Amid criticism, BCDA says SM hid construction of BGC shopping mall
By: Darwin G. Amojelar, InterAksyon.com
May 22, 2013 4:22 PM
MANILA - After receiving flak for its belated protest over the first SM shopping mall in Bonifacio Global City (BGC), the state agency tasked with developing the country's military bases on Wednesday said the Henry Sy-led company hid the construction of the 234,892-square meter retail complex.
In a statement issued after cancelling a press conference scheduled today, state-run Bases Conversion and Development Authority (BCDA) said SM Prime Holdings Inc avoided declaring the purpose of the project -- a loophole that allowed the company to complete the building.
“This proved without a doubt that SM is in violation of the law,” Arnel Paciano D. Casanova, BCDA president said.
“Many people were kept in the dark on what that huge structure being built along C5 was. There were no signage, no advertisements, nothing. The structure was virtually completed when SM officially announced that it was a mall. It is a building that was completely done in bad faith,” Casanova said.
His statement was issued amid criticism that BCDA acted too late in questioning the construction of SM Aura Premier. Positioned as a retail mecca for fashionistas, SM Prime's 47th mall in the country was inaugurated Thursday last week by Hollywood A-lister and fashion icon Sarah Jessica Parker.
Casanova said the Bonifacio Estate Services Corp (BESC) as early as 2009 rejected SM Prime's application for the proposed community and retail complex on the ground that the proposed land use was inconsistent with Section 8(d) of Republic Act No. 7227, which limits usage of such properties to “national government and local government centers, sports facilities and parks.”
Enacted into law in 1992, RA 7227 establishes the BCDA, providing for the sale of portions of the country's military bases. This was amended by RA 7917, which, among others, reserved 40 hectares of Fort Bonifacio for government centers, sports facilities and parks.
In January 2011, BESC, which is in charge of the upkeep of BGC, called SM Prime's attention to, and ordered Monolith Construction Development Corp to halt construction for working without a permit.
In March 2011, BCDA furnished the Taguig City government with a copy of the Office of the Government Corporate Counsel (OGCC) Legal Opinion No. 017, which held that the deed of conveyance (DOC) covering the donation of the subject property to the city didn't overrule RA 7917.
The DOC covered the terms of BCDA's donation of the subject property to the Taguig local government under then-mayor Freddie Tinga.
Casanova said BCDA had asked the Taguig City government in writing to stop SM Prime from developing the donated property into a community and retail complex, a plan that the BESC had not approved. This after the Taguig local government leased the land to SM Prime, which in turn secured a permit from local authorities to commence construction.
“As long as they use the land either for national or local government centers, sports facilities or parks, we will not place restrictions. But what they did was use the land for a mall, which is a clear violation of the law,” Casanova said.
The land on which SM Aura was built is valued at approximately P5 billion.
The completion of the shopping mall -- which would also include office towers, a chapel, a convention center, and mini-coliseum -- comes amid a standoff between BCDA and the SM Group over the Bonifacio South property.