SolGen says TADECO land deal violates gov’t land lease rules

THE Solicitor- General has backed Speaker Pantaleon D. Alvarez’ claim that the extension obtained by Tagum Agricultural Development Co. (TADECO) for the use of land owned by the Bureau of Corrections (BuCor) exceeds the 50-year legal limit on such deals.

“The [Joint Venture Agreement (JVA)] entered into by BuCor and TADECO is void as it goes against the Constitution and the Public Land Act,” Solicitor- General Jose C. Calida said in a statement released yesterday.

“It should be emphasized that the Constitution only allows private corporations to hold lands of the public domain through lease for a total period not exceeding 50 years,” Mr. Calida said, adding: “Assuming that the JVA is a lease, the initial agreement was entered into in 1969, extended for 25 years in 1979 and extended for another 25-year period in 2003. TADECO’s use and occupation of the Davao Penal Colony (DAPECOL) lands should cease by 2019. The JVA cannot be allowed to last until 2029.”

Mr. Calida said that the legal opinion was released in response to a request by Mr. Alvarez.

Last month, Mr. Alvarez filed charges with the Office of the Ombudsman against his political ally, Rep. Antonio R. Floirendo, Jr. of the second district of Davao del Norte, whose family controls TADECO.

The speaker said that Mr. Floirendo in 2003 was serving his second term as Davao del Norte representative while also serving as one of the shareholders of the banana plantation, thereby allegedly violating Section 3 (h) of the Anti- Graft and Corrupt Practices Act.

The lease involves 5,300 hectares of the Davao Penal Colony.

Under the 2003 contract, both parties renewed the arrangement for another 25 years for P26.54 million a year, with an increase of 10% every five years.

Mr. Calida also pointed out that under Commonwealth Act No. 141 or the Public Land Act, private corporations “may only lease lands of the public domain not exceeding 1,000 hectares.”

Mr. Calida added: “Under the Public Land Act, agricultural public lands such as the DAPECOL may be disposed of only through homestead, sale, lease, or confirmation of imperfect title.”

He also stressed that stipulations under the JVA signify that it was not a lease but “a joint venture for the purpose of operating a banana plantation within DAPECOL,” which clearly violates the Public Land Act.

“Under the JVA, BuCoR is entitled to receive a ‘guaranteed annual production share’ and a ‘share in the profits of TADECO.’ In turn, BuCor guaranteed TADECO ‘free and uninterrupted use’ of DAPECOL’s land,” Mr. Calida noted.

Mr. Alvarez also asked the Department of Justice for a legal opinion on the JVA but the department has yet to release the legal opinion. —