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By Ric R. Puod
Annie Ruth C. Sabangan
, Senior Reporters
(Third of a series)
“If anyone covets the island, let him speak
and reimburse all my expenses and he could keep Fortune Island,”
said Jose Antonio Leviste in his letter to a magazine
published last year.
But as far as the government is concerned, it is
Leviste who may have owed the government millions of pesos of
revenue. The island should not have been privatized, according to
the Department of Environment and Natural Resources. It should have
remained under the government’s control. Only a lease agreement
between a private individual or company with the government is
allowed on a public land such as Fortune, according to the DENR.
But this did not happen. Fortune Island became
an exclusive paradise. Leviste, husband of Sen. Loren Legarda, spent
millions of pesos to develop it. But he also privatized the island,
causing the government to lose it and millions of pesos in forgone
revenue—at least P396.52 million in nine years starting in 1996.
This computation was done by an environmental
economist using the environmental and natural resources accounting (ENRA)
system for both land and improvement values. He used to work for the
DENR as an ENRA specialist and helped institutionalize the
Philippine Economic and Natural Resources Accounting System.
Under the Public Land Act, the government could
have earned 3 percent of Fortune Island’s total assessed value of
the land and one percent of the assessed value of its improvement,
according to the environmental economist.
The appraised value of the 27.2-hectare Fortune
Island is worth at least P1.46 billion if it is sold at a very
conservative average rate of P5,359 per square meter—the estimated
appraised value of listed market rate of land along the Nasugbu
beach in Batangas, based on the economist’s accounting.
Three percent of Fortune’s assessed land value
of P1.46 billion, according to his computation, is P43.86 million,
which he said could have accrued to the government yearly had the
island been placed under a lease agreement. In nine years of
Fortune resort’s operation starting in 1996, he said the
government, based on conservative estimates, could have earned
P394.72 million.
He surmised that land valuation on Fortune
Island may be a little higher because of its historical and
ecological values, thus forgone government revenues could have also
been higher.
The economist conservatively placed the
island’s assessed value of improvement at P20 million. One percent
of the value is P200,000, which could be considered part of
government revenue. In nine years of resort operation, the
government could have earned P 1.8 million, based on the one-percent
revenue base.
Three percent of the assessed value of the land
placed at P394.72 million and one percent of the assessed value of
improvements at P1.8 million—all in nine years—yield a total
P396.52 million of forgone government revenue.
Government loses, Leviste gains
Leviste may have earned from the resort club
members starting in 1996. If his club has 900 members as earlier
reported, he has accumulated about P168.3 million from their
one-time payment of membership dues alone, with an individual
membership fee of P125,000 and a corporate membership fee of
P250,000. The amounts may not have been increased since 1996,
according to an account executive of the Fortune Island Resort Club.
Getting the fee’s average, individual and
corporate members would have paid Leviste about P187,000, or a total
of P168.3 million for the FIRC coffers. These earnings do not
include the estimated P40.5 million from its members’ annual dues
of P3,000 in 1996, P4, 200 in 1997 and P5, 400 in 1998 onward.
“But what should be considered foremost here
is that the ecological and historical value of the island has
diminished with the introduction of developments in the area,”
said the environmental economist who requested anonymity. “This is
mainly because the full social value of having it as a preservation
area is not the primary concern of the owner. What is certain is
that he expects to reap the full monetary value of the island as a
resort.”
Tree planters
Leviste and Legarda are fond of planting trees.
Barangay Wawa residents attest to this, saying that Leviste forbids
anybody to cut a single tree on Fortune Island. “Ayaw niya ang may
nagpuputol ng puno doon,” said a fisherman who also worked as a
helper on the island, especially during peak tourist arrivals.
“Maraming malaking puno doon katulad ng molave. May puno doon na
halos dalawang tao ang kayang yumapos.”
Seasonal helpers on Fortune Island said the
couple had even reforested the island, bringing in boatloads of
seedlings to be planted there. “But looking at the economic
perspective,” the environmental economist said, “mere planting
of trees will not or will never replace the lost biodiversity.
Clearing the area because of the introduction of development
destroys the ecological integrity of the island, given that this is
a fragile ecosystem.”
‘A slice of paradise’
“Run on the pristine white sands and head for
the clear, cool blue waters,” said the FIRC flier for tourists
reference. “Take to the nature trail or explore the wondrous Bat
Cave, the lighthouse and climb the rocks to the acropolis. See the
San Diego Galleon Museum, a replica of a Spanish galleon discovered
by a French archaeologist in 1994 just a few meters away from the
island. An exclusive paradise hideaway to truly enjoy. “
This aptly describes the island, where a moment
of relaxation is only for those who can afford the expense.
