Palace orders DOJ to review Nayong Pilipino-Landing Int'l lease contract

Malacañang has tasked the Department of Justice to review the controversial lease deal entered into by the dismissed officials of the Nayong Pilipino Foundation (NPF) with a foreign company, presidential spokesperson Harry Roque said Wednesday.

President Rodrigo Duterte's observation that the contract with Landing Resorts Philippines Development Corp. was "flawed" prompted the order for review, Roque said.

The deal supposedly lacked public bidding and was disadvantageous to the government. Duterte has fired the NPF board of trustees and its management.

Justice Secretary Menardo Guevarra, in response, said he has instructed the Office of the Government Corporate Counsel (OGCC) to review "very carefully" the previous OGCC legal opinion to NPF "which apparently paved way for the execution" of the lease contract.

The OGCC is the counsel for government-owned and controlled corporations such as the NPF.

"This review of all antecedent facts and relevant documents will guide the government in determining the proper course of action with respect to the lease contract," Guevarra said in a text message.

Guevarra said they will submit a recommendation to the President "as soon as possible" in connection with the review.

Hong Kong-based Landing International Development Ltd. said on Tuesday its $1.5-billion integrated casino resort that sits on NPF property is still pushing through despite the dismissal of NPF officials.

“From the group’s view point, the recent decision of the Philippine government to replace members of the NPF board of trustees did not affect the validity of the subject contract of lease," Landing International said in a statement.

The lease terms between NPF and Landing International is for 25 years starting from the date of execution of the contract, not 70 years as alleged by critics, according to NPF chairperson Patricia Ocampo.

The monthly rentals were pegged at P360 per square meter, with an advanced payment of P827.05 million.

Landing International pointed out  that the 25-year lease term under the contract between its wholly-owned subsidiary Landing Resorts Philippines Development Corp. and NPF will commence only on the date of execution of the lease contract.

However, it emphasized that the company has a separate application pending with Tourism Infrastructure and Enterprise Zone Authority.

“Subject to and upon approval of Landing Philippines’ application with the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), the term of the lease shall be for a period of 50 years as provided for and specifically allowed by Republic Act 9593, otherwise known as the Tourism Act of 2009, as an incentive to encourage foreign investments in the Philippines,” Landing International said.

“Unless the lease contract is canceled or nullified on legal grounds by the courts, Landing has reason to believe that it is a valid leaseholder and can legally proceed with its project,” the company said.

Ocampo denied allegations that the NPF board and management were involved in graft over the lease contract covering the NayonLanding project.

She also said on top of the monthly rent, NPF will receive additional payments equivalent to 10 percent of net profit from the operations of NayonLanding. —LBG, GMA News