Olongapo SubicBay BatangGapo Newscenter

Sunday, June 08, 2008

Smuggling flourishing, says Sen. Gordon

Corrupt government officials, indifferent Filipinos blamed for profitable illegal trade

By Ernie B. Esconde, Manila Times Correspondent

MARIVELES, Bataan: Sen. Richard Gordon claimed that smuggling is flourishing because it is profitable and some corrupt government officials are receiving payoffs from it.

Meanwhile, he said, the people are not doing anything to stop the illegal trade. He blamed the apparent complacency on government leaders who set bad examples.

Gordon also claimed that when he was eased out as chairman of the Subic Bay Metropolitan Authority, the government lost millions of pesos in revenues from smuggling of second-hand cars, liquors and oil products.

The senator made the claims on Friday on reports that freeports have become vehicles for increased smuggling during the first on-site consultative hearing conducted by the Senate Committee on Economic Affairs here.

Sen. Loren Legarda, committee chairman, also raised concern on smuggling in the freeports with Region 3 Director Remigio Mercado of the National Economic and Development Authority.

“The predicament on smuggling is not institutional but a law-enforcement problem,” Remigio said.

Legarda led a hearing on a proposed bill seeking to convert the Bataan Economic Zone located in Mariveles to the Bataan Special Economic Zone and Freeport Authority. She was met by placard-bearing supporters of the conversion.

The proposed law under Legarda’s Senate Bill 2188 and House Bill 1425 authored by Rep. Albert Garcia of Bataan’s Second District also seeks the creation and appropriations of funds for the proposed economic zone and freeport authority.

Gordon, first chairman of the Subic Bay Metropolitan Authority, said he favored the conversion. He recounted his pitch for the transformation of Subic Naval Base into what is now the Subic Bay Freeport Zone.

Under the proposed changes, Gordon said, local government units will be accountable for any smuggling activities.

Congressman Garcia and his father, Gov. Enrique Garcia, said officials of the Philippine Economic Zone Authority had admitted that the Bataan Economic Zone has been losing money and only survives with the support of other economic zones in the country.

Francisco Legaspi, an engineer and newly installed administrator of the Bataan Economic Zone, said that when the Philippine Economic Zone Authority took over the administration of the former Bataan Export Processing Zone in 1995, the economic zone has made remarkable accomplishments. He admitted, though, that the Bataan Economic Zone has been operating at a loss for the past three years at P30 million annually.

Former Mariveles Mayor Oscar de los Reyes voiced the objection of the Mariveles People’s Coalition against the conversion of BEZ.

Legarda and Gordon urged the oppositors as well as those in favor of the conversion to submit additional documents to the committee. Legarda said she will create a technical working committee to study the recommendations.

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