Senate probes Subic ‘raid’

By Bebot Sison Jr., The Philippine Star

SUBIC BAY FREEPORT — Top officials of the Subic Bay Metropolitan Authority (SBMA) will appear today before the Senate committee on government-owned corporations to shed light on the reported confrontation last Sunday between two warring political camps at Kalayaan 5000, the official residence of the SBMA chairman, at the Subic Bay Freeport.

According to SBMA sources, Sen. Richard Gordon, who chairs the committee, has invited newly appointed SBMA chairman Feliciano Salonga, administrator Armand Arreza and senior deputy administrator for operations Jose Calimlim to the inquiry.

The top SMBA officials earlier had begged off from answering media queries about the incident, saying they would only give their statements to the Senate panel.

The incident, which threw the SBMA into confusion, occurred just two days after Salonga and Arreza formally assumed their posts.

According to an incident report of the SBMA Intelligence and Investigation Office (IIO), six Olongapo City residents, claiming to be volunteers for Arreza, proceeded to the SBMA chairman’s residence at the Kalayaan housing area to secure it at about 1:30 p.m. last Sunday.

The six were identified as Ronaldo Fernandez, Garizaldy Tolentino, Eddie Garcia, Rene Tolentino, Ismael Bautista, and John Tabares, all known to be Gordon’s followers.

However, at about 11:30 p.m., Zambales Gov. Vicente Magsaysay and his son, SBMA director Jesus Victor "JV" Magsaysay, arrived in the area reportedly to reserve the same housing unit for Salonga.

Some policemen accompanied the Magsaysays, the IIO report said.

Members of the SBMA’s law enforcement department (LED), who rushed to the area to investigate, reportedly persuaded Magsaysay’s group to have a peaceful dialogue with Arreza’s men.

However, a "commotion" ensued when the two groups met each other, the IIO said.

Meanwhile, the Magsaysays cried foul over reports, which they said portrayed them as warlords and gun-toting goons, pointing out that they were "not the bandits they have been pictured to be."

JV Magsaysay said they simply responded to Salonga’s call, contrary to reports that they forced their way into the house.

"We went there to check on a call from Chairman Salonga that some people trespassed into the Kalayaan 5000 house and so I called on the LED to check. When we got there, there were six men lurking inside the house, which at that time was not lighted," he said.

He said LED head Col. Jaime Calunsag was there to prevent any untoward action by the house "raiders."

"We are not bandits. We just tried to be good citizens and check on a house that was reported to have been ‘invaded,’" he added.

Reports said Arreza’s men had claimed that they had come to "secure" the house, which was the residence of former SBMA administrator Alfredo Antonio.

Antonio’s son, Bobong, however, was still in the house packing his things when the six men got there. He reportedly asked them who they were.

The younger Antonio later checked with the local authorities and found out that the six men were not from the LED and that they had no official credentials, except that they were former SWAT men of Gordon, a former SBMA chairman.

Sources from the LED, who requested not to be named, said an unidentified caller rang up their office, prompting them to dispatch a team to investigate at about 10 p.m.

Calunsag and his men later arrested the six men, who were found to be in possession of two short firearms.

The incident has reportedly further fanned the political rivalry between the Magsaysay and Gordon camps.

Salonga and Arreza, however, released a statement last Tuesday, both vowing to work together to propel the Subic Freeport into a self-sustaining and prime investment center.

The two also agreed that the Kalayaan house, which became the center of the turf war, be designated as the official residence of President Arroyo during her visits to Subic.

They added that their mandate is to continue their predecessor’s initiatives

No quarrel over house in Subic

No quarrel over house in Subic, says SBMA chief

By Tonette Orejas, Inquirer News Service

THERE WAS NO battle for Kalayaan 5000, the official home of the chair of the Subic Bay Metropolitan Authority at the Subic Bay Freeport.

That's as far as SBMA Administrator Armand Arreza is concerned, one of the two officials whose men tried to secure the house on Sunday night.

'My predecessor (former SBMA Administrator Alfredo Antonio) had turned it over to me. My executive assistant Rani Cruz came to get the keys so we could start an audit of the place,' Arreza said of the Sunday incident.

Only Cruz, not him, was around during the near scuffle with the security personnel of Zambales Gov. Vicente Magsaysay. The governor’s son, SBMA Director JV Magsaysay, sent the security personnel, reports reaching the Inquirer said.

Since the turnover of leadership took place on Friday and because it was a weekend, Arreza said he sought help from his contacts in Olongapo City.

He said it was "very clear" to him that he was securing the place not for himself, but for President Macapagal-Arroyo, as SBMA Chair Feliciano Salonga had planned.

Arreza on Tuesday said he was "worried" that the issue was being played up to "polarize further" Sen. Richard Gordon and Governor Magsaysay, who are long-time political enemies.

The Gordons and Magsaysay are reportedly maneuvering for political control of the SBMA for the coming local elections.

Arreza, who was finance chief during Gordon’s stint as SBMA chair, said the Kalayaan 5000 controversy seemed to be an effort to drive a wedge between him and Salonga.

"We don't want those kinds of stories," Arreza said. He declined to say who were trying to worsen the already sour relationship between Gordon and Governor Magsaysay or who were seeking to cause tension between him and Salonga.

Magsaysay said his son acted in the best interest of the SBMA since he is a director at the agency which manages the conversion of the 12,000-hectare former American naval base into an industrial hub.

"You can't blame my son. Those who came in were not SBMA security personnel. He just wanted to be sure," Magsaysay told the Inquirer.

Salonga said he has yet to make up his mind on where to hold office at the SBMA.

Resigned SBMA Chair Francisco Licuanan III gave the chair's office in Bldg. 229 to Antonio, who worked full time at the freeport. With a report from Patrick Roxas, PDI Central Luzon Desk

50 armadong tauhan ni Gov. Magsaysay nilusob ang Subic guesthouse ni GMA

Ang Pilipino STAR Ngayon

Inakusahan kahapon si Zambales Gov. Jose Vicente Magsaysay nang tangkang pag-okupa sa guesthouse ni Pangulong Gloria Macapagal-Arroyo na nasa loob ng Subic Bay Freeport nitong nakalipas na linggo gamit ang may 50 tauhan.

Sa report ng Olongapo City Police, nagtungo umano si Gov. Magsaysay kasama ang anak na si J.V. Magsaysay, isang nakilalang Dicky Gonzales at mga armadong kalalakihan sa Presidential guesthouse at tinutukan saka sapilitang pinaalis ang naabutang mga tauhan ni SBMA administrator Armand Arreza.

Ayon sa mga biktima, pinagmumura sila ng mga tauhan ni Magsaysay habang pinaaalis sila.

Ayon sa biktimang si Bobby Fernandez, sinapak pa siya ng anak ng gobernador.

Kinumpirma rin ng SBMA Intelligence and Investigation Office (IIO) ang insidente sa isang bukod na ulat.

Ayon sa IIO, dumating sa guesthouse ang grupo ni Magsaysay kasama ang anak bandang alas-10:30 ng gabi noong Linggo.

Kinumpirma rin ng IIO na ang mga biktima ay mga tauhan ni Arreza na pinagbabantay sa guesthouse.

Napigilan lamang ang paglala ng sitwasyon nang dumating si SBMA senior deputy administrator Gen. Jose M. Calimlim, na kumumbinsi sa grupo ng gobernador na lisanin ang lugar.

Inatasan ni Calimlim si Col. Jose Calunsag, manager ng SBMA law and enforcement department, na magtalaga ng mga tauhan upang bantayan ang guesthouse at huwag payagang pumasok ang sinuman na walang pahintulot mula kay Calimlim.

Kinaumagahan naman ng Lunes, bumalik diumano si J.V., kasama ang may 30 armadong tauhan at tinangkang okupahan ang SBMA administration building, ngunit pagkaraan ng ilang minutong tensyon sa pagitan nila at ng mga empleyado ng SBMA ay kusa ring lumisan ang grupo ng batang Magsaysay.

Ang nasabing gusali na tinatawag ding "Quarters 5000 Kalayaan" ay isang opisyal na tirahan ng pinakamataas na pinuno ng US Navy na nakatalaga sa Subic noong ito ay ginagamit bilang base militar ng Estados Unidos.

Nang umalis ang mga Amerikano, ang base ay ginawang freeport at itinalaga ni Richard Gordon, unang SBMA chairman, ang Quarters 5000 bilang opisyal na pahingahan ng Pangulo ng bansa at ng kanyang mga bisita.

Si Gordon ay tumira sa kanyang sariling bahay na malapit din sa Quarters 5000. Nang mahirang naman si SMBA chairman Felicito Payumo, ginamit niya ang guesthouse bilang tirahan.

