OSG: Void Marcos claim over ‘Malacañang of the North’

from Malaya

http://www.malaya.com.ph/03052010/metro2.html

THE Presidential Commission on Good Government and the Office of the Solicitor General yesterday petitioned the Sandiganbayan to nullify the 32-year-old deal between the late President Ferdinand Marcos and the Philippine Tourism Authority involving the development of a 57-hectare lakeside property in Paoay, Ilocos Norte.

Government lawyers named as respondents former First Lady Imelda Marcos and her son, Ilocos Norte Rep. Ferdinand "Bongbong" Marcos, being the co-administrator of the Marcos estate, and PTA general manager Mark Lapid representing the agency.

Aside from a declaration of nullity, the government also asked the court to pronounce the properties as owned by the Republic of the Philippines.

PCGG and OSG claimed the Dec. 20, 1978 contract was signed by Marcos and then PTA general manager Bernardo Vergara "without undergoing the usual verification process and feasibility study." Under the lease contract, PTA will pay a nominal lease fee of P1 per year to Marcos as lessor and owner of the land for a 25-year period from Jan. 1, 1979 to Dec. 31, 2003.

PTA agreed to undertake on its own or jointly with other parties, the development of the land as a public park for tourism purposes and to turn over everything to the Marcos at the expiration of the contract.

Under this contract, PTA constructed the Malacañang ti Amianan (Malacañang of the North), Maharlika Hall, Suba Sports Complex (also known as the Paoay Sports Complex) and an 18-hole golf course – all using public funds.

Government lawyers said that until now, all improvements remain under maintenance and supervision of the PTA, except for the Malacañang of the North which has been converted into a museum.

On Feb. 7, 2005, the Marcos estate sent PTA a demand letter to vacate the leased premises and to remit all rentals to it. On March 26, 2007, the Marcoses sent a final demand letter to the PTA and PCGG with the same request. Five weeks later, the Marcos estate sued PCGG and the PTA before the Paoay-Currimao court in Ilocos Norte invoking the expiration of the lease contract on Dec. 31, 2003. The case remains pending.

OSG and PCGG lawyers claimed the lease contract was void from the beginning for being grossly disadvantageous to the state. They argued that Vergara’s signature on the contract was not binding in the absence of a resolution from the PTA board, and that there was no proof that Marcos actually owned the subject land as there is no certificate of title covering the property or a declaration for taxation purposes that Marcos was the owner of the said. – Peter J.G. Tabingo