SolGen Calida: Deal between BuCor, Floirendo's TADECO is illegal

Solicitor General Jose Calida on Thursday called for the nullification of the land deal between the Bureau of Corrections (BuCor) and banana firm Tagum Agricultural Development Company Inc. (TADECO), which is owned by the family of Davao Del Norte Rep. Antonio Floirendo Jr.

Calida made the statement following a review of the deal as requested by House Speaker Pantaleon Alvarez, whose friendship with Floirendo has turned sour recently.

According to Calida, the joint venture agreement inked in 1969 goes against the Constitution and the Commonwealth Act 141 or the Public Land Act. He said the 5,212.46-hectare land within the Davao Prison and Penal Farm (formerly Davao Penal Colony) in Panabo City was a land of public domain.

This means that the land belongs to the government.

“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,” Calida said.

"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 DAPECOL lands should cease by 2019. The JVA cannot be allowed to last until 2029," he added.

Calida also pointed out that the JVA covers 5,212.46 hectares, which is way more than what is allowed in the Constitution which is 1,000 hectares.

The solicitor general said 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.

“It should be noted that BuCor and TADECO entered into a Joint Venture Agreement. Clearly, a Joint Venture Agreement is not one of the modes by which agricultural public lands may be disposed of.”

Under the deal, BuCor is also entitled to an annual production share of P26,541,809, plus a mandatory increase of 10 percent every five years while TADECO is given “free and uninterrupted use” of DAPECOL’s land.

“These stipulations clearly show that what TADECO and BUCOR entered into was not a lease, but a joint venture for the purpose of operating a banana plantation within DAPECOL,” Calida said. “This is a clear violation of the Public Land Act.”

He added the agreement failed to comply with the competitive bidding requirement under the Public Land Act.

“The right to lease the DAPECOL land must be made through a public auction where bidders are required to submit sealed bids," Calida said.

Alvarez had already asked the Department of Justice (DOJ), which supervises the BuCor, to scrap the land deal for alleged infirmities, including lack of legal basis and authority, skirting the bidding process, and low lease rates.

The DOJ has yet to release its findings on the matter. 

The spat between Alvarez and Floirendo earlier escalated after their respective "girlfriends" were dragged into the issue. Alvarez ended up admitting having a girlfriend, despite having a second wife, from whom he is separated.

Floirendo admitted getting hurt by Alvarez's allegations, but the Speaker clarified that their personal lives had nothing to do with the complaint he had filed. — MDM, GMA News