Meralco sues govt over Tagaytay property dispute

MANILA, Philippines - The Philippines’ largest electric company has sued the Presidential Commission on Good Government (PCGG), seeking compensation for losses incurred from a dispute over a Tagaytay City property. In a case filed at the Philippines' anti-graft court, the Manila Electric Co. (Meralco) sought P116 million in compensatory damages against the government and Nacor Trading Corp., from which the electricity distributor bought a property in Tagaytay City. Measuring 6,000 square meters, the said property was among the lots sequestered in May 1986 by the agency mandated to take temporary possession of the Marcos family’s ill-gotten assets. Besides seeking moral damages worth P200,000, the case filed at the Sandiganbayan’s second division also sought reimbursement for litigation expenses and attorney’s fees. Jose Reny T. Albarico, Meralco counsel, said that the Lopez-led company bought the property from Nacor for P9 million in August 1993. The transaction was consummated only “after a tedious and diligent examination [that] the title was clean and free from any lien or encumbrance whatsoever," Albarico said. Albarico added that the government’s claim on the property was not annotated at the back of the land title. Upon acquisition, Meralco’s Tagaytay Extension Office and Repeater Station was built on the property for P109 million. According to the company’s pleading, the facility is a “logistical backbone" of the utility’s franchise area covering Tagaytay City and surrounding areas. The lawyer argued that in the absence of any adverse claim over the subject property, its acquisition by Meralco is legal and beyond question. “Meralco here is clearly a buyer in good faith for value. Meralco’s entitlement to subject property as its registered owner," Albarico said. GMANews.TV called Jay Miguel, the PCGG’s legal department head, he was unavailable. - GMANews.TV