JUSTICE Secretary Vitaliano Aguirre II announced Thursday that he supports the findings of a Department of Justice (DOJ) panel on the joint venture agreement entered between the Bureau of Corrections (Bucor) and banana firm Tagum Agricultural Development Company Inc. (Tadeco)
After a thorough review, the panel reported last week that the land deal between the Bucor and Tadeco is "null and void". In its recommendation, the panel said the contract must be amended to be approved.
Aguirre, in a news conference, said that he agrees with the findings of the panel but he disagreed with its recommendation.
"May recommendation dun na parang ayusin yung conract para maging katanggap-tanggap," he said. "Hindi mo maayos ang null and void na contract."
In a letter dated April 27, DOJ's fact finding team said the Bucor-Tadeco deal failed to comply with legal requirements to be valid.
The panel led by Chief State Counsel Ricardo Paras III said the Bucor's land is an inalienable land of public domain, therefore it cannot be subject to any joint venture agreement.
"The Public Land Act (Commonwealth Act 141) delimits the disposition of the DPPF reservation. It requires a presidential act to declare the land as alienable and disposable before any agreement over the same may be allowed," the letter read.
The panel further said that there is no categorical indication of a realistic sharing of Tadeco's profits and losses to Bucor.
It added that Bucor's participation in the operation and management of the banana plantation is minimal, evident to this is the absence of a Bucor official in the team behind the banana plantation.
Tadeco is an agricultural business owned by the family of Davao del Norte Representative Antonio Floirendo Jr.
The deal between the banana firm and Bucor signed in 1969 has transformed the 5.212.46-hectare land at the Davao Penal Colony into a banana plantation.
Under the agreement, Bucor is entitled to receive Tadeco's annual production share of P26,542,809 plus mandatory increase of share in 10 percent every five years.
It was House Speaker Pantaleon Alvarez who asked the DOJ to review the deal citing it was "disadvantageous" to the government.
Alvarez earlier filed a graft charge against Floirendo before the Office of the Ombudsman over his involvement in the illegal land deal. (VoxPop Philippines)
