Subic, Clark losing but top execs raking it in

The Subic Bay Metropolitan Authority (SBMA) and the Bases Conversion and Development Authority (BCDA) are among the government-owned and -controlled corporations (GOCCs) “losing” money, yet their officials are among the highest paid in government

SBMA Administrator Armand Arreza was the biggest earner among GOCC executives in 2007, 2008 and 2009, getting P14.5 million, P30.3 million and P26.8 million, respectively, Commission on Audit (COA) Chair Reynaldo Villar told senators.

Arreza’s package

Naranjo gave senators a breakdown of Arreza’s financial package which included P1.5 million (basic salary), P40,000 (per diem allowance), P100,000 (representation and transportation allowance) and P145,800 (bonus and incentives).

In addition, Arreza was entitled to “extraordinary and miscellaneous expenses” (EME) worth P18.1 million, an amount intended for activities such as “meetings, seminars, conferences, special entertainment and public relations.”

Intelligence fund

Naranjo said GOCC officials were also receiving P5 million in intelligence fund, which surprised some senators at the hearing.

“How do non-security agencies spend the intel fund? How do you liquidate intel fund? It’s about time we knock out many of these intel funds. They amount to billions of pesos but where are they being used?” Senate President Juan Ponce Enrile asked.

Drilon told reporters that intel funds should be only for those in charge with law and order and security.

“I have always opposed intel funds to nonsecurity-related agencies and, therefore, the SBMA has no business having intelligence funds,” he said. With reports from Abigail L. Ho and Michelle V. Remo - newsinfo.inquirer.net/inquirerheadlines

Full Report: http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20100818-287414/Subic-Clark-losing-but-top-execs-raking-it-in

GMA7 24 ORAS REPORT

Senate finance panel probes fat bonuses of gov't officials

The Senate Finance Committee chaired by Senator Franklin Drilon is set to investigate the fat bonuses of top officials of government-owned and controlled corporations on Tuesday, August 17.

The Finance panel will discuss Senate Resolution No. 66 filed by Drilon to lay the basis for a remedial legislation that will be enacted.

The committee, Drilon said, will review the implementation of Republic Act 7656 that mandates government-owned and controlled corporations to declare dividends to the national government. He said possible abusive practices by government officials should be eliminated.

"Let's look for ways of increasing revenues without raising or imposing new taxes," Drilon said.

The hearing was called to look into possible excesses by state officials and seek ways to plug the ballooning budget deficit projected at P307.5 billion this year and P285 billion for 2011.

As such, the lawmaker also calls for the rationalization of non-performing government agencies that are heavily subsidized by the government, which results to depletion of funds. He said the panel will also review the mandates of state firms.

Executive Secretary Paquito Ochoa, Commission on Audit Chairman Reynaldo Villar, Department of Finance Undersecretaries John Philip Sevilla and Jeremias Paul, Department of Budget and Management Directors Mary Grace Chua and Myrna Chua have been invited to attend the public inquiry.

Executives of Subic Bay Metropolitan Authority, Philippine Amusement and Gaming Corp., Development Bank of the Philippines will be called on the next hearing slated on August 24. (Office of Sen. F. Drilon) http://www.pia.gov.ph/default.asp?m=12&r=&y=&mo=&fi=p100818.htm&no=10

Gordon Hits Martial Law

as Historic session begins

AT exactly 4:12 p.m. yesterday, the House of Representatives and the Senate officially started the historic session to discuss Presidential Proclamation 1959 which placed Maguindanao under martial law.

There were 192 representatives and 18 senators in the session presided by Speaker Prospero Nograles and Senate President Juan Ponce Enrile.

Senators Lito Lapid and Pia Cayetano failed to attend.

Executive Secretary Eduardo Ermita, Justice Secretary Agnes Devanadera, Interior and Local Government Secretary Ronaldo Puno and National Police Director General Jesus Verzosa were present to defend martial law.

Sen. Richard Gordon made an issue on the absence of Defense Secretary Norberto Gonzales and Armed Forces Chief Victor, saying their absence shows that martial law is not needed.

“Sila ang kinatawan ng pamahalaan para sagutin ang issue. Lumalabas dito na bale wala ang martial law and everything is under control. Lumalabas din na mahina ang kaso ng gobyerno kasi pinababayaan na lumabas sila ng bansa sa gitna ng issue,” Gordon said.

Nograles expects the session to last until next week. By: Jester P. Manalastas - People's Journal

We did best to comply with safety laws - Hanjin president

The president of Korean firm Hanjin Heavy Industries and Construction on Tuesday said that they did their best to comply with the Philippine’s safety laws, rules and regulations and even promised to “go the extra mile" to protect the lives of their workers.