Nang pinalitan ni Francisco Licuanan si Payumo ay hindi ito nanirahan sa Subic at tumutuloy lamang sa isang hotel kapag nagpupunta sa SBMA.

Ang sumunod na nanirahan sa guesthouse pag-alis ni Payumo ay si dating SMBA administrator Alfredo Payumo.

Noong nakaraang linggo ay nagpasya ang board of directors ng SMBA na italagang muli ang Quarters 5000 bilang presidential guesthouse. Ito ang dahilan kung bakit nagtalaga si Arreza ng mga tao para bantayan ang gusali.

Sa kabila ng insidente, nangako si Arreza na pagtutuunan niya ng pansin ang mas malalaking problema ng Subic. (Ellen Fernando)

P15M check for Zambales rep Antonio Diaz caused Luz' relief

Postdated checks caused my relief—Luz

By JONATHAN M. HICAP, The Manila Times Reporter

Education Undersecretary Juan Miguel Luz suspects that his relief was caused by his refusal to receive three of four checks amounting to P15 million issued from the President’s social fund for the scholarship program of Rep. Antonio Diaz of Zambales.

Luz said he did not receive the postdated checks because it was not in accordance with government accounting and auditing rules.

He said that under the scheme, the Department of Education would receive the money from the fund for distribution to public high-school students in Zambales as scholarship stipend.

Luz objected to it since his department would be accountable for the P15-million fund. Instead, he recommended the PSF to transfer the fund directly to Diaz.

Four days later, Executive Secretary Eduardo Ermita wrote him and informed him of his relief, Luz said.

He wrote Civil Service Commission chairwoman Karina David and the Career Executive Service Board for clarification, since he is a career executive service officer.

In a letter dated September 21, David told Luz he cannot be removed from his post without cause, since he is a permanent employee.

"The Office of the President was working under the mistaken assumption that your appointment was not permanent and thus, you may be separated from the service anytime, or at a moment’s notice," David said in her letter.

Luz said Mary Ann Mendoza, the board executive director, also told him that since he did not resign from his position, he could not be terminated.

With the two legal opinions, Luz defied Malacañan's order. In his letter on September 21, Luz told Ermita that he intended to continue with his duties despite the order.

Despite the advice of the commission and the board, Luz said Malacañan announced on September 23 his termination as undersecretary.

On Monday Press Secretary Ignacio Bunye announced that Malacañan had allowed Luz to stay on in his post.

Luz belied rumors that his being the brother of Guillermo Luz of the Makati Business Club, a known critic of President Arroyo, had anything to do with his relief.

He also denied he had supported the impeachment of the President

 

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Who sent those raiders to seize the 'Admiral's' cottage at SBMA?

BY THE WAY By Max V. Soliven, The Philippine Star

Although I cornered the new Chairman of the Subic Bay Metropolitan Authority (SBMA), Commodore Feliciano Salonga yesterday when I was the guest speaker at the National Defense College of the Philippines Foundation in the Philippine Army Officers’ Clubhouse in Fort Bonifacio, "Fil" was reticent about the subject. But he confirmed that, although he has a private home outside the Base, he intends to occupy Kalayaan 5000 inside the Subic Freeport.

In truth, Fil – who was named to head the SBMA as Chairman, replacing the resigned Francisco "Kiko" Licuanan and then temporarily acting chairman (and former SBMA Administrator) Alfredo Antonio – was originally reluctant to move into the Subic Freeport residence called Kalayaan 5000. But he belatedly recognized the symbolism involved in being in situ there.

The place on Kalayaan Hill used to be the home of the former US Navy Admiral who ran the Base until the Bases Treaty expired and the Americans packed it up and sailed away. In short, who’s entrenched at Kalayaan 5000, which is perched on a commanding knoll, is perceived to be the Boss in Subic. By tradition, this ought to be the residence of the SBMA Chairman.

What introduced a bit of confusion in the past year is that the previous SBMA Chairman, who ought to have lived there, our friend (former Ayala Land President) Licuanan preferred to live outside, coming to SBMA to preside over Board meetings only twice a month thus permitting Antonio who was SBMA Administrator to occupy the vacant residence.

A bizarre incident occurred last Sunday afternoon which brought the issue to a head. At about 2 p.m., six men in civilian clothes arrived, saying they had come "to secure" the residence. Former Administrator Freddy Antonio had already vacated it, having turned over his position to Armand Arreza, one of Senator Dick Gordon’s protegees, who had been designated SBMA Administrator. Antonio’s son, however, was still in the house packing his things when the six men got there. He asked them who they were. It could have been an uneventful turning over of the keys – except it turned out that the six visitors were not from the SBMA Law Enforcement Department (called LED) at all. They had no official credentials, except that they were former SWAT men of former SBMA Chairman (before Felicito "Tong" Payumo), now Senator Gordon.

Someone, alarmed, rang up the legitimate SBMA LED office and the Law Enforcement Department dispatched a team to investigate about 10 p.m. What was happening? The "alert" was also sent to the Magsaysays, who are political foes of the Gordons and don’t want him back in Subic "controlling" things through Arreza. In any event, SBMA Senior Director J.V. Magsaysay whose wife, Congresswoman Mitos Magsaysay defeated Kate Gordon to win her seat, and his father Zambales Governor Vic Magsaysay rushed down from their own Subic residence to find out what the "Intruders" were up to. They went to Kalayaan 5000 to make sure the intruders were removed from there. Colonel Jaime Calunsad, head of the SBMA LED, we hear, arrested the ex-SWAT men who were found to be in possession of two short firearms. They were released after giving statements alleging they had been sent by the office of Administrator Arreza to secure the place.

The question is: Why should Arreza use "outsiders" for a job that should have been performed by security personnel from the organic department of the SBMA, the LED? The strange "excuse" given later was that the men had been sent as "volunteers" to reserve the place for President Gloria Macapagal-Arroyo herself! By gosh. Does GMA want to "live" in Subic?

It must be said that Senior Deputy Director for Operation General Jose Calimlim was not around to witness the incident, although it’s almost certain Col. Calunsad, reported this interesting and mystifying incident to him. It’s now being alleged on television that the Magsaysays are "harassing" Arreza. Come on. About who’s going to live at Kalayaan 5000? It should be clear, the new SBMA Chairman, Feliciano Salonga.

What about Dick Gordon’s role – if any – in this matter?

The President must make crystal clear who’s running SBMA and its Freeport – so vehicle smuggling, other forms of smuggling, and all sorts of shenanigans can be resolutely halted, and punished. Two heads only create confusion and represent loopholes through which criminal syndicates and other freebooters can flourish by playing one against the other. Salonga has the experience, the Philippine Navy track record (he’s a graduate of Kings Point, New York, the non-military equivalent of the US Naval Academy at Annapolis), and was former Vice-Chairman of the BASECO, the Bataan Shipyards Engineering Company, Inc. We won’t even mention the fact that he is "Father Saigon", the dad of the famous Broadway and London West End star, Lea Salonga.

I don’t think there should be a problem about who’s running the place, except that Gordon seems to be backing his protegé Arreza that post, for that "top dog" post to use Navy parlance.

Will the next contest be who sits in the "Chairman/ Administrator’s" Office in Building 229? Fil is Chairman, while Arreza is Administrator.

Fil Salonga told me yesterday that Arreza had informed him he wasn’t personally eager to take over the residence at Kalayaan 5000 – and had (according to Fil) arranged for quarters elsewhere. But this isn’t necessarily true.

If an "uncivil war" erupts in the SBMA, let me say: I’ll back Salonga, whom we’ve known and admired for 30 years, to the hilt.

RED CROSS LEADERS MEET

INTL RED CROSS LEADERS MEET IN RP TO

PREPARE FOR NATURAL & MAN-MADE DISASTERS

 

Southeast Asian Red Cross Leaders from ten countries convened for the 2005 Secretary Generals Forum held at the Westin Philippine Plaza Hotel to discuss and address various issues vital to the strengthening of inter-society cooperation in the region.

 

Secretary Generals from Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam, Timor East and the Philippines together with their respective teams gathered for a leadership meeting and three-day round-table discussion which started yesterday (26 September).

 

Philippine National Red Cross Chairman Richard Gordon welcomed the participants and urged them, especially those from tsunami-hit communities, to share their personal experiences in working for relief and rehabilitation during disasters.

 

“Your experiences will be valuable to all Red Cross and Red Crescent societies in boosting the regional response capability,” Gordon said during the Secretary Generals Forum opening.

 

Gordon also noted the urgency posed by the breakout of avian flu in the Southeast Asian region, leading to the heads of participating national societies to have their respective Red Cross leaders discuss the issue more thoroughly and come up with specific plan of action.  The participants concurred and agreed to clarify the priorities in the public health services which need more specific purposing of activities and programs that address issues like HIV/AIDS, emerging diseases and potential pandemics.

