US Defense Secretary, US Ambassador visit Subic Bay following dialogue with Ph counterparts

The Subic Bay Metropolitan Authority (SBMA) Board of Directors and agency officials welcome US Secretary of Defense Lloyd Austin III and US Ambassador MaryKay Carlson, during their brief visit to Subic Bay Freeport on Wednesday (July 31, 2024) as part of their official itinerary. 

This, after Secretary of State Antony J. Blinken, alongside the US Defense Secretary, met with Philippine President Ferdinand Marcos, Jr., in Manila the day before the Subic visit. 

The US officials held the 4th 2+2 ministerial dialogue with their Filipino counterparts, Secretary for Foreign Affairs Enrique A. Manalo and Secretary of National Defense Gilberto C. Teodoro, Jr. 

Secretary Blinken, Secretary Austin, and President Marcos discussed the momentum in United States-Philippines relations over the past year and reaffirmed the critical role of the U.S.-Philippines Alliance in realizing our shared vision of a free and open, connected, prosperous, secure, and resilient Indo-Pacific region. 

While in Subic Freeport, Secretary Austin visited the headquarters of the Philippine Navy at the Agila Subic compound (Agila North). 

On his social media site X, Secretary Austin wrote: “It was great to visit Subic Bay, including the headquarters of the Philippine Navy, at a time when we’re doing more than ever to deepen our defense industrial cooperation and support the Philippine military’s modernization.” 

Later, Austin wrote another post: “The United States, the Philippines, and our partners are hard at strengthening our defense industrial bases like never before. It was great to see those results and opportunities firsthand at Subic Bay.” 

The United States government plans to invest in high-quality, high-impact infrastructure via the Luzon Economic Corridor that includes key economic hubs such as Subic Bay, Clark, Manila, and Batangas (SNL).

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SBMA gets upgrade on GOCC Classification

President Ferdinand Marcos Jr. has approved the upgrade of the classification of the Subic Bay Metropolitan Authority (SBMA) as a Government Owned and Controlled Corporation (GOCC), pursuant to Executive Order no. 24 series of 2011.

The president also upgraded the classification of two other GOCCs - the Authority of the Freeport Area of Bataan (AFAB) and the Phividec Industrial Authority (Phividec).

In a Memorandum from Executive Secretary Lucas Bersamin to Finance Secretary Ralph G. Recto, the President has approved the classification upgrade of the SBMA from C to B.

SBMA Chairman and Administrator Eduardo Jose L. Aliño expressed his gratitude to President Marcos for approving the upgrade of the agency’s classification, and to Finance Secretary Recto for facilitating the request for classification upgrade of the concerned GOCCs.

Chairman Alino also stated that the upgrade will provide better incentives for the Board of Directors as stewards of the SBMA, and as caretakers of the best interests of stakeholders in the Subic Bay Freeport zone.

“Their expertise is very much needed in boosting the development of Subic Bay Freeport, be it infrastructure, revenue collection, operations, or attracting more tourists and investors. I want them to not just be a part of the decision-making body, but also a reliable and dependable source of invaluable ideas and insights,” he said.

The upgrade in classification was cemented by 2023’s collection of operating revenues, amounting to P4.116 billion, the highest recorded in the history of the agency. Aliño said that this is the second year that the SBMA has breached the P4-billion mark in operating revenues, specifically at P4.057 billion.

He added that last year’s P4.116 billion operating revenue is higher than 2022’s operating revenue by P59 million, which is 1.5 percent higher.

According to the said memo that was received by the SBMA on Wednesday, the request for classification upgrade was granted after careful and stringent evaluation based on the provisions contained in Section 6 of EO 24 s.2011 entitled GOCC Classification. The said provision determines the maximum allowable compensation of the members of the Board of Directors/Trustees in GOCCs and government financial institutions.

The same section also provides that, for a GOCC such as the SBMA to be upgraded from C to B, the Agency is required to have assets worth equal or more than P25billion and or less than P100 billion, and revenues  equal or more than P2.5 billion and less than P10 billion.

The classification of the two other GOCCs, namely AFAB and Phividec, was upgraded from D to C after proving to have satisfied the criteria in Section 6 of EO 24, with assets worth more than or equal to P5 billion and less than P25billion, and revenues of more than or equal to P500 million and less than P2.5 billion.

The memo by ES Bersamin was addressed to Finance Secretary Recto, with copies sent to Chairman Aliño, AFAB Chairman Pablo Gangcayco, and Phividec Chairman Jesus Guevarra II. (SNL) 

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Paulino welcomes appointment of new SBMA directors

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Rolen C. Paulino welcomed the appointment of new members of the Board of Directors in a statement released by the agency here on Tuesday.

Paulino cited that the appointment of the new members would mean the continuity in the operations of the SBMA, citing that more companies are now gearing towards investing inside this premier Freeport Zone.

President Ferdinand Marcos Jr. recently appointed six new directors, reappointing two others in an appointment letter sent by Executive Secretary Lucas Bersamin on December 27.

Among those who were appointed as members of the SBMA’s Board of Directors included Honorio Cabaguio Allado III, Jose Mari Balandra Ponce, Kenneth Lemuel Go Rementilla, and Amable Bancod Tolentino, all representing the private sector.

The President also appointed Allan Troy Dandan Baquir and Edelberto Salgo Mozo to represent the National Government and the Business and Investment Sectors, respectively. The president also reappointed Tomas Fausto Lahom III and Maria Cecilia Bobadilla-Bitare to continue their work as SBMA directors.