"[Hanjin] feels that it has done in its two years of existence its best to comply with all safety laws, rules and regulations and if necessary would go the extra mile of providing what is lacking in this laws to completely protect the lives of our workers," Hanjin president Jeong Sup Shim told the Senate panel investigating the fatal accidents in the shipyard and construction site.

He added that Hanjin would continue to contribute to the economic development of the Philippines.

Based on the records of the Subic Bay Metropolitan Authority, there were 19 work-related deaths at Hanjin.

Jeong Sup Shim thanked the Senate and other parties for the concern to the safety of their shipyard but he asked the panel to be objective in releasing its findings.

"The Senate and other parties will gather enough information to come up with a fair finding taking into account both sides of legislation with all objectivity and impartiality," Jeong said.

"We believe that the purpose of the inquiry is in aid of legislation and to further improve the safety of the workplace and not really to find fault in our company which could easily hinder operations," he added.

Jeong said the firm will recognize the findings of the panel.

"We are one with the Senate and other concerned parties that it is vital to implement health and safety programs in our shipyard," Jeong said.

Upon the questioning of Senator Pilar Juliana Cayetano, Jeong said that being the company’s president, his primary job is to concentrate in marketing and getting ship orders.

He said he is just relying on the report of his men on the ground particularly about labor matters.

Mr. Jeong assumed his position only in February 2008.

Also present at the hearing were Hanjin general manager Myung Goo Kwon and deputy managing director Pyeong Jong Yu; Feliciano Salonga, chairman of the Subic Bay Metropolitan Authority and representatives from the Department of Labor and Employment and Department of Health. - AMITA LEGASPI, GMANews.TV

‘Unsafe’ workplace seen in Hanjin deaths

Sen Estrada may recommend suspension
The chairman of the Senate labor committee is considering recommending the temporary suspension of operations of Hanjin Heavy Industries and Construction in Subic Bay, Zambales, over the rising incidence of workers’ deaths at the firm’s shipyard.

“Itigil muna pangsamantala yung lahat ng activities ng Hanjin hanggat hindi nila maayos yung mga aksidente na nangyayari doon. Wala silang safety standards [Temporarily stop all activities of Hanjin until they address the accidents that have been happening there. They have no safety standards,” Senator Jose Estrada said after the committee’s hearing into the deaths.

He said he would submit his recommendation to Labor Secretary Marianito Roque.

During the hearing, an official of the Subic Bay Metropolitan Authority (SBMA) blamed allegedly “unsafe acts” and “unsafe work conditions” for the deaths of Filipino workers at the Hanjin worksite.

Ramon Ogregado of the SBMA’s Support Service Group said they have recorded 19 deaths in 17 incidents.

“In the construction aspect, there were [a total] of nine fatalities, which were attributable to unsafe acts, meaning to say, [these were] partly due to the behavior of the workers when the incidents occurred; and then three were due to the combination of having unsafe acts and unsafe working condition[s],” he said.

Ogregado said that in the shipbuilding sector, one death was attributable to “unsafe acts” and five others to “unsafe conditions.”

The rest, Ogregado said, were non-work related and were “merely [due to] behavioral accidents.”

Also present at the hearing were Pyeong Jong Yu, general managing director of Hanjin, Subic Bay Metropolitan Authority chairman Feliciano Salonga, SBMA administrator Armand Arreza, and a number of Hanjin workers. By Maila Ager - INQUIRER.net

Senator: Hanjin responsible for bus accident

Senator: Hanjin responsible for bus accident that left 19 workers hurt
A senator on Tuesday said Hanjin Heavy Industries, Inc. should be held responsible for the accident involving one of its shuttle buses that fell off a 50-foot ravine in Subic, Zambales.

In an interview on QTV’s Balitanghali, Sen. Pilar Juliana "Pia" Cayetano said even if Hanjin did not operate the bus ferrying the workers to the facility, it cannot "hide behind the argument" that WPH (Wealth, Prosperity, Humanity) - which was identified as the operator of the shuttle bus - was only its subcontractor.

"May prinsipyo naman sa batas na as the employer, meron ka ring responsibilidad sa klase ng mga subcontractors na kinukuha mo. Eh kung paulit-ulit na nagkakamali, o isisinasalang sa panganib ang mga manggagawa mo, eh responsibilidad mo pa rin yun," Cayetano said.

[There is a legal principle that employers are responsible for the kind of subcontractors they hire. If these subcontractors repeatedly expose their workers to danger, the firm can still be held culpable.]

At least 19 workers - two of whom remain in critical condition – were reported hurt in the accident that occurred about 7 a.m. Tuesday along Hanjin Road at Sitio Agusuhin, Brgy. Cawag in Subic.

The mishap is the latest addition to the string of accidents involving Filipino Hanjin workers.

Cayetano earlier said the death toll in the Korean firm’s shipyard at the Subic Freeport has reportedly reached 19 based on its official records since 2006.