 

“Disasters are changing in scale and intensity, like the successive hurricanes Katrina and Rita that hit the US Gulf Coast and last year’s tsunami and, now, the avian flu that is rearing its ugly head as a potential global public health disaster,” noted Gordon.

 

He emphasized that there is a need “to advance on a roadmap that will bring us to a faster, more friendly, flexible and forward-looking Red Cross Movement.’  He added that the ongoing forum will serve as a preparation for the various leaders who will participate in the Red Cross World General assembly to be held in Seoul, Korea on November.  

 

The forum took steps toward the creation of a Regional Disaster Management Training Center, which will ultimately serve as the platform for training, logistics coordination and exchange of best practices and lessons learned from past disaster management experiences in Southeast Asia.

 

The participants also discussed the mid-term review of the Strategy 2010.  They noted a strong sense of engagement, communication and interactive cooperation between the national societies and the Federation Regional Office which will lead to the substantial strengthening of individual national Red Cross societies.

 

Among the highlights of the current forum is the presentation of each country’s operational systems to be presided over by forum Chairman Dr. Keedaeng Thammalangsy, Chairman of the Lao Red Cross

 

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JUNK DEALERS PINAALALAHANAN NG PNP!

        Pinaalalahanan ni PNP City Director Flor Buentipo ang mga Junk Dealers ng Lungsod ng Olongapo na tumalima sa City Ordinance No. 24 series of 1990.

 

            Laman ng City Ordinance na ito ang pagtatakda sa oras na maaari lamang isagawa ng mga nagkakariton o nammimili ng junk o scrap ang kanilang pag-iikot sa lansangan simula alas-sais ng umaga hanggang alas-sais ng hapon. Ito ay upang maiwasan ang paggamit sa kanilang trabaho ng mga magnanakaw na nagkukunwaring namimili ng scrap. Itinatadhan rin ng ordinansa ang pagababawal sa mga ito na mag-operate simula alas-sais ng hapon hanggang alas-sais ng umaga.

 

            Nakasaad rin ditto ang pagtatalaga ng mga lugar na maaari lamang pasukin o ikutin ng mga kariton ng junk o scrap buyers partikular na ang mga pangunahing lansangan sa oras na takda upang maiwasan ang pagkakabuhol-buhol na daloy ng trapiko.

 

            Binalaan rin ni Col. Buentipo ang kanyang tauhan na maging matibay sa pagpapatupad sa batas at huliin ang sinumang lumalabag sa ordinansa.

 

            Matatandaan na una nang ipinulong ni Olongapo City Mayor James “Bong “ Gordon, Jr. ang mga junk dealers ng lungsod upang malaman kung paano sila maaalalayan sa pagnenegosyo./rem   

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Establishment of gov�t security services at SBMA opposed

by FRED M. ROXAS

 

            SUBIC BAY FREEPORT, Zambales – Private security agencies yesterday opposed the planned establishment of a government- subsidized security services department at the Subic Bay Metropolitan Authority (SBMA) to provide security to private locators inside the Freeport.

 

            At least 40 private security agencies in Central Luzon attended a meeting at the Seorabeol Grand Leisure Hotel here Tuesday to air their opposition to the proposed organization of the Freeport Integrated Security Services, Inc. (FISSI) which is being set-up as a subsidiary of the SBMA-controlled Free Port Service Corp. (FSC).

 

            Romeo P. Yusi Sr., president and chief executive officer of Angeles City-based Royal Security Agency (RSA) , Central Luzon’s largest security agency, said the proposed establishment of FISSI is against the law.

 

            Earlier, Col. Hiram Benatiro, former chief of the Supervisory Unit for Security and Investigation Agency (SUSIA) cited a provision in Republic Act 5487 or the Private Security Agency Act stating that a security agency to be organized by the government shall not operate as a private security agency in contracting security services with guards to secure private properties/premises, private residence and other functions performed by a private security agency.

 

            Yusi cited SBMA records that FSC functioned as a private security agency by providing security to private locators and residences at Subic Bay Freeport.

 

            FISSI is being established as a subsidiary of FSC, an organic division of SBMA’s Physical Security Department (PSD).

 

            Subsidized by the government, PSD was recently abolished and its staff terminated because of huge losses amounting to more than P3 million a month.

 

            Yusi cited a report that PSC was forced to secure a loan of P28 million from the Department of Budget and Management to pay of the salaries and benefits of PSD officers and employees.

 

            Officers of many private security agencies assured that they could provide necessary security and other allied services to private locators and duty-free shops and residences inside the Subic Bay Freeport.

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Rival political families in near confrontation in Subic

By Tonette Orejas, Inquirer News Service

Two groups of men identified with Sen. Richard Gordon and Zambales Gov. Vicente Magsaysay almost broke into a violent confrontation on Sunday night as each party sought to secure Kalayaan 5000, the official home of the chair of the Subic Bay Metropolitan Authority at the Subic Bay Freeport.

Retired Gen. Jose Calimlim, SBMA senior deputy administrator for operations and chief of the law enforcement division (LED), on Monday confirmed the 10 p.m. incident at the house which was still occupied by the family of former SBMA Administrator Alfredo Antonio.

According to Calimlim, the first group claimed to have received an order from newly-appointed SBMA Administrator Armand Arreza to secure the house.

The second group, he said, claimed to secure it for newly-designated SBMA Chair Feliciano Salonga.

Interview

Calimlim, in a phone interview, did not say who those men were.

Inquirer sources said five men in the first group were former SBMA security personnel when Gordon was head of the freeport.

Sources said the second group of security personnel was sent by SBMA Director JV Magsaysay, the governor’s son, to bar Arreza from occupying the place.

Gordon denied ordering his men to secure the place for Arreza, his former finance manager at the SBMA. “Why would I do that?” he said.

The senator said he learned that former SBMA policemen tried to help Arreza transfer to the house being vacated by Antonio, his predecessor.

The Magsaysays did not reply to calls or text messages.

Investigation

Calimlim said he rushed to the house and managed to settle the dispute amicably. He said the SBMA is investigating if the men were armed.

The first group came as the Antonio family was hauling out their personal belongings. Antonio, now a member of the Bangko Sentral’s Monetary Board, was not around. He left after last Friday’s turnover rites to Salonga.

Salonga, in a phone interview, said he has no intention to reside at Kalayaan 5000.

Before Antonio, the house was occupied by former SBMA Chair Felicito Payumo. Resigned SBMA Chair Francisco Licuanan did not use Kalayaan 5000 or maintain another house at the Freeport. He would go to Subic only for board meetings and official functions.

Pullout

Gordon also did not live at the house, preferring to use another that his family leased at the port. Until the pullout of the United States Navy in November 1992, the house used to be where the US Admiral stayed.

Salonga said he was reserving Kalayaan 5000 as the official residence of President Macapagal-Arroyo in Subic.

Calimlim said he had the house secured by LED personnel because of Salonga’s order to reserve it for Ms Arroyo and her party when they visit Subic.

“It’s too big for me,” Salonga said of the stately, fully-furnished house on Kalayaan Hill overlooking the southern area of the port.

The President has two homes at the Subic Freeport. Apart from Kalayaan 5000, there is Villa 16, built in 1996, when 21 state leaders, including United States President Bill Clinton, held their Asia-Pacific Economic Summit in Subic.

Mga bata ni Gordon at Gov. Magsaysay nag-showdown

Ang Pilipino STAR Ngayon

SUBIC BAY FREEPORT – Muntik magkabarilan ang mga tauhan nina Sen. Richard Gordon at Zambales Governor Vicente "Govic" Magsaysay habang bisita ang huli sa tahanan ni bagong Subic Bay Metropolitan Authority (SBMA) Chairman Feliciano Salonga sa Kalayaan housing noong Linggo ng gabi.

Sa impormasyong nakalap ng PSN sa tanggapan ng Law Enforcement Department (LED) at Intelligence and Investigation Office (IIO) ng SBMA, naganap ang komosyon ng magkabilang grupo dakong alas-10:30 ng gabi sa labas ng bahay ng nasabing chairman ilang sandali matapos bumisita ang naturang gobernador.

Napag-alaman na habang nasa kalagitnaan nang pag-uusap ang dalawang opisyal ay biglang dumating ang mga bodyguard ni Sen. Gordon at dagliang kumalat ang mga ito sa paligid kung saan nabigla at naalarma ang mga alalay naman nina Salonga at Magsaysay

Agad namang nagkapormahan at nagkasahan ng baril ang magkabilang panig at naghahanda sa anumang mangyayari sa nagaganap na tensyon, subalit naiwasan lamang ang pagdanak ng dugo nang dumating ang ilang tauhan ng SWAT team ng SBMA sa pamumuno ni ret. Col. Jaime Calunsag at ng Olongapo City Police Office (OCPO) upang mamagitan sa dalawang grupo na kapwa armado ng malalakas na kalibre ng baril.

