Appeals court blocks sale of Philippine property in Tokyo


THE Court of Appeals has issued a writ of injunction on several court orders in connection with the development of the Philippine property in Nampeidai district in Tokyo, Japan.

In five-page resolution written by Associate Justice Andres Reyes, Jr. and concurred in by Associate Justices Ramon Bato Jr. and Rodil Zalameda, the CA’s First Division granted the plea for application for the issuance of a writ of preliminary injunction filed by the government through Finance Secretary Cesar Purisima, Foreign Affairs Secretary Alberto del Rosario, Philippine envoy to Japan Manuel Lopez and Bids and Awards Committee for Nampeidai Property Development Project Chairman Carlo Carag.

The CA had issued a 60-day temporary restraining order stopping the Pasay City Regional Trial Court (RTC) from enforcing its rulings ordering the Philippine government to deal directly with Masahiro Nagayama as lead partner and manager of Nagayama Taisei Corporation (NTC).

The petition blocks the issuance of a halt order against the writ of execution issued by the Pasay court in favor Nagayama on February 17, 2012.
The government said the lower court acted with grave abuse of discretion when it issued the rulings compelling the government to deal with NTC.
NTC won the bid after it offered 1.7 billion yen to construct the property and pay the Philippine government an additional 480 million yen.
The bidding was based on the Government Procurement Reform Act or Republic Act No. 9184.

The earlier ruling of the appeals court mentioned some issues such as the non-existence of the service development agreement (SDA) that the government entered into with Masaichi Tsuchiya, among others.

But the government asserted that it has a clear and unmistakable right not to be subject of injunction in a government infrastructure, among others.
In its new ruling, CA held that “prudence dictates that the vital issues such as the validity of the cancellation of the Notice of Award dated 13 October 2005, the termination of the SDA and the supplemental agreement dated 14 August 2006 and 13 March 2008, respectively, the existence of the purported consortium, the NTC, among others, ought to be threshed out first.”
Jomar Canlas

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