But she also noted earlier that an unofficial account by a labor-support group in Subic had placed a bigger death toll at 24, including stay-in workers who reportedly died from malaria.

She then said the Senate labor committee under Senate President Pro Tempore Jose "Jinggoy" Estrada may include the road mishap in its probe on Hanjin accidents. - Sophia Dedace, GMANews.TV

Senate probes Hanjin Subic deaths on Feb.4

The Senate committee on labor, employment and human resource development will begin on Feb. 4 the public hearings on the string of deaths of Filipino workers at a Korean-owned shipyard in Subic, Zambales, since 2006.

A memorandum by Labor Assistant Secretary Reydeluz Conferido said three officials of the Department of Labor and Employment are attending the first hearing called through Senate Resolution No. 807 authored by Sen. Pia Cayetano.

Dulce Estrella Gust, executive director of the Occupational Safety and Health Center; Ma. Brenda Villafuerte, director of the Bureau of Working Conditions; and Nathaniel Lacambra, DOLE director in Central Luzon, have been asked to shed light on work safety issues at the shipyard of the Hanjin Heavy Industries and Construction Philippines Inc., Conferido’s memo showed.

The public hearing indicated that Cayetano had convinced the other senators to proceed with it despite a request by the Korean Ambassador to the Philippines not to hold one due to its “negative repercussions” on Korean investments.

There have been at least 19 work- or accident-related deaths on the site. Except for one, all the victims were Filipinos.

The latest fatality, Korean foreman Choi Dong Baek, 51, was run over by a forklift operated by a Filipino worker identified as Menti Dacanay.

Lacambra said he was ready to attend the hearing.

But Hanjin, he said, had not allowed access to DOLE inspectors in the early stage of the project. By Tonette Orejas - Inquirer Central Luzon Desk

Senate to probe Hanjin death toll at Subic Bay

The Senate will investigate fatal incidents at a sprawling shipyard within the Subic Bay Metropolitan Authority facility following reports that numerous Filipinos die due to work-related accidents.

This, after another Filipino laborer, 19-year-old Raldon del Rosario died after an 800-kilogram metal door being installed at the shipyard assembly section of Hanjin Heavy Industries Corp. Philippines fell on him. Another worker, Camalio Buchie, 24, reportedly suffered a leg injury due to the incident.

Mr. Del Rosario was the 18th victim of work-related accidents in the shipyard since Hanjin’s shipbuilding activities began in 2006.

Sen. Jose "Jinggoy" E. Estrada has scheduled an investigation on Wednesday by the Senate Committee on Labor, Employment and Human Resources Development, which he chairs.

"We need to conduct an immediate investigation why so many Filipino workers die there," Mr. Estrada said in a phone interview.

He said that the committee can recommend the "banning" of Hanjin if the panel finds the company remiss in its responsibilities to ensure the safety of its workers.

As this developed, Korean worker Choi Dong Baek, 51-year-old supervisor, died half past midnight Sunday after a forklift operated by Filipino worker Menti Dacanay ran over him, said SBMA Administrator Armand C. Arezza.

But Mr. Arezza said the accident was "not related to the construction of ships," explaining that Mr. Dacanay did not see the victim while they were transferring the location of a basketball ring.

"We’re ready to explain our side [in the Senate inquiry]. Not all incidents are work-related, some are just accidents," he said in a phone interview.

Sen. Pilar Juliana "Pia" S. Cayetano has filed Senate Resolution No. 807 to look into the issue, saying "it’s exasperating how our authorities have allowed these deaths to continue without imposing stringent measures and taking legal action against all those responsible on behalf of the victims."

Korean Ambassador to the Philippines Choi Joong Kyung wrote Senate President Juan Ponce Enrile on Dec. 23, cautioning the chamber against a possible inquiry that may cast "substantial and negative repercussions" on Hanjin.

"The tremendous political influence of the Senate means that its actions may have fatal effects to the existence of an actor in the private sector... The policy implication of all its present actions have deep and far reaching effects within and beyond the boundaries of the Philippines," the Korean ambassador wrote.

The Korean ambassador was reacting to a privilege speech of Ms. Cayetano on Dec. 16 when she called for an immediate attention into mounting fatalities at the Hanjin shipyard.

But Ms. Cayetano, in a privilege speech last week, said the chamber should be unfazed by the reactions of the Korean ambassador to conduct an inquiry in aid of legislation.

Hanjin officials in Subic could not be reached for comment. - Bernard U. Allauigan, BusinessWorld

South Korea envoy warns Senate on Hanjin probe

South Korea’s ambassador to the Philippines has warned the Senate of “substantial and negative repercussions” if it investigates the rising number of deaths of Filipino workers at the shipyard of Hanjin Heavy Industries Corp.-Philippines at the Subic Bay Freeport.

