NBI asked to probe Cordova reclamation project proponent

CEBU, Philippines - Cordova Mayor Adelino Sitoy has asked the National Bureau of Investigation-7 to investigate the proponent of Cordova Reclamation Project for alleged nefarious activities, for profiteering and unlawfully making capital of the reclaimable areas in the municipality.

In 2008, Sitoy executed a Memorandum of Understanding with DTE Construction and Development Corporation to reclaim and develop a portion of the foreshore areas of about 745 hectares in the municipality.

But more than a year has passed, there was no palpable signs to start the project prompting the Sangguniang Bayan to authorize Sitoy to rescind the MOU.

Engr. Desiderio Estinozo, president of DTE Construction and Development Corporation, in a letter dated September 29, 2009 explained that the late mobilization of the project was due to the immediate withdrawal of the escrow funds of its Korean and European investors because of sudden devaluation of their currency.

Estinozo asked to give him the chance to proceed with the project in November 2009 and the European investor already confirmed an initial investment of $300 million.

On December 15, 2010, the Philippine Reclamation Authority referred to the Municipality of Cordova the application of the proposed reclamation project and sought clarification on the terminated MOU.

Instead, Sitoy informed PRA of his plan to request NBI to investigate Estinozo saying that the dealing “had been severed by Cordova and yet the latter have continued to make fraudulent misrepresentations with third parties illegally capitalizing on the MOU dated May 14, 2008 which was already revoked.”

The Joint Venture Agreement executed on December 15, 2009 between DTE and Zypher International Trading and Brokerage Corporation under a Build-Operate-Own scheme states that in the net profit sharing, the parties shall receive the net profit sharing on the 70 percent gross income of the project and the LGU/government agencies will get 30 percent.

However, in the MOU executed on May 28, 2010 between Beauwal SA Phil. Corporation and DTE states the net profit sharing, the parties agree to receive the net profit sharing of 50 percent each of both parties of the net profit.

Sitoy said these two documents arose from the fraudulent scheme wherein, except for the partners and the sharing and the amounts involved and the dates thereof, the documents contain the same terms and conditions.

The PRA, Cebu Port Authority and the LGU are conspicuously omitted as signatories, Sitoy added.

“The documents describe the project scheme as BOO which is legally impossible because reclaimed lands belong to the government and seaports anywhere in Cebu are under the control and supervision of the Cebu Port Authority,” Sitoy said. — (FREEMAN)