“The SBMA is pleased and honored over the appointment of the members of the SBMA Board of Directors. With that, we can now continue with the development of the Subic Bay Freeport Zone,” Chairman Paulino said.

Currently, the agency has approved foreign direct investments worth P32.98 billion, which accounted for 71.34 percent of the total P46.23 billion approved by all Investment Promotion Agencies (IPAs) in the country during the second quarter of 2022.

Paulino attributed the big leap from P20.5 million approved investments in the same period last year to the aggressive efforts of the SBMA business group in attracting investors in Subic Bay.

The Subic Bay Freeport workforce is at 146,711 working for 3,731 companies here. Paulino cited that Olongapo has the biggest number of workers with 65,363 employees, followed by Zambales with 27,027.

The official also said that most of the workers are males at 102,070 against the 44,641 female workers, mostly working in the service providing companies. The service sector makes up 74.25 percent of the workforce, followed by the manufacturing sector with 13.76 percent.

The two categories are followed by the construction sector with 8.38 percent, and marine-related services with 3.61 percent. (MPD-SBMA) 

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PBBM names new SBMA board members

President Ferdinand R. Marcos Jr. has appointed eight new members of the Subic Bay Metropolitan Authority (SBMA) board of directors.

According to Palace press briefer Daphne Paez, the following are the latest appointees to the Board of Directors of the SBMA:

• Allan Troy Dandan Baquir - member representing the national government;
• Edilberto Salgo Mozo - member representing business and investment sectors;
• Tomas Fausto Lahom III - member representing business and investment sectors;
• Honorario Cabaguio Allado III - acting member representing the private sector;
• Jose Mari Balandra Ponce - acting member representing private sector;
• Kenneth Lemuel Go Ramentilla - acting member representing the private sector;
• Amable Bancod Tolentino - acting member representing private sector; and 
• Maria Cecilia Bobadilla-Bitare - acting member representing the private sector

Under Sec. 13 (c) of Republic Act (RA) No. 7227, or the Bases Conversion and Development Act of 1992, the SBMA Board of Directors must be composed of 15 members from different sectors.

There must be two representatives from the national government; five representatives from the private sector coming from the present naval stations, public works center, ship repair facility, naval supply depot and naval air stations; and the remaining must be composed of representatives from the business and investment sectors.

The SBMA is the operating and implementing arm of the Philippine government for the development of the 670 square kilometer area of Subic Bay Freeport (SBF) into a self-sustaining tourism, industrial, commercial, financial and investment center to generate employment opportunities. (SNL)

Read related story here- https://www.pna.gov.ph/articles/1191662 

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SBMA extends grace period for rents, business fees

Business locators in this Freeport received yet another relief from the effects of the Covid-19 lockdown when the Subic Bay Metropolitan Authority (SBMA) extended the suspension of rentals and other payments due since the start of the enhanced community quarantine (ECQ) in March.

SBMA Chairman and Administrator Wilma T. Eisma said the SBMA board of directors passed a resolution on June 30 that gave a 119-day grace period for the collection of all due accounts, thereby moving the payment date for such collectibles to October 28.

The extended suspension period covered the March to September 2020 billings for lease rentals, common use services area fees, port charges, garbage collection fees, sublease shares, and gross revenue shares.

Eisma said the measure took off from Memorandum Circular 20-29 of the Department of Trade and Industry (DTI), which provided for a minimum 30-day grace period for the cumulative amount of residential and commercial rents that fell due during the quarantine.

“But to better assist the businesses here in Subic, the SBMA opted for a longer time when payments could be deferred to give the local businesses enough time to recover,” Eisma explained on Tuesday.

“This is actually the third extension we granted since the ECQ was imposed last March,” Eisma pointed out. “There is really a need to cushion the impact of the lockdown and provide economic relief to Subic stakeholders in support of RA 11469, or the Bayanihan to Heal as One Act,” she added.

Under the approved measure, the SBMA management also allowed amortized payments of all the unpaid billings from March to September 2020 in six monthly installments, or from October 2020 to March 2021.

Said billings will not earn any interest or penalty until March next year if the installment is completed, Eisma added.

Those who will benefit from the payment grace period include business locators leasing lands, buildings and other infrastructure from the SBMA, and residents paying lease on a monthly basis.

Eisma added that while sub-lessees are not covered by the suspension because only sub-lessors have contracts with the SBMA, the latter are encouraged to extend the same benefit to their tenants.

The SBMA official also clarified, however, that the regular policy on credit and collection applies to billings issued prior to the March ECQ, although interest and other charges are waived for such billings for the period July 1 to October 27, 2020.

Interests and other penalties will also be applied to installments that were not paid on time, and all unpaid bills by the end of the October 27 grace period will start earning interests, charges, and penalties the following day, Eisma added.

According to SBMA deputy administrator for finance Dea Sanqui, those who want to avail of the six-month installment scheme would have to apply by filling out a pro-forma promissory letter addressed to the SBMA chairman and administrator not later than September 30, 2020.

Companies availing of the installment scheme should attach a Secretary’s Certificate authorizing the signatory of the promissory note. Application forms may be obtained by sending an email to accounting@sbma.com, treasury@sbma.com, or oda.finance@sbma.com or from the account offices assigned to companies registered in the Subic Bay Freeport.

Sanqui said the SBMA Treasury Department will compute and determine the schedule of the six monthly installments and will notify the applicants before payment date. (MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma addresses business concerns during a meeting with representatives of Subic Bay Freeport locators at the start of the ECQ in March. (MPD-SBMA)

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SBMA bares SALN of top officials

Top officials of the Subic Bay Metropolitan Authority (SBMA) have released information on their financial position and business interests in connection with the government’s transparency and accountability initiatives.

