PRESIDENT Rodrigo Duterte has no plan of declaring gas-rich Reed Bank as a patrimonial asset of the Philippines, Malacañang said on Tuesday, March 26.
This was the statement of Presidential Spokesperson Salvador Panelo following Supreme Court Associate Justice Antonio Carpio's warning of the current administration's possible default on its loan with China.
Carpio on March 22 raised the possibility that China could seize natural gas deposits in Reed Bank, in case the Philippines fails to pay the P62-million loan agreement with Beijing.
Panelo, however, said such scenario was unlikely possible, since Reed Bank was not declared as a patrimonial property.
"According to him (Carpio), if the Philippines defaults in payment then pwede makuha yung Reed Bank (then Reed Bank could be seized). Now, Reed bank is public property, sa gobyerno yun diba (It's a property of the government)," the Palace official said in a press conference.
"Magiging patrimonial property lang ang isang public property kung merong enabling law, saying na pwede yan o may proclamation ang Presidente (A public property will only be a patrimonial property if there is an enabling law saying it's possible or the President signs a proclamation)," he added.
The country's 20-year loan agreement with China for the Chico River Pump Irrigation Project was signed on April 10, 2018.
Carpio warned that in case of the Philippines' default in repayment of the loan, "China can seize, to satisfy any arbitral award in favor of China, 'patrimonial assets and assets dedicated to commercial use' of the Philippine government."
Carpio noted that rich gas field in Reed Bank falls under the category of "patrimonial assets and assets dedicated to commercial use."
Citing "Chaves vs Public Estates Authority and Amari Coastal Bay Development Corporation" resolution penned by Carpio in July 2002, Panelo said "you cannot just convert a public property to a patrimonial property."
Panelo also stressed that the President was not inclined to declare Reed Bank as a patrimonial asset.
"Under the Constitution, pag-inalienable property, it is public property. Hindi pwedeng i-bigay yun. Hindi pwede ibenta. Pwede mo lang i-lease kung patrimonial property... So hindi pupwede ang sinasabi nya kasi wala namang declaration na ang Reed Bank is a patrimonial property," he said.
(Under the Constitution, if it's alienable property, it is public property. You cannot give that. You cannot sell that. You can only lease if it's patrimonial property... So his concern would unlikely happen since there is no declaration that Reed Bank is a patrimonial property.)
"Unang-una, we will not do that. Bakit niya gagawin (Why will he do that)? What will be your purpose in declaring that...? He (Duterte) will not do that," he added. (SunStar Philippines)