Supreme Court affirms Cebu city owns SRP

The Supreme Court (SC) has upheld the appellate and lower courts’ decision in favor of the Cebu city government’s claim over the South Road Properties (SRP).

The high court denied a petition for certiorari filed by Tinago barangay captain Joel Garganera seven years ago.

Garganera, in 2007, questioned the city government’s ownership of the 300-hectare property. He contested that Procalamation 843 issued by then President Gloria Arroyo should be declared null and void as there was no congressional authority allowing Arroyo to transfer ownership of the SRP to the City.

In an earlier decision, the Court of Appeals (CA) said the President has the power to transfer its ownership to the City, granting that the SRP is owned by the National Government.

This was upheld by the SC.

“Contrary to petitioner’s contention, the assailed PN 843 was issued pursuant to RA 7916, which called for the establishment of Special Economic Zones in the country. The validity of PN843 and the consequent issuance of Special Patent No. 3693 and Original Certificate of Title No. 3581 in favor of the City Government of Cebu is, therefore, beyond question,” the SC said in a June 2 resolution received by the city last week.

The reclamation of the SRP was funded by a loan obtained by the government from Japan through its international financing institution.

Garganera’s petition was filed against former Cebu City Mayor Tomas Osmeña, the Cebu City Council, the Cebu Investments Promotions Center, Inc., and the Register of Deeds of Cebu City.

Citing jurisprudence that the land involved in the case is patrimonial property acquired by the Cebu city government as an end-user agency, the SC said, “As such, the subject property is susceptible of disposition to and appropriation by private persons subject to RA 7916 and its implementing rules.”

The High Court said they have no right to encroach on the prerogatives of the executive and legislative departments as long they have not shown that they acted without, or in excess of, jurisdiction or with grave abuse of discretion.

“In this case, there is no reason to find grave abuse of discretion on the part of the legislative and the executive in the issuance of RA 7916, PNs 763 and 843, SP3693 and OCT 3581,” the SC added.

INVESTORS
The SC decision is a welcome development for the city government led by Mayor Michael Rama who has been keen on selling the SRP lots.

“With this pronouncement from the Supreme Court, all doubts are cleared on the ownership of the city government on the SRP. The city can really sell it,” said City Legal Officer Jerone Castillo.

Castillo said there were a number of investors who hesitated to invest in the SRP when the case was still pending, .

The Ayala group was among the hesitant investors, Castillo said. The SRP is currently home to investors and business establishments including Filinvest which is building a condo subdivision and the SM which is building the SM Seaside City Complex at the SRP.

“We are inviting all investors, there are no more doubts on the ownership of the SRP,” Castillo said.

Acting Mayor Edgardo Labella said they already expected the decision in favor of the City because the SRP is titled under the city government.

“It’s a welcome development. Once and for all, the issue has been settled. There is no more doubt and this will tend to erase any doubt on the part of would-be investors that there are really no questions as to the ownership of the SRP,” he added.