COMMISSION ON AUDIT DECISION NO. 2011-003 - January 20 ...

Subsequently, the Philippine Polymide Industrial Corporation (PPIC)
acquired the subject property that brought to the cancellation ofTCT No. 40999
and the issuance of new TCT No. T -120988 dated January 4, 1985.
Then, PPIC mortgaged the subject property with the Development Bank
of the Philippines (DBP) which later acquired the same in a foreclosure
proceeding held on September 6, 1985. Title thereto was transferred in favor of
DBP under TCT No. T-151837 dated May 15, 1987.
Upon issuance of Administrative Order No. 14 dated February 3, 1987,
DBP submitted all its acquired assets, including the subject property, to the
Asset Privatization Trust (APT) for disposal pursuant to Administrative Order
No. 50 dated December 9, 1986. Accordingly, then APT (now Privatization
Management Office) disposed the subject property in a public bidding held on
June 30, 1987.
In a certification dated July 1, 1987, APT declared Fibertex Corporation
as the highest bidder having tendered a bid amounting to P154,000,000.00.
Thereafter, APT and Fibertex Corporation executed a Deed of Absolute Sale
(DOS) dated August 19, 1987 covering the said property for a total
consideration ofP 154,315,615.39.
For unknown reasons, the subject property (TCT No. 151837 in the name
of DBP) was directly transferred in favor of TG Property, Inc. under TCT
No. T-158786 dated December 9, 1987. Said transaction between APT and
TG Property, Inc. was covered by a DOS dated October 29, 1987 with a total
consideration ofP2,222,967.00.
In 1995, the subject property was transferred to Hi-Lon, a subsidiary of
TG Property being 99.99 % owner thereof, by virtue of a DOS executed on
April 16, 1995 by and between the TG Property,Inc. and Hi-Lon. This resulted
in the cancellation ofTCT No. T-158786 and issuance of new TCT No. 383819
dated October 18, 1996 in favor ofHi-Lon.
Three (3) years later, Mr. Rupert P. Quijano, Attorney-in-Fact ofHi-Lon,
requested assistance from the Urban Road Project Office (URPO), Department
of Public Works and Highways (DPWH) for payment of just compensation for
the 29,690 sq. m. converted to ROW.
The Ad Hoc Committee created by the DPWH under Office Order No.3,
series of 1999, valued the ROW at P2,500.00 per sq. m., adopting for the
purpose the 1999 Bureau of Internal Revenue zonal valuation.
On December 21, 2001, the Republic of the Philippines represented by
Mr. Lope S. Adriano, URPO-Project Management Office (PMO) Project
Director, by authority of the DPWH Secretary, executed a DOS by and between
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