Subic fishers dispute ‘alarmist’ yarn on LNG operations

Local fishermen have disputed claims by leaders of some activist groups in Central Luzon that the ship-to-ship transfer (STS) operations of liquefied natural gas (LNG) on Subic Bay endanger fisher folk in the area and that locals were not consulted about the project before its approval by the Subic Bay Metropolitan Authority (SBMA).

Resty del Rosario and Laureano Artagame, both officials of local Fisheries and Aquatic Resources Management Councils (FARMC), dismissed the claims and pointed out that the negative reports came from personalities who do not represent the legitimate concerns of fishermen from Subic Bay.

The news item came out in the alternative news website Kodao and quoted Pamalakaya Central Luzon coordinator Alberto Roldan as saying that STS operations for LNG in Subic “endanger fisher folk as well as civilian establishments and communities in Olongapo City.” Pamalakaya stands for the Pambansang Lakas ng Kilusang Mamamalakaya, which is the national federation of fishermen’s organizations.

The report also quoted Marcelito Clemente, coordinator of the Central Luzon Alliance for a Sovereign Philippines (CLASP), as saying that the project was “simply another case of profit above public safety for SBMA.” CLASP, a left-leaning group, had called for the withdrawal of U.S. military bases in the country and had opposed the holding of Balikatan military exercises with American armed forces.

The local fisher folk leaders, however, said the reports do not mirror the sentiments of local fishermen.

“We support the SBMA on this project 100 percent,” said Del Rosario, who chairs the Subic Bay Integrated Fisheries and Aquatic Resources Management Council, which whose members include fisher folk in Olongapo City, Subic and San Antonio, Zambales and Morong, Bataan.

“Is the LNG operation safe? We believe so, because the SBMA wouldn’t place that project there without examining and addressing the risks involved,” Del Rosario added.

He noted that the critics of the STS project are far too removed from the area, and hence are unaware of the local situation.

“How would they know what happens down here? How can they be the voice of the locals? They are just being alarmists,” an exasperated Del Rosario said.

“As local leaders representing the mostly poor and marginalized fishermen in the locality, we will not be a party to anything that will harm our people. We will not agree to it,” Del Rosario added.

Artagame, meanwhile, emphasized that the SBMA has not been remiss in consulting local fishermen about the LNG project during its inception in 2016. He recalled that the Jovo Group, China’s leading clean energy service provider which operates the project, conducted a consultation in October last year before making the first ship-to-ship transfer in April this year.

“We were invited during the consultation and it was amply shown to us that the LNG is clean and safe,” Artagame said. “Of course, we gave our suggestions regarding the operation, and the SBMA officials assured us that they will stop the operation if ever there will be any harmful effect. By the grace of God, no such effect had ever come our way since then,” he added.

Aside from the perceived safety of STS operations here, Del Rosario also pointed out that the area where the transfer is being handled is no longer a part of the community fishing grounds ever since the US Navy had used Subic Bay as a military base.

“We are fishing elsewhere, a little farther from the location of the LNG and even father out of the bay, and the SBMA is even helping us restore coral reefs that have been damaged over the years by illegal fishing,” Artagame said.

Ever since the LNG project was approved, only two transfers have been made: the first was made on April 27 and the second on November 19. (HEE/MPD-SBMA)

PHOTOS:

[1 ]Laureano Artagame, Provincial Chairman of FARMC Zambales and Vice-Chairman of FARMC of the Municipality of Subic.

[2] 3The first LNG ship-to-ship transfer operations on Subic Bay made last April.

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SBMA takes over computer school for failure to pay obligations

The Subic Bay Metropolitan Authority (SBMA) on Saturday (Nov. 25) peacefully took control over the facilities of a computer school for failing to settle its financial obligation to the SBMA amounting to more than P19 million.

The move came after the Regional Trial Court (RTC) in Olongapo City denied the application of a Comteq Computer and Business College Inc.to restrain the SBMA from serving an eviction notice due to its failure to settle outstanding obligations.

The SBMA’s Legal Department, assisted by personnel from the Law Enforcement Department, entered the premises of COMTEQ Computer and Business College at about 6:30 in the morning and informed the school’s personnel of the takeover.

Atty. Melvin Varias, lead of the SBMA team who took over said, that although COMTEQ shall be closed to its students and personnel, students and faculty of the nearby UP Extension Program in Olongapo (UPEPO) shall be allowed to enter the complex and use the facilities it has been sharing with the computer school.

In an order issued on Nov. 20, 2017, Judge Richard A. Paradeza of RTC Branch 72 refused to grant Comteq Computer and Business College, Inc. a temporary restraining order (TRO) against the SBMA in the absence of a reason for its issuance.

“One of the requisites for the issuance of a temporary restraining order is the presence of a substantial right that needs to be protected,” Paradeza said in his order.

However, “It is clear that (Comteq) has no clear existing and unmistakable right in esse that is entitled to legal protection, a violation of which would justify the issuance of the injunctive relief applied for,” Paradeza ruled.

The court in its order noted that Comteq filed an application for TRO to prevent the SBMA from taking over the classrooms and offices that the school occupied in Bldg. Q-8131 located at the Subic Bay Freeport Zone. The school also sought “to prevent the harassment of students, teachers and staff by padlocking the classrooms, sequestering books and learning equipment, and preventing students and teachers from conducting their right to attend classes.”

However, Paradeza noted that on Nov. 14, 2017, the SBMA had already issued a notice giving Comteq until Nov. 19, 2017 to vacate the subject premises and to pay its outstanding obligation with the SBMA that amounted to P19,971,435.68.

He also noted that the SBMA has allowed Comteq to use the said facilities up to Oct. 31, 2017 for humanitarian reason, and that Comteq “had even wrote a letter dated April 27, 2017, asking SBMA that it be given up to the end of October to look for a new building to relocate to.”

Paradeza said that Comteq had essentially argued that pursuant to Batas Pambansa 232, or an Act for the Establishment and Maintenance of an Integrated System of Education, as well as Section 32 of the Manual for Regulations for Private higher Education, the termination of a school year shall be effected only at the end of an academic year.

But the judge also ruled that Comteq’s right to occupy the subject premises “had already expired on Oct. 31, 2017, pursuant to SBMA Board Resolution No. 17-05-0167 dated May 10, 2017” and that a similar notice to vacate and demand to pay had been sent by the SBMA to Comteq on March 30, 2017.

“It would appear that ample time was already given to the plaintiff to vacate the subject premises,” Paradeza said.

“The fact that the eviction notice was given in the middle of academic year is not substantial enough to prove the plaintiff’s right in esse. Besides, plaintiff already agreed to vacate the subject property at the end of October 2017 per letter dated April 27, 2017,” the judge added.

“Therefore, at this stage of proceedings, it cannot be said that plaintiff Comteq Computer and Business College, Inc. has substantial right on the subject premises that needs to be protected,” hence the court’s refusal to grant a TRO, Paradeza added. (30)

The SBMA issued Comteq a notice to vacate its facilities it is occupying at Building Q-8131 on Manila Avenue at the Central Business District after the school failed to meet requirements for its continued operation here.

