CITY OF SAN FERNANDO -- The sale of Paskuhan Village in this city is void, according to the Office of the Solicitor General (OSG).
In a six-page opinion titled “Legal Effects of the Sale of the Paskuhan,” Solicitor General Jose Calida said the sale of the property to the Premier Central Incorporated (PCI), a subsidiary of SM Prime Holdings Corporation, by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) "is void pursuant to Section 54 of Republic Act No. 9593.”
The opinion was submitted to Representative Johnny Pimentel, chairman of the House Committee on Good Government and Accountability in connection with House Resolution No. 654 introduced by Representative Aurelio "Dong" Gonzales, Jr. of the Third District of Pampanga who sought the legislative probe on the sale.
It could be recalled that the House Committee on Good Government and Public Accountability chaired by Surigao del Sur Second District Representative Johnny Pimentel led the inquiry on the sale after Gonzales filed House Resolution 654 that called for the investigation of the sale on whether proper procurement laws were followed as well as ascertain the real ownership of the land of the said property.
The property was sold during the term of former TIEZA head Mark Lapid. Lapid was earlier questioned by lawmakers on his role on the sale of the Philippine Christmas (Paskuhan) Village.
Calida said that R.A. 9593 provides that cultural treasures and heritage sites shall not be sold or disposed of and shall be placed under the ownership of TIEZA for their continued maintenance.
He added that the said provision is also found under Rule IX, Section 138 of the Implementing Rules and Regulations of R.A. 9593.
"While there is no law explicitly declaring Paskuhan Village as a cultural treasure or heritage site, nevertheless a reading of R.A 9593 would reveal that no such formal declaration is necessary before a property can be considered as such,” he said.
In determining whether Paskuhan Village can be considered a cultural treasure or heritage site, one can consider its history, venue in relation to significant Philippine events, the reputation it acquired during the years and how it reflects Filipino talent and ingenuity.
"Certainly, no one can deny that the Paskuhan Village is a Christmas-themed park famous for being the only theme park in Asia where Christmas is celebrated year-round in line with the Filipino tradition," Calida said.
Paskuhan was sold for P939,656,848 or close to P1-billion. A deed of absolute sale covering the properties was executed between TIEZA and PCI.
Calida also said the local government unit (LGU), in this case, the City of San Fernando, cannot purchase the property for the same terms and conditions which was offered to a third party, in this case, PCI, because it would violate Section 54 of R.A. 9593. "which clearly states that ownership of assets considered as cultural treasures and heritage sites shall be placed under the ownership of TIEZA for their continued maintenance."
What may be transferred to the LGU, he said is not title of ownership but merely transfer of control in terms of management and operation.
The Paskuhan Village was established in 1990 during the time of then Governor Bren Guiao as the third Christmas Village in the world after those in the United States and Germany.
The Christmas village theme park, later renamed to Hilaga, was sold to SMDC by Tieza for P939-million as part of its asset privatization thrust. Paskuhan is one of the 13 government-owned properties under Tieza which have been eyed for privatization.
It was included in the Tier 1 of non-revenue generating assets which include Agoo Playa Hotel in La Union, and Matabungkay and Talisay in Batangas. The Hilaga property was part of the land owned by the Lazatin family. In 1989, it was reportedly sold to the government.