WEAK enforcement of sanctions for non-payment of rent, water, electricity and real property taxes of lessees at the Navotas Fishing Port Complex (NFPC) shortchanged the Philippine Fisheries Development Authority (PFDA) by P110.67 million.

The Commission on Audit (COA) disclosed in their 2011 report on the PFDA that 41 lessees in the fish port in Navotas City had already accumulated P110.665-million past obligations that remained unpaid because of the lax enforcement of the contract between the fish port and its clients.

“Clients continued to do business with NFPC despite non-payment of said arrearages in violation of the provisions of the Contract of Lease entered into by and between PFDA and the said clients,” COA noted.

In a breakdown, rental obligations already amounted to P67.54 million; power with P1.1 million; water with P3.65 million; real property taxes with P37.37 million; and other billings with P1.01 million.

The multi-million outstanding debts were left unsettled ranging from one month to more than five years despite a provision in the contract of the lessees with the Navotas Fishing Port administration.

The contract stipulated that “failure on the part of the lessee to pay rentals for two consecutive months would be a ground for the termination of the contract without need of judicial action.”

Also, violation of any provision shall be a ground for immediate termination of the contract, the contract read.

“Analysis revealed that the accumulation of arrearages was attributed to the lax enforcement of the provision on the termination of lease contract,” auditors noted.

The Commission added that the fish port administration “did not fully exert efforts” to file lodge legal action against defaulting clients.

“Verification disclosed that the NFPC filed only three legal cases since 2000,” the report read.

As a result, the PFDA is deprived of the much-needed resources to promote the growth and efficiency of fishing industry through establishments of fish ports and markets, COA said.

COA asked the Navotas Fish Port to strictly enforce the contract in cases of non- payment of rental and real property tax and to disconnect water and power supply of defaulting clients.