SBMA concerned over fate of Comteq students

Earlier, the SBMA aired its concern over the fate of students of Comteq Computer and Business College, all because of the latter’s failure to pay its rental dues despite the leeway the agency has given for the school to meet its obligations.

“It’s because of the students that the SBMA has given Comteq enough consideration for far too long. This has been a lingering case of irresponsibility on the part of Comteq owners and I am sorry to say that we cannot extend any more generosity to them,” SBMA Chairperson and Administrator Wilma T. Eisma said.

Eisma said that as early as April this year, the SBMA Legal Department has already issued a “Notice to Vacate with Demand to Pay” because the school has been operating without any valid lease agreement nor business registration with the SBMA, as well as failing to pay obligations with SBMA in the amount of Php17,771,863.19.

Eisma explained that the SBMA has actually taken over the Comteq facility last April, but the Board has granted another extension of six months for humanitarian reasons.

“However, during this final extension of six months, Comteq should have either settled their arrears with SBMA or should have responsibly arranged for the migration and transfer of their students, but they did not. Instead, they filed a case in court, thus betraying the kindness of SBMA,” she added.

In a letter dated April 27, 2017, Comteq president Danny J. Piano argued that the basis for the SBMA back pay rent of P17.7 million “is highly debatable” and added that the school “just have no capacity of paying back even a significantly reduced back pay rate.”

“Because of this, the new Board of Trustees of Comteq have come to the decision to transfer Comteq College out to Olongapo City where the rates are much lower,” Piano said.

Piano also asked for “a sufficient-enough transition” for the transfer, which he said can be successfully achieved by the end of the 2017 first semester or end of October.

With this, the SBMA Board allowed a six-month extension, but ordered that the school “should be fully out of the Subic Bay Freeport facility before the start of the 2017 second semester, or until October 31, 2017.”

SBMA records indicated that Comteq, which offers courses in preparatory, secondary, and tertiary levels, originally leased Bldg. Q–7932 starting 2008. In 2011, when construction of the Harbor Point Mall began, Comteq relocated to Bldg. Q-8131 where it occupied 10 rooms with a total area of 808.61 square meters, as well 188.55 square meters of common area.

Comteq’s transfer to the new location, however, met some problems as the building was also occupied by the University of the Philippines Extension Program in Olongapo (UPEPO), which wanted to solely occupy the building. After the SBMA Board finally approved Comteq’s lease proposal in August 2015, Comteq asked for a “rent-free” period from January 2011 when it transferred to Bldg. Q-8131, to August 2015 when the SBMA approved its lease. The SBMA, however, denied this request.

In May 2016, the SBMA reiterated its denial of Comteq’s “rent-free” request and further advised the school of its total back rentals amounting to P13.12 million. It also asked Comteq to submit a payment scheme proposal on the settlement of its rental obligations so that SBMA may process a contract for 25 years under the policy on educational institution.

However, without any positive response from the school on these matters, the SBMA Legal Department declared in August 2016 that because Comteq did not have any lease agreement with SBMA, or a sublease agreement with other Subic locator, or a valid certificate of registration, it was engaged in unauthorized operation inside the Freeport and in illegal use of SBMA property.

In January this year, the SBMA Board of Directors approved the issuance of a Notice to Vacate against Comteq and instructed management to file a case against the original owners for collection of the company’s outstanding obligations. (HEE/RBB/MPD-SBMA)

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Statement on the Issue of Canadian Trash in the Subic Bay Freeport

The Canadian wastes that have found their way into the Subic Bay Freeport Zone are a nagging concern that bedevils the Subic Bay Metropolitan Authority.

For one, these Canadian wastes have been classified as hazardous as per Toxic Substances and Hazardous and Nuclear Waste and Control Act of 1990, or Republic Act 6969, and their transport to the Philippines is in contravention of the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal, of which both the Philippines and Canada are a party to.

Second, it should be noted that the 23 container vans of hazardous wastes from Canada that arrived in Subic were just part of the 741 freight boxes transferred here by the Bureau of Customs in August 2014 in an effort to decongest the Port of Manila.

However, even with the discovery of hazardous wastes inside, little has been done by concerned parties in the interim to remove these items that were brought here illegally, and are now posing potential harm to the local environment and its people.

At the moment, eight of the original 23 containers remain at Subic’s New Container Terminal-1, as 15 others have been shipped for disposal at the Metro Clark Waste Management Corporation’s landfill in Capas, Tarlac in 2015. The remaining eight freight boxes are supposed to be sealed tight from within and without, but could we be sure that they won’t eventually leak the longer they remain in Subic stockyard?

For its part, the SBMA has called out this problem as early as 2015. We have demanded the removal of these hazardous wastes from the Subic Bay Freeport then. Now, as public attention has re-focused on this issue, we again call on concerned parties to re-examine our position on this matter.

Specifically, should Subic continue to suffer the unintended consequences of its effort to help decongest Manila? Should the Philippines be allowed to become a dumpsite for foreign trash? Should we be a party to some violation of an international accord that was specifically designed to prevent the transfer of hazardous wastes from developed to less-developed countries?

Clearly, we need to work out a solution to this problem. And we need to seal out the loopholes that had caused this problem in the first place.

We therefore join the Filipino nation in calling for the return of these wastes back to their Canadian shipper, and urge concerned parties to step up measures to ensure and hasten this end.


Wilma 'Amy' T. Eisma
Chairperson & Administrator

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SBMA execs, locators tackle freeport issues and concerns

Subic Bay Metropolitan Authority (SBMA) Chairman Martin Diño and Administrator Atty. Wilma Eisma met with freeport investors and stakeholders who raised various issues and concerns during a radio program at Grand Harbor Hotel.

The radio program “Pagawa at Iba pa” was the venue for locators such as Hanjin Heavy Industries and Construction – Philippines (HHIC-Phil), Global Terminal and Development, Inc. and other companies to voice out some issues that their companies are currently facing.

One of the issues was the repair of the Balaybay-Subic-Cawag Access Road used by shipbuilding personnel to report for work at the Redondo Shipbuilding Facility of Hanjin.

According to Hanjin Executive Director Pyung Jong Yu, the access road is used by tens of thousands of employees who work at the shipyard.

The road, he said, has been incomplete especially near the Club Morocco Beach Resort and Country Club.

He added that a patch of the road there has been wiped off by recent typhoons and has been a bane for them whenever they have to go to Subic Freeport.

Eisma said that the agency will look into the matter, citing that the local government unit (LGU) governing should help in fixing the access road.

She cited contiguous areas such as Morong must take part in fixing roads that connected their area to the Freeport.

Eisma stated that the SBMA will talk to the LGUs to fix the roads using the revenue shares they get from the agency.

She said that these shares should be utilized to further enhance their areas as part of the development scheme of both the municipality and the Freeport.

Another issue that a locator cited was the Common Use Service Area (CUSA) and the environment and tourism administrative fee (ETAF).

