The Department of Environment and Natural Resources (DENR) has ordered Blue Star Construction Development Corporation (Blue Star) to vacate the 300-hectare area it occupies in Rizal, where the Masungi Georeserve is located, within 15 days of receiving its contract cancellation notice.

During a press conference on Friday, March 7, the DENR announced the cancellation of its 2002 supplemental agreement with Blue Star due to legal deficiencies, lack of a bidding process, and failure to execute the housing project originally planned for the area. 

The contract, which was meant to facilitate a government housing project, had been under investigation since 2014.

DENR Assistant Secretary for Legal Affairs Atty. Norlito Eneran said that the supplemental agreement "is now without basis,” citing that the project did not meet its timeline. 

“Blue Star was still able to secure a supplemental agreement in 2002 that even increased their project area to an additional 300 hectares, despite no substantial housing units built on the original 130 hectares awarded,” he added.

The DENR explained that the original agreement, signed in 1997, granted Blue Star 130 hectares to construct government housing under a joint venture. 

However, the agency found out that the company failed to complete the 5,000-unit housing project within the five-year timeline, leading to the contract’s termination.

The DENR also emphasized that the land in question is registered under the Republic of the Philippines and is now titled in favor of the Department of Justice through the Bureau of Corrections, with 270 hectares allocated to the Bureau and 30 hectares under the DENR Region IV-A (Calabarzon).

In a letter to Blue Star owner and Masungi Georeserve proponent Ben Dumaliang, the DENR cited additional issues, including the absence of a required Presidential Proclamation designating the area for housing and the lack of documentation proving the project underwent a proper procurement process.

Eneran noted that while the DENR is studying potential legal actions, it remains committed to managing the area in accordance with environmental laws.

“We understand that Blue Star has invested in Masungi, and we are assessing how to manage this area properly,” he said. 

“The general idea is for the DENR to take control of this area, as well as other government agencies that have rights to it.”

Despite the cancellation of the contract, the DENR assured that the Masungi area would continue to be protected. 

“In terms of management, the Protected Area Management Board can handle this,” Eneran said. 

“No one has the monopoly on the protection and conservation of the environment. In fact, ‘yun po ‘yung mandate ng DENR — to protect the environment; and conserve, preserve the natural resources of the country. Ang sinasabi lang po ng DENR, no one is above the law (No one has the exclusive right to protect and conserve the environment. In fact, that is the mandate of the DENR — to protect the environment and to conserve and preserve the country’s natural resources. What the DENR is simply saying is that no one is above the law),” he added.

Masungi georeserve responds

In response, the Masungi Georeserve Foundation, Incorporated (MGFI), which has been managing conservation efforts in the area, condemned the DENR’s decision, arguing that it targets environmental defenders rather than illegal land grabbers.

“The DENR has chosen to go after those protecting our forests instead of those destroying them,” the group said in a statement. 

“For over two decades, Masungi and Blue Star have been on the frontlines, defending our forests against land grabbers, illegal quarries, and powerful vested interests.”

The MGFI further asserted that the DENR’s failure to clear the area of illegal occupants had hindered the project’s execution. 

“It is the DENR who is at fault here. It has stubbornly refused to carry out its contractual obligation to clear the area of large-scale illegal occupants, liens, and encumbrances, causing delays to the project and significant injury to its private sector partner,” the statement read.

Regarding the order to vacate, Masungi officials stated they had yet to receive formal notice but were prepared to contest the decision of the environment department. 

“We are confident of the legal remedies available to us to stay the order, continue our work, and save Masungi.”

As such, the MGFI warned that the move could endanger forest rangers and conservation workers in the area. 

“This move endangers the safety—not only of the public—but more recklessly, of the rangers and environment defenders who fight a risky battle to defend this threatened landscape,” the MGFI said.