COA junks deal between PRA, Amari-CBRDC

The Commission on Audit has struck down the Oct. 14, 2016 compromise deal between the Philippine Reclamation Authority and the Central Bay Reclamation and Development Corp. transferring 102,703.15 square meters of reclaimed land to the latter’s assignee as reimbursement for P1.0127 billion.

In a nine-page decision, the COA Commission Proper said the agreement was unlawful since the PRA did not have the authority to compromise since under the Administrative Code of 1987, citing it was only Congress had the power to enter into such deals where the claims involved exceed P100,000.

It also rejected Central Bay’s claim for reimbursement of expenses of P11.538 billion against the PRA pertaining to the cost of development on the three-island reclamation project along the Manila-Cavite Coastal Road, saying the claimant firm was only entitled to P714.938 million.

The ruling was penned by COA chairperson Michael Aguinaldo and Commissioners Jose Fabia and Roland Pondoc.

It said that the Supreme Court had ruled with finality that Amari Coastal Bay Reclamation and Development Corp., the forerunner of Central Bay, was blocked by the Constitution from acquiring any alienable land of the public domain.

The compromise agreement “circumvents the SC ruling” by transferring the 102,703.15 square meter not directly to Central Bay but to its assignee who was a qualified party.

“The parties would like this Commission to turn a blind eye on the illegality of the transfer of the land to Central Bay because it will soon be conveyed to a qualified assignee anyway. This Commission refuses to be an instrument in the perpetuation of such illegal act,” the decision read.

The PRA obligation and the compromise deal both stemmed from a joint venture agreement signed on April 25, 1995 between the Public Estates Authority (PEA, now PRA) and the Amari Coastal Bay Reclamation and Development Corp. (now Central Bay).

Under the PEA-Amari deal, the private firm shall develop three parcels of reclaimed land known as “Freedom Islands” covering a total area of 1,578,441 square meters or 157.844 hectares and the reclamation of an additional 250 hectares of submerged areas surrounding the Freedom Islands.  

Then President Fidel V. Ramos, through Executive Secretary Ruben Torres, approved the PEA-Amari JVA on June 8, 1995.