Ayon sa isang opisyal ng IIO na tumangging ihayag ang pangalan, kilala umano nito ang mga taong sumugod sa bahay ni Salonga at sinabing ilan sa kanila ay pawang mga kilalang taga-suporta at tauhan ni Gordon.

Hanggang sa kasalukuyan ay inaalam pa ng mga awtoridad kung ano ang naging motibo sa nangyaring pagsugod ng nasabing mga grupo sa bahay ni Salonga.

Si Salonga ay itinalaga bilang bagong chairman ng SBMA kapalit ni Francisco H. Licuanan III, samantalang si Armand Arreza naman ang pumalit sa puwesto ni Alfredo C. Antonio bilang administrator. (Jeff Tombado)

Youth Forum

A Youth Forum was held today at FMA Hall, more than 100 Boy and Girl Scouts from various schools both elementary and high school participated in the activity which aims to help young seniors to acquire the experience and skills to express their views and opinions constructively, particularly in matters that affect them.

A City Boy/Girl Official will be elected for each position in the city government both elective and appointive such as City Mayor, Vice Mayor, City Councilors, and Department Heads. They will be given a chance to assume position on October 17, 2005 in line with the Scouting Month.

Investors hail appointments of SBMA’s Salonga, Arreza

SUBIC BAY FREEPORT — Foreign and local investors have lauded the appointments of Commodore Feliciano Salonga and Armand Arreza as the new chairman and administrator, respectively, of the Subic Bay Metropolitan Authority (SBMA).

They said that the management, financial, and investor promotions expertise and wealth of experience of Salonga and Arreza would be instrumental in making the Subic Freeport an even better world-class facility.

Salonga and Arreza took their oaths of office last Wednesday before Executive Secretary Eduardo Ermita in Malacañang.

Local investors, headed by Joseph Chou, chairman of the Subic Bay Development Management Corp. Inc., developer and administrator of the Subic Bay Industrial Park, said President Arroyo made prudent appointments when she chose Salonga and Arreza.

"We welcome the new SBMA leaders with fresh hopes that the new administration will promote the business success of Subic Bay Freeport investors and put their concerns on top of the SBMA agenda," Chou said in a letter to Mrs. Arroyo.

"We also pledge to support their new policies and projects which aim to increase the investors’ competitiveness in the international market and promote the freeport to be world-class," Chou added.

Local officials of Zambales, Bataan and Olongapo City gave the two new SBMA officials a warm welcome during the formal turnover of the SBMA leadership at the Subic Bay Arts Center yesterday.

Salonga replaced former Ayala Land executive Francisco Licuanan who resigned last month, while Arreza took the place of Alfredo Antonio, who served as holdover administrator in the past two months after his appointment to the Monetary Board.

The foreign investors said Salonga, a marine engineering graduate of the US Merchant Marine Academy and holder of a Master’s degree in business administration and several awards, is ideal to chair the SBMA.

They said Salonga could use his experience with various shipyard and marine companies in steering the full development of the Subic Freeport.

Salonga was a former vice chairman of the Bataan Shipyard and Engineering Co. Inc., executive chairman of the Sabah Shipyard Philippines Inc., president and general manager of Philippine Shipyard and Engineering, commercial manager of PNOC Marine Corp., and marketing director of Dynamarine Corp.

Salonga is the father of international singer and actress Lea Salonga.

On the part of Arreza, the investors said his youth, dynamism and wide-ranging experience will enable the SBMA to craft and achieve its development goals for the Subic Freeport.

They said Arreza was already highly familiar with SBMA operations having served as the agency’s financial controller and analyst from 1993 to 1996.

As former SBMA financial controller and analyst, he planned and managed the implementation of SBMA’s long-term Capital Investment Program, including $175 million in infrastructure projects undertaken with the assistance of the World Bank and other multilateral institutions.

Arreza was also an undersecretary of the Department of Tourism from 2003 to 2005, spearheading several DOT priority projects. — Phil Star With Bebot Sison Jr.

SBMA TURN-OVER

Outgoing SBMA Administrator Fredie Antonio (r) turned over the helm of SBMA to the new SBMA Chairman Fil Salonga (middle) and Administrator/CEO Arman Arreza in a simple ceremony held this afternoon at SUBAC, SBF. Both man said they are glad to be back, Arreza being one of the original Subic Volunteers while Salonga had spent ten years in Subic Bay as President of the Philippine Shipyard and Engineering Corp (PhilSECo).

Arreza considers his appointment to SBMA a homecoming, “it’s a great honor to see and be with old friends and fellow volunteers."

His priorities in Subic are:

1. The need to restore financial health of SBMA, citing that last year, PhP900M loss was recorded. He will do this by being expeditious, by being prudent in the use of government resources, and by bringing in more investors.

2. To keep Subic clean, not only in the offices but also around Subic including the Bay itself. “Our mandate and mission is bawal ang tamad, bawal ang tanga, at lalong bawal ang magnanakaw."

Approval of investments will be fast-tracked; this will be done by minimizing bureaucracy and professionalizing the workforce. He will re-instill the awesome spirit of volunteerism that made Subic what it is today, spirit that made Subic great . . . . ang pagmamalasakit.

Subic must be out there in the communities and not confined in the walls of the Freeport. Supporting this is called malasakit. SBMA will build a partnership between locators, community and employees.

He emphasized the need to revive the sense of volunteerism and sense of pagmamalasakit which he defined as the feeling for others . . . . giving ourselves to others . . . the spirit that volunteers exemplify when they give everything for the community and the country.

In the middle of his speech, Arreza presented to the delight of the volunteers, a paper with his name traced from the Volunteers' Shrine that he did while on his way to accept this new assignment. He then went on to say that in the new administration, “bawal ang tamad, bawal ang tanga, at lalong bawal ang magnanakaw at mangongotong!”

For his part, Chairman Salonga gave a relatively short speech, starting with "I'm glad to be back!" and went on to say that the best job security is performance. He promised that his job as SBMA Chairman will be the best performance of his life.

Olongapo City Mayor James "Bong" Gordon, Jr. with City Councilors Cynthia Cajudo, Bella Asuncion, Elmo Aquino, Bebeth Marzan and Edwin Piano warmly welcomed the new SBMA officials.

Salonga, Arreza assume top SBMA posts today

Subic investors optimistic on competence of new execs


By JONAS REYES, Manila Bulletin


SUBIC BAY FREEPORT — Two new faces will take over as new chairman and administrator of the Subic Bay Metropolitan Authority today following the appointment by President Gloria Macapagal Arroyo of a new management team to oversee the development of the Subic Bay Freeport Zone.


Feliciano "Phil" Salonga, former president of the Subic Shipyard Corp., and Armand C. Arreza, former undersecretary of the Department of Tourism (DoT), will the assume leadership of the SBMA as chairman and administrator, respectively.

Salonga replaces former SBMA chairman Francisco H. Licuanan III, while Arreza takes over the post of Administrator Alfredo C. Antonio, who served in a holdover capacity at SBMA following his appointment to the Monetary Board some two months ago.

The leadership change marks the turnover of one the country’s top industrial and tourism centers from one professional management team to another, some locators said.

Salonga, known as the father of internationally acclaimed singer-actress Lea Salonga, had also served as vice chairman of the Bataan shipyard and executive chairman of the Westmont Bank. He was a graduate of the United States Merchant Marine Academy at Kingspoint, New York.

Arreza had served as chief operating officer, operations director and senior consultant for some multinational firms and financial controller and analyst of SBMA in 1993 to 1996.

He earned a masters degree in business administration, major in finance and operations management, at the University of Pennsylvania’s Wharton School.

SBMA officials said the incoming managers are expected to continue the professional legacy of their predecessors and run the Subic Freeport "like a business" in support of President Arroyo’s 10-point economic agenda.

Because of their business background, the new managers are be expected to initiate more investor- friendly policies and enhance the SBMA’s symbiotic relations with locators, as well as local government units and communities in Subic.

Meanwhile, the Subic business community welcomed the appointment of Salonga and Arreza and expressed optimism about the capability of the new managers.

In a letter to President Arroyo, Joseph Chou, chairman of the Subic Bay Development and Management Corp. which operates the Taiwanese industrial park here, called the appointments "prudent" and described Salonga and Arreza as "reputed to be business icons with extensive experience."

Chou said that Taiwanese investors welcome the appointments "with fresh hopes that the new administration will promote the business success of investors and put their concerns on top of the SBMA agenda."

