Like Lazarus rising from the grave, the much publicized Panglao reclamation project of Oasis Leisure Islands Development, Inc. was resurrected in a form of a civil suit filed before the Regional Trial Court, Brach 4, in this city. With the filing of the complaint, it appeared that the project proponent has chosen its own battle and this time it’s the court of law instead of getting support from the court of public opinion. At the receiving end of the civil complaint were Gov. Edgar Chatto, all members of the Sangguniang Panlalawigan while the complainant was Norris Oculam, project proponent. A pre-trial conference is scheduled on October 4 at the session Halls of Justice. Erwin Ucat, RTC Branch 4 clerk of court, directed Gov. Chatto and his co-defendants, the plaintiff, and their lawyers to attend a pre-trial conference on September 25 for the markings of exhibits. In an 11-page complaint, Oculam, as affiant accused the provincial government through Gov. Edgar Chatto and all members of the SP of complying with their end of the agreement under the first cause of action which is the Joint Venture Development Agreement (JVDA) between the plaintiff and defendant province.

In this instance, the complainant asked the court to specifically perform and that the defendants be compelled to comply thereto. The second course of action was for defendant to pay plaintiff reasonable attorney’s fees and other litigation expenses. Represented by the Padlan Sutton & Associates, a law firm based in Makati, Metro, Manila, Oculam, who is the president and chairman of the board of Oasis said his company through an made unsolicited proposal to the province for the development into a leisure and/or resort project of a parcel of land with an area of 450 hectares off Panglao Bay in the Municipality of Panglao, Bhol to be reclaimed by the province. According to the proponent, the Oasis unsolicited proposal was approved and accepted by the province, as well as by the SP which passed a Resolution No. 2009-63 on 22 December 2009.

The resolution reads:

Authorizing the Honorable Provincial Governor Atty. Erico B. Aumentado to represent the provincial government of Bohol and enter into a negotiation for a Joint Venture and Development Agreement (JVDA) with the Oasis Leisure Islands Development Inc. on the proposed reclamation project, off Panglao Bay, Panglao, Bohol, provided, however, that the provisions and amendments to the JVDA as proposed by the provincial legal office shall be made an integral part of the same (JVDA).

PROVINCE REACTION

When sought for its own reaction, the province e-mailed the following unexpurgated comment given the complaint filed by Oasis against Gov. Chatto and the SP members:

Provincial Government Bohol (PGB) welcomes investors. PGB is pro-investment and pro-development. However, investments must conform with the thrust of the province especially in protecting the environment and in the wise utilization of its natural resources as stipulated in its development plans. The OASIS Reclamation Project failed to get the approval from the Provincial Development Council. The passage of Resolution No. 2009-633 on December 22, 2009 does not mean that the unsolicited proposal was approved and accepted considering that the said resolution was passed authorizing the Governor to enter into “negotiation” only. Therefore, the Joint Venture Development Agreement (JVDA) entered into by and between the Provincial Government of Bohol and the plaintiff is unenforceable against the Provincial Government. Being unenforceable, plaintiff cannot demand from the defendant performance of its obligation under the agreement as the same is not binding with the defendants. Therefore, PGB is not bound to constitute the environmental study team;

The filing of the application for Reclamation with the Philippine Reclamation Authority was not duly authorized by the Sangguniang Panlalawigan of Bohol contrary to Sec. 4, (4.1) (a.3) (i) of the Implementing Rules and Regulations of the said agency which provides:

4.1. The applicant shall file with the PRA a letter of intent or application to undertake a reclamation project together with the following requirements:

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a.3. Local Government Unit (LGU)/Other Government Agency (OGA)

i. Board/Council Resolution authorizing LGU/OGA to file an application with PRA (emphasis ours)

No Resolution was passed and adopted authorizing the Province of Bohol through the former Provincial Governor to file an application for Reclamation at the PRA as per Certification from the Sangguniang Panlalawigan Secretary. Therefore, the application is not binding with respect to the defendants;

The Provincial Government of Bohol cannot unilaterally award to OLIDI the right to undertake the proposed reclamation project because the authority to award the contract is vested with PRA through a public bidding;

The act of awarding the contract to Oasis Leisure Island Development Incorporated to undertake reclamation project is ultra vires on the part of the Provincial Government of Bohol. Sec. 5 of PRA Administrative Order No. 2007-02 provides:

“Approved reclamation projects may be implemented under any business arrangements allowed under existing laws, provided, however, that all the reclamation contracts shall be awarded through public bidding subject to exceptions provided under existing laws.

Implementation of reclamation projects by persons or entities without original authority to reclaim shall be covered by a contract with PRA subject to the condition that all such contracts of PRA be awarded only through public bidding under existing laws.