Sen. Pia Cayetano said Ambassador Choi Joong-kyung relayed the warning in a letter to Senate President Juan Ponce Enrile.

“The Senate probe stands as our last chance for an independent inquiry. But I hope the Senate will not be bullied out of the Hanjin inquiry by the Korean ambassador. Otherwise, this concern may as well be elevated to the International Labor Organization,” she said.

Cayetano, in a privilege speech, denounced the Korean ambassador for issuing the letter dated Dec. 23.

The letter indicated that it was copy-furnished to Cayetano and Sen. Miriam Defensor-Santiago, but Cayetano said her office only received a copy by fax last Jan. 12.

“Mr. President, are we now to be told by a representative of a foreign country what we should and should not inquire into as a national lawmaking body, and even be threatened by ‘deep and far reaching’ effects within and beyond the boundaries of the Philippines?” she asked.

Cayetano said the Senate leadership should pursue an investigation, especially since another Filipino laborer, 19-year-old Raldon del Rosario, died Friday after an 800-kilogram metal door being installed at the shipyard fell on him. Another worker, Camalio Buchie, 24, reportedly suffered a leg injury during the incident.

Del Rosario is reportedly the 18th worker killed in traffic- and work-related accidents at the job site since 2006, according to Hanjin’s official count.

But the People’s Task Force Hanjin has recorded over 40 deaths among the workers, including those from malaria.

“It’s exasperating to see how our authorities have allowed these deaths to continue without imposing stringent measures and taking legal action against all those responsible on behalf of the victims,” Cayetano said.

She also scored the Subic Bay Metropolitan Authority (SBMA) and the Department of Labor and Employment for alleged indifference.

A portion of the South Korean ambassador’s letter read: “The tremendous political influence of the Senate means that its actions may have fatal effects (on) the existence of an actor in the private sector. The possibility that HHIC-Philippines may be an object of a Senate inquiry could generate substantial and negative repercussions.”

Reacting to Cayetano’s speech, Senate labor committee chairman and Senate President Pro Tempore Jinggoy Estrada said he would schedule an inquiry.

Sen. Jamby Madrigal, who chairs the committee on environment and natural resources, also voiced her intention to investigate environmental issues at the Freeport, including the controversial hotel-casino project of another Korean investor, Grand Utopia Inc.

Investigation underway

SBMA administrator and chief executive officer Armand Arreza vowed to investigate the latest death and punish anyone found liable for the accident.

“We’re definitely taking action on this, and heads will roll and we will be firm but fair,” Arreza said, as he announced the suspension of Great Steel Construction during a press briefing.

While emphasizing that the recent death “had nothing to do with shipbuilding activity,” Arreza said this does not mean that HHIC-Phil. is cleared of any liability.

“The SBMA is also looking into the contingent liability of Hanjin because it is the general contractor of the shipyard,” Arreza added.

Arreza said he has also instructed the SBMA Legal Department to assist the families of the victims.

He said SBMA safety personnel are checking canvass doors installed by Great Steel at the shipyard to find out if they are of substandard materials.

SBMA personnel also said there were no safety or warning signs that could have made the two workers avoid the area where the accident took place.

In a safety inspection on Jan. 6, SBMA personnel found that some workers at the shipyard had no personal protective equipment, and that some work areas were dimly lit and not well-ventilated. It warned Hanjin of the safety lapses. – By Aurea Calica With Bebot Sison Jr. - PhilStar

Senator urges probe into Hanjin accidents at Subic Freeport

Sen. Pilar Juliana Cayetano on Friday urged the Senate to immediately look into the series of accidents at the construction sites of South Korean shipbuilder Hanjin Heavy Industries Corp. at the Subic Bay Freeport.

Cayetano made the request after getting hold of a letter of Korean Ambassador Choi Joong Kyung to Senate President Juan Ponce Enrile trying to dissuade the Senate from investigating the fatal accidents involving Hanjin.

Cayetano said the ambassador’s letter, dated Dec. 23, 2008, highlighted the virtues of Korean investments in the country despite the global economic slowdown.

But in another part of the letter, the ambassador mentioned that the possible Senate inquiry on the accidents at the Hanjin shipyard could have a negative effect not only on the company but on the Philippines as well.

"The policy implication of all its present actions have deep and far reaching effects within and beyond the boundaries of the Philippines," read the letter, copies of which were distributed to reporters.

Latest victim

A total of 18 deaths at sprawling Hanjin shipbuilding facility have been reported, the latest of which happened on Friday at 8:30 a.m.

The Subic Bay Metropolitan Authority (SBMA) identified the latest fatality as Raldon del Rosario, 19, from Kalinga province, an employee of Redondo I-Tech Corp. He died of massive head injuries.