SBMA Chairman and Administrator Wilma T. Eisma said 12 of the 15 SBMA directors had already signed a data privacy consent form that allowed the agency to release their latest statement of assets, liabilities and net worth (SALN) to the public.

The annual filing of SALN is required under the 1987 Philippine Constitution and under Republic Act No. 6713, also known as the “Code of Conduct and Ethical Standards for Public Officials and Employees.” The SALN should contain the true, detailed, and sworn declaration of one’s assets, liabilities, net worth, business interests and financial connections.

According to the statements on file, Director Julius Escalona has the highest net worth among the SBMA officials at P50.16 million. The businessman from Hermosa, Bataan declared total assets of P67.36 million, but has liabilities of P17.2 million.

Escalona’s biggest asset consisted of a batching plant valued at P30 million, and several units of houses and condominium units he acquired in 2015 and 2016 worth more than P20 million.

Chairman Eisma has the highest declared assets at P69.74 million, but her liabilities totaling P25.98 million gave her a net worth of P44.45 million, the second biggest among the SBMA officials.

Eisma, a lawyer who served as corporate manager with the Philippine affiliate of Philip Morris International before taking over as SBMA administrator in January 2017, listed her biggest assets as condominium units she acquired in 2005, 2013 and 2016. She also has some real estate business in Olongapo City.

Third in the list with the biggest net worth is former Bataan Vice Governor Rogelio Roque, who declared total assets at P27.35 million and no liabilities. Roque’s assets are mostly in the form of residential lands acquired from 1983 to 2008. He now has three relatives in the government, including daughter Maria Margarita, who is a council member in Limay, Bataan.

Director Brian Patrick Gordon of Olongapo City, meanwhile, listed total assets of P16.96 million and liabilities of P.92 million to end up with a net worth of P16.04 million, the fourth highest among the SBMA top brass. The son of Senator Richard Gordon listed three business interests in Olongapo City.

Next comes Director Jan Joshua Khonghun of Subic, Zambales, with total assets of P14.42 million, liabilities of P.41 million, and net worth of P14 million. His biggest assets consisted of four dump trucks used in his logistics business that are worth P11.8 million.

Khonghun has a construction business in Subic, Zambales and listed five relatives in government service, including his father, Congressman Jeffrey Khonghun of Zambales First District.

At No. 6, Director Edwin Enrile, a former member of the Bataan provincial board, has total assets of P18.5 million, liabilities of P6.5 million and net worth of P12 million.

A lawyer, certified public accountant and farm owner, Director Tomas Lahom III declared assets totaling P14.7 and liabilities of P2.68 million, thereby leaving him a net worth of P12 million. His biggest assets consisted of residential and agricultural lands, motor vehicles and farm equipment at the Lahom Farms that he operates in Nueva Ecija.

Director Maria Cecilia Bitare, an executive in international shipping and logistics, has total assets of P7.19 million, liabilities of P.3 million, and net worth of P6.89 million. She has two relatives in the government in Legazpi City.

On the other hand, Director Marvin Ted Macapagal from Olongapo City listed total assets of P3.8 million and no liabilities. He is connected with First Reliance International, a trading firm in Makati.

Not all SBMA officials, however, had net worth in millions. Director Cynthia Co Paulino, the wife of Olongapo City Mayor Rolen Paulino, declared total assets of P450,000 and no liabilities. Aside from the mayor, she also listed two other relatives to be in government service.

Meanwhile, newly appointed directors Rolando Ampunin of Subic, Zambales and Teodoro del Rosario of Olongapo City had similarly signed a consent form to release their SALN, although their statements would have to be filed only at the end of the year, as required by law. (MPD-SBMA)

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SBMA eyes collection of P144.8-M past-due accounts

Efforts by the Subic Bay Metropolitan Authority (SBMA) to collect overdue rentals and other fees from business locators here are now paying off, with the agency expecting to collect some P144.8 million either through upfront settlement or payment scheme in the next five years.

According to SBMA Chairman and Administrator Wilma T. Eisma, more than 30 investor-companies here have cooperated with the current administration to settle their long-due obligations and negotiated for payment arrangements that were approved by the SBMA Board.

“We’re gaining much headway in our collection program because our investors understand that we are serious in managing Subic with transparency, impartiality, and consistency,” Eisma said.

“They can see for themselves that we are applying rules uniformly in keeping with the thrust of President Duterte to fully utilize government assets and maximize their benefits,” she added.

Eisma pointed out that the current SBMA Board had approved staggered payment of accounts in order to collect debts that accumulated but remained unacted upon by previous administrations.

“We simply inherited these problems, but it is now incumbent upon us to set things right and prevent more losses to the government,” she said.

She added that the payment schemes approved by the Board of Directors since January 2017 had so far accounted for P102.45 million in peso accounts and $847,203 in dollar accounts, or a total of P144.8 million in principal alone.

These amounts cover payments for arrears in mostly land rentals and leases of facilities, as well as unpaid common use service area (CUSA) fees, deposits, performance bonds, and other charges.

The payment schemes will also yield more than P5.6 million and $53,000 in future interests, Eisma added.

Among the companies with approved payment schemes are Lyceum of Subic Bay, with P31.58 million in arrears, deposits, and other fees; Global Daeil Subic, Inc., P16.68 million; Subic Bay Yacht Club, P10 million; and Speed Subic Corporation, P6.77 million.

