An official of the provincial government said the application to convert the controversial Balili property into a special economic zone has been approved.
Adolfo Quiroga, chief of the Provincial Planning and Development Office said he got a call from the Philippine Economic Zone Authority (Peza) confirming the approval of the Capitol’s application.
But civil society groups said the approval of the Balili property as a special economic zone mean nothing because the property is the center of a graft case being heard in the Sandiganbayan.
“Any development of the property would be under pain of contempt of court,” said Aaron Pedro of the Freedom from Debt (FDC) Cebu chapter.
In November last year, FDC and Sanlakas protested the backfilling or reclamation work in the Balili property.
Along with Acting Gov. Agnes Magpale, then vice governor, they inspected work in the controverial property and claimed it was tantamount to tampering with evidence of the graft case against suspended Gov. Gwen Garcia.
“Naka pasar na siya sa Peza na ug 30 hectares nga mao usab ang basic requirements ni-ana sa iyang lot area,” (It has passed the Peza and it is now 30 hectares, the minimum land area for special economic zones),” Quiroga said.
Quiroga said the 24.7 hectare Balili property in barangay Tinaan in Naga City was augmented by pieces of land donated by the Villamor family to meet the minimum land area requirement for special economic zones.
The Capitol started development of the Balili property by backfilling areas that are under water.
The Environment Management Bureau in Region 7 (EMB 7) however issued a notice of violation to the Capitol for the backfilling operations. It said this violated conditions in its Environmental Compliance Certificate (ECC).
The EMB 7 has scheduled a technical conference with the Capitol on the ECC violation on Jan. 29, 2013.
Meanwhile Garcia was very happy with the reported Peza approval.
“Nagpasalamat ko sa taga PEZA sa ilang pag aprob sa application sa economic zone kay kini dakong tabang sa pagpalambo sa ekonomiya sa Sugbu tungod sa pagbubo ug puhonan sa mga investor,” (I am very thankful to the PEZA for the approval of our application for special economic zone because it can help in the economic development of Cebu as the property would now attract investors),” she said.
The suspended governor and seven other persons were charged in the Sandiganbayan for graft over the purchase of the Balili property in 2008.
The Capitol paid P98.9 million for the 24.7 hectare property owned by the Balili family. A survey done by the Department of Environment and Natural Resources however revealed that nearly half of the property are underwater and classified as coastal timberland.
Garcia, who is now serving a six-month suspension from Malacañang for usurpation of authority, and her co-accused are free on bail over the Balili property graft case.
Investors in special economic zones declared by Peza enjoy fiscal and non-fiscal incentives from the government.