CA stops return of Ilocos Norte properties to Marcoses

MANILA, Philippines – The Court of Appeals (CA) reversed an order of a regional trial court (RTC) for the government to return properties spanning 57 hectares in Ilocos Norte to the estate of the late President Ferdinand Marcos.

In a 24-page ruling, the appellate court granted the petition filed by the Presidential Commission on Good Government (PCGG) and the Philippine Tourism Authority (PTA) seeking to dismiss the decision of the Ilocos Norte RTC ordering the government to return parcels of land in Paoay to the Marcoses.

The CA held that local courts have no jurisdiction to rule on the issue since it has already been brought before the Sandiganbayan.

“The appropriate forum to resolve the issue of the validity of the 1978 Lease Agreement and the concomitant determination of ownership of the subject premises is the Sandiganbayan,” it said.

In the complaint filed in 2007, the Marcos camp claimed that the late president was the owner of parcels of land where the “Malacañang Ti Amianan,” Maharlika Hall, Suba Sports Complex as well as an 18-hole golf course had been erected.

It added that in 1978, PTA and Marcos entered into a lease agreement over the subject premises, with a rental amount of P1 a year for 25 years from 1978 until 2003.

Under this lease contract, PTA agreed, either by itself or jointly with another party, to introduce improvements on the premises for tourism purposes, including the development of a public park with athletic, recreational and other similar facilities.

In 1991, PTA subleased the premises, particularly the Paoay Sports Complex, to hotel and resort developer Polar Peak Group Inc. for a term of 10 years, renewable for another 10 years.

PTA and the PCGG extended in 2001 the lease to Polar Peak, which had been renamed Grand Ilocandia Resort and Development Inc. (GIRDI), for another 10 years from 2003 until 2012.

In 2005, the Marcoses formally demanded PTA to immediately turn over the premises and to remit the lease rentals generated until 2003.

PTA, GIRDI and Nam Corporation were served a final demand letter, but they refused to vacate the premises.

NAM is a Korean-based company allegedly employed by Fort Ilocandia Property Holdings & Development Corporation (FIPHDC). FIPHDC is the alleged assignee of GIRDI.

The Marcos camp filed a complaint for unlawful detainers with the Municipal Trial Court of Paoay, which ruled in its favor.

The decision was affirmed by the Ilocos Norte RTC, prompting PCGG and PTA to elevate the case before the CA.

In reversing the lower court’s ruling, the CA affirmed PCGG’s claim that it had filed with the Sandiganbayan a petition to declare null and void the 1978 Lease Agreement.

PCGG maintained that the Paoay properties and all the facilities were built using public funds, thus should be forfeited in favor of the government. – Rappler.com