MANILA – The Supreme Court (SC) has ruled that a 57.68-hectare property in Barangay Suba, Paoay, Ilocos Norte owned by the Marcoses constitutes ill-gotten wealth.
In a decision penned by Associate Justice Marvic Leonen, the SC en banc ruled as unconstitutional the 25-year lease agreement signed on December 20, 1978, between the late President Ferdinand Marcos Sr. and the Philippine Tourism Authority (PTA).
The Paoay property, which was leased at a low rate of just one peso per year, was intended for the development of the Paoay Lake area.
But the high court noted in its verdict that there was no evidence to support Marcos Sr.’s ownership of the land at the time the lease was executed.
The SC also stated that Paoay Lake and its surroundings are part of a national park, categorizing the land as public property that cannot be privately appropriated.
The ruling further said that, despite the issuance of Presidential Decree No. 1554 that opened the land for acquisition, no documentation exists proving that the property was transferred to Marcos Sr. before the 1978 lease agreement.
“As a result, the SC declared that Marcos Sr. had no authority to lease the land, making the contract invalid,” Leonen wrote in his decision.
The high court also said that the contract included provisions stating that ownership of any improvements made during the lease would revert to Marcos Sr. upon its termination.
“This arrangement was found to violate the constitutional prohibition against a President holding any financial interest in a government contract, as outlined in both the 1973 and 1987 Constitutions,” the SC said.
The SC thus ordered that the property be returned to the State, with exceptions for portions now covered by free patents./PN
