SSS urges SC to stop NGCP from taking over Pasay lot

The Social Security System (SSS) asked the Supreme Court (SC) on Wednesday to reverse a trial court order that allowed the National Grid Corporation of the Philippines (NGCP) from taking possession of a Pasay City lot owned by the state-run pension fund.

In a petition, the pension fund assailed the writ of possession issued by Judge Gina Bibat-Palamos of the Pasay City Regional Trial Court Branch 108 on March 2 in relation to the expropriation of an SSS lot at the Financial Center Area for the construction of a substation.

NGCP holds a 25-year concession to manage, maintain and operate the country's power transmission system.

The company told the lower court that it needs to immediately build a substation that will accommodate the increasing power demand of Greater Manila Area. The project is to be called the Pasay 230kV Substation.

The 60,872-sqm lot is priced at P24,000 per sqm for a total valuation of P1,460,928,000.

In ruling on the expropriation, the judge said the NGCP has complied with the requisites of Section 6 of Republic Act 10572 (Right-of-Way Act), which include filing a complaint, service of notice to the other party and a deposit of the provisional amount based on the relevant zonal value of the land to be expropriated.

The SSS appealed the decision but it was rejected on April 24. 

According to the pension fund, the judge acted with grave abuse of discretion when she ruled in favor of the expropriation without legal basis.

The SSS said the NGCP cannot file an expropriation case and be entitled to a writ of possession since the latter is a private corporation "seeking to acquire by compulsion a government property already devoted to public purpose."

The pension fund noted the trial court should have acted first on the issue of NGCP’s authority to expropriate government property.

"If we were to follow the line of reasoning that compliance by NGCP with the requisites under Section 6 of RA 10752, alone, serves to entitle it to a writ of possession, then any entity who files an expropriation complaint, gives notice to the landowner and deposits 100 percent of the relevant BIR zonal valuation should, as a matter of course, be issued a writ of possession," the petition said.

"This has a far-reaching implication, especially in this case because as a consequence a private entity, like the NGCP ends up having possession of a government property divesting in the process the government’s possession and use of the property for the purpose it was devoted to and later become the owner of government property," it added.
 
The pension fund noted Section 6 of RA 10752 was intended to facilitate government infrastructure projects on the premise that it is the national government acquiring the real property. 

"The intent is to provide a shortcut in favor of government to curtail the long and tedious procedural requirement that it should observe in implementing national infrastructure projects owing to public accountability," the petition said.

"Thus, the law provided government with the advantage of possession without having to initially show the validity of its authority on considerations of diminishing causes of delay and efficiency in the delivery of public services."

The SSS also said the expropriation of the property "will definitely deprive SSS’ possible investment opportunities, affect its actuarial life, to the detriment of SSS and its members."

Assisted by the Office of the Government Corporate Counsel, the SSS urged the high court to issue a status quo ante order or even a writ of preliminary mandatory injunction to stop the expropriation order.

It also asked the SC to dismiss NGCP’s complaint before the trial court. — Virgil Lopez/VDS, GMA News