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CoA cites CAAP failure to submit contract of PAL leases

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PHILSTAR FILE PHOTO

THE Commission on Audit (CoA) said the Civil Aviation Authority of the Philippines (CAAP) failed to provide supporting documents for payments arising from land rented from Philippine Airlines in Bacolod and Ozamiz.

In its 2018 annual audit report, CoA noted the absence of a lease contract to cover the lease and property tax payments.

The findings were issued after CAAP agreed in December to pay PAL P157.625 million to settle PAL’s claims against the agency for unpaid rent between 1992 and 2018.

“The absence of a lease contract detailing therein, among others, the nature, rates, duration, description and actual measurement of the lot area being leased, as well as the rights and obligations of each party raised doubts on the validity of the claim and the accuracy and reasonableness of the rental rates being charged,” said the state auditors.

CoA recommended that CAAP “coordinate with PAL for the submission of the duly approved lease contract and other documents to support the alleged obligation for rental fees from 1992 to 2018.”

It added, “[We recommended that Management should] require the refund of the amount paid to PAL, if the prior years’ obligation could not be sustained.” — Vince Angelo C. Ferreras

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