Ichiro Tsuji, president of the Subic Techno Park Corp. (STEP), also expressed hope that with the appointment of Salonga and Arreza, "the professional management of Subic Freeport will continue."

The Japanese business executive also pledged continued support for the development program of the SBMA and thanked Antonio, the outgoing administrator and acting chairman, for his support for Japanese locators during his stint at the Subic Freeport.

Manhunt on for Subic slay suspects

By MALOU DUNGOG, The Manila Times Central Luzon Bureau

SUBIC BAY FREEPORT - Relatives of a murdered businessman in Subic have launched the "Justice for Nino" movement.

The assassination of Abner "Nino" Parungao by alleged hired gunmen on March 11, 2005, has galvanized widow Katherine Joyce Parungao, biological mother Angeles Guerrero-Samson and brother Eric to enlist the help of the press to draw attention to the case.

Epimaco Velasco, former director of the National Bureau of Investigation turn counsel to the family of the victim, said that a warrant of arrest has been issued against the victim’s adopted father, the lawyer Paulino Parangao, Castillejos Councilor Reynaldo "Ding" Misa, adopted sister Veronica Corpuz, alleged point man Nilo "Batang" Garin and alleged gunman Alfred "Dennis" Alipio.

The suspects are facing charges of murder with no bail based on a complaint filed by Mrs. Parungao at the office of the lawyer Edward Villarta, regional director of the NBI Central Luzon Regional Office 3.

Investigation disclosed that a business row between Paulino and Nino over the rightful ownership of Golden Star Funeral Homes in Subic, Zambales, led to the killing.

Velasco said that joints operatives of the Criminal Investigation and Detection Team of Olongapo City and the National Bureau of Investigation Central Luzon arrested Garing, 35, resident of Dizon Compound, Santo Tomas, at about 7:30 a.m. of Tuesday and is in the custody of the NBI while the rest remain at large.

Garing denied his participation on the killing of Parungao, "I couldn’t have done it. He even feted and gave me money," he alleged.

RHD ILLEGAL IMPORTATION

GORDON URGES STOP TO THE ILLEGAL IMPORTATION
OF USED RIGHT-HAND DRIVE VEHICLES

Senator Richard Gordon, Chairman of the Senate Committee on Government Corporations and Public Enterprises, yesterday scored the business of importing used right-hand drive cars as an illegal activity that corrupts society and saps the economic well-being of the nation and urged the Department of Justice to file criminal charges against persons responsible for the “illegal” importation of right-hand drive vehicles, even as he demanded that the bureaus of customs and internal revenue collect all taxes due from such importations.

Section 1 of Republic Act 8506 states that it is unlawful to import, register or operate any vehicle “with its steering wheel on the right hand side of the vehicle.”
Gordon said that importers have resorted to “all sorts of legal contortions” to justify their illegal acts.

In a privilege speech, Gordon said that the government has lost P500,000 in taxes on each of the 90,000 right-hand drive cars imported through the Subic Freeport zone. This is only for the period of 2000-2003 which amounted to P45 billion.

“The entire business of importation and conversion of right-hand drive vehicles is illegal,” declared Gordon adding, “These businesses have turned Subic into a den of thieves and a hive of corruption.”

Furthermore, Gordon said the president of the Subic Motor Vehicles Importers Association has revealed in a Congress hearing that the bulk of all imports of the association are right-hand drive vehicles.

“Crimes have been committed,” Gordon told his Senate colleagues. “We in this Senate cannot stand by idly, passing tax measures that burden the people on the pretest that the government needs the money. It is true that the government needs money – but can we in good conscience burden the people as others laugh their way to the bank on immense profits in the billions from illegal activities?”

He clarified that the Department of Justice did not declare the importation of the right-hand drive vehicles to be legal. He said that the opinion merely confirmed that the Bureau of Customs had the right to auction off the vehicles which have been seized at Subic for having been illegally imported.

Gordon declared that unscrupulous businessmen have taken advantage of the Department of Justice opinion to circumvent the law by auctioning off seized vehicles to the public, making huge profits at the expense of the government. He claimed that the customs and BIR officials had not correctly assessed the duties and taxes due from the importations.

Gordon urged the Senate to pass a resolution requiring the Land Transportation Office to submit all data on the importation of vehicles from Subic since 1992. The resolution would also direct the customs bureau to re-compute and collect all taxes and duties due from the imported vehicles, and the BIR to audit all vehicle importers at Subic to determine if they had paid their correct taxes. The resolution also requires the Department of Justice to file criminal charges against those who had violated the law.

‘Keep professional managers at SBMA’

By Bebot Sison Jr.
The Philippine Star

SUBIC BAY FREEPORT — The Subic Bay Freeport Chamber of Commerce (SBFCC) has given its unconditional support to President Arroyo’s decision to maintain professionalism in the management of the Subic Bay Freeport despite lobbying from various political camps to have their nominees appointed to top positions in the Subic Bay Metropolitan Authority (SBMA).

The SBFCC urged the President to consider recalling Executive Order 340, which split the top SBMA post into two.

Under Republic Act 7227, which created the SBMA, only one executive occupies both the positions of chairman and administrator.

SBFCC president Gary Mendoza said Subic investors are satisfied with the present set-up at the SBMA which has been staffed lately with professional managers.

"We are happy with the situation now," Mendoza told The STAR in a phone interview.

"This is a better set-up because business operations can be conducted more smoothly and there is less red tape," he said.

SBMA administrator Alfredo Antonio, who is also vice chairman of the SBMA board, took over as presiding officer after the controversial resignation last month of SBMA chairman Francisco Licuanan III.

Malacañang has named Feliciano Salonga as Licuanan’s replacement.

Mendoza and other SBFCC officers said they were satisfied with Antonio’s efforts to consult with locators on various operational concerns in the Freeport, as well as to bring in experienced managers from the business sector.

Antonio, former chairman of the Development Bank of the Philippines, earlier pledged to "run the SBMA like a business."

Locators here said Antonio has been succeeding so far, noting the "able support" of senior deputies Hermenigildo Atienza, who runs business development; Monina Pineda, support services; and Gen. Jose Calimlim, who is in charge of operations.

New SBMA head backed

By EFREN L. DANAO, The Manila Times Senior Reporter

Felicito Payumo, former chairman of the Subic Bay Metropolitan Authority, lauded Wednesday the appointment of Fil Salonga as new SBMA chairman.

"We welcome Fil’s appointment. He has the academic and professional qualifications to lead the SBMA," he said.

Payumo said Salonga is a graduate of King’s Point in the United States, the merchant marine equivalent of the Annapolis Naval Academy, and president of Bataan and Philippine shipyards.

"Since he is knowledgeable about port development, I am sure he will contribute positively to the development of Subic," he said.

Payumo noted that Salonga is independent, unaffiliated as he is with any partisan group.

"He is not identified with any of the political groupings surrounding Subic. This will enable him to decide more decisively without being subjected to political pressures, or being accused of favoritism," Payumo said.

 

Visit  http://SubicBay.Ph
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Used-car smuggling back?

Local car manufacturers, their parts suppliers and their dealers are furious. Smuggling of used cars is about to resume, if it has not resumed at this writing, following discovery of an internal palace memo signed by the chief presidential legal counsel, Merceditas Gutierrez, to President Gloria Macapagal-Arroyo saying in effect it is now OK to resume importation of used vehicles.   Unfortunately for the smugglers, Sen. Richard Gordon leaked the internal palace legal opinion to the car industry. Learning about it, the industry called a press conference last week. Its leaders came out in full force—Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc.; George Blaylock, president of the Philippine Automotive Association; and Egmidio Jose, president of the Motor Vehicle Parts Manufacturers Association of the Philippines Inc.   They showed newsmen the September 8 Gutierrez memo. The President’s lawyer told her that “the Department of Finance, the Department of Trade and Industry, the Bureau of Customs, the Subic Bay Metropolitan Authority, and the Land Transportation Office have been directed by Executive Secretary Eduardo Ermita to comply with the Regional Trial Court decision as affirmed by the Court of Appeals, allowing the importation and entry of used-motor vehicles within the Subic Special Economic Zone, subject only to the payment of the required customs duties, until final disposition of the matter by the Supreme Court.”   Senator Gordon says the memo means the executive order banning used-car imports will be rescinded.   Republic Act 8506 bans the importation of right-hand drive vehicles in the country. But an obscure Olongapo City judge managed to contravene the law and declared it unconstitutional. He was upheld by the Court of Appeals. The government has gone to the Supreme Court for a final ruling.   The issue need not have gone to the Supreme Court. If President Arroyo had exercised political will. The suspicion, however, remains that a congressman who voted against the impeachment bid against her got a franchise to smuggle used vehicles as a reward.   Smuggling is a lucrative business. A vehicle is brought in for only P50,000 and is sold for P300,000.   Some of the vehicles look even brand new. There’s just one catch—most of the units are right-hand drive, illegal in the Philippines. To remedy that, the vehicles are “converted.” Since they were not designed for left-hand drive driving, the cars are virtually rolling coffins, unsafe to drive at any speed. But then, you get what you pay for.   While the case was spending in the courts, the smugglers—90 percent of them—quietly moved out of Subic and set up shop at the Cagayan Export Processing Zone, away from the prying eyes of the Manila media and the automotive industry.