The latest firm to avail of a payment scheme was Japanese pioneer company Koryo Subic, Inc. According to the payment scheme approved by the SBMA Board, Koryo would pay $219,688 for lease rental of its three expansion areas, as well as CUSA fee amounting to P394,491.

The Board also called for upfront payments of $43,937 in rent and P78,893 in CUSA fee, as well as escalation rates for the computation of its back lease rentals.

Eisma said that alongside the SBMA’s program to collect overdue debts, the agency is also vigorously pursuing the recovery of unused assets that were previously contracted out for management by Subic-registered companies.

“We have, in fact, repossessed some SBMA facilities that have been left idle or unimproved by lessee- companies, and we have also revoked the contract of investors who failed to meet their contractual obligations,” the SBMA chief said.

“We have to do this because the SBMA and the government are losing money every single minute that these prime assets remain unproductive,” Eisma explained.

“Land, and the buildings and facilities on it, is a very precious commodity in the Subic Bay Freeport because of the limited space here, so we have to be diligent in optimizing these assets for productive economic activities,” she said.

Eisma added that an audit initiated by her administration in December last year had resulted in gross revenue billings amounting to more than P18 million from 13 companies in the Freeport.

“These are all part of our transparency drive, which in the long run would redound to a better business climate in the Subic Freeport,” Eisma said. (HEE/MPD-SBMA)

PHOTOS:

The SBMA retakes possession of a facility left unimproved by a lessee-company in the Subic Bay Freeport. (AMD/MPD-SBMA)

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New firm takes over Lyceum Subic

A new company has taken over the operations of Lyceum of Subic Bay Inc. (LSBI), allowing the debt-ridden firm to pay more than P31 million in overdue rentals and other arrears to the Subic Bay Metropolitan Authority (SBMA) and to honor its development commitments for its two campuses here.

SBMA Administrator and CEO Wilma T. Eisma said the SBMA, through a board resolution, has approved the reassignment of LSBI’s leasehold rights to Premium Technical Training and Facilities Inc. (PTTFI), which assumed the financial and developmental obligations of the original lessee.

The PTTFI is 30-percent owned by LSBI.

“As far as we can see, this is a win-win solution to a problem that has been hounding the SBMA since October 2015, when it preterminated the contract of Global Daeil, over the Cubi property,” Eisma said.

Eisma added the SBMA repossessed the property in January last year and later awarded it to Lyceum, which had the best business model.

“Unfortunately, Lyceum was not able to operate immediately and market the business properly because of some issue with the previous occupant, so we had a problem that compounded itself over time,” she said.

Eisma added the compromise agreement was made possible with the withdrawal by LSBI from coverage of the SBMA policy-granting educational institutions a 75-percent discount on rentals, which are to be plowed back to scholarship programs and facilities improvement.

Under the new agreement, PTTFI took over the 34,196-square-meter Lyceum campus at Subic’s Cubi-Triboa District, which had P23 million in rentals and utility fees arrears, as well as P16.68 million in unpaid accounts left by its previous operator, Global Daeil Subic Inc.

The deal also required LSBI to pay its debts for the Lyceum campus at Subic’s central business district (CBD).

The new operator initially paid the SBMA P31 million for the arrears, and issued checks to cover outstanding obligations for both the Cubic and CBD campuses.

Beatrix Anagaran, manager of the SBMA General Business and Investment Department, said the amended lease and development agreement for PTTFI was “overwhelmingly beneficial to the SBMA”, as it called for an increase in monthly rent from the discounted rate of P1.22 million to the appraised-value rate of P4 million.

The agreement also provided for an increase in escalation rate from 2 percent per annum starting on the third year to 6 percent per annum starting the second year.

Anagaran said upon taking over the Cubi property, Premium Technical, likewise, committed to pay the P16-million debt of Global Daeil within a three-year amortization period, and retained LSBI’s committed investment of P50 million to P100 million, a committed employment of 180 workers, a development commitment of P10 million to P20 million, and the provision of 36 scholarship grants per year.

She said the new operator also committed to put up a business process outsourcing (BPO) facility at the Cubi campus, as well as a modern training laboratory. (Henry Empeño, BusinessMirror)

http://businessmirror.com.ph/new-firm-takes-over-lyceum-subic/

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SBMA okays ‘win-win’ deal for Subic school takeover

The Subic Bay Metropolitan Authority (SBMA) has greenlighted the takeover by a new company of the debt-ridden property previously leased out to the Lyceum of Subic Bay, Inc. (LSBI), saying the agreement provided for a “win-win” solution for the Subic agency to collect more than P31 million in overdue rent payments and other arrears.

SBMA Administrator & CEO Wilma T. Eisma said a resolution approved by the SBMA Board of Directors last Thursday, Aug. 10, allowed the LSBI to assign its leasehold rights to Premium Technical Training and Facilities, Inc. (PTTFI), which shall assume its financial obligations and continue with the development commitments under its lease.

Lyceum of Subic Bay (photo c/o lyceumsubicbay.com.ph)

This was made possible by the withdrawal of the company from coverage of the SBMA policy granting educational institutions a 75% discount in rentals, which are supposed to be plowed back by the schools to scholarship programs and facilities improvement.

The reassignment covered the 34,196 sqm Lyceum campus at Subic’s Cubi-Triboa District, which had P23 million in rentals and utility fees arrears, as well as some P16.68 million in unpaid accounts left by its previous operator, Global Daeil Subic, Inc.

The agreement also required LSBI to pay its debts for another school campus it operates at Subic’s Central Business District (CBD).

