THE Office of the Solicitor General has come up with a legal opinion on Thursday, saying the joint venture agreement entered into by the Bureau of Corrections with Tagum Agricultural Development Co. involving the lease of 5,300 hectares of the Davao Prison and Penal Farm is disadvantageous to the government.
“The JVA entered into by Bucor and Tadeco is void as it goes against the Constitution and the Public Land Act,” said Solicitor General Jose Calida.
Calida came up with the legal opinion after House Speaker Pantaleon Alvarez requested the OSG, as the government’s law office, to review the 25-year agreement between the two parties involved.
In 1969, both parties entered into a JVA, where BuCor undertook to allocate areas within the Dapecol for Tadeco to develop into a banana plantation.
Another JVA was entered into by the parties in 1979, wherein they agreed to extend the joint venture for 25 years.
In 2003, the JVA was renewed for another 25-year period or until 2029.
But according to Calida, the 5,212.46-hectare land within the Dapecol subject of the JVA was land of public domain. This means the land belongs to the State.
“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.
He added: “Assuming 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.”
“The Constitution also provides that private corporations may only lease lands of the public domain not exceeding 1,000 hectares,” Calida said, pointing out that the JVA covers 5,212.46 hectares, which is way more than what is allowed in the Constitution.
The solicitor general also said the JVA violated Commonwealth Act No. 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.”
Under the JVA, BuCor is entitled to receive a “guaranteed annual production share” and a “share in the profits of Tadeco.”
In turn, BuCor guaranteed Tadeco “free and uninterrupted use” of Dapecol’s land.
“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.
“This is a clear violation of the Public Land Act.”
“Assuming arguendo that the agreement falls under the definition of a lease under the Civil Code, the JVA would still be void because it failed to comply with the competitive bidding requirement under the Public Land Act,” Calida said.
“The right to lease the Dapecol land must be made through a public auction where bidders are required to submit sealed bids.”
The family of Rep. Antonio Floirendo Jr., who recently figured in a controversial conflict with Speaker Alvarez involving their “girlfriends,” owns Tadeco.