DAR slaps CDO on ALI Sicogon project

MANILA, Philippines — While grappling with a water crisis, Ayala Corp. is now facing another challenge as its tourism estate in Iloilo has been slapped a cease-and-desist order by the Department of Agrarian Reform.

DAR issued the order against Ayala Land Inc.’s tourist resort on the island of Sicogon in Iloilo for an alleged dispute with farmers.

The order, dated March 6, was directed against the landowner, Sicogon Development Corp. (Sideco) and ALI, Ayala Corp.’s property and mall unit. 

ALI and Sideco are developing a 334-hectare tourist destination through Sicogon Island Tourism Estate Corp. (Sitec).

Sought for comment, ALI president and CEO Bernard Vincent Dy said the company is complying with the order and has put new developments on hold. 

“We continue to operate existing facilities. New developments are on hold. We are working with the DAR to address issues and concerns,” Dy told The STAR.

DAR issued the order following a petition for revocation of land conversion filed by agrarian reform beneficiaries (ARB) against Sideco and ALI for their alleged failure to deliver what was promised under a compromise framework agreement signed in 2014.

DAR said the compromise agreement was signed by farmer-residents represented by the Federation of Sicogon Island Farmers and Fisherfolk Association (FESIFFA), Sideco and ALI. 

The ARBs entered into a compromise deal with developers Sideco and ALI whereby they renounced their claim over the subject property.

The two developers, in turn, agreed to allocate 30 hectares for resettlement housing, P76 million for the construction of amenities and land preparations for the residential site, P38 million for livelihood and training projects of FESIFFA and its members, and a donation of a 40 hectares of land for conventional farming.

“For allegedly failing to abide by these provisions, Sideco-ALI has been the subject of several dialogues conducted by the DAR to resolve the issue raised by FESIFFA and its request to revoke the land conversion order,” DAR said in its order.

Under the order, all parties are enjoined to refrain from continuing any kind of development activities within the area of Sicogon until the petition for revocation has been resolved or acted upon.

This prohibits activities involving ground preparation, construction of structures, earth-moving activities, and even measuring, testing and surveying activities.

It is directed against owners, officers, employees and agents of Sideco and ALI. 

The DAR order comes at a time when Ayala Corp.’s other subsidiary, Manila Water Company Inc., is grappling with a water supply shortage in its concession area in the east zone of Metro Manila.