SC stops NGCP takeover of Pasay property

Supreme Court building. INQUIRER PHOTO / RICHARD A. REYES

The Supreme Court has issued a status quo ante order (SQAO) against the implementation of a Pasay Court’s order allowing the taking over by the National Grid Corporation of the Philippines (NGCP) of a portion of a government property at the Financial Center area in Pasay City with a value of over P1 billion.

“The Court resolves to grant petitioner’s prayer for the issuance of status quo ante order and/or writ of preliminary injunction and to issue a status quo ante order effective immediately as of this date and continuing until further orders from this Court,” the high court’s third division resolution made public Monday stated.

At the same time, the high court’s third division ordered the National Grid Corporation of the Philippines (NGCP) to submit its comment within 10 days on the petition of the Social Security System (SSS).

Atty. Rudolf Philip B. Jurado, the Government Corporate Counsel, said they welcome the high court’s resolution.

“While this is not a final victory for SSS yet as the case will still have to be heard and decided upon by the Supreme Court, the order only goes to show the transcendental importance of the public interest involved,” Jurado said in a statement.

The Pasay Court, in its ruling, granted NGCP’s urgent motion for the issuance of a writ of possession for the 60,872 square meter SSS property in Pasay City with a value of P1,460,928,000.00. SSS filed a motion for reconsideration which was denied by the court.

The SSS plea, filed through the Office of the Government Corporate Counsel (OGCC) led by its chief Rudolf Philip Jurado last May, said the Pasay court erred when it issued the writ of possession in favor of NGCP without determining if it is authorized to expropriate a government property.

OGCC said under Section 4 of the NGCP charter (Republic Act 9511), it is authorized to exercise the right to eminent domain but only of private properties which it may use for the construction, expansion and efficient maintenance and operation of the transmission system.

The government’s corporate counsel pointed out that Judge Palamos’ reliance on RA 10752 or the Right of Way Act is misplaced because NGCP is a private corporation.

“NGCP’s delegated authority to exercise the right of eminent domain does not automatically vest it with the power to acquire property already devoted to public use, as this requires a specific grant from the national legislature,” the government counsel said.

“While property already devoted to public use is still subject to expropriation, this may only be done directly by the national legislature or under a specific grant to exercise such power. A mere general authority does not suffice…,” the counsel added.

In its petition, the OGCC said as the statutory legal counsel of the SSS, it is tasked to  protect its legal interests over the land.

“The property is intended for the use by the SSS in the furtherance of its mandate, which is the subject of an Expropriation Case instituted by the National Grid Corporation of the Philippines (NGCP), a private corporation with the general power to expropriate private property,” the OGCC said.

The NGCP is seeking to expropriate the SSS property to immediately construct a substation that will accommodate the increasing demand for electricity of the Greater Manila Area, which shall be known as the Pasay Substation Project./rga