DENR, developer of Masungi Georeserve face off in the Senate

Executives of the Department of Environment and Natural Resources (DENR) and Blue Star Construction Development Corporation (Blue Star), an affiliate of the Masungi Georeserve Foundation that manages the property, faced each other before the Senate on Friday, April 11, 2025.  —PHOTO COURTESY OF MASUNGI GEORESERVE FOUNDATION

MANILA, Philippines — Executives of the Department of Environment and Natural Resources (DENR) and Blue Star Construction Development Corporation (Blue Star), an affiliate of the Masungi Georeserve Foundation that manages the property, faced each other in the Senate on Friday over their long-standing dispute.

This was after the Senate blue ribbon panel held an inquiry into the DENR’s cancellation of its Supplemental Joint Venture Agreement with Blue Star.

Environment Secretary Maria Antonia Yulo-Loyzaga insisted that what happened to Masungi was “not a special case.”

“This is not a special case — it is the law. As I had previously stated regarding this issue which is among the millions of hectares that the DENR and this office preserve, conserve, and manage — everyone must comply with the law,” said Yulo-Loyzaga.

According to her, the Supplemental Agreement about a 300-hectare area within what geologists call the Masungi Limestone Formation was intended for government employee housing.

However, a 2014 Commission on Audit review raised significant concerns, specifically the lack of proper bidding, minimal project implementation, and absence of a required presidential proclamation.

“These findings, confirmed by the DENR internal investigation spanning several administrations and more recently upon consultation with the office of the Solicitor General and the Department of Justice, compel the DENR to cancel the agreement due to its legal infirmities,” said Yulo-Loyzaga.

“Let me be clear, this department respects prior rights. But these rights must align with existing laws and regulations,” she added.

But it was a different story for Blue Star.

According to its Director for Advocacy, Billie Dumaliang, they did not receive a single notice about the supposed violations being pointed out by the DENR to defend the cancellation of the agreement.

“We did not learn about this cancellation from formal processes and we’re not given a chance to dialogue with the DENR Secretary or high officials despite multiple requests to do so,” said Dumaliang.

She then pointed out their continued belief that their work is consistent with the Expanded National Integrated Protected Areas System (ENIPAS) law and the spirit and objectives of the ENIPAS law.

“In the terms of the ENIPAS law, it says that the law must be interpreted liberally in favor of conservation. Kaya naman po inilathala ang mga batas na ito para ma-protektahan ang mga nanganganib nating gubat at ito mismo ang ginagawa ng Masungi at ng Blue Star,” she insisted.

“We uphold, protect, and promote the ENIPAS law, not only Masungi but across all protected areas in the Philippines where we have become a big voice in terms of environmental protection,” she added.

For his part, Sen. Alan Peter Cayetano — who was presiding over the hearing — called on the creation of a technical working group tasked with identifying viable solutions to resolve the disputes that led to the DENR’s cancellation of its agreement with Blue Star.

The senator also emphasized that the dispute presented an opportunity to address long-standing issues in the conservation area.

“I felt this is an opportune time, but also a caution to all of us, including the Senate and the government, that people are watching. I [hope] we can conclude this in a very sober way and find real models,” he said.

The dispute arose from the DENR’s termination of its Supplemental Joint Venture Agreement with Blue Star, citing the company’s alleged failure to build 5,000 housing units in Masungi.

The Masungi Georeserve Foundation, affiliated with Blue Star since 2017, claimed that the government failed to clear illegal settlers as promised and accused the DENR of evading meaningful dialogue.

READ: DENR orders developers to vacate Masungi Georeserve property

The DENR, in its order for developers to vacate the property, said this was due to irregularities, but Blue Star blamed the agency for project delays.