Chavez vs Public Estates Authority

G.R. No. 133250 July 9, 2002

Facts:

President Marcos through a presidential decree created PEA, which was tasked with the
development, improvement, and acquisition, lease, and sale of all kinds of lands. The then
president also transferred to PEA the foreshore and offshore lands of Manila Bay under the Manila-
Cavite Coastal Road and Reclamation Project.
Thereafter, PEA was granted patent to the reclaimed areas of land and then, years later, PEA
entered into a JVA with AMARI for the development of the Freedom Islands. These two entered
into a joint venture in the absence of any public bidding.
Later, a privilege speech was given by Senator President Maceda denouncing the JVA as
the grandmother of all scams. An investigation was conducted and it was concluded that the lands
that PEA was conveying to AMARI were lands of the public domain; the certificates of title
over the Freedom Islands were void; and the JVA itself was illegal. This prompted Ramos to form an
investigatory committee on the legality of the JVA.
Petitioner now comes and contends that the government stands to lose billions by the
conveyance or sale of the reclaimed areas to AMARI. He also asked for the full disclosure of
the renegotiations happening between the parties.

Issue: Whether or not the transfer is valid.

Ruling:

No. To allow vast areas of reclaimed lands of the public domain to be transferred to
Amari as private lands will sanction a gross violation of the constitutional ban on private
corporations from acquiring any kind of alienable land of the public domain.
The Supreme Court affirmed that the 157.84 hectares of reclaimed lands comprising the
Freedom Islands, now covered by certificates of title in the name of PEA, are alienable lands of the
public domain. The 592.15 hectares of submerged areas of Manila Bay remain inalienable natural
resources of the public domain. The transfer (as embodied in a joint venture agreement) to AMARI,
a private corporation, ownership of 77.34 hectares of the Freedom Islands, is void for being
contrary to Section 3, Article XII of the 1987 Constitution which prohibits private corporations from
acquiring any kind of alienable land of the public domain. Furthermore, since the Amended JVA also
seeks to transfer to Amari ownership of 290.156 hectares of still submerged areas of Manila Bay,
such transfer is void for being contrary to Section 2, Article XII of the 1987 Constitution which
prohibits the alienation of natural resources other than agricultural lands of the public domain.