DOJ orders OGCC to review Nayong Pilipino contract

MANILA, Philippines — Justice Secretary Menardo Guevarra yesterday ordered the Office of the Government Corporate Counsel (OGCC) to review the lease contract, described by President Duterte as flawed, between the state-run Nayong Pilipino Foundation (NPF) and a casino-resort investor.

But even with the review and the dismissal of the entire board of NPF, he clarified that the existing deal stands. “The removal of all members of the Nayong Pilipino board, by itself alone, does not affect the implementation of the project,” he said.

However, Malacañang said the review of the controversial $1.5-billion deal could lead to the termination of the project.

“The President has expressly ordered the review of the contract because in his own appreciation of the terms and conditions… he characterized the contract as ‘flawed.’ So, when the President says it is flawed, then obviously the order to review is towards possibly putting an end to the contract. But he has tasked the DOJ (Department of Justice) secretary to do this,” said presidential spokesman Harry Roque Jr. 

Guevarra said the DOJ would first evaluate the $1.5-billion NayonLanding project of Landing Resorts Philippines Development Corp. (LRPDC), a subsidiary of Hong Kong’s Landing International Development Ltd.

Under the lease contract, LRPDC will reportedly develop a casino-resort in the NPFI property at Entertainment City in Parañaque City. The integrated resort, with a planned construction floor area of approximately 610,000 square meters, will feature Filipino-inspired architecture and interior design that will be the country’s newest entertainment and leisure hotspot by 2022. 

The development also promises a distinctly world-class integrated resort and leisure, culture and entertainment destination with its flagship attraction, the Pilipino Cultural Theme Park, an indoor park that will educate and inspire visitors to become more immersed in the rich history and beauty of the Philippines, aside from celebrating the country’s natural beauty and culture in an engaging and entertaining way.  

“I have instructed the OGCC to immediately review all the relevant facts and re-evaluate and examine all contracts, agreements and other documents pertaining to this questioned transaction, including the legal opinions previously rendered by the Office of the Government Corporate Counsel to its client, Nayong Pilipino Foundation Inc.,” Guevarra said in a statement.

He specifically directed OGCC officer-in-charge Elpidio Vega to supervise the review of the Nayong Pilipino lease transaction and to submit the OGCC report and recommendation to the DOJ.

Guevarra also instructed the OGCC, statutory counsel of all government-owned and controlled corporations (GOCC) under direct DOJ supervision, to submit a report with recommendations on the proper course of action for the government as soon as possible.

“My legal staff will also do our own evaluation,” he added.

On Tuesday, Duterte fired all members of the NPFI board and management due to a lease deal that he called “gravely disadvantageous” to the government.

The groundbreaking ceremony of the NayonLanding project was held on the same day that he sacked the officers.

On May 2, Maria Fema Duterte, a distant relative of the President, filed criminal and administrative complaints against her fellow NPFI board members, including chair Patricia Yvette Ocampo, before the Office of the Ombudsman in connection with Nayong Pilipino’s lease contract with LRPDC.

She alleged that the amount of the contract was disadvantageous to the government, which allegedly stands to lose P25 billion in 50 years.  

Ivan Henares, a heritage policy advocate and a former NPF board member, has said that the previous board had “fantastic plans” for a Nayong Pilipino cultural park that would “truly be a showcase of Filipino culture.”

The previous NPF board consisted of Henares, Grace Panagsagan, Paulo Alcazaren, Danilo Camerino, Gabriel Lopez, Mary Jane Ortega, JQ Quesada, Mila Ladrido and Ray Salvosa. 

In a recent Facebook post, Henares said the project, a public-private partnership project approved by the National Economic and Development Authority, was junked by the present board members who were subsequently fired by Duterte.

The project was replaced with the NayonLanding project, he added. 

Last Wednesday, Duterte said he would not allow the construction of casinos “outside of what was existing.” 

“I’m not granting anything as long as it’s about gambling. I don’t want it,” the President said. – With Alexis Romero