practice of passing at least 80 percent of its exhibition costs onto exhibitors in the form of participation fees, which has made it difficult for many small businesses to participate in overseas trade shows.
Under the 2024 national budget, Citem is allotted a government subsidy of P195.6 million.
However, Citem promotes Philippine products in only six countries such as Germany, France, Japan, Malaysia, the United Arab Emirates and China, covering only two product sectors, namely home and fashion and processed food — leaving other sectors unrepresented.
Pimentel said Citem "seems to be encountering a lot of issues and challenges preventing it from fully functioning and fulfilling its mandates."
He also saw duplication of functions as there are other agencies that conduct their own promotional events abroad, such as the Department of Trade and Industry, Department of Agriculture, and Department of Science and Technology.
Additional challenges include structural issues in Citem's building, which the Department of Public Works and Highways has declared to be "structurally precarious."
