For the second time since its inception some 25 years ago, the Filipino Multi-Purpose Centre (MPC) is once again being offered for sale. Asking price according to LJ Hooker Riverstone is $2,490,000.
But before this editorial is misconstrued as an advertisement by MPC, let me clarify that what they now call as the Philippine Australian Cultural Centre in Schofields is the same MPC that was conceived by the Philippine Australian Community Foundation (PACF) in 1989. It was originally located along Duke Street in Rooty Hill.
In spite of having raised over $1 million from government grants and donations from the Filipino community, the Rooty Hill property was sold for only $700,000 obviously at a loss. Of course, commission of an undetermined amount was paid to the real estate agent who brokered the sale.
Their next move was to buy the 5.5 acre property located at 80 Grange Avenue, Schofields at a cost of over $1 million. Records indicate that a big chunk of the money used to make the purchase was borrowed from Stacks Investment at an interest rate of some 11 per cent per annum. One need not be an expert in finance to determine exactly how much money is needed to service the loan. Thus, the principal amount remained undiminished.
At the time the Schofields property was bought, there sat an old dilapidated 3-bedroom house which needed to be repaired. Only God knows how much money was spent to make the house liveable. Except for a canvas covered court at the back, no functional MPC has been erected. Somehow, the MPC managers were able to obtain a $34,000 grant from the state government thru Kevin Connolly, Member for Riverstone. That grant was used to construct the covered area which is about the size of a basketball court.
But why has the project remained uncompleted to this day?
The simple answer is there is no money. They continue to service the expensive loan and nobody knows where they get the funds to pay the interest. Another straightforward answer is the fact that Blacktown Council has declared the area to be a high-risk flood zone.
Will the asking price of $2.5 million deliver a profit?
Maybe Mr. Reming Biala who is privy to the financial affairs of MPC and who is also a chartered accountant can help determine if the asking price of $2.5 million is sufficient to recover previous losses incurred in interest expenses. Of course, improvements must also be considered to determine the breakeven point. That is, assuming that someone will buy the flood-prone property.
Did they consult the real owners of MPC?
Let it not be forgotten — the real owner of MPC is the Filipino community who donated money for its construction. Did they call a general meeting of the donors? Who made the decision to sell the Schofields property? Did the PACF Trust Deed empower the MPC Board to sell a property that really belongs to the Filipino community? Many of the donors have died during the past 25 years and many more want to see the promised dream to become a reality before they kick the bucket.
What will they do with the proceeds of the sale?
How much money is still owing on the property? Will the leftover be enough to buy another property in a more desirable location? Mr. Mansueto Villon and Ms. Luz Tiqui, you must be transparent if you are to gain our support. The Filipino community expects to hear your answer. — Dino Crescini