Known officially as the Philippine Christmas Village at its establishment in 1990 and then Hilaga (North), the Paskuhan Village occupies a premium 9.3-hectare property with its main building shaped like a Christmas lantern when viewed from above.
The Paskuhan Village has become an iconic symbol of the city’s thriving lantern industry and is home to the Florikultura Gardens. It is adjacent to the former Days Inn Hotel located at the junction of the North Luzon Expressway and the Jose Abad Santos Avenue in Barangay San Jose here.
It was reported that the House Committee on Good Government and Public Accountability chaired by Surigao del Sur Rep. Johnny Pimentel (Second District) led the inquiry on its sale after Pampanga Rep. Aurelio “Dong” Gonzales Jr. (Third District) filed House Resolution 654 calling for the investigation of the sale on whether proper procurement laws were followed and to ascertain the real ownership of the property.
Reports said members of the committee found questionable the decision of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) to proceed with the sale.
Gonzales said TIEZA should have opted instead to lease the property in order to save it for future generations of Kapampangans.
Last December 17, 2014 five bidders joined the open bidding. But four of the bidders are all SM corporations or companies and the last was Robinsons Land Corp.
It was learned that a floor price of P849 million was established by three appraisers commissioned by Tieza. And SMDC won with a bid of P939 million.
SM was described as “aggressive” in acquiring the property as it has reportedly given locators and tenants of the property notices to vacate the premises.
During the inquiry, TIEZA chief operating officer Atty. Guiller Asido said four companies purchased bid documents but only one company proceeded with the next stage of the bidding process.
It was manifested in the House inquiry that there was apparent collusion in the bidding as the four companies who bought bid documents were reportedly related to one another. The four companies in question were SMDC, Premier Central Incorporated, SM Prime Holdings Corporation and SEJ North Premier Holdings Corporation.
Cebu Rep. Gwendolyn Garcia (Third District) also questioned TIEZA for selling Paskuhan when there are clear provisions under RA 9593 on the right of first refusal.
She said section 54 of the law states that TIEZA, in coordination with the Privatization Council, shall determine which assets shall be put up for sale or lease provided that concerned LGUs interested to manage and operate said assets shall have the right of first refusal.
Garcia pointed to Section 54 which indicates that the TIEZA and the Department of Tourism shall take into consideration the importance of maintaining and preserving assets which may already be considered cultural treasures and heritage sites.
But Asido said the property was not declared as cultural property by the National Commission on Culture and the Arts (NCCA).
However, Garcia pointed out that the property itself could already be considered as an important cultural property due to its history and importance to the people.
The House inquiry noted that the city government made a counter proposal to buy the property which indicates that the local government unit (LGU) was clearly opposing the sale.
The LGU was treated as though it was just a regular bidder, said Garcia.
In addition, the Provincial Government of Pampanga also sent a December 14, 2014 letter to TIEZA off ering to purchase the property or at least to turn over the administration and operation of the property to the provincial government.
The board of trustees of the Giant Lantern Festival Foundation Inc. (GLFFI) had also requested then Tourism Secretary Ramon Jimenez to review the sale of the Philippine Christmas Village describing its sale as “incredulous.” The GLFFI described the sale of the property as “the end of an era.”
Meanwhile, the Registry of Deeds in the City of San Fernando has confi rmed that the said property has not yet been transferred to the buyer. It was discovered that the capital gains tax was not yet paid by TIEZA.
The Hilaga property was part of the land owned by the Lazatin family. In 1990 it was donated to the government.
On December 11, 1990 then-President Corazon Aquino opened the Paskuhan Village which showcased the best Christmas-inspired Filipino arts and crafts, including demonstrations on how these products were made.
“To support the lantern industry of San Fernando,” was supposed to be among the principal reasons for the establishment of the Paskuhan Village.
At the time of its construction and until its reported sale, it was bruited that a “deed of donation” mandated that the area should be exclusively used for no purpose other than the promotion of the Christmas- lantern industry.”
In 2012 this came to the fore when a resolution was filed with the sangguniang panlalawigan of Pampanga to put up a branch of the Casino Filipino at the Paskuhan Village, which by that time, was already turning into a losing proposition.
Religious organizations were joined by militant groups, parents and teachers association in opposing the casino at Paskuhan.
At one time, the Paskuhan Village hosted the regional consular office of the Department of Foreign Affairs before it transferred to Clark Field in Angeles City.
Hilaga is the second of SM’s recent big buys in the city of San Fernando.
Before the end of the 2014, it acquired a vast tract of land, including the Essel Supermarket in Barangay Telabastagan which was also owned by the Lazatin family.
