CEBU, Philippines - The selling of the lots of the South Road Properties (SRP) to any private corporation or association is clearly unconstitutional and illegal, so said Deputy Speaker for the Visayas Rep. Pablo Garcia of the 2nd District of Cebu Province.
Garcia, a known constitutionalist, said he is determined to inform the public on how the joint venture agreement entered between the Filinvest Land Inc. (FLI) and the Cebu City Government violated the Commonwealth Act No. 141 or the Public Land Law and Article 12, Section 3 of the Philippine Constitution.
“I am an avid student of the law. I haven’t stopped reading,” Garcia said before he began his presentation yesterday to the members of the media at the old Capitol session hall.
Garcia, who questioned the legality of the title of the SRP, said that public lands are to be conveyed and is subject to the Constitution, Local Government Code, and Public Land Act.
Garcia said that according to the Public Land Law, the SRP, as an alienlable and disposable public domain, may not be sold to private corporations unless if leased or otherwise mandated by Congress.
However, Garcia said some provisions indicated that in circumstances, even the Congress is not authorized to sell public domain to private individuals and corporations such as Filinvest for that matter.
Garcia quoted Section 3, Article 12 of the Constitution, “private corporations or associations may not hold such alienable lands of the public domain except by lease.
“That property (SRP) is a public domain. So, the Filinvest cannot buy even 100 square meters of land at the SRP and that sell of 10.6 hectare is null and void from the beginning,” Garcia said.
“Even if granted by Congress, still it will be null and void because of the Constitutional ban. They can lease, yes, but not to acquire or own,” he said.
Garcia, father of Governor Gwendolyn Garcia, added that any lease shall only be for a period not exceeding 25 years, renewable for not more than 25 years, and not to exceed 1,000 hectares in area.
In addition, Garcia said that the Public Land Act classifies public domain lands as either alienable and disposable lands, reclaimable lands, and marshy lands.
“Alienable and disposable lands shall be permitted to be leased only for agricultural purposes. Industrial and commercial purposes are not granted,” he said.
The joint venture agreement between the city and the Filinvest has two components – the outright purchase of 10.6 hectares known as Pond F and the development of another 40 hectares under a profit sharing arrangement with the city government.
In the profit-sharing arrangement, the city is guaranteed a 10 percent share of the gross sales of built-up space, which will be remitted quarterly.
For the sale of the 10.6 hectares, the city will get a down payment of P348 million within 30 days from the signing of the contract. The balance will be paid in six years, or some P217 million to P269.5 million a year, with a five-percent interest per annum.
Titles for a two-hectare area will be turned over to FLI after each of the first four payments, which will be paid directly to the Land Bank of the Philippines.
The 10.6-hectare property was directly bought by the Filinvest at P15,000 per square meter or for a total of P1.592 billion.
Garcia reminded the city officials and the FLI to “study and review their position” and exert strategy on how they will disengage from the agreement they have entered.
Rep. Pablo John Garcia, a son of the elder statesman and representative of the 3rd District of Cebu, said he will be delivering a privilege speech on Monday questioning the agreement entered into by the FLI and the Cebu City Government.
Pablo John, who will be asking for House inquiry, has been questioning the contract of the agreement cited that there are some provisions that are highly anomalous particularly on the point that it “differed on all material points from the terms of the invitation to bid published by the Cebu City Government, which urged potential challengers to submit comparative proposals.”
The City Government posted an invitation to apply for eligibility and to submit a Comparative Proposal for a central business district type development over the 50.6 hectare area.
Also, it was stated that Filinvest has to compensate the city government in the amount of not less than P1.5 billion in cash payable within three years.
But Pablo John said that contrary to what has been published, the unincorporated joint venture is not for the 50.6 hectares but only for 40 hectares, with the 10.6 hectares sold through outright purchase.
Pablo John also pointed out that the joint venture development is no longer for a central district type, but for an integrated and well-planned clusters of medium rise residential buildings and retirement and congregate care complexes, which is inconsistent with a central business district type of development.
Pablo John also questioned the terms of payment by FLI that instead of being payable in three years, it is now payable in six years.
Pablo John said he is willing, as a legislator, to file charges once this will be continued and when evidence are already sufficient. — /NLQ (THE FREEMAN)