Another worker, Camalao Bochie, 24, also from Kalinga, suffered leg injuries. Both victims were taken to St. Jude Hospital in Olongapo City, where Del Rosario was declared dead on arrival.

Initial reports released by the SBMA said the victims were pinned down by the metal base of a newly installed manual canvass door that fell at one of the assembly facilities of Hanjin.

Workers of Great Steel Con, a subcontractor of Hanjin, were testing the manual canvass door at around 8:30 a.m. when the accident happened, the SBMA said.

Last year, government regulators ordered Hanjin to stop its operations in its one of its assembly shops after an 8-ton girder assembly being lifted by a crane fatally struck a worker at the back of his head. Work, however, resumed as the company assured that all safety measures were being undertaken.

Repercussions

In his letter, the Korean ambassador warned that Hanjin may find it difficult to secure overseas financing in case there would be any shadow cast on its credibility as a result of the investigation.

He said overseas competitors of Hanjin might also feel relieved not to follow Hanjin's pioneering into the Philippines. Competitiors might also find an opportunity in the company's misfortune and seize the chance to eliminate it.

Cayetano asked why the Korean ambassador would stop the investigation when "there is nothing to hide."

"The normal reaction would be telling the investigating body to go ahead with the probe and use the forum to air its side," Cayetano told reporters.

Regrettable, misplaced

She said she finds the ambassador's letter as both regrettable and misplaced.

"Are we now to be told by a representative of a foreign country what we should and should not inquire into as a national lawmaking body, and even be threatened by 'deep and far reaching effects within and beyond the boundaries of the Philippines'?" Cayetano said. "Is it not our duty, as lawmakers of the land, to look into violations and put in place measures to exact compliance?"

She said she was not against the foreign investment or anything against the investments of Korean companies, adding that she was personally supportive of foreign investments that give the economy the necessary stimulus.

"Indeed, the government should create an atmosphere that encourages business and investments. But at the same time, laws aimed at protecting our people and our natural resources must be strictly complied with by all, whether Filipino or foreign investors," Cayetano said.

She further said the Senate should immediately investigate the construction activities at the project site before another Hanjin accident takes place.

"Let us not be dictated upon by the amount of investments by foreigners in the exercise of our official functions. We must stand up for our people and for our own laws. Let us remain true to our mandate as the Legislature," Cayetano said. - AMITA LEGASPI, GMANews.TV

Cayetano slams deaths in Subic Hanjin shipyard

SENATOR Pia Cayetano has deplored the Department of Labor and Employment’s alleged failure to investigate and penalize those responsible for the “unusually large” number of accidents and deaths at the Hanjin shipyard in Subic freeport.

She also questioned other government agencies, particularly the Department of Environment and Natural Resources (DENR), for failing to act on other reported irregularities at the freeport.

She wants to probe the reported series of deaths of Filipino laborers due to work-related accidents at the shipyard of Hanjin Heavy Industries and Construction (HHIC) Phils. at the Subic Bay Freeport in Zambales.

She earlier questioned the decision of the Subic Bay Metropolitan Authority (SBMA) to merely suspend the subcontractor Philnorkor while sparing Hanjin from any penalties in connection with the recent deaths of two subcontracted workers, Philip Mendoza and Jose Vener Gil, last November.

Gil is reportedly the 15th to die in work-related accidents at the shipyard, while Mendoza is the second to die in traffic-related accidents. But reports reaching Cayetano’s office indicate that many more workers have also died due to illness, particularly malaria. By: Bernadette E. Tamayo - Journal online

Senate to probe Subic tree-cutting

The Senate is poised to investigate the plan to cut down trees in a thickly-forested area at the Subic Bay Freeport.

Senator Pia Cayetano said Friday that the committee on environment has agreed with her to initiate an investigation into the $120 million casino-hotel project of a Korean firm inside the free port administered by the Subic Bay Metropolitan Authority.

Cayetano said this after obtaining the commitment of the Senator Ma. Ana Consuelo Madrigal to look into the plan to destroy 161 “diseased” trees, including those that would not survive balling and relocation, to clear the way for the construction of the Ocean 9 Casino Resort and Hotel project of Grand Utopia, Inc.

Cayetano said Senator Jose “Jinggoy” Estrada, chair of the committee on labor, has also given his consent to join the inquiry.

Madrigal and Estrada will initiate a joint investigation into their respective issues when the Senate resumes sessions on January 19 after a month-long Christmas break, she said.

On Tuesday, Cayetano delivered a privilege speech assailing the casino project which was exposed by architect and urban planner Felino Palafox Jr.

Palafox Jr. had said that more than 300 trees would be cut for the project. The SBMA ecology center counted 366 trees at the two-hectare project site in August.

The senator noted that this tree-cutting spree was promptly denied by SBMA, claiming that a no-tree-cutting policy was being enforced in the former American military base.