Initially, the company paid the SBMA P31 million for its arrears on Thursday, and issued checks to cover outstanding obligations for both the Cubic and CBD campuses.

“As far as we can see, this is a win-win solution to a problem which has been hounding the SBMA since October 2015 when it pre-terminated the contract of Global Daeil over the Cubi property,” Administrator Eisma said.

“The SBMA repossessed the property in January last year and later awarded it to Lyceum, which had the best business model. But unfortunately, Lyceum was not able to operate immediately and market the business properly because of some issue with the previous occupant, so we had a problem that compounded itself over time,” Eisma added.

“But now, with this amendment to the lease and development agreement for Lyceum’s Cubi campus, we finally have a solution that is favorable to all the parties involved,” the SBMA official also said.

According to Beatrix Anagaran, manager of the SBMA General Business and Investment Department, the approved amendment to Lyceum’s lease and development agreement was “overwhelmingly beneficial to the SBMA” because it called for an increase in monthly rent from the discounted rate of P1.22 million to the appraised-value rate of P4 million.

Moreover, the agreement also provided for an increase in escalation rate from 2% per annum starting on the third year to 6% per annum starting on the second year, Anagaran pointed out.

“With Premium Technical taking over the Cubi property, the company will also pay an assignment share to the SBMA, undertake Lyceum’s development commitments, provide additional employment, and continue to honor the scholarship commitments made by Lyceum, with the number of scholars remaining the same,” Anagaran said.

She added that the new operator has also committed to put up a business process outsourcing (BPO) facility at the Cubi campus, as well as a modern training laboratory.

Premium Technical, which is 30% owned by LSBI, has also committed to honor the payment of arrears of Global Daeil with a three-year amortization schedule for the P16-million debt of the previous operator.

It has likewise retained LSBI’s committed investment of P50 million to P100 million, a committed employment of 180 workers, and a development commitment of P10 million to P20 million, and the provision of 36 scholarship grants per year. (HEE/MPD-SBMA)

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Integrity Pledge waived for renewal of locator’s permit

The Subic Bay Metropolitan Authority (SBMA) Board has issued Resolution 17-05- 2004, removing the Integrity Pledge as a requisite for renewal of a locator’s business certificate.

The resolution came out on June 15 this year.

Earlier, Brighterday Subic Ltd. Inc. (BSLI), operator of All Hands Beach, filed a petition before Branch 75 of the Regional Trial Court (RTC) challenging the requirement made by SBMA for investors to compulsorily sign the Integrity Pledge.

Mark Dayrit, Brighterday chairman, complained before the court that free port investors were being “coerced and forced” to sign the pledge for their business operations to continue.

The investors were previously required to submit the signed Integrity Pledge at least a week before the renewal or issuance of their business permit.

The RTC had issued an injunction in favor of BSLI because it found that Resolution 17-05-2004 was being implemented in an “abhorrent” manner.

It then directed the SBMA to issue BSLI’s Certificate of Registration and Tax Exemption (CRTE).

Because of the subsequent issuance of the resolution, the court dismissed the petition filed by BSLI.

In his order issued on July 26, Judge Raymond Viray of RTC Branch 75 said the petition was rendered moot and academic after the SBMA removed the Integrity Pledge as a prerequisite for business registration and renewal of permit.

Viray added that the free port asked the court to dismiss the petition of Brighterday Subic Ltd. Inc., saying the SBMA had removed the pledge from its business requirements.

The SBMA described the Integrity Pledge as a commitment to ethical business practices and good corporate governance.

On May 23, the SBMA Board passed a resolution that removed the pledge from the requisites in obtaining a certificate of registration and tax exemption.

Instead, the board decided to make the Integrity Pledge a voluntary document as a “good governance practice.” (Manila Times)

http://www.manilatimes.net/integrity-pledge-waived-renewal-locators-permit/343125/

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Eisma, four others take oath as SBMA officials before President Duterte

Lawyer Wilma T. Eisma took her oath of office as administrator of the Subic Bay Metropolitan Authority (SBMA) before President Rodrigo Roa Duterte in a mass ceremony held in Malacañang Monday (January 9).

Benny Diaz Antiporda, Maria Cecilia Bobadilla Bitare, Tomas Lahom III and Stefani Creer Saño also took their oath as members of the SBMA board of directors.

The SBMA officials were among over 200 appointees who composed the second batch of new government officials sworn in by the president.

Eisma, was appointed by President Duterte as the new SBMA administrator in December 21 last year, replacing Roberto V. Garcia.

Garcia was SBMA administrator from 2011 until his resignation in October last year. He also served as chair of the SBMA board of directors before he was succeeded by Martin Diño.

Prior to her appointment, Eisma was an executive of Philip Morris Phils. Manufacturing, Inc. She was also one of the 8,000 volunteers who initially managed and protected the facilities of the Subic Bay Freeport after the US Navy pulled out of the former US Naval base in 1992. (SNL)

PHOTOS:

[1] SBMA Administrator Eisma chats with President Duterte as they prepare for a photo shoot along with other newly-sworn government officials. President Duterte administered the oath of office of over 200 appointees composing the second batch of new government officials Monday (January 9). 

[2] President Duterte poses with newly-sworn government officials for a souvenir group photo.

-- photos grabbed from RTVMalacanang on youtube

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SBMA Board of Directors first meeting under Duterte Administration set

The Board of Directors of the Subic Bay Metropolitan Authority (SBMA) is set to convene ahead of the holidays to take action on the growing number of business transactions that needed to be reviewed by the body.

