MANILA, Philippines – A lawyer for SM Prime Holdings (SMPH) on Thursday refuted allegations made by the Bases Conversion and Development Authority that the Sy-led firm’s new upscale mall in Taguig was built illegally.  

In an interview on ANC’s Headstart, SM Prime Holdings vice president for legal Edgar Ryan San Juan said there has been a lot of misconceptions about the Taguig property where SM Aura stands. 

He clarified the area was not donated by the Bases Conversion and Development Authority (BCDA) to Taguig. 

Instead, the BCDA entered into an agreement called “deed of conveyance” with Taguig to resolve a land dispute between them. 

“It’s not a deed of donation, it’s a deed of conveyance – a compromise agreement between Taguig and BCDA over a previous land dispute… Section 2, paragraph 1 and 4 states that each party shall no longer pursue and hereby withdraws, drops, relinquishes any and all of its claims over the properties,” San Juan said.

The document also showed BCDA could not put restrictions on how Taguig would develop the property.

“The BCDA shall not place any restrictions on the land use or zoning of the properties specified in this and the two MOAs that preceded it,” he said, quoting the deed of conveyance. 

San Juan insisted that SM Aura is not a “pure mall,” but also has civic center components such as a chapel, government offices, convention center, trade hall, park and sports facilities.

“It’s not just a pure mall. If that’s the misconception of the public, you wait, because it’s a work in progress. The 30-storey tower isn’t even open as of now. Once Taguig has its satellite offices there, you’ll really see where it’s going to,” he said. 

San Juan also said the assumption of BCDA president and chief executive officer Arnel Casanova that proceeds from the lease agreement between Taguig and SMPH should go to BCDA and the Armed Forces modernization program, is misplaced

Since the area is already owned by Taguig, revenues being generated from lease agreements with all developers in the entire 16-hectare property covered by the deed should rightly benefit the people of Taguig. 

“With all due respect to the AFP, it’s kind of wrong to say we’re depriving them of funds that should go to their modernization, kasi ang may-ari dito Taguig at ang mga makikinabang dito ay constituents ng Taguig… So yung constituents ng Taguig ang tinutulungan namin dito kasi siya yun owners, so sa coffers niya mapupunta,” San Juan said.

On Wednesday, Casanova cited another law in its fight against Taguig and SM. 

He said Executive Order signed by former President Joseph Estrada in 2000, SM Aura’s lease payments should be halved between the Armed Forces of the Philippines and the BCDA, but the mall is paying the city of Taguig.

BCDA irked by TRO vs Boni South? 

Asked why BCDA seems to be singling out SM, San Juan said this may be related to a court case the company filed against the government agency. 

“We can’t say kung bakit. (But) there is an existing case between SM and BCDA on another property, in South Bonifacio. Right now, SM was able to secure a TRO against BCDA, so they can’t bid it out. They own it but they’re tied to certain rights connected to our unsolicited proposal for the property,” he said. 

In January, SM Land won a temporary restraining order against the sale of the 33.1-hectare Bonifacio South Pointe property. 

SM had made an unsolicited offer of P36,900 per square meter in 2010, which the government accepted, setting the stage for a so-called Swiss challenge, where other investors can make higher bids SM could choose to match.

Last year, BCDA terminated the “Competitive Challenge” proceedings and decided to dispose of the property through open bidding. – With ANC