Monterrazas de Cebu may still sell units amid probe – DHSUD

The controversial Monterrazas de Cebu residential development may continue selling units despite the ongoing investigation into its compliance with environmental laws as its certification of registration remains in effect.

The Department of Human Settlements and Urban Development's (DHSUD) budget sponsor, Senator Sherwin Gatchalian, made the statement Wednesday during budget deliberations at Senate. The DHSUD proposed funding for next year is at P6.4 billion.

Gatchalian said that DHSUD's issuance of the certificate of registration for the high-end residential project came in multiple instances—first in 2008, then in 2009, 2024, and 2025.

"The DENR is investigating the possible environmental transgressions. The local government as well is also doing its own investigation. But as long as those documents still stand and are still valid—the ECC, the Sanggunian resolutions, the building permits—the department will not revoke the certificate of registration," he said.

Senator Jinggoy Estrada then pressed if it is proper for Monterrazas to continue selling their properties even though there are ongoing investigations. 

Gatchalian explained that since there is no official communication from the Department of Environment and Natural Resources (DENR) and the local government with regard to the possible violations of the project, then its certificate of registration still stands.

"Meaning, they can still sell their units and their products, Mr. President," the budget sponsor said. 

"But as soon as there are adverse findings and their ECC will be revoked or the local government revokes their permits, then the certificate of registration will also be affected, and they will be instructed to cease the selling of their products," he added.

Gatchalian said that among the grounds for the cancellation of the certificate of registration is the cancellation of its Environmental Compliance Certificate (ECC) or the cancellation or revocation of the building permit.

He also said the DHSUD is only in charge of regulating the selling portion or the commercial aspect of the project, while the DENR is tasked with regulating the environmental aspect.

"So as long as there is no official communication from the DENR and from the LGU on the violations, the commercial aspect or the regulation of the commercial aspect, will still stand," he said. 

Earlier this month, the DENR said one of the violations that it identified with the construction of the Monterrazas de Cebu is that out of over 700 trees in 2022, only 11 remain after a tree-cutting permit was obtained for the project.

Monterrazas also failed to acquire a discharge permit in accordance with the provisions of the Philippine Clean Water Act of 2004, the DENR also said.

The agency said the planned centralized retention pond and 15 additional structures meant to capture rainwater are still considered inadequate.

The DENR also found that Monterrazas had violated ten out of 33 ECCs.

This could subject the people behind the residential project to administrative and criminal charges.

Mont Property Group, the project developer of Monterrazas, has aired its side over the controversy surrounding its project, which was blamed for aggravated flooding in Cebu City following the onslaught of Typhoon Tino.

"Monterrazas de Cebu welcomes all impartial investigations by the Department of Environment and Natural Resources (DENR). We are committed to [working] with the agency to ensure the highest standards of environmental integrity and community safety across Cebu's hillside developments," Mont Property Group said in a statement posted on its Facebook page.

The company has called the DENR's statements as "premature," while describing the claim that it cut down over 700 trees as "grievously false." 

It said only cleared shrubs and secondary undergrowth, pursuant to its approved ECC and development permit. — VDV, GMA Integrated News