CHAVEZ vs.
PEA and AMARI Whether or not the court is the proper forum for raising the issue of whether
G.R. No. 133250 | July 9, 2002
FACTS
In 1973, the Comissioner on Public Highways entered into a contract to
reclaim areas of Manila Bay with the Construction and Development
Corportion of the Philippines (CDCP).
Public Estates Authority (PEA) was created by President Marcos under P.D.
1084, tasked with developing and leasing reclaimed lands. These lands were
transferred to the care of PEA under P.D. 1085 as part of the Manila Cavite
Road and Reclamation Project (MCRRP). CDCP and PEA entered into an
agreement that all future projects under the MCRRP would be funded and
owned by PEA.
By 1988, President Aquino issued Special Patent No. 3517 transferring lands
to PEA. It was followed by the transfer of three Titles (7309, 7311 and 7312)
by the Register of Deeds of Paranaque to PEA covering the three reclaimed
islands known as the FREEDOM ISLANDS.
Subsquently, PEA entered into a joint venture agreement (JVA) with
AMARI, a Thai-Philippine corporation to develop the Freedom Islands.
Along with another 250 hectares, PEA and AMARI entered the JVA which
would later transfer said lands to AMARI. This caused a stir especially when
Sen. Maceda assailed the agreement, claiming that such lands were part of
public domain (famously known as the “mother of all scams”).
Peitioner Frank J. Chavez filed case as a taxpayer praying for mandamus, a
writ of preliminary injunction and a TRO against the sale of reclaimed lands
by PEA to AMARI and from implementing the JVA. Petitioner contends the
government stands to lose billions of pesos in the sale by PEA of the
reclaimed lands to AMARI. Petitioner prays that PEA publicly disclose the
terms of any renegotiation of the JVA, invoking Section 28, Article II, and
Section 7, Article III, of the 1987 Constitution on the right of the people to
information on matters of public concern.
ISSUES
Whether or not the transfer to AMARI lands reclaimed or to be reclaimed as
part of the stipulations in the (Amended) JVA between AMARI and PEA
violate Sec. 3 Art. XII of the 1987 Constitution
the amended joint venture agreement is grossly disadvantageous to the
government.
HELD
On the issue of Amended JVA as violating the constitution:
1. The 157.84 hectares of reclaimed lands comprising the Freedom Islands,
now covered by certificates of title in the name of PEA, are alienable lands
of the public domain. PEA may lease these lands to private corporations but
may not sell or transfer ownership of these lands to private corporations.
PEA may only sell these lands to Philippine citizens, subject to the ownership
limitations in the 1987 Constitution and existing laws.
2. The 592.15 hectares of submerged areas of Manila Bay remain inalienable
natural resources of the public domain until classified as alienable or
disposable lands open to disposition and declared no longer needed for public
service. The government can make such classification and declaration only
after PEA has reclaimed these submerged areas. Only then can these lands
qualify as agricultural lands of the public domain, which are the only natural
resources the government can alienate. In their present state, the 592.15
hectares of submerged areas are inalienable and outside the commerce of
man.
3. Since the Amended JVA seeks to transfer to AMARI, a private
corporation, ownership of 77.34 hectares110 of the Freedom Islands, such
transfer is void for being contrary to Section 3, Article XII of the 1987
Constitution which prohibits private corporations from acquiring any kind
of alienable land of the public domain.
4. Since the Amended JVA also seeks to transfer to AMARI ownership of
290.156 hectares111 of still submerged areas of Manila Bay, such transfer is
void for being contrary to Section 2, Article XII of the 1987 Constitution
which prohibits the alienation of natural resources other than agricultural
lands of the public domain.
PEA may reclaim these submerged areas. Thereafter, the government can
classify the reclaimed lands as alienable or disposable, and further declare
them no longer needed for public service. Still, the transfer of such reclaimed
alienable lands of the public domain to AMARI will be void in view of
Section 3, Article XII of the 1987Constitution which prohibits private
corporations from acquiring any kind of alienable land of the public domain.