COA blocks P1-billion claim for deal between PRA, Central Bay

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COA blocks P1-billion claim for deal between PRA, Central Bay
The Commission on Audit says the Philippine Reclamation Authority had no authority to enter into a compromise deal with Central Bay Reclamation and Development Corporation

MANILA, Philippines – The Commission on Audit (COA) blocked a P1-billion reimbursement claim after finding that a 2016 compromise deal between the Philippine Reclamation Authority (PRA) and Central Bay Reclamation and Development Corporation is illegal. 

In a decision, COA said the PRA has no authority to enter into a compromise deal as this is only bestowed upon Congress for claims amounting to more than P100,000, according to the Administrative Code of 1987. 

Central Bay sought to reimburse P1.0127 billion in the form of 102,703.14 square meters of reclaimed land in 2014.

But COA said that the Supreme Court (SC) already ruled with finality that Amari Coastal Bay Reclamation and Development Corporation, the forerunner of Central Bay, is prohibited by the Constitution from acquiring any kind of alienable land of the public domain.

State auditors noted that the compromise deal tried to “circumvent” the SC ruling by transferring the land to an assignee of Central Bay. 

“The parties would like this commission to turn a blind eye [to] 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,” COA said.

Aside from the P1-billion claim, Central Bay also filed a petition in 2014 before COA for a claim worth P11.528 billion. The amount, it said, included cash advances to the PRA, relocation costs for illegal settlers, professional fees, and interest on bank loans.

COA, however, said only P714.938 million may be granted, denying the rest of the amount for lack of legal basis and supporting documents, as well as expenses not attributable to the government, among others. 

The commission stressed that the claims stemmed from “the nullification of the joint venture agreement entered into by Central Bay and the government.”

“To put it succinctly, the losses Central Bay may have entailed are part of the investment risks attached to the business venture…which it must solely bear,” COA said. – Rappler.com

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