Ocean 9 donates relief goods to Botolan flood victims

Still far from laying the first foundation for its planned multi-million dollar hotel in Subic Freeport, Ocean 9 Casino and Hotel Resort reached out to donate relief goods to victims of flash floods in lahar-stricken barangays in this town.

Ocean 9 is a US$120- million project, owned by Neorex Philkor Inc. and Grand Utopia Inc., which includes a three-story casino building and a 15-story hotel building to be constructed in the Freeport’s central business district.

Ocean 9 president Henry Park personally led Ocean 9 workers in delivering 800 bags of relief goods worth P200,000 to Porac Elemenrary School and Bucao Elementary School, which serve as evacuation centers for some 200 families.

Botolan Mayor Roger Yap, in the presence of Porac barangay chairman Nelio Angeles, DSWD-R3 staffs Arleen Aquino and Vencie Vertulfo, accepted the goods from Park and Ocean 9 vice president Arsenio Villanueva.

“We want the Filipino people to know that our company is here and ready to help them in times of need, like when disaster strikes their place,” Park said.

He also noted that Ocean 9 is also sponsoring scholarship grants to 20 students of Gordon College in Olongapo City. The grant has a guaranteed fund of US$1,000 a month from the company.

Mayor Yap, meanwhile, said that there are at least 6,500 people from more than 2,000 families whose houses and livelihood were destroyed by the flash flood last August 6, and who are still staying in the two evacuation centers. (SBMA Corporate Communications)

PHOTO: Subic Freeport locator Ocean 9 president Henry Park (center) hand over to Botolan mayor Roger Yap part of the 800 bags of relief goods for the victims of the flash flood that hit the town in early August.

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Subic business chamber backs hotel-casino project

The Subic Bay Freeport Chamber of Commerce (SBFCC), an organization of investor-companies registered in this free port, has endorsed the hotel-casino project being proposed here by Korean firm Grand Utopia Inc.

In an official statement dated March 19, the business group said the $120-million development project “will ultimately increase tourism in (Subic’s) central business district, create at least 5,000 jobs, and lend itself further to the viable and continued economic success of the Freeport.”

The declaration was signed by SBFCC president Danny J. Piano, who is also president and CEO of Absolute Service Inc.; vice president Romeo Duran, of the Sapalo Velez Bundang Law Offices; treasurer Dante Pollescas, vice president and general manager of Subic Enerzone Corp.; corporate secretary Rose Baldeo, president and CEO of Global Ship Management Service Inc.; director Tom de Bruin, president and CEO of Grainpro Philippines Inc.; director Sung Il Cho, senior pastor of the Subic Bay Christian Worship Center, Inc.; and director Gerald James Hammond, general manager of Subic Drydock Corp.

The SBFCC issued its endorsement of the hotel-casino project in the wake of a congressional probe on allegations by noted Filipino architect Felino Palafox Jr. that some 300 trees in the project site would be destroyed if the plan pushed through.

But after independently gathering documents and other information on the controversy, the SBFCC said it has arrived at the conclusion that “there could be a reasonable balance between the conservation of nature and commercial and infrastructure development.”

The Subic hotel-casino issue “will understandably be perceived as a clash between nature and development,” the group said in its manifesto.

However, “if all encroachments against nature are to be disallowed, we will not be able to build anything anywhere anymore,” the SBFCC pointed out.

The group also pointed out that developments that make life convenient for people may be allowed although they could have some adverse effects to the environment. These include projects like the Subic-Clark-Tarlac Expressway, where natural hills were cut and lands were paved, and the reclamation of 20,000 hectares of land around Manila Bay that destroyed corals and mangroves, but now houses the Philippine Senate building, among others.

“These are but examples of how commercial and infrastructure development may invade nature in pursuit of development, but which are nonetheless acceptable due to the benefits they bring and the control and minimization of any adverse environmental impact,” the SBFCC also said.

In the case of the proposed Ocean 9 hotel-casino project here, the SBFCC said that Parcel No. 35, the project site which supposedly contains an “urban forest”, is found outside Subic’s protected forest, and is in fact in a commercial district according to zoning guidelines.

“It has likewise been determined that Parcel No. 35 could not have been a virgin forest since the trees were introduced during development, nor could the trees in it have been more than 50 years old,” the SBFCC statement said.

The business group also noted that the allegation that some 300 so-called “heritage trees” will be destroyed in an urban forest “has spiraled into a huge controversy that threatens to erode the good image of the Subic Bay Freeport Zone.”

As the members of the SBFCC live and work in and around the Subic Bay Freeport, they are “affected by the controversy,” the chamber said.

