Bacolod Mayor Evelio Leonardia announced yesterday that he has approved City Ordinance No. 454 or the “takeover ordinance” involving the seaport operations and the unfinished portion of the reclamation project at the reclamation area in Bacolod City .

In approving C.O. No. 454 dated Dec. 19, 2007 , Leonardia said the proposal for the takeover of the management and operation of the port was anchored, firstly, on the various violations by the Bacolod Real Estate Development Corp. of the Comprehensive Revised Reclamation agreement it had entered into with the city, which violations have remained uncorrected until today.

He cited that BREDCO had effectively transferred to another corporation, the Top Harbor International Inc., (not the original grantee of the franchise) the exclusive rights previously granted to it by the government – the right to reclaim a portion of the foreshore of Bacolod City and the right to operate the seaport, based on the latest review of the Sangguniang Panlungsod from January to June 2005.

Leonardia said the SP has noted that BREDCO has encumbered its leasehold rights over port operations as collateral for huge loans with the Land Bank of the Philippines, and that the required payment of the annual rental fees for the lease of the seaport were not faithfully complied with.

COLLECTION OF TOLL FEES CITED

He said BREDCO also collected toll fees on vehicles entering the seaport area, a right that was not granted to them by the government, considering that the road lots in the reclaimed area are owned by the city, and not by BREDCO.

All these actions of BREDCO and the other violations noted were done without the knowledge and consent of the city and were considered by the SP as a serious breach of contract, he added.

“We acknowledge and commend the vision, determination and courage of Simplicio Palanca (BREDCO president) and other stockholders of BREDCO in reclaiming almost 180 hectares of foreshore land and the building of 1,200 lineal meters of port and port facilities at the reclamation area,” Leonardia said.

“It must be made clear to our people, however,” he said, “that by law, the right to reclaim foreshore lands and the right to build and operate a port and harbor belong only to the government, which may choose to confer those rights on a private party as a privilege under a franchise and subject to faithful compliance by such private party of the terms and conditions that accompany the franchise.”

PREJUDICIAL TO CITY

Leonardia said the assignment by BREDCO of its leasehold rights over the seaport as a collateral for bank loans, without the consent and knowledge of the city, exposes such facilities to risks of foreclosure, possession, control, claims or suits by third parties – a situation most prejudicial to the interest of the city.

He said BREDCO was notified of the violation by the CRRA Working Group in Aug. 1, 2005 , and it apologized later to the city for the lapses committed.

The passage of a takeover ordinance was recommended by the city negotiating panel after renegotiations between the city and BREDCO for a period of 60 days, which started on Jan. 4, 2006 , failed.

Leonardia said the takeover ordinance declared the need for the city to assert its ownership over the unfinished portion of roughly 61 hectares of the reclamation project and over the seaport and its operations, and to take separate legal action on the lands reclaimed beyond the authorized limits and boundaries.

BREDCO TO RETAIN SHARE

On the other hand, Leonardia said that, insofar as the completed portion of almost close to 180 hectares of the reclamation project is concerned, the ordinance clearly declared that BREDCO shall retain its present 70 percent share as compensation for the work that it has actually done.

He said that in reasserting its ownership rights over the unfinished portion of the reclamation project and the seaport, the city shall observe the proper and latest applicable government rules and regulations on “pre-takeover preparations, actual takeover, and post takeover.”

During the pre-takeover phase, the city is supposed to work with and coordinate with the Philippine Ports Authority, the Philippine Reclamation Authority and other agencies on the organizational aspect of the takeover, he said.

BARGAINING STILL WELCOMED

“May I make this clear that during the pre-takeover phase, the city will still welcome any move by BREDCO to go back to the bargaining table with us,” Leonardia said, adding that they believe these issues can still be resolved there.

He said obviously C.O. No. 454, will not sit well with BREDCO. We understand their position and empathize with their sentiments, he said. “But then, again, for reasons explained earlier, I have to make the hard decisions and will not shirk the responsibility and duty to protect the interest of the people of Bacolod ,” Leonardia said.

BREDCO REACTION

Former Vice Mayor Renecito Novero, who is one of the legal counsels of BREDCO, said they have no choice but to file a case in court against the city officials involved in violation of the Local Government Code, the Constitution, the CRRA, R.A. 1084 and many others and this will include claims for damages and the issuance of a temporary restraining order.

Asked if BREDCO will join the rebidding, Novero said the position of BREDCO is very clear, a rebidding cannot happen.

Meanwhile, Mariano Villarosa, in a letter dated Jan. 22 to the DAILY STAR, said that the venue of any action arising from previous agreements is in any court in the city, not in the SP through an ordinance.*CGS

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