But the administrator pointed out that these fees are necessary in maintaining cleanliness and orderliness inside the Freeport zone. (Jonas Reyes. Manila Bulletin)

PHOTO:
SBMA Chairman Martin B. Dino and Administrator Wilma T. Eisma answer queries from Freeport locators, residents and business organizations in an impromptu forum during the anniversary celebration of Paggawa Atbp. radio program of the SBMA Labor Department held at the Grand Harbor Hotel in Subic Bay Freeport. (AMD/MPD-SBMA)

http://news.mb.com.ph/2017/01/27/sbma-execs-locators-tackle-freeport-issues-and-concerns/

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Truck ban hurting economy–chamber

The truck ban measure in Manila is partly to blame for a recent spike in the inflation rate and may hold back economic growth, locally-based foreign businessmen say.

The Foreign Chamber Council of the Philippines (FCCP) said that City Ordinance 8336 on road decongestion has increased the cost of doing business nationwide. FCCP chairman Philip Chien said transport and storage charges have risen significantly since the truck ban took effect.

The cost of trucking alone has nearly doubled following the truck ban in Manila, he said because cargo firms have been forced to charge more for the same services because their trucks can make fewer round trips daily.

“Our members are paying for the idle time of those trucks,” Chien said.

The chamber has recommended the immediate suspension of CO 8336 to avert the “derailment” of the economy; decongestion of the Port of Manila by relocating some of its key operations to other viable ports, such as the Batangas Port and the Subic Bay Port; removal of 35,000 empty containers; inclusion of the business sector in the formulation of a long-term solution to the present transport problems.

Chien said CO 8336 is likely to be reflected in the 3rd quarter Gross Domestic Product (GDP) figures. He said a growth of “less than 6 percent” is probable because of higher costs, delays in delivery and losses in business opportunities. The Aquino Administration is reportedly targeting upwards of a 7 percent growth.

FCCI’s membership includes the local chambers of commerce of Taiwan, India, Finland, Israel, Singapore, Spain, France, Turkey and Malaysia.

Chamber insiders said the Federation of Philippine Industries is being tapped to join the move to have the ban revoked.

The group has indicated plans to go directly to Malacañang for an audience.

“The Administration’s economic growth targets are at stake, so we think the President will support us,” it said in a statement. (Miguel C. Gil, Manila Standard Today)

http://manilastandardtoday.com/2014/08/08/truck-ban-hurting-economy-chamber

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Romeros deny any illegality in Subic deal

The camp of the Romeros of the Harbour Centre Port Terminal Inc. (HCPTI) yesterday denied they had committed any illegality in its deal to develop Subic Bay, claiming they were only victims of black propaganda by losing bidders who have been responsible for transforming the once glorious port into its current sordid state.

In a statement, lawyer Carlo Solis, head of the Administration Division of HCPTI said that their company had envisioned Subic to be a world-class seaport capable of handling large volume of cargoes and ships, not like its current state where neglect and disrepair are evident.

“That was what HCPTI had set out to do but for which we had found ourselves unjustly and unduly hailed to court,” Solis said.

Solis lamented it has been disheartening that HCPTI ended up being at the receiving end of baseless accusations for trying to develop Subic into a fully functioning and modern hub for shipping operations.

“All records would show that the HCPTI proposal to modernize Subic ports underwent rigorous government scrutiny and bidding process pursuant to the guidelines and procedures for entering into JVAs between government and private entities issued by the Neda. HCPTI not only followed all the rules and complied with the strict government standards and regulations, records will show that it also complied with additional requirements imposed by the SBMA Board,” Solis stressed.

Last week, Reghis Romero II and son, Michael Romero, chairman and chief executive officer, respectively, of HCPTI along with a list of former officials of the Subic Bay Metropolitan Authority (SBMA) were ordered indicted by the Ombudsman regarding a joint venture agreement between SBMA and Harbour Centre to develop and maintain ports and wharves at Subic Bay.

Ombudsman Conchita Carpio-Morales ordered the individuals charged for violation of the Anti-Graft and Corrupt Practices Act or Republic Act 3019.

Based on a resolution of the Ombudsman approved April 7, Morales recommended the prosecution of the Romeros along with former SBMA chairman Feliciano Salonga, former administrator and CEO Armand Arreza, senior deputy administrator Ramon Agregado, former Senior Deputy Administrator Ferdinand Hernandez, former Deputy Administrator Ma. Cristina Millan, deputy administrator Marcelino Sanqui, former board member Edralino Cajudo, former board member Antonio Rex Chan, former board members Ricardo Coscolluela, Angelita DJ Cruz, Teodoro del Rosario, Jorge Estanislao, Ma. Angela Garcia, James Lorenzana, Ma. Victoria Pineda, Stefani Saño, Jennifer Khonghun-Ting and Eddie Tamondong.

The 32-page joint resolution stated that the SBMA officials “displayed manifest partiality and evident bad faith in the performance of their functions.”

It cited the guidelines issued by the National Economic Development Authority (Neda) that a joint venture agreement (JVA) shall only be executed after the conduct of the competitive challenge (bidding) where a private sector participant has been declared winner and issued a notice of award. (Charlie V. Manalo, The Daily Tribune)

http://www.tribune.net.ph/nation/romeros-deny-any-illegality-in-subic-deal

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Subic tourists to pay new fees

SUBIC BAY FREEPORT, Philippines - Tourism establishments here were directed by officials of the Subic Bay Metropolitan Authority (SBMA) to start collecting Environment and Tourism Administrative Fee (ETAF) from tourists as the new policy was officially implemented last March 4.

During a public forum held here last March 12, SBMA Chair Roberto Garcia reminded tourism establishments or facilities owners to follow guidelines on collecting ETAF to avoid being fined or penalized.

Garcia stressed that the fund from the collection would “defray the costs for the continued protection and conservation of the environment.”

The new policy imposes P100 per room per night for hotels and other accommodation facilities for the first 5 nights of stay, and P50 per room per night on the 6th night onwards.

Meanwhile, a P20 fee will be collected per head in theme parks, beaches, swimming pools, cinemas, museums, amusement and other tourism establishments or events with fixed entrance fees, or 10 % of the fixed entrance fee, whichever is lower.

Garcia reiterated that they have already carried out various information activities to properly inform tourists about the new fee. He added that they would provide tourism establishments with notices of the implementation of the guidelines.
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Investors who attended the forum, however, raised concerns related to losing clients and profit, saying the new fees would discourage tourists from visiting or staying inside the Freeport.

Hotels and theme parks owners said they are worried that ETAF collection might also create confusion among their patrons that might even lead to complaints concerning the fees.

Burden

Evelyn Renion, general manager of the Casablanca Hotel and Condominium here, said the new fees would be a “burden” to hotel guests who might be surprised to find additional charges in their hotel bills.

Danny Tan, President of Subic Bay International Hotel, also expressed apprehension over the collection of ETAF, especially because many locators like them were informed about its implementation just recently.