Cayetano, former chair of the Senate committee on environment, conducted an on-site hearing in April in Subic Bay, but on a separate issue. She wanted to ascertain possible environmental violations in the construction of two high-rise buildings by Hanjin Heavy Industries in the middle of the Subic forest.

"In the draft committee report, we found that SBMA was negligent in ensuring that the environment is preserved and that our laws are observed. By virtue of a memorandum of agreement, those responsibilities were relegated to SBMA by DENR," said Cayetano.

On Wednesday, a team that conducted an environmental survey of the area confirmed that at least 161 trees will have to be cut at the site.

Pastor Malabrigo of Kanlungan Development Association of Innovators said most of the trees were diseased and his firm had recommended to Grand Utopia Inc. that it reforest eight hectares in a forest preserve in place of the trees that would be cut.

He said their assessment showed that 161 trees at the site had butt-basal and center rot, and these were no longer normal. He said there were only 282 trees at the site.

Kanlungan was hired by Grand Utopia to conduct the initial environmental examination, a requirement before an environmental compliance certificate for the casino-hotel project can be secured.

“Inasmuch as we want to save all the trees in the area, relocation will eventually cause the death of most of the trees which are diseased. Replacement and reforestation is therefore the better option,” Malabrigo said.

He said Kanlungan proposed that for every tree cut at the project site, 50 saplings be planted in the reforestation area, for a total of 8,050 new trees.

“Most of the [sick trees] are mature trees, saplings and poles. These are very common species. The primary basis of our recommendation is the health of the individual [trees]. Balling is very expensive and the survival rate of unhealthy trees is very low,” he said.

Senate Minority Leader Aquilino Pimentel Jr. also supported the joint committee inquiry, but he suggested slashing the budget and subsidies being provided by the national government to the SBMA.

This will force the SBMA “to be more aware of its responsibilities in overseeing labor standards and environmental laws within its jurisdiction,” he said. By Michael Lim Ubac - Philippine Daily Inquirer

Subic Proxy War

“Not all Filipinos are for sale,” said one of our sources, describing the decision of Palafox and Associates—owned by renowned architect and urban planner Jun Palafox—to turn down $1 million in fees that was offered to it by a Korean client.

The scuttled deal called for the architecture and planning firm to recommended the “clearing” of a two-hectare urban forest in the Subic Bay Freeport, a former American naval base northwest of Manila, to allow its client to build a casino resort. That would have called for the cutting down of 366 trees, including 37 that were over a hundred years old, according to the pro-Palafox camp, which added that the deal supposedly has the backing of “powerful officials” within the Subic Bay Metropolitan Authority (SBMA) and the government casino franchise firm Pagcor.

Not so, says SBMA chief Armand Arreza, who believes that the latest controversy to hit the free port is yet another iteration of the lingering and festering fight between Senator Dick Gordon, a former SBMA chairman, and his successor and longtime nemesis Tong Payumo.

Palafox, Arreza said, has allowed himself to be used in a “local political fight” between the two rivals.

In addition, Arreza (who, like his ally Gordon, is a product of the Ateneo de Manila University) said there was no way the trees in question could be “centuries-old,” as they are planted on land reclaimed by Americans from the sea after the Korean War.

If this is, indeed, a proxy war between the Gordons and the Payumos, expect it to turn nastier in the coming weeks. Daxim L. Lucas - BIZ BUZZ - Philippine Daily Inquirer

===

Renowned architect is a Payumo lackey?
by FELICITO C. PAYUMO - Philippine Daily Inquirer

Daxim Lucas quoted Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza as saying that the latest controversy involving the cutting of 366 trees for a hotel-casino complex in the Subic Bay Freeport and a demand by an SBMA official for an 18-percent commission in another SBMA development master plan project is nothing but an “iteration of the lingering and festering fight between Sen. Dick Gordon and longtime nemesis Tong Payumo.” (Big Buzz, Philippine Daily Inquirer, 12/3/08)

I don’t know what Arreza is to Gordon, but Jun Palafox is certainly no lackey to me. Say things at my bidding? Why, the guy has more international stature than I have. That’s an insult for which he can sue for libel.

Levity aside, I learned from Palafox that Arreza threatens to file legal action if Palafox does not identify the person whom the Philippine Daily Inquirer editorial called an “official extortionist.” Then Palafox can demand that Arreza poise the same threat as well at SBMA chairman Fil Salonga who should also be asked to name the SBMA official or officials in an earlier extortion attempt that was reported to him by the representative of Win’s Way, an investor in an oil depot project. (Philippine Daily Inquirer, 12/6/08; read story)

Why Palafox made this exposé, he alone can answer. He was the guest speaker at a meeting of the Rotary Club of Manila and he talked of the new trend in urban planning — away from the sprawling model typified by wide boulevards and by the residents’ need to commute daily to work to a “bikable” and “walkable” neighborhood where “people live upstairs and go downstairs where they shop, take coffee, browse in bookstores and sit in parks, etc.” It was then that he talked of the threat to the only tree park in the CBD (commercial business district) of the Subic Freeport. No one prodded him to talk about it.