“Accordingly, SBFCC firmly believes that it is in the best interest of all concerned that the facts behind these reports be fully disclosed and well understood,” the Subic business group also said. (SBMA Corporate Communications)

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Grand Utopia official lashes back at Palafox

A top official of the controversial $120-million hotel and casino that has become the subject of environmental concern has finally lashed back at its former architect who turned into the project’s No. 1 critic after being sidelined from the project.

In a statement, Executive Manager Eric Ghi-Buhm Park said that Grand Utopia Inc. is deeply disappointed that their former architect Felino Palafox Jr. began criticizing their Subic Project in the media using documents of their company.

“By coming out in the media and speaking before various public gatherings [while] criticizing our Subic project, the architect has committed a breach not only of the provisions of the subcontract agreement but also of professional ethics,” Park added.

Environment Secretary Lito Atienza also inspected the project site last January and confirmed that the trees remained intact at the project site.

“If architect Palafox, as our professional local architect, was sincerely concerned about the trees from the very beginning, wasn’t it his responsibility to advise his client Grand Utopia of an alternative solution instead of publicly criticizing his client’s project in an unethical way with all exaggerations?” Park rued.

Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza in a separate statement is urging the critics of the project to be objective and stop sensationalizing the issue that has only delayed the project.

“We still think that this project would be beneficial to the Subic Bay Freeport, especially with the projected manpower hiring of about 5,000. It’s a project proposal that we have to evaluate objectively,” Arreza said.

Arreza made the appeal after the Special Committee on Bases Conversion of the House of Representatives on Tuesday conducted its initial hearing on two resolutions seeking to investigate claims made by noted architect Palafox.

The project remained on hold since November last year after Palafox’s claims triggered protests from environmental groups concerned about trees at the project site.

The SBMA official also bared project proponent Grand Utopia Inc. has already asked the SBMA to give them an alternate location since the allegations have caused the project much delay. (Anthony Bayarong, Manila Times)

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Subic hotel-casino proponent now looking for new site in Subic

Despite the raging controversy stirred by allegations of tree cutting to make way for the Ocean 9 hotel-casino project in Subic Freeport, the Korean proponent has not given up on its $120 million project and is now scouting for another location.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said in a media briefing that Grand Utopia Inc. asked Subic authorities for help in finding another site for its hotel-casino complex.

"We have, in fact, found a suitable new location, but it's not yet final," Arreza said.

He identified a block of waterfront property where the decade-old steel skeleton of an aborted hotel project still stands as a possible site.

"Understandably, Grand Utopia is already impatient because of the delay resulting from the controversy," Arreza said, referring to allegations by noted Filipino architect Felino Palafox Jr. that the project would destroy about 300 trees at the proposed site.

The purported tree cutting has caused uproar among environment, religious and civic groups, although not a single tree has yet been cut, as some independent groups had verified, including Environment Secretary Lito Atienza, who inspected the site last month.

Arreza said what happened was really unfair to Grand Utopia, "because this locator has, since the beginning, indicated its willingness to abide by Philippine laws."

He added if the Ocean 9 proposal would indeed destroy trees, the plan could always be altered or rejected by authorities. "That's why we have laws to guide us in making decisions," he said.

Arreza also called on critics of the project to stop "sensationalizing" the issue for the truth to emerge and the matter resolved rationally.He said the issue is "already moot" since no trees have actually been cut at the project site, and the SBMA and the Department of Environment and Natural Resources (DENR) have categorically stated they will not allow any tree to be cut.

"This is already a closed case as far as we're concerned, but the problem is somebody continues to muddle the issue," Arreza said, referring to Palafox.

"Palafox fancies himself as a crusader for the environment and a fighter of corruption, but so far he has been making unsubstantiated allegations," Arreza said. "He owes a lot of people explanation for what he' s done," he added.

Arreza said Palafox began "exposing" internal documents about the Ocean 9 hotel-casino project even before Grand Utopia could formally present its plan to the SBMA.

The initial environmental examination (IEE) report for the project was received by the SBMA only in the first week of January this year, but Palafox has been talking about its details since late November, Arreza said.

"That was grossly unethical because he [Palafox], technically, did not own the plans since he was just hired as a project designer," Arreza said.

Palafox claimed last year that he backed out of the project after learning that Grand Utopia intended to cut trees.

Arreza said documents from Grand Utopia indicated that Palafox was precisely hired because he promised the Korean firm to facilitate the granting of an environmental compliance certificate for the project.

SBMA documents also show that an environmental assessment group hired by Palafox for the project's IEE had said in its initial report "tree-balling is highly recommended."

A manifesto from the Council for Built and Natural Environments (CBNE), composed of nine professional organizations, meanwhile, urged "a second look" at the Ocean 9 controversy to "come up with a more objective and intelligent appreciation of the situation."

The CBNE said a fact-finding mission it conducted on February 5 validated that the proposed project site is in Subic's commercial district, there is no natural forest in the proposed project site and that no tree has been cut or felled.

