AFP pension fund, ex-Mindoro governor’s firm ordered to return 150-hectare land to owner

The Court of Appeals (CA) has ordered the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS) and a company led by former Oriental Mindoro governor Rodolfo Valencia to return 150 hectares of land in Nasugbu, Batangas, to its original owner.

In a recent 15-page decision, the CA 8th Division upheld the March 2, 2017 ruling of the Batangas City Regional Trial Court (RTC) Branch 14 in favor of Group Developers, Inc.’s (GDI) right to rescind the memoranda of agreement (MOAs) entered from 1997 to 1999.

The court said Valencia’s company RGV Development Corporation (RGVDC) breached its obligations under the MOAs, because of the P321.6-million purchase price, only P1 million was actually received by GDI as “earnest money.”

The amounts of P117.17 million and P129.47 million were used to compensate illegal settlers and develop relocation sites, respectively.

RGVDC then sold the property to its assignee and subsidiary Monterrosa Development Corporation (MDC) in 1999. AFP-RSBS later acquired the property from MDC.

The court said the military pension fund was an assignee in bad faith because its failure to carefully examine RGVDC’s documents prevented it from finding out that the company did not comply with its obligations to GDI.

AFP-RSBS did not even inquire into how MDC acquired the property from RGVDC despite its measly capitalization of only P150 million, noted the decision penned by Associate Justice Ronaldo Roberto Martin.

Copyright © 2019 Abogado - Latest News in the Philippines