COMMISSION ON AUDIT DECISION NO. 2011-003 - January 20 ...
COMMISSION ON AUDIT DECISION NO. 2011-003 - January 20 ... COMMISSION ON AUDIT DECISION NO. 2011-003 - January 20 ...
which is supported by a recent Supreme Court ruling in National Power Corporation vs. Tiangco, G.R. No. 170846, February 6, 2007. In this case, the Court defined 'just compensation' as the full and fair equivalent of the property taken from its owner by the expropriator or the sum of money which a person desirous but not compelled to buy, and an owner willing but not compelled to sell, would agree on as a price to be given and received therefor. Petitioner also invoked the case of Apo Fruits Corp. vs. Court of Appeals, G.R. No. 164195, February 6, 2007 which held that fair market value is significantly higher than the assessed value of the property does not alter the rule on the determination of just compensation, or makes the latter the basis thereof. In order to aid the Commission Proper in the adjudication of the herein claim, the latter, in its regular meeting held on June 2, 2009, deferred the resolution of the above subject, and instructed the Legal Services Sector to create a Special Audit Team from the Fraud Audit and Investigation Office to investigate and validate the claim ofHi-Lon. ISSUE Whether or not Hi-Lon is entitled to compensation for the subject property. DISCUSSION The evidence gathered by the Special Audit Team under COA Office Order No. 2009-494 dated July 16, 2009 are fatal to the claim for just compensation. The transfer of the property in favor of TG Property, Inc., the parent corporation of Hi-Lon was tainted with anomalies. Records show that TG Property, Inc. did not participate in the public bidding on the disposal of subject property held on June 30, 1987, as only three (3) bidders participated, namely: Fibertex Corporation, TNC Philippines, Inc. and P. Lim Investment Inc. In a Certification dated July 1, 1987, the then APT declared Fibertex Corporation as the highest bidder having tendered a bid amounting to Pl54,000,000.00. To consummate the transaction, APT and Fibertex Corporation executed DOS dated August 19, 1987 for a total consideration of P154,315,615.39. The important details on the above transaction was summarized in the APT Terminal Report prepared by Ms. Emma R. Tolentino, Marketing Officer noted by Mr. Felipe B. Bince, Jr., Associate Executive Trustee. 4
Very surprisingly, the records in the Registry of Deeds of Calamba, Laguna, disclosed that the subject property (TCT No. 151837 in the name of DBP) was 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 of only P2,222,967.00 or a difference of P152,092,648.39 as against the DOS between APT and Fibertex Corporation, the winning bidder. Notably, in the two (2) DOS covering the said property, Fibertex Corporation and TG Property , Inc. was represented by the same person in the name of Ester H. Tanco while APT was represented by Associate Executive Trustee, Ramon T. Garcia. While in the subsequent DOS between TG Properties, Inc. and Hi-Lon, the latter was also represented by Ester Tanco Gabaldon. Interestingly, the DOS between APT and Fibertex Corporation has a disclosure that "The subject of this Deed of Absolute Sale, therefore, as fully disclosed in the APT Asset Catalogue, is the total useable area of 59,380 sq.m." excluding for the purpose the 29,690 sq. m. converted to ROW. The said exclusion was corroborated and strengthened by the Abstract of Bids duly signed by the then APT Executive Assistant and Associate Executive Trustee showing that the land covered by TCT No. T-151837 was offered to public bidding for its useable portion of 5.9 hectares only, excluding the subject 29.690 sq. m. converted to ROW. Thus, the facts are undeniable that the ROW has been the property of the Republic of the Philippines since its acquisition by DBP up to the present. While it is true that the whole land area of 89,070 sq. m. is registered in the name ofHi-Lon per TCT No. 383819 dated October 18, 1996, the Supreme Court (SC), in Republic vs. Court of Appeals, et a/., G. R. No. 162175, June 28, 2010 enunciated that "{Tlhe registration of land under the Torrens system does not create or vest title. because registration is not one ofthe modes of acquiring ownership. A TCT is merely an evidence of ownership over a particular property and its issuance in favor of a particular person does not foreclose the possibility that the property may be co-owned by persons not named in the certificate. or that it may be held in trust (or another person by the registered owner." In this case, the provisions of Section 58 of Presidential Decree No. 1529 were clearly violated, thusly: "Section 58. Procedure where conveyance involves portion of land. If a deed or conveyance is for a part only of the land described in a certificate of title. the Register of Deeds shall enter any transfer certificate to the grantee until a plan of such land showing all the portions or lots into which it has been subdivided and the 5
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- Page 3: the Hi-Lon covering the 29,690 sq.
which is supported by a recent Supreme Court ruling in National Power<br />
Corporation vs. Tiangco, G.R. No. 170846, February 6, <strong>20</strong>07. In this case, the<br />
Court defined 'just compensation' as the full and fair equivalent of the property<br />
taken from its owner by the expropriator or the sum of money which a person<br />
desirous but not compelled to buy, and an owner willing but not compelled to<br />
sell, would agree on as a price to be given and received therefor. Petitioner also<br />
invoked the case of Apo Fruits Corp. vs. Court of Appeals, G.R. No. 164195,<br />
February 6, <strong>20</strong>07 which held that fair market value is significantly higher than<br />
the assessed value of the property does not alter the rule on the determination of<br />
just compensation, or makes the latter the basis thereof.<br />
In order to aid the Commission Proper in the adjudication of the herein<br />
claim, the latter, in its regular meeting held on June 2, <strong>20</strong>09, deferred the<br />
resolution of the above subject, and instructed the Legal Services Sector to<br />
create a Special Audit Team from the Fraud Audit and Investigation Office to<br />
investigate and validate the claim ofHi-Lon.<br />
ISSUE<br />
Whether or not Hi-Lon is entitled to compensation for the subject<br />
property.<br />
DISCUSSI<strong>ON</strong><br />
The evidence gathered by the Special Audit Team under COA Office<br />
Order No. <strong>20</strong>09-494 dated July 16, <strong>20</strong>09 are fatal to the claim for just<br />
compensation.<br />
The transfer of the property in favor of TG Property, Inc., the parent<br />
corporation of Hi-Lon was tainted with anomalies. Records show that TG<br />
Property, Inc. did not participate in the public bidding on the disposal of subject<br />
property held on June 30, 1987, as only three (3) bidders participated, namely:<br />
Fibertex Corporation, TNC Philippines, Inc. and P. Lim Investment Inc.<br />
In a Certification dated July 1, 1987, the then APT declared Fibertex<br />
Corporation as the highest bidder having tendered a bid amounting to<br />
Pl54,000,000.00. To consummate the transaction, APT and Fibertex<br />
Corporation executed DOS dated August 19, 1987 for a total consideration of<br />
P154,315,615.39. The important details on the above transaction was<br />
summarized in the APT Terminal Report prepared by Ms. Emma R. Tolentino,<br />
Marketing Officer noted by Mr. Felipe B. Bince, Jr., Associate Executive<br />
Trustee.<br />
4
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