Based on its findings, the group concluded that vegetation in the project site can neither be considered virgin forest, or a natural old-growth forest, and that there are no century-old trees in the area.

The CBNE is composed of the United Architects of the Philippines, Philippine Institute of Environmental Planners, Philippine Association of Landscape Architects, Geological Society of the Philippines, Integrated Chemists of the Philippines, National Master Plumbers Association of the Philippines, Philippine Association of Agriculturists, Philippine Institute of Interior Designers, and the Society of Filipino Foresters. (Henry Empeno, Business Mirror)

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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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SBMA sees ‘win-win’ solution to Subic tree controversy

Officials of the Subic Bay Metropolitan Authority (SBMA) are now looking forward to a “win-win” solution in the issue of the Ocean 9 hotel-casino project in this free port after Environment Secretary Lito Atienza on Wednesday debunked claims that trees have already been cut at the project site.

SBMA Administrator Armand Arreza said the allegation that trees have been sacrificed to make way for the hotel-casino project “has sidelined most of us from more important work.”

“Now we should be able to come up with a solution that would be acceptable to all parties concerned,” Arreza said.

Arreza said the “win-win” solution would adhere to requirements and conditions to be imposed by the Department of Environment and Natural Resources (DENR), while still giving the project proponent Grand Utopia, Inc. “enough reason to continue with its $120-million development project.”

Atienza, who met with SBMA officials and Grand Utopia representatives during an inspection of the project site on Wednesday, described the proposed hotel-casino as “a very good project” and noted that it would create more than 5,000 jobs when operational.

“Let’s work together for a win-win solution,” Atienza asked Ocean 9 executive managing director Louis Joong-Moon Choi during the inspection.

He suggested that the project should be redesigned to incorporate “mature trees” in the area, while saplings could be transferred to forest areas in the Freeport zone.

The retention of mature trees in the site “could even add ambiance to your project,” Atienza told Choi, adding that millions of dollars are being spent just to put trees in world-class tourism projects elsewhere.

Arreza said the SBMA agrees that the trees at the project site should be spared.

“This has been our position all along,” he stressed.

“The situation only took a turn for the worst when some critics began raising issues like century-old trees and tree massacre, which are all unfounded,” he added.

In his visit to the site, Atienza confirmed that there are no signs of tree-cutting and that only “mature”, not century-old, trees exist.

The same findings were made during a site visit last Saturday by a group of environmentalists and members of civic and religious groups led by the Association of Major Religious Superiors in the Philippines (AMRSP).

Sharing the same observations, Atienza said that reports about tree-cutting have been “exaggerated”. He also cautioned critics of the project “to stick with the truth”.

Fr. June Vic Diolata, ARSP executive vice secretary, meanwhile said that allegations on the Ocean 9 project by architect and urban planner Felino Palafox Jr. “would have to be re-assessed” in the light of these findings.

Arreza said the SBMA considers the Ocean 9 project “a critical infrastructure” to complement the agency’s tourism development program, particularly in attracting foreign tourists and cruise ships to the area, especially under present global economic conditions.

“This is envisioned to transform the Subic waterfront and make it a world-class tourism destination,” Arreza said. “A lot is riding on this project – investments, jobs, and revenue, so the SBMA would like to ensure its viability as well as its acceptability,” he added. (SBMA Corporate Communications)


PHOTO CAPTION

Environment Secretary Lito Atienza (middle) confers with Grand Utopia executive managing director Louis Choong-Moon Choi (left) and SBMA Administrator Armand Arreza during Atienza’s visit to the Ocean 9 hotel-casino project site. The environment czar proposed a “win-win” solution to resolve the environmental issue surrounding the site of the $120-million tourism project in the Subic Bay Freeport.

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Subic tree row: Atienza urges critics to stick to the truth

Environment Secretary Lito Atienza confirmed that no trees have been cut here to make way for the proposed Ocean 9 hotel-casino and urged critics of the project to stick to the truth.

Atienza inspected on Wednesday the controversial two-hectare site of the project, a week after the Department of Environment and Natural Resources (DENR) took over the issuance of environmental permits in this free port from the Subic Bay Metropolitan Authority (SBMA).

“They said that trees have been cut here, so where are those cut trees?” Atienza wondered aloud during his inspection.

“At this point, personally, I can see that no trees were cut and that is important,” the DENR chief said.

“It is very important that the whole country know that no trees were cut in SBMA up to now,” he added.

Atienza was accompanied in his inspection of the project site by SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza, as well as some representatives of the project proponent Grand Utopia, Inc.

Atienza revoked last week a DENR agreement with the SBMA that allowed the latter to issue environmental compliance certificates (ECCs) for projects within the Subic Bay Freeport Zone.

