CA affirms mediation order on Smokey Mountain row

MANILA, Philippines - The Court of Appeals (CA) has affirmed its order for the parties involved in the dispute over the P6-billion Smokey Mountain Development and Rehabilitation Project (SMDRP) to settle their case through mediation.

In a two-page order released last week, the CA’s ninth division again directed the National Housing Authority, state-run Home Guaranty Corp. (HGC) and private developer R-II Builders to resolve outstanding payments for the long-overdue Smokey Mountain Asset Pool in mediation proceedings.

The order was in reply to a motion for reconsideration by HGC of the SC’s October 2013 ruling. The CA referred the case anew to the Philippine Mediation Center.

The latest ruling was signed by Justices Jose Reyes Jr., Mario Lopez and Socorro Inting.

R-II Builders and NHA signed a contract for the development of Smokey Mountain in 1993, with HGC as government guarantor of the project’s financial component.

R-II claimed HGC reneged on its duty while HGC said the firm did not comply with the agreement. After the Quezon City regional trial court dismissed R-II’s complaint, the developer elevated the case to the CA.

The CA’s latest resolution came after the House of Representatives committee on housing directed the HGC to settle with the NHA, whose obligation has ballooned to over P4.4 billion due to HGC’s refusal to settle for the past 12 years.

Reacting to the new CA ruling, R-II executive vice president Jerome Canlas said the firm is ready to sit down and talk with officials from the two government agencies.

“Each day of delay costs the government P500,000 in interest costs. This should be pursued in earnest for the sake of the Filipino people,” he said.