During a Senate Blue Ribbon Subcommittee hearing on Friday, the Department of Environment and National Resources (DENR) and representatives from Blue Star Construction Development Corporation and the affiliated Masungi Georeserve Foundation both signaled their willingness to continue dialogue after the cancelation of a 2002 supplemental joint venture agreement (SJV) involving land within the georeserve.
This came after DENR Secretary Maria Antonia Yulo-Loyzaga testified that the Masungi camp had attempted to reach her using political influence rather than through formal channels.
"When political influence is used to reach me, I immediately question what is the motivation behind this," Yulo-Loyzaga said during the hearing. "I, too, realize the value of political spectacle."
Yulo-Loyzaga emphasized that the cancellation is part of the agency's larger effort to enhance forest management and promote biodiversity conservation through a collective societal response.
In her opening statement, she noted that the indigenous Dumagat/Remontado people had given their "full support and backing to the cancellation" of the agreement and had alleged that "behind the guise of their advocacy is a long history of abuse of the indigenous peoples of Tanay Rizal."
The Dumaliang family had expressed surprise at the DENR's announcement, which stated that Blue Star’s contract had been terminated and that the company was ordered to vacate a 740-acre portion of the reserve within 15 days.
DENR Secretary Loyzaga reiterated that the agency’s mandate is rooted in the protection of natural resources, particularly those within legally designated protected areas.
"These areas like Masungi Karst are vital for the ecological balance and provide essential services to our communities," she said.
She cited the National Integrated Protected Areas System (NIPAS) Act, as amended, which strictly regulates activities within protected sites and requires coordination through Protected Area Management Boards (PAMBs) and the issuance of Special Use Agreements in Protected Areas (SAPAs).
The agreement in question dates back to a 2002 Supplemental Memorandum covering a 300-hectare parcel within the Masungi limestone formation. Originally intended for a government housing project, the contract came under scrutiny in a 2014 Commission on Audit (COA) review, which cited issues such as the lack of public bidding, limited project implementation, and the absence of a Presidential Proclamation.
These COA findings were later validated by DENR internal reviews and supported by legal opinions from the Office of the Solicitor General and the Department of Justice, ultimately prompting the agency to cancel the agreement, according to Yulo-Loyzaga.
"While we respect prior rights, they must align with our legal frameworks," she said.
"This is not a special case. It is the law," she said, referencing the broader scope of more than 200 protected areas nationwide, including the Masungi site, which overlaps with three protected zones: Presidential Proclamation 1636, the Kaliwa Watershed Forest Reserve, and the Upper Marikina River Basin Protected Landscape.
The Secretary called for a multi-sectoral approach to conservation, encouraging collaboration among stakeholders, including government agencies, local governments, the private sector, academia, civil society, and indigenous peoples. "Conservation is a shared responsibility," she stressed, noting that the principles established through the NIPAS and Enhanced NIPAS laws are fundamental to effective environmental governance.
In addressing potential shortcomings within government institutions, Loyzaga asserted that even imperfect systems cannot be disregarded by individual entities. "Our laws must be followed to preserve our natural heritage," she asserted, reiterating that the enactment of the NIPAS law is a transformative step in institutionalizing the protection of protected areas.
The DENR welcomed an ongoing investigation into the 2002 agreement, viewing it as an opportunity to uncover the truth regarding the involvement of the Dumaliang family and their association with Blue Star and First United Constructors Corporation.
The hearing concluded with a directive to create a technical working group involving stakeholders from the DENR, Blue Star, and Masungi.
The Masungi Georeserve has gained international recognition for its unique karst formations and biodiversity, as well as for its community-led conservation model. The Discovery Trail, which draws visitors with its elevated walkways and forest experiences, helps fund reforestation efforts across more than 5,900 surrounding acres and supports over 100 local rangers.