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Friday, March 29, 2024

DoJ sets ruling on Tadeco land deal

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THE Justice department will this week come up with a legal opinion on whether or not the joint venture agreement between the Bureau of Corrections and Tagum Agricultural Development Co. involving the lease of 5,300 hectares of the Davao Prison and Penal Farm is grossly disadvantageous to the government.

“This week before the Lenten break, I believe we will have a legal opinions on the matter,” Justice Secretary Vitaliano Aguirre II said.

Aguirre earlier formed a legal team to look into the regularity of Corrections’ 25-year joint venture agreement with Tadeco. 

He ordered a review of the contract at the request of House Speaker Pantaleon Alvarez, who wants the contract canceled claiming it is very disadvantageous to the government.

Alvarez claims that Tadeco is paying only a guaranteed P5,000 per hectare for the 5,‎308-hectare penal land, which amounts to P26.541 million per year or P663.525 million from 2003 to 2028.

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Justice Secretary Vitaliano Aguirre II

He claims that plantations with the same development scale would fetch as much as P200,000 per hectare, and that means Tadeco should be paying P1.061 billion per year or P26.525 billion for the 25-year contract.

Based on his estimates, he claims that the government would lose a total of P25.464 billion.   

The family of Rep. Antonio Floirendo Jr., who recently figured in a controversial conflict with Alvarez involving their “girlfriends,” owns Tadeco.

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