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Subic Bay Metropolitan Authority has taken over the leased land of truck dealer Nile Niigata
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The company’s lease expired on January 31, 2022
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In addition, it owed SBMA nearly P5 million covering unpaid lease rentals, common use service area fees, and the 5% share of the Aeta indigenous cultural community, along with accrued interests and penalties as of November 8, 2023
The Subic Bay Metropolitan Authority (SBMA) took over land leased by truck trader Nile Niigata Subic due to unpaid fees running in the millions, according to the authority in a statement.
On November 10, SBMA senior deputy administrator Atty. Ramon Agregado, representing SBMA chairman and administrator Jonathan Tan, oversaw the repossession of Nile Niigata’s premises along Boton Highway in Subic Bay Freeport Zone.
In a letter to Nile Niigata president Muhammad Kafeel, Tan pointed out that the company’s lease term had expired on January 31, 2022. Moreover, Nile Niigata owed nearly P5 million to SBMA, covering unpaid lease rentals, common use service area fees, and the 5% share of the Aeta indigenous cultural community, along with accrued interests and penalties as of November 8, 2023.
Nile Niigata,a company that specializes in trading trucks, buses, heavy equipment, and spare parts, occupied 1,588 square meters of leased property through a direct agreement with SBMA. Despite a final grace period until October 31 to settle its obligations and comply with SBMA rules, the company failed to do so “despite the utmost liberality the SBMA has extended,” Tan said.
“While we try to understand the financial predicament of our locators, still, this is a business we need to run efficiently for our stakeholders and the country in general. This is why we are hell bent and determined now more than ever, on taking over properties of erring locators so we can offer them to other legitimate companies that can help steer the country’s economy on an upward trend. The “how” is called “tough love.”,” Tan said.
In line with President Ferdinand R. Marcos Jr.’s push for increased economic activity, the SBMA chairman said they have taken a “firm stance” against non-compliant locators and to attract investors to boost revenues and job generation.
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