Friday, August 29, 2008 DENR maintains SM lot sale above board
THE Department of Environment and Natural Resources (DENR) maintains that the sale and award of the lot, where the SM cyber building stands, was regular.
"A review of the documents pertaining to the lot in question shows procedures have been complied with," Regional Executive Director Samuel Peñafiel said, debunking claims the government was shortchanged when it sold the cyber building property to SM Investments Corporation (Smic).
Peñafiel said what should be looked into is how the heirs of Placido Carantes were issued titles over the same property covered by Original Certificate of Title (OCT) 1.
While aware of the opinion issued by a ranking official of the DENR that the property should have been sold for a higher price, Peñafiel said the report was based on the current valuation of lands in Baguio.
But at the time Smic acquired the property, the cost of land was low, following the devastation wrought by the 1990 earthquake.
The property's market value was P1,500 per square meter. SM bought the lot at P2,027.34 per square meter or a total of P62,999,995.52. Smic was the highest bidder then.
Councilor Rocky Thomas Balisong said the Carantes' has a legal claim to the property. Balisong added the city assessor should have been included in the appraisal committee. He said the City Government was not properly represented when the property was auctioned by the DENR.
Peñafiel said the city was well represented in the appraisal committee, which was then represented by former Baguio mayor Jaime Bugnosen.
Peñafiel said the DENR-Cordillera Administrative Region (CAR) has also complied with Section 57 of the Administrative Code of 1987 and the deed of absolute sale to Smic has been referred to Malacañang for the President's signature.
Administrative Code of 1987 provides conveyances and contracts to which government is a party amounting to at least P50 million will be executed by the President of the Republic of the Philippines.
The sale of the cyber property including other issues pertaining to OCT 1 is under investigation by an ad hoc committee, headed by Baguio Councilor Isabelo Cosalan Jr. (RO)
