Pabling says SRP lot sales illegal without Congress OK

The newly converted South Road Properties (SRP) Museum, formerly a water tank can be seen from the entrance passing through the viaduct. (CDN PHOTO/TONEE DESPOJO)

Former Cebu governor and congressman Pablo Garcia described as “illegal and unconstitutional” the Cebu City government’s sales of the city’s lots at the South Road Properties (SRP) to private corporations.

In a paper he compiled, Garcia said prior approval from Congress is needed before the city can sell the SRP lots since these are covered by the Public Land Act as stated in the transfer of certificate of title (TCT) covering the lots.

“The transactions of the City of Cebu, involving the sale or disposition of certain portions of the Cebu South Reclamation Property, are clearly and absolutely illegal because these were made without prior authority from Congress, in violation of Section 60 of the Commonwealth Act No. 141 or the Public Land Act,” he said.

He said the SRP lots are covered by the Public Land Act since their titles were based on Proclamation No. 843 by then president Gloria Arroyo which declared portions of the SRP as alienable and disposable.

The same proclamation also transferred ownership of the lots to the city, Garcia said.

Garcia cited Supreme Court jurisprudence which stated that the only way for government to sell reclaimed disposable lands of public domain is for the legislature to pass a law authorizing such sale.

FORMER congressman Pablo Garcia pushed for the passage of a bill in Congress to authorize Cebu City to sell the lots already sold to companies at the South Road Properties (SRP). (FILE PHOTO)

He said what also makes the city’s disposal of the SRP lots unconstitutional is that these were sold to private corporations, which are banned from acquiring “alienable lands of the public domain” based on the constitution.

Among those who already bought SRP lots from the city government are SM Prime Holdings Inc., Ayala Land Inc. and Filinvest Land Inc.

Garcia, a lawyer, said under Article 1409 of the Civil Code, contracts like the sale of the SRP lots cannot be ratified.

This means that the contracts of sale to SM, Ayala and FLI are “non-existent, null and void from the beginning.”

Garcia said the Cebu City government risks the possibility of the reversion of the ownership of the SRP lots back to the state or the Republic of the Philippines.

Sought for comment on the statement, Mayor Osmeña said he has his own reasons.

“He (Garcia) is entitled to his own opinion,” he said in a text message. Osmeña earlier said he will cancel last year’s sale of two SRP lots to the SM-Ayala consortium and Filinvest.

This plan, though, doesn’t include the earlier sale to SM of the areas where SM Seaside City Cebu now stands as well as other developments by Filinvest.

Garcia suggested that a bill should already be filed in Congress to authorize Cebu City to sell, transfer, lease or dispose the lots in the SRP as early as possible.