JUSTICE Secretary Menardo I. Guevarra on Thursday directed the Office of the Government Corporate Counsel (OGCC) to determine whether the controversial lease agreement between the Nayong Pilipino Foundation Inc. (NPFI) with a casino resort developer is aboveboard.
The justice chief, however, stressed that the termination of the Nayong Pilipino Board does not affect the implementation of the project, adding that two developments may possibly have an impact: the current reevaluation of the subject transaction by the DOJ/OGCC, and the appointment of a new board for NPFI.
Guevarra’s order was in response to President Duterte’s directive for the DOJ to to review the agreement forged by NPFI and Chinese firm Landing Resorts Philippines Development Corp. (LRPDC).
Under the lease contract, the LRPDC, a subsidiary of Hong Kong’s Landing International Development Ltd., will develop a $1.5-billion casino-resort in the NPFI property at the Entertainment City in Parañaque City.
Duterte, however, expressed belief that the contract was “flawed” due to lack of public bidding.
The contract also provides for a 70-year lease term with low rental payment, which the President found to be “irregular,” which may have prompted Duterte to sack all the board and management officials of NPFI.
“I have instructed the office of the government counsel, as statutory counsel of all government-owned and -controlled corporations, under the direct supervision of the Department of Justice, to immediately review all the relevant facts and reevaluate 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., and to submit a report with recommendations on the proper course of action for the government as soon as possible,” Guevarra said in a text message to reporters.
Guevarra said OGCC Officer in Charge lawyer Elpidio Vega would be the one to supervise the review of the lease transaction.
The DOJ chief said he would also ask his legal staff to do their own evaluation.
“The removal of all the members of the Nayong Pilipino board, by itself, does not affect the implementation of the project,” the justice secretary added.
It can be recalled that, last May, Maria Fema Duterte, a distant relative of President Duterte and his appointee to the NPFI board, filed a complaint against her coboard members with the Office of the Ombudsman, including Chairman Patricia Yvette Ocampo.
She claimed that the contract would cause government loss amounting to P25 billion in 50 years.