The Court of Appeals (CA) has ruled as null and void a multimillion-dollar deal between Manila and a Japanese consortium for development of the 2,489-square meter Nampeidai property of the Philippine government in Tokyo.
The ruling effectively reversed findings of the Pasay Regional Trial Court and affirmed the validity of the government’s cancelation of the notice of award that it had issued to Nagayama Taisei Consortium (NTC).
In an eight-page resolution penned by Presiding Justice Andres Reyes Jr., the CA’s Former First Division junked a motion for reconsideration filed by Masahiro Nagayama, lead partner and manager of NTC, seeking the reversal of the appellate court’s July 13, 2014 ruling.
The resolution cited NTC’s failure to comply with requirements set forth under Republic Act (RA) 9184 or the Government Procurement and Reform Act.
It was concurred in by Justice Rodil Zalameda and Justice Ramon Bato.
The CA found no new arguments that would warrant reversal of its earlier findings.
It declared void the award because the NTC failed to comply with the requirement for the submission of a sworn undertaking, in violation of the terms of reference for the development of the Philippine government’s pieces of property in Japan and the provisions of RA 9184.
The Japanese consortium was also charged by the National Bureau of Investigation for submitting fake documents.
It was also found that NTC does not exist at all as a consortium, hence, the writ of execution is now nullified and set aside.
As such, the CA declared the Service Development Agreement dated August 14, 2006 and its Supplementary Agreement 13 March 13, 2008 inexistent and void ab initio.
Manila, however, was ordered to make a restitution of what has been paid by stating the “return and release to private respondent appellant Tshuchiya, or any of his authorized representatives, the Service Development Fee in the amount of 480,000,000.00 Japanese Yen with legal interest thereon at 6 percent per annum.”
It was also ordered to cancel and release to Tsuchiya or any of his authorized representatives the performance bond in the total amount of P50,238,720.00.
In antecedents of the case, in 2009, the Department of Justice affirmed the legality of the decision of the Department of Finance canceling the notice of award that it had issued to NTC.