The Department of Environment and Natural Resources (DENR) on Friday announced canceling a 2002 supplemental pact with Blue Star Construction Development Corp. (Blue Star) for regulatory failure and multiple violations to contract terms. The decision follows a series of investigations that began in 2014, which uncovered significant issues in the project’s execution and failure to observe the necessary legal procedures.
In a letter to Blue Star owner and Masungi Georeserve proponent, Ben Dumaliang, the DENR outlined the grounds for the cancellation. These include the absence of a Presidential Proclamation required to designate the land for housing purposes, failure to conduct a proper bidding for its construction, and Blue Star’s inability to deliver the promised 5,000 housing units within the five-year timeline set in the agreement.
The original intent of the agreement was to provide housing for government employees at the DENR, Department of Education, and Department of National Defense, among others. The housing units were to be built on Lot 10, an area that is now home to the Masungi Georeserve, a popular ecotourism site known for its scenic trails and rope bridges.
According to the DENR, the 5,000 housing units never materialized. Instead, the properties originally meant for government workers have been repurposed as venues for weddings and other commercial activities. The shift and failure to complete the project as agreed, led the DENR to revoke the agreement.
In addition to the lack of legal documentation, Norlito Eneran, DENR assistant secretary for legal affairs, said that Blue Star failed to meet the terms of the 1997 joint venture agreement, under which the company was to design, build, and market the Garden Cottages project on a 130-hectare government property in Tanay, Rizal. The 2002 supplemental agreement expanded the project area to an additional 300 hectares, but no substantial progress was made on the original site.
An investigation by the DENR Special Committee, formed in 2019, also revealed that the DENR agreement with Blue Star showed irregularities, including the lack of bidding and the project’s failure to meet its deadlines.
The cancellation of the 2002 agreement is a significant regulatory action by the DENR, reinforcing the importance of following proper legal and procurement processes in government projects. The decision also highlights the ongoing environmental and legal concerns surrounding the development of the Masungi Georeserve area.
This development is seen as a critical step in ensuring that public land is used appropriately and transparently, prioritizing both environmental protection and the legitimate needs of the public.
