DENR fails to collect P47 M in beachfront rentals – COA

MANILA, Philippines – The Department of Environment and Natural Resources could have earned P47.209 million in 2010 had it collected the necessary fees from occupants of foreshore lands, or beachfronts, according to the Commission on Audit.

The COA said the fees were uncollected from private firms in the Ilocos region, Central Luzon, Zamboanga Peninsula, Socksargen, and Caraga region, with the bulk due from the Ilocos region.

The amount is due from the application and rental fees of the foreshore occupants who have not applied for renewal of their expired foreshore lease agreements or revocable permit applications (FLA/RPA). Fees are also due from occupants of foreshore areas with land improvements that have not been appraised.

“The failure to intensify the collection of rental and application fees from the foreshore occupants with expired FLA/RPA permits and the non-imposition of the increase of rental fees based on the new appraisal or reappraisal value deprived the government of additional income,” the COA said.

In Northern Luzon, the uncollected rental fees amounted to P30.476 million and were due from private corporations and persons that manage or lease foreshore lands.

The COA also noted that the lease of one of these companies, Pacific Farms, Inc., had expired in 2002 but it did not apply for renewal. Despite this, it continues to occupy the foreshore area, it added.

In Central Luzon, the DENR office has begun completing the data bank of foreshore areas and has been able to identify 208 occupants or applicants from which P12.662 million has to be collected.

In the Zamboanga peninsula, a total of P849,050 has not been collected from foreshore occupants from 1991 to 2009, or from the time they entered into the lease contracts with the DENR.

The COA also found that in Socksargen – South Cotabato, Sultan Kudarat, Sarangani and General Santos City – some of the foreshore lease agreements approved from 1998 onwards had not followed the guidelines. There were improvements in the foreshore areas that had not been appraised and were not covered by any lease agreements. The region could have earned P2.814 million from these leaseholders, it noted.

The companies operating in the foreshore areas include fishing companies, a livestock firm, shipyards, a beach resort and a power corporation.

As for the Caraga region, the COA said most of the foreshore area occupants hold expired foreshore leases or revocable permit applications. The DENR should have collected P406,262 from foreshore occupants who have not applied for the renewal of their permits.

The COA recommended that the DENR intensify its collection of rental and application fees from those who have not renewed their foreshore lease agreements or revocable permit applications.

Aside from that, the DENR should also periodically inspect and appraise all leased foreshore lands, including improvements made there to determine the amount to be collected, the audit agency added.

It recommended that the DENR study the formulation of guidelines on the responsibility and liability of concerned officials who fail to conduct the appraisal of foreshore lands.

But the COA also noted that officials in the Ilocos region have created a team that would conduct an inventory of structures and establishments in the adjoining or within foreshore areas in the region.

In the Zamboanga peninsula, the DENR office vowed to fast-track the processing of foreshore lease applications and to conduct re-appraisal of the approved applications.

The office in the Caraga region also assured the COA that it would intensify the collection of application and rental fees in 2011.