Published on 23 May 2013 [ manilatimes.net
]
Written by RITCHIE A. HORARIO
THE
controversial SM Aura Premier mall is not yet off the hook because it allegedly
interpreted the Deed of Conveyance (DOC) according to their own benefit, the
Bases Conversion and Development Authority (BCDA) declared on Thursday.
At the same
time, BCDA refuted the claim of SM Prime Holdings Inc. that the mall was built
legally based on a DOC between the BCDA and the city government of Taguig.
For its part,
SM Prime also on Thursday cried foul over allegations that the construction of
SM Aura Premiere is illegal.
The state-run
agency asserted that the DOC is in accordance with Republic Act (R.A.) 7917,
which requires that the land where SM Aura currently stands be used for a civic
center.
BCDA claims
that it originally donated the land to Taguig City under then-Mayor Freddie
Tinga to be developed into the Taguig Civic Center.
Taguig City
hosts the Bonifacio Global City (BGC) where SM Aura Premiere is located.
But instead,
the local government leased the land to SM Prime, which used it to host a
lavish upscale mall.
BCDA
President and CEO Arnel Paciano Casanova explained that the stipulations of the
Deed of Conveyance were drafted and agreed upon in accordance with R.A. 7917.
He said that
Section 1 of that republic act provides that “approximately 40 hectares of land
in Fort Bonifacio shall be retained as national and local government centers,
sports facilitiess and parks.”
“As long as
they use the land either for national or local government centers, sports
facilities or parks, we will not place restrictions. But what they did was use
the land for a mall, which is a clear violation of the law,” he added.
The Office of
the Government Corporate Counsel (OGCC) had the same interpretation of the
concerned Deed of Conveyance.
Casanova
added that the BCDA is not the one that would have gained from the land in
question, nor is it the one losing out on the land’s misuse.
“The people
of Taguig have been robbed of a community center. What good can this ultra
high-end mall do for them, if they have been deprived of a place that provides
basic care and services?” he asked.
“Furthermore,
the men and women of our armed forces, instead of benefiting from remittances
from the land being put up for bidding, are losing out on modernization funds
because the land was turned into a mall,” Casanova added.
The land
occupied by SM Aura is valued at approximately P5 billion.
Casanova also
lashed back at critics who said that the BCDA acted too late in questioning the
establishment of SM Aura Premiere.
He pointed
out that as early as 2009, the Bonifacio Estate Services Corp. (BESC), which is
in charge of BGC’s upkeep, rejected SM Prime’s outline application for the
proposed community and retail complex, because the development is not in line
with what is being stipulated by law.
While a BESC
permit is necessary to engage in construction activities in BGC, SM Prime was
able to commence building by getting a permit from the Taguig City Hall.
Casanova
added that SM Prime avoided declaring the official purpose of the development,
and this loophole allowed them to continue with the building.
But on May 7,
the BCDA received an official letter confirming that the development was indeed
classified as a mall.
“This proved
without a doubt that SM is in violation of the law,” Casanova said.
SM Prime
cries foul
For its part,
SM Prime belied the accusations of BCDA.
Cora Guidote,
senior vice president for Investor Relations of SM Prime, said that the
construction of SM Aura Premiere underwent the proper legal processes.
If the BCDA
has questions on SM Aura’s construction, Guidote said that the agency should
ask the city government of Taguig for an explanation.
“The city of
Taguig started the project by opening it into bidding, we won it and so the
project was awarded to SM Prime,” Guidote told The Manila Times.
She also
maintained that the project is legal, saying that the facility is not totally
and solely intended for a mall but it will be a state-of-the-art civic center.
“The mall is
just a podium or it will be just 30 percent of the entire facility, because we
are still going to build a church, convention and recreation facilities,” she
added.
Guidote
stressed that SM Prime just introduced a modern concept of a civic facility,
since it wanted to uplift the delivery of services to the public.
“It’s a
modern concept, we try to elevate the community by giving them a
state-of-the-art civic center,” she added.
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