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Auto groups denounce lifting of ban on converted vehicles

By ARIS R. ILAGAN, MB


“Government authorities should not contradict themselves when it comes to the issue of banning converted second hand imported right hand vehicles.”


"Government authorities should not contradict themselves when it comes to the issue of banning converted second hand imported right hand vehicles."

This was the declaration of the officials of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), Philippine Automotive Association (PAA), Automotive Industry Workers Alliance (AIWA) and the Motor Vehicles Parts Makers Association of the Philippines (MVPMAP) in denouncing the alleged new efforts of the Arroyo administration to allow the importation of converted second hand vehicles into the country.

While President Arroyo has repeatedly expressed her desire to curb the importation of converted right hand drive-second hand vehicles into the country, CAMPI president Elizabeth Lee accused other government officials of contradicting the Chief Executive’s stand on the issue by signing a memorandum of agreement to allow the importation of used cars.

Lee emphasized during a joint press conference at the Shangri-La Hotel that the importation of used cars will kill the local automotive industry, which is presently employing some 77,000 skilled personnel.

"This action is inconsistent and runs contrary to the President’s lawful objective for the auto industry," Lee said referring to the Executive Order 156 which prohibits the importation of used vehicles.

Industry leaders showed a copy of a memorandum for President Arroyo which claimed that Executive Secretary Eduardo Ermita has directed the Department of Finance, Department of Trade and Industry, Bureau of Customs, Subic Bay Metropolitan Authority and Land Transportation Office to allow the importation and entry of used motor vehicles within the Subic Special Economic Zone.

The memorandum letter dated Sept. 8 was signed by Chief Presidential Legal Counsel Maria Merceditas Gutierrez and Senior Deputy Executive Secretary for Legal Affairs Jonathan Tenefrancia.

According to Lee, Senator Richard Gordon provided them a photo copy of the memorandum letter.

"It appears that the legal opinion was crafted to facilitate a surrender of the government’s announced policy to stop the illicit importation of used vehicles through Subic Freeport and other freeports. Rather than carrying on the effort to stop used vehicle importations, the Office of the President through this memo seems to be facilitating activities of the importers," she said.

Frank Mero, AIWA president, warned that workers in the automotive manufacturing sector will likely be the victims of the government’s latest move on the issue of importation of used cars.

Mero threatened to support street marches that call for the ouster of President Arroyo if the government will continue importing used vehicles despite the issue of economics and road worthiness.

"What we only want is for the auto industry to survive," Mero said.

For the first time in their long time battle against the importation of used converted vehicles, officials of the CAMPI, PAA, AIWA and MVPMAP released a copy of Subic vehicle import profit estimates that showed that so-called "auctioneers" of second hand imported vehicles can easily rake R174,508 profit from selling a converted 1988 Mitsubishi Pajero which has a selling price of some R230,000.

According to them, the acquisition cost of the 1988 Pajero is only at $200 per unit or R11,200 with paid taxes amounting to a mere R44,492

Pimentel bucks bid to transfer imports entry to Port Irene

Senate Minority Leader Aquilino "Nene" Q. Pimentel Jr. (PDP-Laban) questioned yesterday a plan to transfer certain operations in the Subic Bay Freeport in Zambles, including the entry of imports, to the Port Irene special economic zone in Cagayan Province.


Pimentel expressed fears that the plan could aggravate the smuggling problem because it would be more difficult for customs authorities to monitor the movements of imported goods in Port Irene than in Subic Freeport.

"The proposal to transfer certain Subic operations to Port Irene is ill-advised. Smugglers and their patrons will have easier time there than in Subic," he said.

The planned transfer of certain Subic operations to Port Irene was discussed last Monday at a public hearing conducted by the Senate committee on government corporations and public enterprises.

It was earlier reportedd that the entry of second-hand car imports would be transferred from the Subic Freeport to Port Irene.

The senator from Mindanao said he had also received reports about the proposed renewal of timber licenses in Eastern Samar.

He said he was objecting to the renewal of the licenses because it is important to preserve the country’s remaining forests to maintain a sound ecological balance.

Used-vehicle importers are laughing their way to the bank

HARDTOP By Vernon B. Sarne

FURIOUS leaders of the local car industry—including Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc.; George Blaylock, president of the Philippine Automotive Association; and Egmidio Jose, president of the Motor Vehicle Parts Manufacturers Association of the Philippines Inc.—faced the press last week.   They had every right to be furious, considering the kind of documents they had in their possession. First is a September 8 memorandum to the President from Chief Presidential Legal Counsel Maria Merceditas Gutierrez, informing the former that “the Department of Finance, the Department of Trade and Industry, the Bureau of Customs, the Subic Bay Metropolitan Authority, and the Land Transportation Office have been directed by Executive Secretary Eduardo Ermita to comply with the Regional Trial Court decision as affirmed by the Court of Appeals, allowing the importation and entry of used motor vehicles within the Subic Special Economic Zone, subject only to the payment of the required customs duties, until final disposition of the matter by the Supreme Court.”   The second document is the more disturbing one, containing an inventory of a certain batch of used vehicles imported from February 2 to April 15 last year. The spreadsheet—a portion of which is shown in the table below—includes the vehicles’ make and model, model year, selling price, acquisition cost by the importers, actual paid taxes and the estimated profits raked in by these importers.   I shrugged off the contents of the first document, but credit must go to Senator Dick Gordon for leaking it out. After all, what’s new? Our government has the knack for contradicting itself and an even greater knack for giving existing laws self-serving interpretations. I mean, there exists Republic Act 8506 that bans the importation of right-hand-drive vehicles in the country—how simpler and more specific can you get? That used-vehicle importers are still able to wrestle with the issue in some obscure court in Pampanga, is way beyond my simple mind.   If you ever need solid proof that things are ridiculously out of order in this country, look no further. The issue involving imported used vehicles should have been the President’s showcase a long time ago that her administration has, first, integrity and, second, political will. If a simple case of used-vehicle importation cannot be resolved until now, why should we be optimistic about the resolution of deeper, more important issues that plague our country today?   On second thought, used-vehicle importation is not really a simple case, as shown by the table below. Any business that can churn out a product that makes a P300,000 profit from a P50,000 investment, is sure to thrive. And its owners will move heaven and earth to ensure that it continue to do so. Unfortunately, heaven and Malacañang are often confused for each other in this country.   Look at the table carefully and you’ll understand why used-vehicle importation has lingered—and prospered—in a country with a serious, legitimate car industry that is already struggling mightily against those of Thailand, Malaysia and Indonesia. The smallness of our new-car market has already shooed investors away, and our government is just all too happy to sit down, file its nails and whistle while looking the other way. Could many of our public officials be on the take? Um, is Toyota Japanese?   No wonder the treatment of the issue has been a joke. Used-vehicle importers are mocking Philippine laws and laughing their way to the bank in the process. They’ve laid low in Subic but simply moved elsewhere—in Cagayan de Oro. It’s so frustrating, it’s enough to make self-respecting Filipinos cry.   Even so, I believe the acquisition of the second document—the one with the breakdown of how much used-vehicle importers make—is a significant victory for the car industry. There was never a doubt in my mind before that these people were earning gazillions of money by dumping motorized junks in our laps, but I never saw a black-and-white proof. That is exactly the problem in this country: We all know who is doing what; we just can’t prove it. The document should now make the public think twice about buying imported used vehicles.   Let’s not argue about the subject of right-hand-drive configurations. Let’s not explain here how these vehicles—already nearing their end of life—are actually more of a liability than asset. Let’s not point out the safety and environmental hazards these converted vehicles pose. Let’s not even dwell on the car industry’s 77,000-strong workforce whose jobs are on the line every time legitimate car sales get anemic.   Let’s just hold a magnifying glass over the table below and ask ourselves if we’re still willing to make a few individuals filthy rich at the expense of our sinking auto industry and, more importantly, our moribund nation. Shame on you if you couldn’t care less.

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BoC, BIR told: Tax used car importers

By Rey E. Requejo, Manila Standard

Senator Richard Gordon yesterday called on the customs and internal revenue bureaus to go after the importers of used cars in Subic Bay Free Port that defrauded the government billions of pesos in taxes for the past several years.

