July 9, 2002
FACTS:
Through PD No. 1084, the Public Estates Authority (PEA) was tasked by former president and dictator Ferdinand Marcos, to reclaim land, including foreshore and submerged areas and to develop, improve, acquire, lease and sell any and all kinds of lands. As a result, an amendment was made on a previous contract with Construction and Development Corporation of the Philippines (CDCP). Prior to PEA, CDCP was tasked to reclaim certain forshore and offshore areas of Manila Bay. The amended contract now directed CDCP to transfer to PEA all the development rights, title, interest and partitipation of CDCP in the reclamation.
Under former President Cory Aquino, titles of parcels of land reclaimed under Manila-Cavite Coastal Road and Reclamation Project (MCCRRP) were transferred to PEA. These covered three reclaimed islands known as the “Freedom Islands.”
PEA entered into a Joint Venture Agreement (JVA) with AMARI, a private corporation to develop the Freedom Islands, notably the reclamation of an additional 250 ha of submerged areas surrounding these islands to complete the plan. The JVA was entered into through negotiation without public bidding. Former President Fidel Ramos then approved the JVA.
Controvery broke out when then Senate President Ernesto Maceda denouced the JVA as the grandmother of all scams. The Senate conducted a joint investigation and concluded that the reclaimed lands PEA seeks to transfer to AMARI under the JVA are lands of public domain which the government has not classified as alienable lands and therefore PEA cannot alienate these lands. Moreover, the certificates of title covering the Freedom Islands were void, and that the JVA itself was illegal.
In his capacity as taxpayer, petitioner Frank Chavez filed a petition for mandamus with prayer for the issuance of a writ of preliminary injunction and temporary restraining order. He argued that the government will lose billions of pesos in the JVA. He sought for the public disclosure of the renegotiation of the JVA, invoking Constitutional right of the people to information on matters of public concern.
He also alleged that the JVA is against the Constitutional prohibition on the sale of alienable lands of the public domain to public corporations.
A year after the filing of the petition, PEA and AMARI signed the Amended Joint Venture Agreement (Amended JVA). Former President Estrada signed the Amended JVA.
ISSUES:
Whether the amended JVA violates the Constitution. -- YES.
Whether information on ongoing negotiations may be disclosed to the public. -- NO.
HELD:
PD No 1085, coupled with President Aquino’s actual issuance of a special patent covering the Freedom Islands, is equivalent to an official proclamation classifying the Freedom Islands as alienable or disposable lands of the public domain. Freedom Islands are thus alienable or disposable lands of the public domain, open to disposition or concession to qualified parties.
However, at this time, the Freedom Islands were no longer part of Manila Bay but part of the land mass after PEA had already reclaimed it. However, the additional 592.15 ha are still submerged and forming part of the Manila Bay. There is also no legislative or presidential act regarding these remaining areas.
Also, the mere physical act of reclamation of PEA of foreshore or submerged areas does not make the reclaimed lands alienable or disposable lands of the public domain, much less patrimonial lands of PEA. It still needs the authorization of DENR, which classifies lands of public domain into alienable or disposable lands subject to the President’s approval.
Absent two official acts – a classification that these lands are alienable or disposable and open to disposition and a declaration that these lands are not needed for public service, lands reclaimed by PEA remain inalienable lands of the public domain.
PEA is also mandated to call for a public bidding. Only if this failed that a negotiated sale is allowed. The failure of the public bidding involving only 407.84 ha is not a valid justification for a negotiated sale of 750 ha.
A private corporation, even one that undertakes the physical reclamation of a government BOT project, cannot acquire reclaimed alienable lands of the public domain in view of the constitutional ban.
Ownership of PEA of the said lands of public domain does not convert them to private lands. Jurisprudence holding that there is conversion to private land upon the grant of the patent or issuance of the certificate of title does not apply to government units like PEA.
The rationale behind ban on corporation acquiring, except through lease, alienable lands of public domain is to equitably diffuse land ownership or to encourage "owner-cultivatorship and the economic family-size farm" and to prevent a recurrence of cases like the instant case. Huge landholdings spawn social unrest. In practice, this ban strengthens limitation on individuals from acquiring more than the allowed area by simply stting up a corporation to acquire more land.
On the right to information:
The right to information does not extend to matters recognized as privileged information under the separation of powers. In this case, the information demanded by Chavez is privileged information rooted in the separation of powers.