Angeles City court issues TRO vs Clark mall project

CLARK FIELD, Pampanga — Some 1,000 workers will find themselves jobless starting today after the Angeles City court issued last week a temporary restraining order (TRO) halting the construction of the P500-million SM mall in the Clark special economic zone.

Angeles City Regional Trial Court Judge Philbert Yturralde issued the TRO upon the petition of Angeles City Mayor Carmelo Lazatin, who insisted on the right of the city government to require a permit for the mall construction.

News about the TRO flooded the state-owned Clark Development Corp. (CDC) with calls from scores of local folk awaiting employment at the mall, which is expected to create at least 12,000 new jobs once it is fully operational.

At present, some 1,000 locals are employed for the mall’s construction.

The mall, owned by business tycoon Henry Sy’s Central Premiere Inc. (CPI), was initially slated to open in April next year.

Antonio Ng, CDC president and chief executive officer, said the TRO would delay the targeted opening of the SM mall to coincide with the grand re-opening of the mothballed Expo Pilipino theme park in the Clark ecozone.

Ng has asked the Office of Government Corporate Counsel to issue a legal opinion on whether the Angeles City government has the authority to impose permit requirements on the mall being constructed by Golden City Builders Development Corp.

"It seems unusual for the city government to insist on its right to impose a permit since the mall is clearly within the Clark special economic zone," CDC information officer Sonny Lopez said.

Congress is expected to pass anytime a resolution clarifying that Clark investors should enjoy tax privileges similar to those enjoyed by investors at the Subic Bay Freeport.

This, after the Supreme Court earlier ruled that Republic Act 7227, or the Bases Conversion Law, was not explicit in saying that Clark investors are entitled to tax incentives.

Earlier, the CPI funded the upgrading of the 12-hectare Bayanihan Park, which used to lack lighting and other facilities.

The company also provided the Angeles City government with funds to rehabilitate its drainage system to solve the perennial flooding in the commercial district of Balibago, which leads to the mall site.

The Bayanihan Park’s upgrading reportedly cost CPI some P100 million, while the cost of the drainage project, which the city government undertook, has not been disclosed.

The CDC quoted the CPI as saying that it has "paid all the required fees, including permits on building, electrical, sanitary and mechanical, to the CDC."

Yturralde said the TRO was issued to give the court "ample time to evaluate all the evidence presented by the two contending parties."

The CDC has reiterated that its contract with CPI provides that all goods to be sold in the mall will be tax-paid, except for imported materials and equipment to be used in constructing the building.

CPI officials have given assurances that small-scale businessmen in surrounding areas would be given priority in the allocation of stalls at the SM mall should they want to operate there.