FRAUD pulled off by Goliaths on hapless Filipinos is getting to be the norm in the corporate world, following the filing of charges against Andrew Tan’s Megaworld over allegations of non-payment for work on completed projects.
Megaworld, a giant property developer owned by Chinese-born Andrew Tan is facing multiple cases filed by Filipino contractors including DATEM Inc., which has been trying to collect over P873 million.
“Years of patient negotiations and enduring unfair treatment prompted DATEM to take legal action, bringing a case to court to compel the developer to uphold the Mutual Agreement,” reads a statement, even as the company established by DATEM incorporators Engineers Levy Espiritu, Morris Agoncillo, and Architect Arnold De Asis hinted at what they claimed as their last resort after a failed negotiation.
What Went Before
According to DATEM, they have tried all ‘diplomatic means’ to resolve their legal claim as provided for and covered under Mutual Agreement on Turnover of Contracts, copies of which were attached and submitted to the Quezon City RTC.
Under the Mutual Agreement, Megaworld made a commitment to pay for DATEM’s projects which were completed before the onset of the pandemic in January 2020.
“The developer’s lack of willingness to comply with its responsibilities under the Mutual Agreement is evidenced by its refusal to pay,” it added.
“Megaworld reaped the benefits of completed projects through unit sales, project launches, and large dividends while ignoring its financial obligations to the construction companies involved.”
Other Complainants Aside from DATEM, Megaworld is also entangled in several court cases filed by three other Filipino contractors for non-payment of completed projects for a combined amount of P22 billion.
The three other firms are Monolith Construction and Development Corp., Monocrete Construction Philippines Inc., and Moondragon Constructors Corporation. Megaworld reportedly declined to pay P210.92 million and P439.26 million for the One Paseo and World Commerce Place developments. Cases were filed before the Makati RTC.
Monocrete Construction Philippines Inc. is also pressing to collect P184.77 million for the Iloilo Center Mall project, which was renamed the Festive Walk Mall and completed in 2018.
Moondragon Constructors Corporation meanwhile said that Megaworld also profited from completed projects while avoiding payments of P377.57 million for the Manhattan Heights project and P53.23 million for the Cambridge Village and Little Baguio Terraces projects.
Misleading Propaganda DATEM also took a swipe at what they claimed as misleading propaganda regarding their P873.324 million claim from Tan’s giant property development corporation.
“Objectively speaking, browsing through these numerous media articles, it is apparent that almost all are argumentative and defensive of the giant and known property developer. As it is, the case is submitted into the bar of public opinion.”
“In the Court of Law, being the proper forum for a resolution, due process will be observed for the benefit of both DATEM and the developer. The judge will “appraise” the merits of the arguments and evidence from both sides and “provide” a resolution in accordance with the Law, … not in accordance with what the bar of public opinion holds.
That Was Fast
With a case formally accepted by the court for litigation, Quezon City RTC Judge Rochelle Yvette Galano issued a court order freezing five of the developer’s projects, after seeing the element of ‘fraud’ in the Megaworld’s dealings.
However, the freeze order was subsequently lifted the next day and instead ordered Megaworld to set aside the actual claim value as counterbond to cover the potential obligation being sought by DATEM, without effect to the finding of the presence of fraud in the developer’s dealings.
Balancing Two Sides
For its part, Megaworld also issued a statement accusing the complainant of repeatedly failing to fulfill its obligation in completing the projects that were assigned to the designated contractor – in this case DATEM Megaworld said it was forced to look for other contractors to take over the projects due to alleged negligence and disregard for project completion timelines.
Another fact in this context is the reported presence of a “no arbitration clause” in the contract between DATEM and the developer. It was also reported that there are other construction companies – in the same predicament with DATEM, who have respectively sent their demand letters to the developer.
The developer has refused to pay invoices totaling more than P2 billion, according to three other companies that have surfaced: Monolith Construction and Development Corp., Monocrete Construction Philippines Inc., and Moondragon Constructors Corporation.
By far, these are the facts and recent developments about the case. In the Court of Law, being the proper forum for a resolution, legal representatives of DATEM will argue their claims and support it with whatever evidence they have.
Likewise, therein will the developer dispute the claims and present their defense. And in that “proper forum,” due process will be observed for the benefit of both DATEM and the developer. The judge will “appraise” the merits of the arguments and evidence from both sides and “provide” a resolution in accordance with the Law, … not in accordance with what the bar of public opinion holds. But even with these matters already before the court and subject to public scrutiny, there remains an opportunity for both parties to reach an amicable resolution.