Tan said aside that from confusing tourists, the ETAF collection would also complicate their sales system since they were unsure how to add this new fee to their official receipts. (Randy Datu, Rappler.com)

http://www.rappler.com/nation/53086-subic-tourists-new-fees?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rappler+(Rappler)

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Subic exec denies role as broker in rice fiasco

The deputy administrator of the Subic Bay Metropolitan Authority on Thursday denied that he acted as a go-between for an Indian company accused of smuggling 420,000 bags of rice into the country and a consignee based in the free port.

Stefani Saño said that, contrary to the testimony given at the Senate Wednesday, he did not broker a meeting between Amira C Foods International of India and Metro Eastern Trading Corp., a Subic Bay tenant.

In a statement submitted to the office of SBMA chairman and administrator Roberto V. Garcia, Saño said that, on March 20, Vicente Cuevas, a registered free port investor, invited him to a restaurant inside Subic to meet Indian businessmen who were interested in setting up logistics facilities.

He said that when he arrived at the restaurant, he saw Cuevas, Cesar Bulaon of Metro Eastern, and a group of Indian businessmen who introduced themselves as representatives of Amira Foods.

Protik Guha, who introduced himself as the head of the Indian delegation, said America was one of the biggest grain traders in India and was interested in investing in Subic.

Saño said Guha wanted to know if Metro Eastern was a registered company authorized to handle importations.

Guha also inquired about the SBMA’s policies on transshipment and logistics operations, activities that Saño said the SBMA wanted to promote.

Saño also said he was not at the Senate hearing Wednesday despite newspaper reports that attributed statements to him.

“I was in Subic and was surprised when informed by Chairman Garcia about the allegations made by Bulaon linking him with the rice importation fiasco,” Saño said.

He admitted meeting once more with Amira officials at the Edsa Shangri-La in Mandaluyong on March 22 with Cuevas, but not with Bulaon. At that meeting, the Amira officials again expressed interest in setting up operations at the Subic free port, he said.

He was accompanied at the meeting by Ivy Alipoon from the SBMA’s logistics department, who was appointed account officer for Amira’s project.

On May 21, Amira submitted a letter of intent signifying its plan to set up a business inside the Subic free port, and said it was looking for a one-hectare site to set up its logistics facilities.

Saño, who is scheduled to appear before the Senate panel investigating the rice shipment on Tuesday, said he would be denying any role in its processing or that he helped find the warehouse to store the grain.

Also on Thursday, the Bureau of Customs said the Indian rice shipment was originally 430,000 bags, but 4,000 bags were lost to pilferage, leaving only 426,000 bags.

A memo from X-ray Inspection Project field officer Filemon Obejas Jr. said 430,000 bags of rice consigned to Metro Eastern arrived in bulk, but they could account for only 426,000 bags because of pilferage from the warehouse where it was stored.

It was unclear, however, why only 420,000 bags were eventually reported.

Customs Commissioner Ruffy Biazon said the shipment from India arrived on April 4 aboard the vessel Vinalines Mighty.

Biazon said his men got suspicious when the importer failed to produce the needed requirements for rice importation such as the allocation and import permits from the National Food Administration.

Metro Eastern said the real consignee of the shipment was Amira, and that the rice was originally destined for Jakarta but its import permit there had lapsed because of the delays in its shipment.

But Subic officials said the shipment was really destined for delivery to the Philippines based on its bill of lading.

A packing list and commercial invoice from Amira also identified Metro Eastern as the consignee and Subic as the port of discharge.

“Without doubt, this is a case of large-scale attempt to smuggle rice into the country. Had we not stopped this illegal rice importation, it could have caused tremendous damage to our local farmers,” said Biazon who ordered the shipment seized.

Amira later filed an appeal to have its shipment released. (Willie E. Capulong, Joel E. Zubano and Othel V. Campos, The Manila Standard Today)

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OSG lauds SBMA’S full support in drug case probe

The Office of the Solicitor General has lauded the management of the Subic Bay Metropolitan Authority (SBMA) for providing full support to the fact finding panel that is investigating the smuggling of more than 700 kilos of shabu into the Subic Bay Freeport a year ago and the circumstances leading to the escape of the principal suspect, Anthony Ang.

Solicitor General Agnes VST Devanadera said that since the SBMA has jurisdiction over the places where the P5-billion worth of drugs were seized by SBMA law enforcers, the agency should lead them to the places mentioned in the reports.

“And we are getting the very best support,” Devanadera said, adding that the support they have received from SBMA is better than what they expected.

Devanadera heads the fact finding teeam of the Malacañang-appointed panel headed by former Supreme Court Associate Justice Carolina Griño-Aquino, with former Sandiganbayan Associate Justice Raoul Victorino and San Beda Graduate School of Law Dean Ranhilio Aquino as members.

“The role of the OSG is really to gather the materials so that it will be easy for the panel to conduct its investigation. For example, now we’re getting names, we’re getting places. The next days, some of the members of the panel will come over. And by Monday, the panel is ready to start the hearing,” she said.

Before arriving in Subic, Devanadera admitted that they thought the SBMA officials would not be available to accompany them. SBMA Administrator Armand Arreza, however, who is on an official business trip in the United States, called her up assuring her of SBMA’s all-out assistance.

“Iyon bang extra efforts na ganoon, syempre nakita namin yung suporta and that we really appreciate,” she noted.

Earlier on, SBMA officials said they welcomed the investigation and expressed hope that “it would bring out the facts of the case so that speculations could finally be set aside.”

During their inspection, the team was welcomed and assisted by SBMA Senior Deputy Administrator Ramon Agregado, who has been designated officer-in-charge while Arreza is abroad; Law Enforcement Department Manager Gen. Orlando Madela (ret); Deputy Administrator for Legal Affairs Atty. Bob Ongsiako and other SBMA senior officials.

The team inspected the different areas mentioned in the reports submitted by the PASG, the SBMA and the police, as well as other documents pertinent to the case.

“So tiningnan namin kung saan nagdock, paano iyong movement nung shabu, and then how they got to the different places - like the 60 boxes that went into this warehouse, but there is no record of how these boxes got in here,” Devanadera said.

Senior Deputy Adminstrator for Support Services Ramon Agregado, meanwhile, said that SBMA is fully supporting the Griño Panel or any investigating body that is looking into the case of Anton Ang.

“SBMA is providing the physical requirements for the ocular inspection of the (Griño) commission. Basically, we’re providing for the needs of the Commission in terms of documentation, the testimonies of the SBMA witnesses and access to the places where the drugs were seized,” he said. (SBMA Corporate Communications)

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SBMA clarifies issue on Subic drug bust

The Subic Bay Metropolitan Authority (SBMA) clarified on Friday that the agency initially treated the case of drug trafficker Anthony Ang as “simple smuggling” because there was no indication at that point that the boxes he brought into the free port contained drugs.

“This is precisely the reason why we called on the assistance of the Presidential Anti-Smuggling Group (PASG) and not the Philippine Drug Enforcement Agency (PDEA),” said SBMA senior deputy administrator for operations Ferdinand Hernandez.