The board meeting, the first since the start of the administration of President Rodrigo Roa Duterte, will be led by Chairman Martin Diño, with OIC, Office of the Administrator Randy Escolango as vice-chair.

Expected to attend the meeting are the new appointees to the SBMA Board, Benny Antiporda and Stefani Saño, as well as directors who are on a holdover capacity: Joven Reyes, Alfonso SP Siapno, Benjamin Antonio III, Cynthia Paulino, Ramon Diez Sesdoryo, Gerald Sam Del Rosario, Raul Marcelo and Philip Camara.

Senior Deputy Executive Secretary Menardo Guevarra has also been invited to the meeting as an observer from the Office of the President to the SBMA Board of Directors.

The SBMA Board of Directors has not met since outgoing SBMA Chairman and Administrator Roberto Garcia turned over the helm of the agency to now SBMA Chairman Diño on October 3.

Escolango said that he sees the urgency to convene the SBMA Board due to numerous pending matters that require immediate attention and action of the Board.

Escolango said the Office of the Government Corporate Counsel (OGCC), in response to his letter seeking clarification over the status of the agency's Board, clarified that SBMA can convene its Board of Directors, whose members with terms that have expired may continue to perform in hold-over capacity.

“SBMA directors whose term expired and/or resignations are not yet acted upon or their successors have yet to be appointed, may continue in office in hold-over capacity,” Deputy Government Corporate Counsel Elpidio Vega said in Opinion 193 Series of 2016 released by the OGCC recently.

In the said opinion, the OGCC also clarified that while Diño is chairman of the SBMA Board, Escolango as OIC administrator is also the OIC vice-chair of the SBMA Board.

"Atty. Escolango’s designation as OIC Administrator automatically carries with it his assumption as OIC Vice Chairman of the SBMA Board under EO 340 series of 2004,” Vega said.

Vega, also noted that the OIC administrator by virtue of his office shall be the OIC Vice Chairman of the SBMA Board of Directors and he is expected to discharge and to function as SBMA’s OIC Administrator and Vice Chairman.

Earlier, the Office of the President reaffirmed the designation of Atty. Escolango as OIC-Administrator of SBMA last October 19, while Diño as Chairman of the SBMA Board of Directors. (RAV/MPD-SBMA)

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OGCC clarifies status of SBMA Board of Directors

The Subic Bay Metropolitan Authority (SBMA) can convene its Board of Directors, whose members with terms that have expired may continue to perform in hold-over capacity.

This was clarified by the Office of the Government Corporate Counsel (OGCC) in response to a letter by SBMA OIC, Office of the Administrator Randy B. Escolango seeking clarification over the status of the agency's board.

“SBMA directors whose term expired and/or resignations are not yet acted upon or their successors have yet to appointed, may continue in office in hold-over capacity.” Deputy Government Corporate Counsel Elpidio J. Vega said in Opinion 193 Series of 2016 released by the OGCC on Thursday,

In the same opinion, the OGCC also clarified that while Martin B. Diño is chairman of the the board, Escolango as OIC administrator is also OIC vice chair of the SBMA board.

"Atty. Escolango’s designation as OIC Administrator automatically carries with it his assumption as OIC Vice Chairman of the SBMA Board under EO 340 series of 2004,” Vega said.

“The OIC administrator by virtue of his office shall be the OIC Vice Chairman of the SBMA Board of Directors, Vega said. “Thus, Atty. Escolango is expected to discharge and to function as SBMA’s OIC Administrator and Vice Chairman…” he added.

To date, aside from Martin B. Diño as Chairman, President Duterte has appointed only two (2) other members of the SBMA board, namely, Benny Antiporda and Stefani Saño. Antiporda replaced Bienvenido O. Benitez while Saño took over from Wilfredo S. Pineda.

“The appointment of Chairman Diño, designation of OIC Administrator Escolango and appointments of Mr. Antiporda and Mr. Saño as director has no effect on SBMA directors who tendered their courtesy resignations except on former Chairman/Administrator Garcia and Directors Benitez and Pineda,” Vega said.

The SBMA board has not convened for several months now, thus, Diño has not presided on any Board meeting since his appointment on Sept. 23, 2016.

In a statement, Escolango said that with the OGCC’s opinion, the SBMA hopes to finally convene the board by recalling directors whose resignations have not been acted upon or accepted by the president. “we have a lot of pending matters that require the Board’s attention and action,” Escolango said.

The OGCC also took note that “Chairman Diño informed the Office of the President (OP) on 21 November 2016 that he assumed functions as SBMA Chairman/Administrator pursuant to Republic Act (RA) 7227” and that “The OP replied that Atty. Escolango’s designation as OIC Administrator has not been revoked ‘(a)nd more importantly, under Section 13(d) of Republic Act 7227, the Administrator of the SBMA shall be appointed by the President and no other.”

Despite his appointment by the President only as Chairman of the SBMA Board of Directors, Diño insists on also being the Administrator, citing a provision in RA 7227.

Diño declared himself the SBMA Administrator in an Office Memorandum on Oct. 10, 2016 sent to SBMA offices and locators but when he informed Malacañang of his assumption of the office and functions of Administrator on 21 Nov., he was rebuffed by the Office of the President which reiterated Escolango’s Oct. 19, 2016 designation as OIC Administrator that “remains in full force and effect.”

However, Diño remains defiant to the point of challenging the authority of Office of the President and Executive Secretary Salvador C. Medialdea, who issued the designation of Escolango. (SNL)

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Diño to take over as SBMA chairman

Former Volunteers Against Crime and Corruption (VACC) chairman Martin Diño will take over as the new chairman of the Subic Bay Metropolitan Authority (SBMA) on Monday, October 3.