Fortune Island combines dense vegetation and
beach resort that stretches about 20 meters long of pristine white
sand. About 12 rest houses face the blue cool waters. At the back of
the galleon museum is Senator Legarda’s rest house, bigger than
the rest and more stylish because it has glass windows, a bedroom
decorated with plants, said “Arnulfo,” a fisherman.
The beach has an acropolis, too, which features
Grecian pillars and statues. They sit on the edge of the island
overlooking the sea. Former helpers said that at the back of the
resort lies a salt-water swimming pool, which siphoned off water
directly from the sea through a big hose. There is also a clubhouse,
cabana, basketball court, a helipad, a desalinator for freshwater
consumption, and snakes placed in a mirror cage.
As early as January 18, 1926, this island was
reserved for a lighthouse and withdrawn from sale or settlement
under Proclamation 5, issued by Governor General Leonard Wood. Two
succeeding presidential proclamations followed P.D. 1520, issued on
November 25, 1975, for the island’s tourism purposes, and P.D.
1801 for its tourism zone and marine reserve purpose, placing it
under the jurisdiction of the Philippine Tourism Authority (PTA). So
far, no presidential proclamation or act of Congress has superseded
these laws.
With the presidential proclamation to shield the
island from ownership, a question arises why Leviste was able to own
this island.
Research and interviews done by The Times
yielded negative results on the records of Fortune Island in the PTA
archives. Sources looking for documents on Fortune said that
jurisdiction over the island had already been transferred to the
local government of Nasugbu. The officials said they were not aware
of the date of the turnover. This means that efforts to reclaim the
island through legal procedures will have to be done by the
municipal government.
In a recent interview, however, Environment
Secretary Elisea Gozun maintained that Fortune “is still” under
the control and jurisdiction of the PTA, according to the legal
review done by the department. (See related story on page one.)
Galleon
Fortune Island was a witness to a number of sea
accidents near its shores. The Spanish galleon, San Diego, sank
approximately 900 meters northwest of the island. It sank more than
400 years ago, when the galleon engaged the Dutch warship Mauritius
under Admiral Oliver Van Noort.
In 1994 a total of 34,407 artifacts and ecofacts
were recovered from the shipwreck following an exploration jointly
conducted by the National Museum and the French archaeologist who
discovered San Diego. The artifacts include porcelain, stoneware,
earthenware materials, at least 14 big cannon, coins and other
treasures. The San Diego is considered one of the foremost
archaeological finds of the nineties. The relics had traveled around
the world before they were finally displayed at the New Museum of
the Filipino People in Manila.
This might have inspired Leviste to build his
own replica of the galleon, which also houses antique wares,
allegedly some from the San Diego shipwreck. But Maharlika Cuevas,
National Museum assistant director for operations, denied this. He
admitted, however, that some artifacts were lent to the Nasugbu
municipal government, which has not returned them since.
Another sea tragedy that occurred near Fortune
Island involved the Papaya Queen, a motorboat bought by Leviste for
P200,000, according to Arnulfo. The boat was ferrying guests to the
island when it capsized. “Sa sobrang dami ng karga at sa laki ng
alon bumigay ang bangka. Nadaanan ng barko ang mga turista at
idenerecho sa Manila,” he said.
The skull
Leviste’s galleon stands near a human skull,
mounted on a glass case along with its disjointed bones. Helpers on
the island said Leviste floated the rumor that the skull was part of
the San Diego shipwreck to make it an added attraction at the
resort. “Nahukay ’yan sa isa sa mga kinatatayuan ng rest
house,” said “Anthony,” a diver who worked as a gofer for
Leviste’s guests.” May crack ang bungo. Mukhang hinampas sa ulo.
Sabi ng iba bungo daw ng babaeng Chinese yuon.”
An Environment official in Southern Tagalog said
the skull caught the curiosity of former President Fidel Ramos when
he attended the launching of Fortune Island Resort Club in 1995.
Previous DENR administrations had repeatedly
reviewed the case on Fortune Island. All had the same conclusion: it
is a public land that cannot be alienated. But none have so far
decided to pursue the case all the way to the courts. Meanwhile, the
government is losing its own fortune—revenues that could have been
used to help the unfortunate.
Part
1 |Part
2 |Part 4 |Conclusion |
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