“We had no idea that the boxes Ang carried when he was apprehended by SBMA law enforcers contained shabu,” Hernandez stressed, adding that the boxes even yielded a negative reaction from drug-sniffing dogs.

Hernandez issued this clarification after some quarters wondered out loud why the SBMA did not bring PDEA early on in the case, as President Arroyo ordered a manhunt for Ang, who was reported to have slipped out of the country.

“Ang insisted that the boxes contained sensitive computer parts. And because Ang was a registered investor in Subic, he was given due courtesy even when we detained his cargo while he promised to produce the necessary documents,” the SBMA official said.

Hernandez said the PDEA was only informed of the case when SBMA and PASG operatives opened the boxes later in the presence of representatives from Hualong International Inc., Ang’s registered company in the Freeport, and found out that the eight boxes actually contained drugs.

At that time, however, Ang, who had promised to return with documents, had gone missing, along with his family. His employees at Hualong denied any knowledge of the contents of Ang’s cargo or of the whereabouts of Ang and his family.

It might be recalled that Ang was first apprehended by SBMA policemen in the evening of May 25, 2008, as he tried to bring out of Subic’s SRF area eight boxes from the Vietnamese-registered boat FB Shun Fa Xing.

Under questioning, Ang refused to open the boxes and pleaded with SBMA officials to release what he described were “sensitive computer parts.”

Hernandez said Subic authorities, however, gave two conditions for the release of the boxes: that Ang produce the necessary documents, and that a 100 percent inspection of the cargo is made.

Hernandez also said that it was through the persistent efforts of the SBMA police, SWAT team and Harbor Patrol group that three more caches of drugs apparently secreted by Ang in various areas of the Freeport were discovered immediately after the initial May 25, 2008 incident.

He said that after shabu was found inside Ang’s boxes on May 27, SBMA law enforcers recovered on May 28 two bags of shabu floating on the water at the SRF area, and 60 more bags inside a van hidden near the Hualong warehouse.

On June 7, 2008, operatives of the SBMA Harbor Patrol Branch discovered three boxes containing shabu that were anchored underwater near the area where FB Shun Fa Xing docked earlier.

In all, Subic operatives recovered a total of 744 kilos of high-grade methamphetamine hydrochloride or shabu, Hernandez said. (SBMA Corporate Communications)

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Palafox apologizes over corruption claims in Subic

Manila - “It can be hearsay, or maybe factual. I’m very sorry if it created a lot of trouble.”

With this, renowned architect and urban planner Felino Palafox Jr. on Wednesday apologized to five public officials, including Senator Richard Gordon, who he implicated in alleged anomalies at the Subic Bay Freeport during a congressional hearing last week.

Palafox issued the apology during the resumption of the hearing conducted by the House committee on bases conversion, after failing to substantiate claims of protectionism and corruption against Gordon, Philippine Amusement and Gaming Corp. (PAGCOR) chair Ephraim Genuino, former congressman Prospero Pichay, Buhay partylist representative Carissa Coscolluela, and Subic Bay Metropolitan Authority (SBMA) director Ricardo Coscolluela.

The House committee, chaired by Isabela Representative Edwin Uy, now investigates various claims by Palafox in the controversial Ocean 9 hotel-casino project. These include allegations on tree-cutting at the project site, as well as a purported extortion attempt related to bidding for the revision of the SBMA Master Development Plan.

Palafox said earlier that the five names he mentioned were being brought up constantly by “hundreds of people” as protectors of SBMA Administrator Armand Arreza, and involved in some anomalies in the free port.

However, members of the committee began to intensely grill Palafox upon realizing that the architect cannot substantiate his charges with solid evidence.

“We cannot just allow anybody, even us legislators, to accuse anyone without reasonable basis,” said Rep. Rosemary Arenas.

Rep. Philip Pichay, meanwhile, told Palafox that he has caused pain not only to his brother Prospero, but also their mother and other people close to the family.

“My brother is in the water (utility) business,” said Pichay, then wondered aloud how his brother got associated with issues in Subic.

Pichay then demanded a public apology from Palafox, specifying that it must be printed and aired in the media to clear the names Palafox has “smeared”.

Palafox said in defense that he has “never accused anyone” and that he was merely relaying information he has received.

“I must apologize for the pain it might have caused,” said Palafox. “I am just a taxpayer — I don’t have the resources to investigate, so maybe these should be referred to the NBI (National Bureau of investigation), the Ombudsman, or to other agencies,” he added.

This, however, further irked Pichay, who asserted that Palafox should have held on to evidence before making accusations. He added that the committee hearing is not the proper venue to disclose hearsays.

SBMA Administrator Armand Arreza, meanwhile, expressed relief over the course of the investigation.

“The committee, I believe, is now realizing that all Palafox has got from the beginning was blank ammunition. He’s just making noise,” said Arreza. (SBMA Corporate Communications)


PHOTO:
Architect Felino Palafox Jr. tries to wiggle his way out of intense grilling by members of the House committee on bases conversion after failing to substantiate his allegations on corruption at the Subic Bay Freeport.

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Architects, planners call for objectivity on Subic ‘tree-cutting’ issue

Various professional associations, including the biggest group of architects in the country, have urged an objective appraisal of the proposed hotel-casino project in this free port, pointing out that development and conservation can co-exist.

In a manifesto released to the media on Wednesday, the Council for Built and Natural Environments (CBNE), which is composed of nine professional organizations, said “a second look” at the project is needed to come up with “a more objective and intelligent appreciation of the situation.”

“The CBNE believes that development and conservation can go together and both can synergize with each other to ensure the welfare of the public,” the group said.

“A careful review of the facts together with scientific, proper and judicious implementation of environmental and natural resource guidelines will achieve this,” the CBNE added.

The CBNE is composed of the United Architects of the Philippines (UAP), Philippine Institute of Environmental Planners (PIEP), Philippine Association of Landscape Architects (PALA), Geological Society of the Philippines (GSP), Integrated Chemists of the Philippines (ICP), National Master Plumbers Association of the Philippines (NAMPAP), Philippine Association of
Agriculturists (PAA), Philippine Institute of Interior Designers (PIID), and the Society of Filipino Foresters (SFF).

The group said it has taken a “special interest” on the tree-cutting issue considering the widespread interest and concern that it has generated.

The Ocean 9 hotel-casino project proposed by Korean firm Grand Utopia has been sidelined since groundbreaking in November last year after Architect Felino Palafox Jr. alleged that it would result in the destruction of some 300 trees, including supposedly century-old trees at the proposed project site.

The allegations by Palafox, who was previously hired to design the project, stirred a controversy, although the Subic Bay Metropolitan Authority (SBMA) had categorically stated it would not allow any tree-cutting.

The CBNE said the purported tree-cutting in the Subic Freeport “has been made to appear as an unconscionable imperative in favor of development that is grossly inimical to the environmental integrity of the proposed site.”

“This has sent an alarming signal that seems to pit development versus (the environment),” the group added.