His appointment letter dated September 23, 2016 signed by President Rodrigo Duterte states, “ Pursuant to the provisions of existing laws, you are hereby appointed Chairman, Board of Directors, Subic Bay Metropolitan Authority, for a term expiring on 30 June 2022.”

He will take over the helm from SBMA chairman Roberto Garcia.

Diño, former barangay (village) chairman in Quezon City, filed his candidacy under the Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban) in October 2015 for President in the 2016 synchronized elections but withdrew at the last minute and nominated Duterte as substitute standard-bearer of PDP-Laban.

He is also the father of Liza Diño, head of the Film Development Council of the Philippines.

The new freeport chief, according to a source at the SBMA, will make his first appearance during flag-raising ceremony on Monday.

A transition team from Diño’s camp arrived in Subic on Friday for briefing and orientation by the outgoing administration on SMBA operations and programs. (Patrick Roxas, Manila Times)

Read more: http://www.manilatimes.net/dino-to-take-over-as-sbma-chairman/288797/

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SBMA welcomes new board member

The Subic Bay Metropolitan Authority (SBMA) board of directors last Friday welcomed its newest member, Cynthia Co Paulino, as Olongapo City representative.

SBMA chairman and administrator Roberto Garcia introduced Paulino to the rest of the board members during the 256th regular meeting of the SBMA’s policy-making body.

Garcia said that with Paulino in the SBMA board, both the Subic Bay Freeport and its next-door neighbor Olongapo will benefit from closer coordination between the SBMA and the city government, especially in undertaking joint projects for the mutual benefit of the Subic Bay community and the city.

“I believe things will work out better for the two agencies now. We welcome this development, and we look forward to a successful team-up between the SBMA and Olongapo City,” Garcia said.

In October last year, Garcia and Olongapo City mayor Rolen Paulino discussed matters such as river clean-up, the night market, job fair and the perimeter fence that concern the local community.

Garcia added that with an Olongapo representative in the board, local concerns will be addressed immediately.

Paulino, who is the wife of Olongapo Mayor Rolen Paulino, replaced Anne Marie Gordon, the wife of former Olongapo Mayor James Gordon Jr., who resigned from the SBMA board early last year upon filing her candidacy for the 2013 mayoralty race.

Paulino who holds a degree in accountancy from Columban College in Olongapo is a native of Subic, Zambales. She has four children with Mayor Paulino.

Olongapo, which is a highly urbanized city with a population of more than 221,000 as of 2010, is among the communities adjacent to and affected by the operations of the Subic Bay Freeport.

It receives a little more than 24 percent of the total LGU share given regularly by SBMA to the eight affected communities. (RFD/MPD-SBMA)

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SBMA tax break guidelines out

THE SUBIC Bay Metropolitan Authority yesterday released the registration guidelines for aviation and logistics companies in the economic zone that are seeking import tax breaks.

According to Resolution No. 13-05-4772 published yesterday, locators in Subic Bay Freeport Zone (SBFZ) “shall be allowed admissions of TEDFA (tax-exempt and duty-free aircraft), engines, parts and accessories on the premise that the units shall be used primarily in support of and in furtherance to the business operations of the locator in the SBFZ.”

“The minimum condition set by SBFZ is that the units are principally based in SBFZ ... and that these TEDFA return [to], stay [in], and use SBFZ as their core base of operations such that at the end of each flying sortie, these TEDFA return [to], stay [in], use and maintain physical presence at the SBIA (Subic Bay International Airport),” read the notice.

If these conditions are not met, locators will have to pay duties and taxes for their aircraft, engines, parts and accessories.

Another condition is that locators should have “sufficient, reasonable hangar space [to] justify the need for admission of aircraft units in relation to their business operation in Subic.”

Otherwise, locators will have to prove that they have put up actual investment of at least P100 million, read the notice.

Locators are also prohibited from transferring ownership of TEDFA within three years of admission.

Those who fail to observe the guidelines will have to pay P250,000 as well as duties and taxes if TEDFA units were sold to an entity not entitled to tax incentives. Another fine of P250,000 will also be charged to those who fail to prove active hub presence in Subic.

The SBFZ, 110 kilometers north of Manila, was established in 1992 as the country’s first freeport zone after the closure of the American naval base there. (Daryll Edisonn D. Saclag, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=SBMA-tax-break-guidelines-out&id=78263

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Official Statement by the SBMA Board of Directors on the alleged waste dumping incident in Subic Bay

For the information of the public, and in the interest of truth and fairness, the Subic Bay Metropolitan Authority (SBMA) wishes to clarify and emphasize the following points contrary to some very damaging reports which have recently appeared in media.

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SBMA Board Studies Airport Conversion

An official of the Subic Bay Metropolitan Authority (SBMA) said the other day that the proposed $5-billion conversion of the Subic Bay International Airport into a world-class theme park is still being studied by the SBMA Board of Directors.

SBMA Board Member Francis S. Garcia said they are still deliberating on the proposal because it would impact on the entire region, particularly programs aimed at boosting tourism in Central Luzon provinces.

Earlier, the proposed conversion of the SBMA airport into a theme park drew flak from former senator and SBMA founding chairman Richard Gordon who described the proposal as “a high degree of mental slaught” if the government allows it.

Officials of the Department of Tourism (DOT) said converting the airport into a theme park may derail plans of provinces around the freeport to integrate tourism promotion programs and take advantage of the existing world-class sea ports and airports in the former American military bases.