Gordon, who presided over the Senate hearing on the importation of used cars and right-hand drive vehicles into the Subic Bay Free Port Zone, challenged both agencies to prosecute all the people involved in this travesty.

Gordon, chairman of the Senate committee on government corporation and public enterprises, earlier said the government lost P13 billion in taxes due to undervaluation of imported used cars in Subic alone.

Citing documents submitted by the Subic Bay Metropolitan Authority, Gordon said that a total of 90,000 motor vehicles were imported into Subic by various locators and trading companies. Of this number, only 128 were reexported; the rest remained in the country.

Each unit of used car was declared by importers at an average price of $500, way too low for the Mitsubishi Pajeros, Isuzu Troopers, and BMWs that abound in the auction yards all over Subic.

“The taxes they pay are based on the misdeclared value of the vehicles, and then they are sold for at least P300,000 per unit,” Gordon said.

“After covering the cost of goods and other expenses, including bribes, the importers would have netted close to P10 billion in three years, and in doing so, deprived the government of P12.9 billion in potential revenues from duties and taxes, if they were honest about conducting their business in the first place,” the senator said.

Gordon also alleged that bribes have been given to SBMA, BoC and Land Transportation Office personnel to affect these transactions. He also linked the Magsaysay family of Zambales to the Subic Bay Motors Corp., a company engaged in the auction of used motor vehicles.

“Millions of pesos are lost due to unscrupulous people,” he said, adding that the government must not allow these nefarious activities to continue in Subic.

This came in the wake of Gordon’s disclosure that Malacañang plans to reopen the importation of used motor vehicles into Subic by rescinding Executive Order 156, which was issued in 2002 and prohibited the importation of such vehicles.

Zambales power co-op reduces rates

Zambales power co-op reduces rates, but says it's temporary

Inquirer News Service

IBA, ZAMBALES -- The Zambales Electric Cooperative I here has given its consumers a breather when it lowered its power rates by an average of 65 centavos per kilowatt hour starting this month.

Rene Divino, Zameco I general manager, said from a high of P7.59 per kWh, their cooperative's rate now stands at P6.94 per kWh, the lowest in Central Luzon.

Divino, however, said the relief was just temporary because the implementation of the value-added tax law would increase power rates in the next few months.

He said a petition filed by members of the cooperative and that was endorsed by Zameco I board officials prompted the rate drop.

"Without it, there could have been no point of reference, much less guidance, by the Energy Regulatory Commission to bring down current costs here," Divino said. Cesar Villa, PDI Central Luzon Desk

Feuding Subic factions agree to cooperate

By MALOU DUNGOG, The Manila Times Central Luzon Bureau

SUBIC BAY FREEPORT - Local governments adjacent to the Subic Bay Freeport and the Subic Bay Metropolitan Authority vowed anew to work as partners to promote industrial peace in the area and create more jobs and businesses.

The initiative came after Alfredo C. Antonio, SBMA administrator and acting chair, called on Mayor James Gordon Jr. of Olongapo City and Mayor Jeffrey Khonghun of Subic on Wednesday to discuss coordinated programs for the Subic community.

Gordon and Khonghun led local officials in welcoming Antonio and his official team.

Antonio lauded the support given by the local governments to the authority, stressing that its success depends on the support of the communities surrounding it.

"Every success the SBMA gains depends on the thrust of the investors, the skills of the workers and the support of the residents. This is why we thank you for your cooperation and hope that we will continue to work hand-in-hand for a more progressive Subic Bay Freeport," Antonio said.

He announced that foreign investors are planning to develop Sitio Agusuhin of Barangay Cawag in the Redondo Peninsula into a factory site. Agusuhin is geographically part of Subic but lies within the boundaries of the Subic Bay Freeport and Special Economic Zone under Republic Act 7227.

Khonghun and members of the Sangguniang Bayan thanked the SBMA for its efforts to develop the peninsula into an industrial area and proposed to start a multiagency planning to create more jobs for Subic residents.

"Agusuhin is under the control of SBMA, but of course the people there are residents of Subic and it is our responsibility to look into their welfare," Khonhun said.

He proposed that SBMA and the local government of Subic start designing a master plan that will address the relocation of the residents. The provision of security in Agusuhin should also be considered, he added.

Gordon proposed to hold regular joint meetings for tourism, employment and business concerns using common strategies.

Antonio assured local officials that the SBMA and the business community inside the Freeport Zone will continue to help the barangays around the Freeport area promote social development.

Used vehicles importers seek end to SBMA row

By JOHN ANTHONY A. CONCEPCION, abs-cbnNEWS.com

An organization of importers of used vehicles inside the Subic Bay Metropolitan Authority (SBMA) on Saturday appealed to the camps of Sen. Richard Gordon and the Magsaysay clan to cease political bickering over the issue of smuggling in the economic zone.

Officials of the Association of Philippine Auctioneers (APA) said the current row in SBMA is adversely affecting their operations.

"This political turmoil is least of what we need right now," APA president Dominique Sytin said at the weekly Kapihan sa Sulo Hotel news forum.

Administration Sen. Richard Gordon has been railing against the importation of used, right hand drive (RHD) cars in SBMA, saying that over P26 billion in tax revenues during a three-year period were lost due to alleged smuggling of second-hand imported cars, tobacco products and liquor inside SBMA.

Gordon accused President Arroyo of "transactional leadership," which he defined as staying in power through patronage politics.

In SBMA's case, Gordon said the President succumbed to the request of the Magsaysay clan, led by Zambales Gov. Vicente Magsaysay, to cancel an executive order banning the importation of second-hand cars in Subic. The Magsaysays, Gordon said, own one of the largest used vehicle importation companies in SBMA.

Sytin said APA is "being affected by the negative publicity" although it has no links to any political clan now slugging it out in SBMA.

He said buyers have expressed concern over the legality of the importation of RHD vehicles, including ten-wheeler trucks and heavy equipment, because of Gordon's tirades against what he called as "smuggling" in SBMA.

Sytin said the importation, conversion and eventual sale of RHDs in SBMA is not violative of the law, particularly RA 8506 or the Right Hand Drive Law, as long as proper taxes and duties are paid and basic registration requirements are met.

He said the legality of APA's operations had been supported by government institutions, including a committee report in the House of Representatives; and some opinion issued by the Office of the Government Corporate Counsel, the Department of Justice, the Department of Trade and Industry and even the Office of the President.

Edward Gocheco, APA secretary-general, said shutting down the used and imported vehicle industry would render some 300,000 individuals who depend on the industry for livelihood jobless.

Sytin, meanwhile, dismissed the notion that converted RHD vehicles are unsafe, citing a study that indicates 85 percent of all accidents in the Philippines are attributed to human error.

"There is no empirical data to support claims that converted RHD vehicles are unsafe," Sytin said.

 

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Feuding Subic factions agree to cooperate

By Malou Dungog, Central Luzon Bureau

SUBIC BAY FREEPORT: Local governments adjacent to the Subic Bay Freeport and the Subic Bay Metropolitan Authority vowed anew to work as partners to promote industrial peace in the area and create more jobs and businesses.

The initiative came after Alfredo C. Antonio, SBMA administrator and acting chair, called on Mayor James Gordon Jr. of Olongapo City and Mayor Jeffrey Khonghun of Subic on Wednesday to discuss coordinated programs for the Subic community.

Gordon and Khonghun led local officials in welcoming Antonio and his official team.
Antonio lauded the support given by the local governments to the authority, stressing that its success depends on the support of the communities surrounding it.

“Every success the SBMA gains depends on the thrust of the investors, the skills of the workers and the support of the residents. This is why we thank you for your cooperation and hope that we will continue to work hand-in-hand for a more progressive Subic Bay Freeport,” Antonio said.

He announced that foreign investors are planning to develop Sitio Agusuhin of Barangay Cawag in the Redondo Peninsula into a factory site. Agusuhin is geographically part of Subic but lies within the boundaries of the Subic Bay Freeport and Special Economic Zone under Republic Act 7227.

Khonghun and members of the Sangguniang Bayan thanked the SBMA for its efforts to develop the peninsula into an industrial area and proposed to start a multiagency planning to create more jobs for Subic residents.

“Agusuhin is under the control of SBMA, but of course the people there are residents of Subic and it is our responsibility to look into their welfare,” Khonhun said.

He proposed that SBMA and the local government of Subic start designing a master plan that will address the relocation of the residents. The provision of security in Agusuhin should also be considered, he added.

Gordon proposed to hold regular joint meetings for tourism, employment and business concerns using common strategies.

