The Presidential Commission on Good Government (PCGG) wants to reverse the alleged “grossly disadvantageous sale” of a prime P4.3-billion state-owned lot in Pasig City to an affiliate of property giant SM Development Corp. in 2009.
The PCGG filed on Tuesday an affidavit of adverse claim before the Pasig City Register of Deeds “to prevent the transfer” of a property of state-owned Philippine Integrated Meat Corporation (Pimeco).
Officials said their predecessors at the PCGG and the Office of the Solicitor General waived the state’s rights to the lot to facilitate its sale to the SM Group’s Consolidated Property Development Corp. for roughly P1 billion in 2009, resulting in losses of P3.3 billion for the government.
SM officials declined to comment on the allegations.
PCGG chair Andres Bautista said the lot sale was “another midnight transaction… of the previous administration.”
The lot was originally under a lease-purchase agreement between Pimeco and the Meat Packing Corporation of the Philippines (MPCP), a subsidiary of the Government Service Insurance System (GSIS). The lease expired in 2009, giving Pimeco purchase rights.
In August 2009, Consolidated Prime Dev. Corp. (Consolidated) initiated discussions with the PCGG and Meat Packing/GSIS for the acquisition of the 12.29-hectare property at Barrio Ugong along C-5 owned by MPCP.
MPCP wanted to cancel the lease-purchase agreement with Pimeco for non-payment of rent.
In July 2006, the Sandiganbayan ruled for Pimeco and upheld the effectivity of the lease-purchase agreement. MPCP elevated the case to the Supreme Court.
Pimeco was then controlled 55 percent by Peter Sabido and 30 percent by Independent Realty Corp. (IRC).
Consolidated sought to acquire controlling ownership of Pimeco by purchasing Sabido’s and IRC’s respective shares with the approval of the PCGG and the Sandiganbayan.
With that acquisition, Consolidated would cause Pimeco to negotiate with MPCP/GSIS, a compromise of the latter’s appeal pending before the Supreme Court in order to exercise its right to purchase the property under the terms of the lease-purchase agreement.
In December 2009, Consolidated together with Sabido and Pimeco executed a general Memorandum of Agreement with the PCGG in respect of its acquisition of the Pimeco shares of Sabido and of IRC and in the execution of a general Memorandum of Agreement with MPCP and GSIS in respect of Pimeco’s purchase of the property from MPCP.
On March 24, 2010, the Sandiganbayan approved the compromise agreement between the PCGG and Pimeco and Sabido, authorizing the sale to Consolidated of the 55 percent and 30 percent stake of Sabido and IRC in Pimeco.