The CBNE said that it also conducted a fact-finding mission to the site on February 5, 2009 after reviewing project technical reports presented to the media.

Among others, the fact-finding mission validated that the proposed hotel-casino project site is within Subic’s commercial district, that there is no natural forest in the proposed project site, and that no tree has been cut or felled, the CBNE statement said.

It also stressed that the three species of trees in the area, consisting of 33 individuals, that were earlier classified as “endangered” or “critically endangered” referred to species whose survival in the wild is unlikely, or those facing “extremely high risk of extinction in the wild.”

But “while some of those in the list may indeed be vanishing in the wild, they are actually planted and growing in abundance and are readily available commercially in just about anywhere else all over the Philippines,” the CBNE asserted.

The group also said that based on its investigation, it has concluded that the vegetation in the project site can neither be considered virgin forest, nor a natural or old-growth forest, and that there are no century-old trees in the area.

In view of its findings, the CBNE urged all concerned “to take a second look at the issue and come up with a more objective and intelligent appreciation of the situation.” (SBMA Corporate Communications)

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UIG claim of P1-B investment disputed

Officials of the Subic Bay Metropolitan Authority (SBMA) have disputed claims by the Universal International Group (UIG) that it has invested P1 billion to develop the golf course facility in this free port.

Pointing out that UIG was booted out of the facility precisely for its failure to introduce developments in the former US military golf links, the SBMA questioned where the supposed P1 billion investment went.

"We believe that the claim cannot be substantiated because we have yet to see the clubhouse, or the condo, or the villas that the UIG had promised in 1995," SBMA Administrator Armand Arreza said.

"As you can see, despite the UIG having operated the facility for more than 10 years, nothing much has changed. The property is still fenced off with barbed wire until now," he added.

Arreza said that UIG president Jack Ho apparently bloated his firm's capital exposure when he made his case for the company during a House committee hearing recently.

Ho said the P1 billion represented "an accumulation of so many investments, of operating expenses," with around P900 million going to improvements alone.

He claimed further that because of UIG's development, the golf course was assessed by a private appraisal firm in 2001 to be worth P1.3 billion.

SBMA officials, however, have pointed out that the UIG has not delivered on its commitments under its lease development agreement (LDA) with the agency.

The first development phase includes the rehabilitation of the golf course to world-class standards by 2001, the construction of two tee houses by 2002, a full service halfway house by 2003, as well as the establishment of a fishing area, an orchid garden and a handicraft center.

The SBMA said there was only partial compliance on these requirements, while the orchid garden and handicraft center have not yet been constructed.

The second and third phases would have seen the construction of a 100-room condominium and 80 villas by 2006, while the fourth phase would have the completion of a 400-room resort/casino hotel by 2011.

These commitments, however, have not been realized, the SBMA said.

Along with UIG's unpaid debts to the SBMA amounting to $44,070 in dollar account and more than P25 million in peso account, the unfulfilled development commitments had forced the agency to take over operations in May last year.

The dearth of improvements at the Subic golf course, meanwhile, has led irate members of the UIG-controlled Subic Bay Golf and Country Club to sign last June 15 a manifesto expressing support to the SBMA and "elation" over its takeover of the facility.

According to records, the SBGCC has close to 500 members who paid fees equivalent to P200,000 per share.

The paid-up membership fees, dues, and other income collected from the golf course operation, may have been the sole source of funds that the UIG had used for what little development the firm has introduced into the facility, club members also suspected.

Other members rued that the club shares they paid for turned out to be only "playing rights" because UIG has not delivered on the full-blown country club amenities that it has promised earlier. (SBMA Corporate Communications)

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Subic golf course contract not a ‘sweetheart deal’

The Subic Bay Metropolitan Authority (SBMA) has vehemently denied allegations that it has entered into a “sweetheart deal” with Hanafil Golf and Tour, Inc., a Korean-Filipino firm that is set to pour $48 million to redevelop the Subic Bay golf course.

SBMA Administrator Armand Arreza stressed that the agency had observed due process in awarding the contract to Hanafil, in accordance with RA 9184, otherwise known as the Government Procurement Reform Act.

“How could it be a sweetheart deal when, clearly, our agreement with Hanafil assures the government a P14-million income annually compared to the P3.6-million promised by the former operator?” Arreza asked.

“And this P14-million rental will be paid on top of a five percent revenue sharing scheme, as well as the $48 million development commitment,” he said.

Arreza also explained that the SBMA awarded the lease and development contract to Hanafil because the firm offered terms “most advantageous to the government” among the eight proposals received by the SBMA’s Bids and Awards Committee (BAC) for infrastructure.

“All these underwent the legal process — from the publication of an invitation to submit comparative proposals, to the creation of an oversight committee composed of SBMA directors and managers to oversee the bidding process,” Arreza said.

“So there is simply no substance to this sweetheart deal angle foisted by some detractors who seem to relish the idea of reverting to the previous contract that didn’t work out,” he added.

Arreza clarified these points in reaction to claims by Northern Samar Rep. Emil Ong that the terms and conditions of the Hanafil contract were “grossly disadvantageous to the government” because unlike the Universal International Group (UIG), the former operator, Hanafil was given a one-year grace period from payment of rentals to allow the new operator to develop the golf course.

Arreza said, however, that the SBMA has given the UIG “more than enough concessions already” to enable it to make good on its development commitments that were agreed upon as early as 1995.

Among UIG’s commitments were the construction of a first-class clubhouse, a five-star hotel and resort, a condominium and VIP villas targeted for completion before Subic hosted the Asia-Pacific Economic Cooperation summit in 1996.

Arreza said that the SBMA had allowed the UIG’s original lease and development agreement (LDA) to be amended three times, with the first amendment in 2001 effectively reducing the UIG’s rental fees, performance bond and service fees, and extending the firm’s compliance period for its commitments.

However, by January 2003, the UIG still accumulated $44,070 and more than P25 million in arrears, and also failed to deliver on its promises.

The second amendment in 2003 stopped the imposition of service fees altogether and waived future interest on fixed service fees, while the third, in 2004, reduced UIG’s lease rate by 50% and deferred the imposition of escalation rates.

Despite these, Arreza said the UIG continued to default on its obligations under the LDA and under the compromise agreements, so that by the end of March 2007 the firm’s arrears had ballooned to more than $2.55 million and P47.73 million.

“The firm’s failure to settle its debts and to fulfill its development commitments forced the SBMA to terminate UIG’s LDA in May last year in order to protect the interest of the government,” said Arreza. (SBMA Corporate Communications)

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Hanjin to improve safety in its Philippine shipyard

Shipbuilder Hanjin Heavy Industries Construction (HHIC) is to improve safety after the deaths of 15 workers at its Philippines shipyard in three years, an official said.

The news comes as the South Korean-based company enters into a contract to build two supertankers at the shipyard in the former US naval base at Subic Bay just north of Manila.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said Hanjin was working to improve safety standards, adding that the workers had died in accidents since construction of the shipyard began in May 2005.

