Speaker misled DOJ into issuing adverse opinion – Tadeco

The Tagum Agricultural Development Co. Inc. (Tadeco) has accused Speaker Pantaleon Alvarez of misleading the Department of Justice (DOJ) into issuing an opinion that the company’s joint venture agreement with the Bureau of Corrections (BuCor) was disadvantageous to the government.

As this developed, a member of the militant Makabayan bloc in the House of Representatives has declared their group’s desire to have the more than 5,000-hectare banana plantation of Tadeco distributed to farmers.

The area is part of the Davao penal colony (Dapecol) that Tadeco is using. It insists that the contract is legal and aboveboard, and meant to help the rehabilitation of the inmates.

Tadeco is owned by the family of Davao del Norte Rep. Antonio Floirendo, who found himself under fire from Alvarez reportedly after their girlfriends’ spat.

But Alvarez said the issue involving their girlfriends did not have anything to do with his allegations against Floirendo.

“The allegation of the Speaker that the government is prejudiced is totally incorrect,” Tadeco president and chief operating officer Anthony Alexander Valoria stressed.

Valoria said Alvarez claimed BuCor has been paid only P26,541,809 per year whereas prevailing lease rates in the area are at P25,000 per hectare.

Based on this assumption, Alvarez has placed government’s losses at P106,167,191 per year or a total of P25.464 billion since Tadeco’s contract with BuCor took effect.

But Valoria rebutted the argument, saying Tadeco has in fact paid the BuCor a total of Pl42,719,662 last year, equivalent to P26,900 per hectare from 2003 to 2028 as provided in the agreement.

This was why he said they were surprised when Alvarez filed House Bill No. 867, disparaging the JVA and calling for a congressional probe on the matter.

Alvarez’s allegation was backed by Solicitor General Jose Calida whose office released a press statement supporting the Speaker’s position.

“We emphasize that Tadeco paid to BuCor not only the Guaranteed Annual Production and Profit Share but also the Inmates Farm Training Support, Stipend and Support Program, and Training Subsidy. The financial benefits paid by Tadeco from 2004 to 2016 amount to P1,620,549,230,” he pointed out.

More importantly, Valoria said the fulfilment of the primary purpose of the JVA – which is the rehabilitation of inmates – has been a proven success.

“Aside from the inmates, the banana operations under the JVA create 30,000 jobs in direct, indirect and ancillary roles. This translates to the secure livelihood and future of at least 181,000 Filipinos,” the Tadeco head pointed out.

“The JVA is also responsible for P438,179,008 paid in taxes and fees to the Philippine government in 2016 alone. I challenge you to find an agricultural operation that provides those levels of benefits to our country,” he added.

Tadeco also refuted the findings of DOJ and Office of the Solicitor General that the deal violates the Constitution, which provides that lease agreements should cover not more than 1,000 hectares. The BuCor reservation Tadeco occupies covers an area of 5,408 hectares and did not undergo any public bidding.

Tadeco stressed that the land in question is not covered by the constitutional provision as the Constitution particularly refers to alienable and disposable lands in the public domain.

“The land of the BuCor is government reservation and therefore is inalienable public land. As such, it cannot be the subject of occupation, entry, sale, lease or other disposition. And indeed there is no disposition of the land from the BuCor as the agreement between the BuCor and Tadeco is a joint venture,” Valoria explained.

Tadeco also insisted the agreement with BuCor cannot be considered a lease as the principal objective of the JVA is the rehabilitation of inmates of the Davao Prison and Penal Farm (DPPF).

“The other provisions in the JVA are appurtenant to this principal objective and its success. The subject matter of the JVA is part of a government reservation; hence, it is inalienable land of the public domain. Such being the case, it cannot be a proper subject of a lease agreement under Section 3, Article XII of the 1987 Philippine Constitution. The solicitor general even stated himself that the agreement between BuCor and Tadeco is in fact a joint venture,” Valoria stressed.

Valoria added they were not expecting the current administration to initiate another review or even a probe on their agreement, which had been subjected to numerous reviews under past administrations.

Meanwhile, Rep. Ariel Casilao of Anakpawis said the party-list group has filed House Resolution 953, which would have Dapecol “distributed to qualified farmer-beneficiaries.”

Casilao said they want to have the Tadeco banana plantation covered by the government’s Comprehensive Agrarian Reform Program. The left-leaning lawmaker said they have about 30,000 qualified farmer-beneficiaries.

Justice Secretary Vitaliano Aguirre II, who recommended to the two investigating House panels that the JVA must be rescinded by President Duterte, told Casilao in last week’s hearing that he supports the group’s advocacies.

Casilao also disclosed that there is “an ongoing clamor of farmers to cover lands part of the Davao Penal Colony, as implied by at least nine petitioners” at the Department of Agrarian Reform – Solidarity of Landless Workers in Davao (SOLAWORD); United Floirendo Agrarian Reform Beneficiaries Association (UFEARBAI); Davao Settlers Association (DASAI); farmers led by Zenaida Maguad; Lupang Pangako farmers; Sto. Tomas Bagong Buhay Association Inc.; Samahan ng mga Trabahanteng Bilanggo ng DAPECOL, and Lower Bobongon CARP Beneficiaries Multipurpose Cooperative. As far as Alvarez is concerned, Tadeco officials have yet to present any convincing proof that their contract with BuCor and Dapecol is legal.

“We still have one more hearing. After this, if we can establish all the facts and if the joint committee can make recommendations what needs to be done in terms of legislation then probably we can stop government from bleeding further in terms of losses,” he said.

During the first hearing last May 9, Aguirre told the committees on good government and justice that the land in question is “inalienable” land of the public domain and cannot be the subject of a joint venture agreement.

Even if the law allows lease of the land, he noted that the contract area of 5,308 hectares is more than five times the 1,000-hectare limit set under the 1987 and 1973 Constitutions on public agricultural lands that can be leased to a private entity.

To make it appear the deal is legal and justify the lack of bidding on the award of the contract to the company, Tadeco officials stuck to their claim that it was in the nature of a JVA, Alvarez said. However, the Speaker said testimonies in the hearing belie Tadeco’s claims.

During the hearing Tadeco admitted they were paying rent, Alvarez said.

Alvarez said if Tadeco is indeed paying rent, then it is clearly a payment for lease of the BuCor land and not a JVA.