Antonio assured local officials that the SBMA and the business community inside the Freeport Zone will continue to help the barangays around the Freeport area promote social development

Subic aches for stability

Chaff from the Grain
Hector Villanueva, MB

"Be sure you’re RIGHT, then go ahead."
– David Crockett

INVESTOR confidence in the Subic Bay Freeport zone, which was badly shaken not only by the political turmoil in Manila but also by the squabbling over positions in the Subic Bay Metropolitan Authority Board which manages the vast and strategically located former US Navy military base, has returned and stabilizing since President Gloria Macapagal Arroyo had decisively reaffirmed the retention of Administrator Alfredo "Freddie" Antonio as both Chairman and Administrator and CEO which position is a fixed six-year term.

Under the SBMA Charter, the position of Chairman/Administrator is held by one person, and should not have been split to accommodate former Board Chairman Francisco Licuanan who subsequently resigned when his recommendee to the position of Administrator to succeed Alfredo Antonio, who was earlier appointed to the Monetary Board, did not materialized.

To heed off possible escalation of local political dynastic rivalry over positions, President Arroyo saw the wisdom of retaining Alfredo Antonio as Chairman/Administrator pursuant to the provisions and mandate of the SBMA law.

Thus, with the stability, continuity, and tranquility returning to Subic with the retention of Freddie Antonio by President Arroyo, a tacit expression of trust and confidence, Japanese and Taiwanese businessmen, or locators, have also reaffirmed their faith in the Philippines.

Administrator Freddie Antonio, an economist from Ateneo de Manila University, an MBA from Bernard Baruch College of New York, and successful former Chairman of the Development Bank of the Philippines (DBP), has pledged not only to erase the image of Subic as a smuggling haven but had also promised to make "turnaround time," which is extremely critical to the electronics industry, up to international standards by expediting Customs clearances for incoming raw materials and outgoing shipments and exports.

Thus far, the "Maginot line," so to speak, is holding with the retention of Chairman/Administrator Antonio. The political feud among rival political families of Zambales and Bataan seemed to have quieted down with the departure of Chairman Francisco Licuanan.

Subic Bay Freeport Zone, which was created by RA 7227 after the expiration of the RP-US Military Bases Agreement in 1990, was once the single biggest American naval facility outside continental USA, and straddles the naval reservation, Olongapo City, Subic town, and San Antonio in Zambales, and Hermosa and Morong in Bataan, with total land area of 67,500 hectares.

As Freddie Antonio would muse, "Subic can be the edge of the promised land that this country can be."

You be the judge.

Gov’t may condone taxes from locators at special ecozones

By LEE C. CHIPONGIAN, MB


The Department of Finance has proposed the condonation of taxes and duties that should have been charged to locators of special economic zones but only up to the date that the Supreme Court declared them no longer taxes and duties-exempt.



The ecozones declared by Republic Act 7227 or the Bases Conversation Development Authority include Clark Development Corp. and John Hay Management Corp. Section 50 of the law only said BCDA can establish ecozones but not as taxes and duty-free enterprises. Only the Subic Bay Metropolitan Authority is allowed its taxes and duty exemptions since it was created under a separate law.

In a letter sent to Senator Richard Gordon, Chairman of the Committee on Government Corporations and Public Enterprises, DoF Undersecretary Emmanuel Bonoan submitted proposals on the condonation of taxes and duties from the time the locators set up shop in the ecozones up to the period of the Supreme Court decisions in March and July this year.

The DoF suggested draft wordings to be used to "effect a condonation of certain taxes and duties as a curative measure to the tax problem of Clark and other ecozones arising from the Supreme Court decision."

The letter said that the proposed wordings incorporate the suggestions of the Bureau of Internal Revenue, the Bureau of Customs and the BCDA.

Taxes to be condoned are the difference between all national and local tax (such as the value added tax and business tax among others) and the five percent tax on gross income earned by the locators.

Not covered by the DoF proposals are taxes for the sale of goods to the local territory, which are still slapped VAT and other taxes.

The Supreme Court earlier ruled that Camp John Hay ecozone is not entitled to incentives unlike locators or companies in Subic Bay Freeport. These taxes that locators should have paid include the usual 33 percent corporate income tax instead of only the five percent tax on gross income.

At the moment there are two bills pending in congress and in the senate to rationalize the incentives and tax perks granted by the Board of Investments and the Philippine Economic Zone Authority.

The government has hundreds of revenue regulations giving tax incentives to various industries. These perks – such as preferential tax rates being enjoyed by export-oriented firms located in ecozones are now audited and reviewed by the DoF to tighten all its tax exemptions and incentives.

The finance department estimated earlier that foregone revenues from waived taxes and duties could have amounted to almost P200 billion in 2001 alone

Auto makers criticize Subic importers

By Elaine Ruzul S. Ramos

 

The local automotive industry slammed Subic Bay-based importers of used vehicles for underdeclaring the value of the units they ship in, convert to left-hand drive and later sell to the domestic market.

 

In a press conference, local car assemblers, parts manufacturers and auto industry workers said the continued entry of imported used vehicles into the country would further discourage investments in the industry and could lead to more jobs displaced.

 

Documents showed by the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) showed that Subic importers rake in huge profits from the sale of these imported used cars.

For example, a second-hand Toyota Prado is being sold from P360,000 to P900,000, depending on the model year. But the declared acquisition cost of the 2003 Prado is only $1,000 or P56,000. Based on the declared value, the importer only pays P34,022 in taxes, which means profits of around P339,978 for each vehicle.

 

A new Prado these days cost P2.7 million, which also meant a huge discount for buyers of second-hand vehicles.

 

“Looking at the documents, I am outraged. The local industry is pouring in investments, and we ensure that employees have benefits and there are these few who can circumvent everything just because they are well-connected,” said George Blaylock, president of the Philippine Automotive Association.

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Traders nabbed with dynamite-fishing haul

By Malou Dungog, Central Luzon Bureau   OLONGAPO CITY:  More than 150 kilos of dalagang-bukid fish (black-tailed caesio) caught through blast-fishing were seized Wednesday by operatives of the 3rd Regional Maritime Office from three fish traders at a checkpoint in Kalaklan Gate, Subic Bay Freeport Zone. Reports submitted by Insp. Jesus Fernandez, regional police chief, identified the suspects as Marilou Villanueva, 40; Concordia Badilla, 67; and Rodolfo Incelto, 53, driver; all residents of Barangay Panibutuhan, Morong, Bataan. According to Police Officer 2 Wilfredo Burbano, the maritime group intercepted an XLT double cab, with plate number VAA-294, driven by Incelto at 1:12 a.m. while the lawmen were on foot patrol. The police, led by PO3 Fernando Fernandez, PO1 Mariel Cuizon and PO1 Alejandro Beltran, noticed about 150 kilos of dalagang bukid in five styrofoam coolers that bore external manifestations of fish caught by means of dynamite explosives.  Red eyes due to ruptured capillaries, fractured body parts and ruptured and bloodied intestines and gills are telltale signs of blast fishing. Burbano said the police have been monitoring the illegal fish trading of some fish dealers for almost a month before they arrested the suspects. Upon arrest, Villanueva appealed to the police, saying she is a breadwinner raising five children and her only source of income is selling fish bought from fishermen in her hometown.  She said, “I regret being involved in the selling of illegally caught fish.  What I earn cannot even pay for my bail,” she said. Fish samples were brought to the Bureau of Fish and Aquatic Resources office here for examination.  The suspects are in police custody while charges of violation of Section 88, Paragraph 1 of Republic Act 8550, the possession of gathered fish with the use of explosives, are being filed against them at the city prosecutor’s office.

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SC seeks justification for used-cars’ import

THE Supreme Court on Wednesday refused to issue a temporary restraining order on the importation of secondhand vehicles in the Subic Bay Metropolitan Authority, an issue that irked Sen. Richard Gordon and had him threatening to bolt the administration party.

However, the Court gave 10 days to the Motor Vehicle Importers Association of Subic Bay Freeport Inc., represented by its president, Alfredo Galang, to justify the ruling of the Court of Appeals that declared Executive Order 156 of President Arroyo unconstitutional. The order prohibited the importation of used vehicles.

In a one-page resolution the Court en banc directed Galang to comment on Malacañang’s petition, questioning the ruling of the appellate court.

Gordon warned that he would leave the Lakas Party once Malacañang recalls the order.

Gordon contended that the recall of the order would benefit the Magsaysay family of Zambales, who voted against the impeachment of the President.

Malacañang, through the Office of the Solicitor General, filed a petition before the Court to review the lower court’s rulings in February and June.

Government lawyers said it was necessary to prohibit the importation of used-motor vehicles to protect the local industry and promote the preferential use of Filipino labor, domestic materials and locally produced goods.

They said the appellate court erred when it affirmed the findings of Olongapo Regional Trial Court Judge Eliodoro Ubiadas in declaring the order as illegal.

By Jomar Canlas, Manila Times