Arreza said the rise of the shipyard, which he compared to an entire town, had been
swift. The shipyard which Hanjin says is the biggest in the world, covers 354 hectares (875 acres).

"This has been a challenge to us. Hanjin went from having zero employees in May 2005, when they began building the shipyard, to 20,000 employees this year," he added.

He said both Hanjin and the workers had to "comply with the culture of safety we
seek to inculcate into all locators at the SBMA.

"He added: "Many construction site mishaps are the result of the construction workers
not wearing their safety gear and we want to change that mindset."

Pyeung Jung Yu, the head of Hanjin's business department in Subic, said the shipyard had signed a contract to build two Very Large Crude Carriers (VLCCs) for 330 million dollars for Emarat Maritime LLC of the United Arab Emirates.

The 320,000-tonne, double-hulled vessels will be 333 metres (1,098 feet) long, 60 metres wide and 30.5 metres tall with a top speed of up to 16 knots.The tankers are expected to be delivered in 2011 and will be a first for Hanjin, which did not have
the space at its South Korea shipyards.

"We simply don't have the space in South Korea so it is only here in Subic that we can build these huge carriers," Yu said.

Hanjin' s Subic shipyard delivered its first ship, the 41,000-tonne container carrier MV Argolikos in July, and launched its second vessel, the CMA CGM Turquoise a month later. It also has contracts for bulk carriers with companies based in Hong Kong and Germany. (AFP)

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Hanafil golf deal ‘most advantageous’ to the gov’t

The awarding of a contract to develop the Subic Bay golf course to Korean-Filipino firm Hanafil Golf & Tour, Inc. is by far the most advantageous proposal for the government, the Subic Bay Metropolitan Authority (SBMA) said.

Reacting to allegations by Northern Samar Rep. Emil Ong that the terms of the lease given to Hanafil were “disadvantageous to the government”, SBMA Administrator Armand Arreza clarified that Hanafil won the open bidding for the golf course project “precisely because it gave the most generous offer.”

“Anyone, including Mr. Ong, can see for himself that Hanafil’s contract provisions are miles away in comparison with the old terms,” Arreza asserted.

He explained that while the former operator UIG International Development Corp. offered a rental of only P300,000 per month, or a total of P3.6 million in one year, Hanafil has offered $350,000, which translates to more than P14 million annually.

Aside from rental fees, Hanafil has also offered the SBMA a 5 percent gross revenue sharing and development commitments worth $48 million to be implemented within six years.

“Given these commitments by Hanafil, the P3.6 million annual income under the old contract that the honorable congressman seems to want to maintain simply doesn’t measure up,” Arreza said.

Arreza said the issue on the operation of the Subic golf course has been a “recurring theme” among some legislators like Ong ever since the SBMA terminated the UIG’s lease development agreement (LDA) last year due to ballooning debts amounting to $150 million.

He said Hanafil won over seven other companies in a bidding held last March that required proponents to deposit in an SBMA bank $3 million in initial development funds, as well as advance $400,000 in rentals to the SBMA treasury.

The bidding process was duly reviewed by an oversight committee composed of members of the SBMA board of directors and other officials of the agency.


As to the UIG, which is lobbying to repossess the golf course, Arreza said the SBMA “can no longer continue having false hopes with a repeat offender,” pointing out further that the SBMA takeover of the golf course last year and in 1997 had been affirmed respectively by the Regional Trial Court in Olongapo City and the Supreme Court.

“It’s precisely because the government was losing money from the continued operation of UIG that the SBMA took over the operations twice,” Arreza said.

“The SBMA has given the former operator enough concessions,” Arreza said.

However, the Taiwanese firm had “utterly failed to honor its development commitments made as early as 1995,” he added. These included the construction of a first-class clubhouse, a five-star hotel and resort, a condominium and VIP villas.

Ong had also asked the House committee on oversight to investigate SBMA’s awarding of the golf course lease to Hanafil, purportedly because the firm is headed by Benjamin John Defensor III, reportedly a nephew of pro-administration senator Miriam Defensor-Santiago.

Ong has also raised the possibility that Defensor “is just fronting for South Korean investors” since he reportedly holds less than one percent of the shares, while his Korean partners own 87 percent of the company.

That issue, Arreza said however, “is just water under the bridge.”

“What matters to us is the capability of the company to deliver — and we believe that Hanafil has that capability,” he added. (SBMA Corporate Communications)

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Hanjin workers to get mandatory safety training

Construction workers employed at the shipyard here of Hanin Heavy Industries Corp.-Philippines (HHIC-Phil) will undergo a mandatory safety orientation course starting next week to help address safety concerns at the $1.6-billion shipbuilding facility.

The training was required by the Subic Bay Metropolitan Authority (SBMA) and the Department of Labor and Employment (DOLE), which have both expressed alarm over the number of fatal accidents at the shipyard since 2007.

“This will be a basic safety orientation course for construction workers, including safety officers, employed by both Hanjin and its subcontractors,” said SBMA Administrator Armand Arreza.

“Everyday, starting September 1, there will be 120 shipyard workers attending the safety course,” he added.

The safety appreciation courses, which will be conducted by the DOLE’s Occupational Safety and Health Center, will cover five topics each day.
The primary target audience for the courses are safety officers employed by Hanjin and its subcontractors. These key personnel are then expected to echo the topics discussed among employees belonging to their respective work units.

Arreza explained that the safety orientation course was deemed necessary because investigations of the 15 fatal accidents in the shipyard indicated some safety lapses committed by workers themselves, aside from those by subcontracting firms.

“There were cases when workers refused to wear hard hats because they found it uncomfortable. So we have to really inculcate a culture of safety among the workers, too,” he said.

Aside from the courses set for next week, health and safety personnel from the DOLE and the SBMA have also conducted trainings at the Hanjin shipyard recently, according to the SBMA Occupational Health and Safety Office.

One of these safety courses was conducted on August 21 by the DOLE’s Bureau of Working Conditions and the Association of Safety Practitioners, Inc., a private safety group.

A five-day construction safety training is also being conducted by a DOLE team since Tuesday, with 58 participants from Hanjin and subcontracting firms.

Arreza also said that as part of the SBMA’s action plan to foster safety at the Hanjin shipyard, the agency will set up an office at the site, to be manned by occupational health and safety personnel as well as employees from the SBMA Labor Department.

“We (the SBMA) want to establish a strong presence at the shipyard, so we can enforce adequate control,” Arreza said.

At the same time, Arreza gave the assurance that Hanjin subcontractors who were found to have violated regulations on occupational health and safety and other labor requirements “won’t be tolerated by the SBMA.”

He said that of the 42 companies subcontracted by Hanjin for various operations in the shipyard, 18 have been terminated due to infractions or failure to secure proper accreditation. These included UT Corporation, whose worker Efren dela Cruz became the 15th fatality at the Hanjin construction site.

