Local basketball legend and former senator Robert ?Bobby? Salazar Jaworski is facing a new challenge away from the hard court. Jaworski has assumed the chairmanship of Philippine Reclamation Authority since Jan. 1 this year, replacing his father-in-law, former senator Ramon Revilla Sr., who suffered a stroke last year.

Bobby faces the task of disposing of huge tracts of land on the reclaimed Manila Bay and boost the privatization efforts of the government. His task may be easier now, with PRA general manager and chief executive Andrea Domingo taking care of the day-to-day operations of the agency.

Ms. Domingo reported the other day that PRA posted a net profit of P2.6 billion in 2008, the bulk of which came from the sale of reclaimed lands and fees paid from approved reclamation projects. PRA, aside from administering the converted land on a portion of Manila Bay, collects fees from similar reclamation sites in the Philippines, including those in Cavite and Cebu provinces.

Bobby, as chairman of PRA, meanwhile, will have to set the policies of PRA in speeding up the sale of the reclaimed land on Manila Bay, the agency?s most prized possession. Some tracts of land are embroiled in court litigations.

PRA has just ?resolved? its dispute with the Para?aque City government when Ms. Domingo agreed to settle P1.2 billion in disputed real property tax payments of the agency with Para?aque City through a dacion en pago arrangement.

The settlement effectively stopped Para?aque City from assessing and collecting taxes on all reclaimed lands within PRA?s jurisdiction, pending the resolution of the tax exemption claim of the agency.

In limbo

Members of the Guy family that owns Northern Islands Co. Inc., the exclusive distributor of 3D home appliances in the country, are in for a protracted legal battle.

The grapevine said Gilbert, the elder brother, has ceased to be active in the business affairs of Northern Islands, after he was reportedly eased out by other family members.

The grapevine said a faction of the Guy family had wrested control of Northern Islands from Gilbert, who contended himself with another company, 3D Industries Inc., the appliance manufacturing arm, which has virtually stopped operations to give way to cheaper imports.

The sibling rivalry, however, appeared to be going nowhere after the corporate life of Northern Islands expired on Aug. 6, 2007. Northern Islands was registered on Aug. 6, 1957 for a corporate term of 50 years.

The Securities and Exchange Commission earlier approved an extension of Northern Islands? corporate life based on a set of amended articles of incorporation submitted by the company on Feb. 19, 2008, or six months after its corporate life expired.

3D Industries, however, filed a petition to cancel Northern Islands? amended articles of incorporation, claiming that a company whose corporate life had expired could no longer be extended.

Northern Islands dismissed 3D Industries claim, saying the SEC approval could no longer be revoked for lack of jurisdiction and substantial interest on the part of the petitioner.

SEC director Benito Cataran, however, issued on Nov. 6, 2008 an order canceling the amended articles of incorporation of Northern Islands, prompting the latter to appeal the ruling.

Northern Islands? lawyers said that pending the appeal, the company still legally exists and goes about its business as usual.

They said the SEC decision to revoke an earlier ruling approving the corporate term extension of Northern Islands was not final and could not be given any legal effect.

Northern Islands? problems, however, are far from over. The Quezon City government canceled Northern Islands? business permit after receiving the disputed SEC order. The Bureau of Customs also subsequently suspended the accreditation of Northern Islands as an importer.

E-mail: rayenano@yahoo.com or business@manilastandardtoday.com