Sarah Jessica Parker inaugurated 'illegally' built SM mall, BCDA says
MANILA - (UPDATED 9:35 p.m.) The newly inaugurated mall of the SM group at the Bonifacio Global City - the same commercial center graced by Hollywood fashion icon Sarah Jessica Parker last week - was "illegally" built, according to the state agency tasked to commercially develop the country's military bases.
Bases Conversion and Development Authority (BCDA), which owned the property where SM Aura Premier was built, said excavation for the property was done "without permission," adding that "a poorly built retaining wall is jeopardizing the lives of nearby residents."
“SM occupied the property forcibly after its request [to construct a road in front of the mall] was denied by the BCDA,” the agency's president Arnel Paciano D. Casanova said.
“Despite being denied a permit by the proper authorities, namely the BCDA, which owns the land in question, and Bonifacio Estate Services Corp (BESC), they still proceeded with utter impunity and disregard of the law. They have endangered the lives of many families living in the area in the process,” Paciano said.
BESC is in charge of the upkeep of BGC’s grounds.
Casanova said a community of families lives below the excavation area. In the absence of a proper retaining wall, the risk of injuries or even fatalities is very high, he said.
“The concern for residents’ well-being, as well as our ownership of the road, were reasons enough to disallow the excavation, but we must also point out that the construction of the whole SM Aura Premier was illegal in the first place, as that land was meant to be turned into a civic center in accordance with R.A. 7227, as amended by R.A. 7917,” Casanova said.
BCDA had donated to Taguig City the property where SM Aura was built for the construction of a civic center.
In a letter dated April 3 and sent to SM Prime Holdings Inc president Hans Sy, BCDA rejected the company's request to do roadwork in front of the mall, saying, “The proposed land uses are inconsistent with Section 8 (d) of Republic Act No. 7227, as amended, since the same is limited to ‘national government and local government centers, sports facilities and parks […]’”
SM Prime, however, proceeded with both the mall construction and the road excavation, prompting the BCDA to go to the excavation site on May 6 to stop the digging, the state agency said. It said the arrival of BCDA officials at the site resulted in a standoff with the contractor, with the latter showing an order to proceed from the Taguig City government, which had leased the land to SM.
But BCDA had a cease and desist letter of its own addressed to Sy, saying, “While it is true that you are holding a general authorization and clearance to construct from the City of Taguig, the same does not grant you authority to construct on BCDA properties […] endangering the lives and properties of the residents below the area without a retaining wall.”
Casanova said BCDA was fully within its rights and bound by law to stop the excavation of the road, rebutting complaints that the BCDA had unfairly blocked the road to motorists as the road had not been open to begin with.
“That road has not been completed yet—it has no street lights, road signs and traffic lights, so it is not fit for public use until it is finished. The road has never been opened, so why are they accusing us now of suddenly blocking it?” said Casanova.
“We want businesses to flourish in Global City, but these enterprises must be built on trust, transparency and obedience to the rule of the law. And in this case, the use of the land is in clear violation of the law. So is it right to say that they are the good guys?” he said.
Casanova said BCDA shall pursue the case in accordance with law. “We cannot allow impunity to run rampant in Bonifacio Global City, and we must not let the government be held hostage by a single corporate entity. The BCDA aims to create a level playing field for all businesses to thrive in the area, and that cannot happen if companies like SM are blatantly ignoring and breaking the law,” he said.
Court needs to prove illegality
Sought for comment, SM Investments Corp investor relations head Corazon Guidote told InterAksyon.com that "the dispute is between the city of Taguig and BCDA."
SM Prime is the mall developer unit of SM Investments Corp, which is the holding firm of Henry Sy, the country's richest man.
Guidote said Taguig City owns the property, in which SM is a "lessee," having won a bidding four years ago.
As to the supposed illegality of SM Aura's construction, Guidote said the matter "is something that needs to be proven in court."
Hollywood A-lister Parker last Thursday inaugurated the opening of SM Aura, which has a gross floor area of 234,892 square meters and has office towers, a chapel, a convention center, and mini-coliseum supported by a retail podium.
SM Aura is SM Prime's 47th mall in the country and the company's first project in BGC.
SM earlier offered to develop the Bonifacio South property, but the government turned down the unsolicited proposal since the Aquino administration preferred to pursue projects through competitive bidding.