Last Friday, tourism officers of seven provinces in Central Luzon gathered at the Subic Bay Exhibition and Convention Center (SBECC) to map out plans in promoting the region as a major tourist destination by highlighting idyllic white sand beaches, heritage sites and colorful festivals.

Region 3 Tourism Director Ronaldo Tiotuico said the forum aims to gather tourism officers in 120 local government units (LGUs) in the region to discuss a unified strategy to promote Central Luzon as a major tourism hub.

He said the two freeport zones in Subic and Clark are major assets that will contribute to plans of promoting tourism in the seven provinces of the region-Bataan, Pampanga, Zambales, Nueva Ecija, Aurora, Tarlac and Bulacan.

Gordon told newsmen the administration will be committing “a high degree of mental slaught” if it allows the plan to convert the Subic Bay International Airport into a theme park and recreation site.

Gordon, who also once served as tourism secretary, said global tourist destinations such as New York and San Francisco have many airports yet Palawan, now being promoted by the government needs an additional airport.

He said the SBMA should not waste the US$40-million government funds used to rebuild and modernize the SBIA.

Gordon criticized plans of current SBMA Chairman Robert Garcia to push for a US$5-billion investment proposal that converts the freeport’s 200-hectare prime real estate into a theme park with condominiums, malls and recreational facilities similar to Hong Kong Disneyland and Singapore’s Sentosa park.

“It’s very rare to have a world class airport and a seaport in one facility in our country. The government should instead develop it to decongest airports in Metro Manila and bring in more tourists and investors,” said Gordon in a telephone interview over the weekend. (Mar Supnad, Manila Bulletin)

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Environment Impact: Subic Power Plant Undergoes Review

The $1.28-billion 600-MW Redondo coal fired power project in Subic Freeport is facing another review as stakeholders and experts call for a 're-scrutiny' of the power plant, approved during the previous SBMA Board, largely on environmental impact issues.

The review of the Redondo Peninsula Energy Inc., which is 50 percent owned by Meralco PowerGen Corp.

Aboitiz unit Therma Power Inc. and Taiwan Cogeneration Corp., was called after the completion of the Social Acceptability Process (SAP) conducted by the SBMA in December last year.

The power plant’s construction was scheduled to start in 2009 and the initial commercial operation of the first phase 300 mw was supposed to commence this year and the second phase of 300MW to start three years after the commercial operation of the first phase.

“Based on their analyses of the subject matter, the specialists recommended that the SBMA re-scrutinize the coalfired power plant project,” the SBMA’s final SAP report released recently said.

Based on the report, a revisit of the project, which was already approved by the former SBMA Board under the then administration of President Gloria Arroyo, is meant to effectively determine the impact on environment and health; ensure comprehensive impacts zone study; properly determine actual and potential cost; and, to ensure the project is coherent and compatible with SBMA's mandate, vision, mission and development plans, including its protected area management plan. (Bernie Cahiles-Magkilat, Manila Bulletin)

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SBMA, LGUs take part in open space technology workshop

Taking up the challenge of President Aquino in forging a social contract with the local community, the Subic Bay Metropolitan Authority (SBMA) met with neighboring local government units (LGUs) in an Open Space Technology Workshop held on May 19-20 at the Subic Bay International Hotel.

The workshop was an open-type of seminar wherein the participants themselves determined the agenda that would be up for discussion the following day. It was facilitated by Greg Forbes, a consultant at the Office of the President-Adviser on Peace Process.

According to SBMA director Bienvenido Benitez, the workshop aims for transformational leadership, institutional reform, economic stability and inclusive growth in the province of Zambales and Bataan, the municipalities of Subic, Hermosa and Morong, and Olongapo City. These are the communities that will be greatly affected by the current developments in the Freeport.

“Hopefully we will find a common denominator amongst us, and we will pursue that common denominator. It could be about environmental issues, industrial issues, eco-tourism, housing, or education. Maraming mga field ang maaring lumabas,” Benitez said.

Benitez also mentioned that the SBMA board of directors had recently created a community program aptly named Project Unity, which endeavors to create synergy and development and promote investment projects that have larger multiplier effects on local economies.

“Its underlying goal is promoting inclusive growth and progress that will ultimately lead to poverty reduction and translate into a stronger platform for sustainable sub-regional development,” Benitez further noted, adding that the committee has already met with the LGUs to discuss issues concerning their respective communities.

For his part, SBMA chairman and administrator Roberto Garcia said that the Open Space Technology Workshop is an opportunity to create rapport with the communities surrounding the Subic Freeport.

“’Yung SBMA at ‘yung mga LGUs, hindi naman tayo magkaiba ng layunin,” Garcia pointed out. “Dapat sama-sama tayo dito. Kaya ‘yung kaunlarang mangyayari dito sa loob ng SBMA, ang gusto namin kasama kayo.”

Garcia then stressed the importance of letting the LGUs be aware of developments inside the Freeport.
“Importanteng malaman ninyo ang direksyon ng SBMA para sa ganun, kayo naman sa inyong pag-paplano tignan ninyo kung saan tayo pupuwedeng magkapit-bisig at gumawa ng hakbang,” he said.

Garcia said that he had already talked with some of the LGUs regarding projects that will benefit both the Freeport and the local communities. (FMD/MPD-SBMA)

 PHOTO:
SBMA chairman and administrator Roberto Garcia asks for support from neighboring local government units during the Open Space Technology Workshop at the Subic Bay Freeport.

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