GSIS fails to reach deal with Sofitel

Government Service Insurance System (GSIS) will hale to court next week the firm that owns Sofitel Philippine Plaza Manila as the two parties reached a standoff on at least P101.6 million in unpaid rentals for two lots that the hotel operator was allegedly illegally occupying.

GSIS president and general manager Jesus Clint O. Aranas told the Inquirer on Friday that as the notice to vacate issued to Philippine Plaza Holdings Inc. (PPHI) on April 13 would lapse on May 14, the state-run pension fund already “prepared all the necessary pleadings” to be filed before the Pasay City court by Tuesday.

Isagani L. Cruz Jr., GSIS chief legal counsel, told the Inquirer that the state-run pension fund was ready to file an ejection and collection case against the operator of Sofitel.

Aranas said that while the GSIS was “still open to negotiations” before the notice to vacate lapses, they “cannot accept the position paper” of PPHI wherein it insisted that the notice served was “without basis.”

The GSIS claimed that the Sofitel operator had no lease contract with the GSIS for lots 19 and 41, which the hotel is using as valet parking space, site of cistern tanks and cooling tower as well as a tennis court.

Aranas had said that these two lots were not included in the existing 25-year lease contract until 2041 signed on June 24, 2016, between the GSIS and PPHI for lots 30-A and 30-B where Sofitel stands.

Even in the previous contracts between 1991 and 2016, lots 19 and 41 were not included in the premises leased by PPHI, Aranas had said.

As such, Aranas claimed that PPHI owed the GSIS at least P101.6 million, or P1.2 million a month based on current market values, for the period 1993 to 2016.

In a May 4 position paper addressed to Aranas, a copy of which was obtained by the Inquirer, PPHI president Esteban G. Peña Sy insisted that the company was “not illegally occupying lots 19 and 41.”

“The original contract of lease, the amended contract of lease and the renewal of the amended contract of lease all contain provisions allowing PPHI to use these two lots to house the hotel facilities and equipment for carrying out the hotel operations,” it said, referring to the agreements entered into by the two parties since 1990.

Also, the company said that it was not true that PPHI had been occupying lots 19 and 41 without paying any compensation to GSIS.