SOLICITOR General Jose Calida said Thursday that the land deal between the Bureau of Corrections (Bucor) and banana plantation firm Tagum Agricultural Development Corporation (Tadeco) is "illegal."
“The JVA (joint venture agreement) entered into by Bucor and Tadeco is void as it goes against the Constitution and the Public Land Act," Calida said in a statement, acting on the request by House Speaker Pantaleon Alvarez.
The 1969 deal between Bucor and Tadeco had transformed the 5,212.46-hectare land at the Davao Penal Colony (Dapecol) into a banana plantation utilized by Tadeco.
Alvarez earlier filed graft charges against one of the banana company's stockholders, Davao Del Norte Representative Antonio Floirendo Jr.
According to Calida's legal opinion, Dapecol's land belongs to the state, and therefore the deal must only last for 50 years.
“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 further said that the JVA violates Commonwealth Act 141 or the Public Land Act.
“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,” Calida explained.
“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," added Calida.
Under the JVA, Bucor is entitled to receive Tadeco's annual production share of P26,541,809, plus mandatory increase of the share in 10 percent every five years.
“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.
The Department of Justice (DOJ), the agency that supervises the Bucor, is yet to release its legal opinion on the issue.
Alvarez has earlier asked the DOJ to nullify the land agreement as it is "disadvantageous to the government." (VoxPop Philippines)
