Chavez vs PEA and AMARI

Virginia N. Ganal
 ISSUE

Whether or not the stipulations

in the Amended JVA for the
transfer to AMARI of lands,
reclaimed or to be reclaimed,
violate the Constitution.
 RULE
• Section 2, Article XII of the 1987 • Article 112 of the Civil Code
Constitution • Amended JVA (3.2; 3.3; 2.2; 5.2)
• Section 3, Article XII of the 1987 • P.D. No. 1445
Constitution
• Section 379 of the 1991 Local
• Public Land Act (CA 141, as Government Code
amended)
 Analysis of Facts and Arguments
• The petition asked the court to legitimize a government contract that conveyed to a private entity
157.84 hectares of reclaimed public lands along Roxas Boulevard in Metro Manila at the
negotiated price of P1,200 per square meter.
• Published reports place the market price of the land near that area at that time at a high of
P90,000 per square meter
approx157.84 hectares = 1,578,400 sq. meter DIFFERENCE:

1,578,400 X P1,200 = P1,894,080,000

P140,161,920,000
1,578,400 X P90,000 = P142,056,000,000
 Analysis of Facts and Arguments
• The difference in price is a • Public Estates Authority under the
staggering P140.16 billion, Joint Venture Agreement (JVA)
equivalent to the budget of the obligated itself to convey title and
entire Judiciary for seventeen years. possession over the Property,
• It is more than three times the consisting of 1,578,400 square
Marcos Swiss deposits that this meter for a total of consideration
Court forfeited in favor of the of P1,894,080,000 @ P1,200 / sq.
government. meter.
 ARGUMENTS
• CHAVEZ • PEA and AMARI
• Appraisal report submitted by the • PEA’s justification for the purchase
Commission on Audit price are much lower on various
• Two Senate Committees established appraisal reports.
the clear, indisputable and • The amended JVA mandates that
unalterable fact that the sale of the the PEA had the duty to execute
public lands is grossly undervalued without delay the necessary deed of
based on official documents transfer of the title pertaining to
submitted by the proper AMARI’s land share based on the
government agencies Land Allocation Plan.
 CONCLUSION
• Under the Public Land Act (CA 141, as amended), reclaimed lands are classified as
alienable and disposable lands of the public domain Section3 of the Constitution:
Alienable lands of the public domain shall be limited to agricultural lands.
• Private corporations may not hold such alienable lands of the public domain except
by lease. PEA may lease these lands to private corporations but may not sell or
transfer ownership of these lands to private corporations.
• PEA may only sell these lands to Philippine citizens, subject to the ownership
limitations in the 1987 Constitution.
• Clearly, the Amended JVA violates Section 2 and 3 of Article XII of the
Constitution.
• Thus, Amended JVA declares null and void ab initio.