Date:
May 2003
High Court Voids Another Flawed Deal
The
Supreme Court last week voided the controversial
joint venture agreement between the Amari
Group and PEA relating to the development
of 600 hectares of reclaimed land fronting
Manila bay. This particular deal was signed
during the Ramos Estrada administration and
was then renegotiated under the Estrada watch.
The High Court ruled that the lands in question
could not be sold by the PEA because these
represented "inalienable natural resources
and outside of the public domain." The
PEA/AMARI deal, so the Court said, amounted
to the transfer of public lands to a private
corporation.
In its explanation of its ruling the High
Court was at pains to point out that its decision
did not bar private firms from participating
in reclamation projects and receiving payment
for their services. However it drew the line
on constitutional grounds at allowing private
corporations to acquire reclaimed lands from
the public domain under what amounted to a
private deal. Such lands can only be acquired,
under the law at public auction provided that
such transfer does not exceed 12 hectares
per individual.
The government is required under the ruling
to reimburse both PEA and Amari for their
reclamation expenses. The PEA may lease the
lands to private corporations but cannot sell
or transfer ownership.
™
Group
are trademarks of MCA Limited.