Arreza claims that there are no century-old trees on the site. Maybe he is correct. The term “century-old” has been loosely used for old growth, mature trees. But will it matter if the trees are 80-, 60-, or even 50-year-old? He says that they will not be cut but balled and transferred elsewhere. Palafox seriously doubts if this is possible to do with full-grown trees. But the more important question is, why relocate the trees and not the project? There are other areas in the CBD. Why take out the only tree park described by the Ecology Center as “urban forest” because the site is densely stocked?

Palafox enjoys a high reputation for his integrity. The Rotary Club of Manila is supportive of this one Rotarian who was thrust into a controversy but in a positive light. Rather than affix his name to a project that would cut or remove 366 trees, including 37 endangered species listed by the SBMA Ecology Center, he declined a $1-million architectural engagement enough to pay his payroll for six months. Now, his reputation is under savage attack for blowing the whistle not only on the threat to the tree park but also on an extort attempt in a different project. Will Salonga be subjected to the same attack?

Senate begins probe of smuggling

Two committees in the Senate will jointly probe the rampant smuggling of cars and food stuffs starting today.

The Senate committee on ways and means, chaired by Senator Francis Escudero and committee on finance, chaired by Senator Juan Ponce Enrile, will look into the extent of smuggling and how it has eroded the government’s revenues.

The investigation is triggered by a resolution filed by Enrile who said tougher action should be taken against the unabated smuggling problem.

“We will touch on the smuggling of cars, shabu, steel products, ceramics, vegetables, fruits and other farm crops,” Enrile said. “In other words, all kinds of smuggling going on. We will find out why smuggling has not stopped in this country.”

Enrile, who served as commissioner of customs during the Marcos era, expressed the belief that big-time smuggling of illegal drugs could not happen in the country without the connivance or protection of well-placed public officials, as well as corrupt law enforcers.

A few weeks ago, 74 kilos of high-grade shabu valued at P4 billion was confiscated at the Subic Bay Freeport. The suspected mastermind behind the drug smuggling, a Taiwanese businessman, is still at large but there is speculation that he has been killed by his partners in a drug syndicate.

“These things could not happen without any strong political backing. There must be some influential people involved. If not political backing, then it must be some people in the law enforcement organization who are helping them. But when I say political backing, I am not referring to anyone, let alone anyone in the highest totempole of politics,” Enrile said.

Enrile said he based this on his experience as customs commissioner and finance undersecretary, when he stumbled on many smuggling cases involving members of the First Family, Cabinet members, senators and congressmen.

“I really directed my attention to these types of importers, not the small Angs or Chuas type of people. If you are a commissioner of customs, and you are able to catch the illegal importation of high government officials, then we will believe that you are really stopping smuggling. Otherwise, everything is a charade.”

Enrile said he would investigate even the alleged smuggling at the Port Irene and the Cagayan Special Economic Zone in his home province.

He said he feels this should be done because of reports going around that Port Irene is being used to smuggle rice from neighboring countries. However, he said he has not seen single grain of rice that has been imported through this port. By Fel V. Maragay - Manila Standard Today

Senate probe on Hanjin hit by 'no shows'

There appears to be a conscious effort to put a close to the bribery-extortion chapter in the book of violations allegedly committed by Korean company Hanjin Heavy Industries Inc.

Key personalities were no shows at the resumption of the Senate investigation on the company’s shipyard projects in Misamis Oriental and Zambales.

During a joint hearing of the Blue Ribbon Committee and Committee on Environment, police investigators also asserted “there was no bribery” on the strength of the testimony they got from Mayor Paulino Emano of Tagoloan, Misamis Oriental.

Emano instead sent an affidavit clarifying his remarks earlier that a Hanjin official sought to bribe him with a P400 million contract, in exchange for allowing the diversion of a river to provide for Hanjin’s construction needs. Emano later retracted his statement after meeting with President Arroyo.

“Our conclusion was that there was no bribery,” Police Director Jefferson Soriano of Task Force Tagovill told senators in the hearing.

On the counter-accusation that Emano and Villanueva, Misamis Oriental Mayor Juliette Uy tried to extort money from Hanjin, Soriano said they were still “in the process of further investigating the matter.”

Uy also begged off from attending the hearing, saying her denial of the bribery and extortion issues had already been amply reported in media.

Blue Ribbon Committee chairman Sen. Alan Peter Cayetano, however, took issue with the police’s apparent disinterest in pursuing the bribery issue.

