Olongapo SubicBay BatangGapo Newscenter

Wednesday, June 14, 2006

Board junks resolution vs Japan firm exec

By Greg Refraccion - -Inquirer

BALANGA CITY—The provincial board last week set aside its resolution in April that declared persona non grata an executive of a Japanese firm building the P21-billion Subic-Clark-Tarlac Expressway (SCTEX).

The board, in a resolution on April 12, declared Kazuhico Chabayashi, project manager of Obayashi Corp. in charge of the Bataan segment of the expressway project, persona non grata for allegedly defying a request from the provincial government to report on the source of filling materials for the project and to pay local taxes.

But in another resolution issued on June 5, the board said Obayashi Corp. did not violate any order.

It said Chabayashi should not be held responsible for failing to report to the provincial government the volume and source of filling materials used by the firm.

The board said the province should instead provide checkpoints and personnel to monitor and collect quarry taxes.

Securing certifications of payment of sand and gravel taxes from the provincial government, it said, is the sole responsibility of sub-contractors and not the general contractor.

In a letter to the Bases Conversion Development Authority, Akmichi Hamajima, general manager of Obayashi Corp.'s office in the Philippines, said his firm had investigated the charges against Chabayashi and found them baseless.

Hamajima said an investigation made by his office revealed that Bataan officials were fed false information that led to the declaration of the Japanese executive as persona non grata.

Chabayashi, according to the letter, “has made serious efforts and taken proper action to comply fully with the requirements imposed by the provincial government.”

The project was expected to boost business in Central Luzon as it was designed to cut travel time from Clark to Subic and vice versa to about 30 minutes.

It was embroiled in a controversy, however, when project proponents tried to parry efforts to have the project rebidded.

Obayashi Corp. said in a letter to the BCDA that it was trying to work out a smooth relationship with the provincial government.

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