MANILA, Philippines?A labor group official has filed a complaint before the Office of the Ombudsman against Felicito Payumo, former administrator of the Subic Bay Metropolitan Authority (SBMA), for allegedly reducing lease rates that had led to the loss of some P1 billion in income.

In his complaint filed Sept. 1, David Diwa of the group National Labor Union said Payumo violated the anti-graft and corrupt practices act when he allowed the reduction in lease rates of SBMA locators through amendments to lease agreements or through board resolutions.

The lease rates were reduced from 1999 to 2004, Diwa added.

He listed 39 locators whose leases were reduced, and noted that the Commission on Audit itself had confirmed the reductions. Among these locators are the Subic International Hotel, Subic Bay Apparel, Universal International Group Development Corporation, Philippine Coastal Storage and Pipeline Corp. and Royal Duty Free Corporation.

These lowering of the rates was also not approved by the Office of the President or by Congress before it was implemented, Diwa said.

?A cumulative shortfall in revenues aggregating P1 billion as of Nov. 30, 2007, clearly shows that respondent?s actions were manifestly and grossly disadvantageous to SBMA and the Government, causing undue injury to the Government and giving unwarranted benefit to private parties, the SBMA locators,? he said.

When asked, Diwa said he was prompted to file the complaint when he saw Payumo write a letter to the editor criticizing his successor, Armand Arreza.

?Even he [Payumo] has a lot to account for,? Diwa said in a phone interview.

He added that he decided to file the complaint since many of the questionable transactions of the previous administration are being investigated.