The other subcontractors whose accreditation were not renewed are: Electro Dynamics Construction Development Inc., AFR Construction & Development Co. Inc., Canall Corp., Ron Daniel Construction Corp., Traffic Control Product Corp., General Corp., Geoscience Technology, A.V. Subia Garden, Beton Bau Phils. Inc., Doublefold Construction Corp., Inyoung Phils. Inc., Jeil Sanup Corp., KMI-KJK Inc., LC Builders & Developers Inc., R.P. Alejandro Construction Inc., Wierig Industrial Products Inc., and I. Stone International Corporation. (SBMA Corporate Communications)

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SBMA probes 18 Hanjin contractors

The Subic Bay Metropolitan Authority (SBMA)has started investigating the subcontractors of Hanjin Heavy Industries & Construction Philippines Inc. in the wake of workers’ deaths inside the shipyard of the Korean company in this Freeport.

SBMA Administrator Armand Arreza said the agency’s investigation of the latest death at the shipyard, involving Efren de la Cruz who was electrocuted on Aug. 12 while working at Hanjin’s motor pool, yielded a troubling pattern among the subcontractors.

“In all the deaths, the common problem is that these workers were not wearing, or did not have, their safety gear or PPEs (personal protective equipment). Either they
were not given any, or they weren’t using it for some reason,” said Arreza.

De la Cruz, hired by Hanjin subcontractor Unicorn T (UT) Corp., died before reaching the San Marcelino Hospital. He was the 15th worker reported to have died while working at the shipyard. On Aug. 7, Arvy Mahinay, 19, who was employed by Hanjin subcontractor Bodahh Inc., died when he fell from a roof while retrieving his helmet that was blown off by the wind.

Poor judgment

In a statement, the SBMA said De la Cruz was electrocuted while working at the shipyard’s motor pool. He and four other workers were using an electricity- driven tool when the accident happened, the SBMA said.

Pyeong Jung-yu, Hanjin general manager, earlier said De la Cruz died after a heart attack. Yu said they did not report De la Cruz’s death immediately to the SBMA or the Department of Labor and Employment because he did not die in an accident.Arreza said most of the deaths could be attributed to “poor judgment on the part of the worker or workers involved in an accident and/or negligence on the part of Hanjin or its subcontractors.”

Fake papers

He said UT Corp., which is owned by a Korean, had faked its certificate of registration and tax exemption (CRTE), a document that allows them to operate within the Subic Freeport without paying duties.

“We found out that UT Corp. was using fraudulent documents while conducting our investigation into De la Cruz’s death. Also, they were not giving their workers the proper benefits, or paying their SSS (Social Security System) contributions. Plus, most of their workers did not have the proper safety gear, like De la Cruz,” he said.

The SBMA has since banned UT Corp. from doing business inside the freeport while Hanjin has terminated its contract.Arreza said the SBMA began cracking down on the subcontractors in July, after worker Benje Gamolo died that month when he was hit by
an eight-ton steel beam.At least 18 of 42 Hanjin subcontractors were either unregistered or had expired registrations, SBMA reports said.

“Without the registration, they (subcontractors) cannot work. For those subcontractors [who have] expired registrations, they can continue [operating in the free port]. [There is] automatic renewal if they have no violations,” said Arreza. (Robert Gonzaga, Inquirer Northern Luzon)

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Shipyard Worker Electrocuted

The Subic Bay Metropolitan Authority (SBMA) is set to issue another notice of violation to Hanjin Heavy Industries Inc. (HHIC) for “not enforcing the occupational safety regulations on its sub-contractors” following the death of another worker the other day (August 12, 2008).

The worker, identified as Efren de la Cruz, 23, native of Almasen, Hermosa, Bataan, was accidentally electrocuted while working at the shipyard’s Motor Pool (U-Ditch Area) using a power driven tool, together with four other workers of sub-contractor UT Construction.

Amethya Koval, manager of SBMA Ecology Center, said that initial investigation showed there was rainwater in the ditch about three inches deep.

“There were five of them in the group, however only three of them were wearing company-issued rubber boots,” Koval said.

She said that the jackhammer De la Cruz was using was connected to an extension wire that may have fallen or gotten in contact with the water in the ditch, thus electrocuting the unprotected worker.

The victim was immediately brought to the HHIC clinic for first aid treatment and transferred to the San Marcelino District Hospital for further medical treatment but was declared dead-on-arrival (DOA). The attending physician observed that the patient had “bleeding nose and ears, blackened lips and fingers” – manifestations that occur in electrocution cases.

In her report to SBMA Administrator Armand Arreza, Koval recommended the issuance of a Notice of Violation to HHIC Construction, stressing its failure to enforce occupational safety regulations on its sub-contractors and the “lack of supervision by its safety officers on critical working environment.”

“In fact, no job safety analysis was conducted and no Work Permit for that activity was issued,” she said.

Koval also noted that the victim’s employer, UT Construction, a sub-contractor of HHIC Construction, has no SBMA Accreditation and Permit to Operate (PTO), having submitted the accreditation requirements to the SBMA Business Group only on August 7.

“Due to blatant negligence of the contractor to work safety standards, particularly on work environment assessment and provision of appropriate personal protective equipment to its workers, it is recommended that said contractor should not be issued any business permit,” Koval recommended.

Earlier, Arreza has asked Hanjin to terminate the accreditation of three sub-contractors which were found negligent in the implementation of occupational safety standards in the work areas of the shipyard. (SBMA Corporate Communications)

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Redondo worker falls to death; subcontractor suspended

Another worker of Hanjin subcontractor Bodahh, Inc. died at the Korean project site in Redondo Peninsula after falling off the roof of a structure.

He was the fourth fatality in the subcontractor's record since last year.

According to initial information from the Subic Bay Metropolitan Authority (SBMA), 19-year old Arvy Mahinay, a resident of Pasig City, fell off the roof of a shelter under construction after he tried to go after his falling helmet.

The accident occurred at about 4:10 p.m. on Wednesday at Hanjin's Dockyard No. 5.

SBMA investigators said the victim was wearing a safety belt hooked to a lifeline while at work on the roof.

However when his safety helmet accidentally fell off, Mahinay reportedly unhooked his lifeline as he tried to retrieve his helmet.

The victim reportedly slipped and subsequently fell 29 meters to the ground.

SBMA Administrator Armand Arreza said the agency is conducting further investigation into the incident, but announced at the same time that SBMA has ordered the suspension of any activity of the subcontractor.

Mahinay's employer, Bodahh manager Suk Ho Kang, was also given 72 hours to show cause why the company's certificate of registration should not be revoked.

Arreza added that SBMA is also studying the permanent cancellation of Bodahh's accreditation in view of its involvement in a number of accidents at the Redondo project site.

Previously, three other workers employed by Bodahh have figured in fatal accidents, including two who also fell off rooftops.

The first victim employed by Bodahh fell off the roof of an assembly shop on February 22 last year; the second, from a 9-meter high structure on March 11, 2008; and the third, in a vehicular accident only last June 11.

The latest incident is the 14th fatal accident to happen at the Hanjin shipyard here, where some 15,000 workers are employed by the South Korean shipbuilder and its subcontractors. (SBMA Corporate Communications)

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