BuCor orders review of land lease rates in penal farms

Aiming to generate more funds, Bureau of Corrections Director General Gregorio Pio P. Catapang has ordered a comprehensive review of land lease rates in all its operating prisons and penal farms (OPPFs).

All superintendents of OPPFs were directed to submit detailed reports on the prevailing lease rates within their jurisdictions to ascertain the true market value of the properties and protect the government from potential revenue losses.

Also, Catapang ordered that notices be sent to existing lessees, informing them that their current contracts will terminate by December of this year.

This notice serves as formal communication regarding potential changes in lease agreements, as new guidelines are set to be issued concerning terms of renewal.

Catapang said that by taking these measures, “We seek not only to increase revenue but also to establish a more equitable leasing framework that reflects the actual worth of BuCor’s land holdings.”

The bureau needs sustainable funding sources to create a more robust financial structure, Catapang said, adding that land lease rates present an opportunity to optimize financial management and secure greater fiscal stability while navigating the challenges posed by the upcoming transitions in its operations, which include the planned closure of the New Bilibid Prison in Muntinlupa City by 2028.

The BuCor chief emphasized the importance of evaluating the current land lease rates, which he deemed insufficient in generating adequate funds for the bureau's revolving fund, also known as Fund 284. This fund supports initiatives that enhance the welfare and rehabilitation of Persons Deprived of Liberty (PDLs).

From January to September this year, the Bureau earned ₱188.6 million from 485 Micro and Macro Business Enterprises operating in seven OPPFs.

The bulk of the revenue came from the lease agreement between BuCor and TADECO, where the latter leases over 5,000 hectares of land within the Davao Prison and Penal Farm for banana cultivation, with BuCor receiving a guaranteed production share of P17 million to P20 million a month.