State auditors want Psalm to save P13M in rent expenses


STATE auditors recommended that the Power Sector Assets and Liabilities Management (Psalm) return to Quezon City to save P13 million yearly from its present rental fees.

In the latest report of the Commission on Audit on Psalm, the audit team found that a total of P13 million a year could have been kept in the coffers of the corporation had it not moved to Makati City where rental rates are higher.

State auditors said that the Psalm paid P12.63 million a year or a monthly of P1.05 million on rent alone when they moved to Makati City in 2012.

Previously, Psalm housed itself in the National Power Corp. (Napocor) building on BIR Road but moved to Ayala Avenue in Bankmer Building.

Besides the P12.63 million annual rent, the Psalm also paid P229,926 for maintenance and P12,936 for operation for common area charges of the building.

It added that with only four parking spaces given to Psalm, the government-owned and -controlled corporation had to shell out P804,453 for additional parking spaces.

In total, the transfer of Psalm to Makati City cost P13.6 million a year, “which could have been saved if Psalm transferred its office at the Napocor building or within the Quezon City area,” auditors commented.

“Savings of P13 million a year could have been saved on rental had the Psalm’s office at the National Power Corp. [Napocor] building rented space been transferred within the Quezon City are, where rental rates would be cheaper,” COA commented.

The Commission added that should the Psalm move back to Quezon City, it would benefit 129 of its employees or 69 percent of its workforce who live in northern Metro Manila.


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