“Just because somebody said there was no bribery doesn’t mean there was no bribery,” he pointed out. “When you’re telling a mayor ‘may 400 million peso contract dito,’ there’s a very thin line.”

Senate environment committee chairperson Sen. Pia Cayetano also noted the laxity of the police’s investigating procedures after Soriano admitted they did not talk to Choi Guk Hyun, Hanjin’s project manager who allegedly made the bribe offer to Emano.

“Then that may be the problem in this investigation. Is it your policy not to speak directly to the people involved?” Cayetano asked Soriano.

Also a no-show at the hearing was Hanjin president Shim Jeong Sup, who said he had a previous engagement.

Korean Chamber of Commerce President Jae Jung Jang, however, took up the cudgels for Hanjin as he said the controversy arose due to “miscommunication” because of the language barrier.

On the matter of Hanjin’s alleged violation of environmental laws in connection with its shipyard projects in Misamis Oriental and Subic Bay in Zambales, Cayetano said the ball is now in the hands of the Department of Environment and Natural Resources (DENR), whether it would impose sanctions on Hanjin for failing to secure environmental compliance certificates prior to beginning construction.

“We are waiting for DENR to take a firm hand. It’s DENR’s call,” she said.

Cayetano warned, however, that should DENR fail to act on Hanjin’s alleged violations, DENR officials could also be held liable.

“When a government official tolerates non-compliance with any law, they can be penalized for dereliction of duty,” Cayetano said. BY LYNDA JUMILLA ABS-CBN News

SBMA head hits Senate inquiry into Hanjin condo

Senators Cayetano and Zubiri said they appreciate the entry of investors and do not intend to scare them away

SUBIC FREEPORT: Chairman Feliciano Salonga of the Subic Bay Metropolitan Authority (SBMA) criticized the Senate Friday for making a “big fuss” over the housing project of Hanjin, a Koren shipping company.

“The senators are barking up the wrong tree. There is no environmental violation committed in the housing project. I am surprised that much attention is being given to this when our main problem lies in the parasitic vines,” Salonga said before the start of a joint Senate committee hearing on the housing project.

He said that the proper focus should be on the productive presence of Hanjin, which he said would employ about 13,000 laborers in what he called “the biggest shipyard” in Southeast Asia.

“Hanjin had built a ship in less than a year, which is an extraordinary accomplishment. Booked contract amounts to $3.5 billion, which will be completed in two to three years,” he added.

The Senate committees on environment and natural resources headed by Senator Pia Cayetano, housing and urban planning headed by Senator Juan Miguel Zubiri, and government corporations and public enterprises headed by Senator Richard Gordon, are jointly investigating reports that Hanjin built its 184-unit condominium buildings for its officials and employees on a three-hectare lot within a protected watershed area.

Cayetano and Zubiri said that they appreciate the entry of investors and they do not intend to scare them away but they added that they wanted to make sure that all laws on environment and zoning are followed by the investors.

“We’re here to strengthen existing laws,” said Cayetano.

Zubiri added that there was no chance of having the buildings demolished since they are already built. “We just hope that next time they take into serious consideration the consequences involved in building these structures in a forested area,” Zubiri said.

While Gordon noted that he was convinced that SBMA did not violate any law in approving the Hanjin housing project but he questioned the aesthetics of building a 28-story condominium building in the area.

SBMA Administrator Armand Areza said that the housing site was two kilometers away from the core ecological zone of the watershed area where no development is allowed. He also said that a team of land use experts hired by the World Bank to prepare a zoning plan for SBMA, had recommended in 2002 that the area, of which the housing site is a part, be declared as a recreational area.

Areza also said that only 43 trees were cut in the Hanjin housing site and that the US Navy had previously cut many trees there when it built its ammunition storage facility.

Cayetano said that it was the SBMA, not the Department of Environment and Natural Resources, that issued the environmental clearance certificate to the housing project.

“I am not aware of any law allowing the delegation of this power,” she said, as she questioned the legality of the memorandum of agreement between SBMA and the DENR.

Shortly before the hearing started at the Subic Gateway Park, a group of protesters suddenly popped out and demanded an investigation of the demolition of their houses in Subic to give way to the Hanjin shipyard. They also claimed that they were given a relocation site high on a mountaintop, almost three kilometers away from the sea, even if most of them are fishermen.

Zubiri said the joint committees would make an ocular inspection of the relocation site in the next hearing. Gordon said the problem occurred because Hanjin gave the money for the relocation to the local government of Subic but this apparently did not reach the supposed beneficiaries.

“I saw the relocation site and I was scandalized. There was no water so of course, the people refused to move there. I will not allow anybody to get away with this,” he said on the alleged anomaly in the relocation of 450 families from the Hanjin shipyard site.
-- By Efren L. Danao, Manila Times Senior Reporter -- With Anthony Bayarong