In revoking the agreement, Atienza noted that the SBMA has been taking criticisms lately because of allegations, notably by architect and urban planner Felino Palafox Jr., that some 300 trees would be destroyed to make way for the hotel-casino project.

But in his visit of the project site, Atienza noted that the trees remain intact, and that reports that century-old trees have been cut were exaggerated.

“If there were century-old trees here, we should be seeing them now; but there’s none,” Atienza said.

"This is a reclaimed area during the US Navy days and it’s impossible for century-old trees to be here," he added.

Atienza said that activism for the environment is good. “But, of course, we have to stick to reality and the truth,” he said.

Noting Palafox’s avowed passion for the environment, Atienza also said that he and Palafox “could work together.”

At the same time, Atienza directed DENR field officers to conduct tests at the project site to determine whether some trees have really been poisoned, as insinuated by Palafox and other critics of the project.

He said that results of the soil tests may be available after a week.

Atienza’s inspection came three days after some 200 environmentalists and members of religious and civic groups visited the project site to press the SBMA to save the trees.

But during the said visit, Fr. Jun Vic Diolata, executive vice-secretary of the Association of Major Religious Superiors in the Philippines (AMRSP), also confirmed that not one tree at the project site have been cut.

Diolata said after seeing the situation in the area that “all the allegations of Palafox will have to be assessed.”

During Atienza’s inspection, SBMA’s Salonga informed the DENR official that the SBMA has a continuing reforestation program to further enhance the environment in this free port.

“We have already planted about 170,000 seedlings since we assumed our positions here in the SBMA, and yet they are still accusing us of not loving trees,” Salonga said.

Atienza also expressed his appreciation with the SBMA after Salonga told him that since December 2 last year, the agency has frozen any work at the Ocean 9 construction site pending the issuance of ECC from the DENR. (SBMA Corporate Communications)

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NGO says reforestation a better option for Subic trees

An environmental group said it would be "wiser" to opt for reforestation and other environmental protection activities instead of spending too much for the relocation of the "mostly diseased trees" that will be affected by the US$120-million hotel-casino project here of Korean firm Grand Utopia, Inc.

Kanlungan Development Association of Innovators, Inc., a non-government organization composed mostly of professors from the University of the Philippines in Los Baños (UPLB), stressed during a media tour of the project site that reforestation would be the better option.

This conclusion was reached, said professor Pastor Malabrigo who is Kanlungan team leader, after a three-week study of the project site for the proposed Ocean 9 Casino and Hotel Resort in this free port's central business district.

"Kanlungan's Initial Environmental Examination Report (IEER) for the hotel-casino project recommended the replacement of 161 diseased trees, the relocation of 70 healthy ones, and the retention of 51 others, which will not be affected by the development," said Malabrigo.

"Using a replacement ratio of 50 seedlings for every tree to be replaced, Grand Utopia should produce a total of 8,050 seedlings, which is enough to reforest an eight-hectare area with the recommended spacing of 3 meters x 3 meters," he added.

The SBMA Ecology Center has already identified the Pastolan area at the east side of the Subic Bay Freeport as a viable reforestation area, it was learned.

Malabrigo said people should look at the prospects of an eight-hectare reforested land "versus the pitiful condition of the mostly defective trees in the project site."

He added that the area, which served as a mini-golf course during the US Navy days, has become unsuitable for tree growth, with the concreted gold links causing the development of "very disturbed root systems."

The trees, as a result, eventually developed various diseases such as rotting. He added, however, that "these are very common species" like atis, langka, and guava, among others, which can be easily replaced with prime, even endangered, ones.

"Our company policy is to protect the environment, but we should also balance this with development and economic gains," Malabrigo said.

He also explained that the cost of tree-balling ranges from P100,000 to P200,000 per tree, depending on its size, while reforestation costs about P70,000 per hectare per year.

"Considering the very tedious process of balling and transplanting, the relocation will subject the trees to a lot of stress that unhealthy trees won't be able to withstand," Malabrigo said.

"Rather than spending too much for relocation of trees whose survival is really uncertain, the SBMA Ecology Center might as well ask the proponent to allocate resources for other environmental restoration and restoration activities," he said.

Kanlungan has identified 235 trees and 47 palms in the project site, as opposed to 336 trees (including palm species) as inventoried by the SBMA Ecology Center.

The discrepancy in the figures, Malabrigo explained, was due to the fact that each sprouting pole of the palm specie Palmera was counted as an individual tree, when they should have been counted as individual clusters.

"Palms are not trees, and should be differentiated in reports," Malabrigo pointed out.

He said that of the 48 tree species found in the area, only two are classified as "endangered" — ipil and narra, and one palm specie is "endangered" — the Manila palm..

Malabrigo, however, clarified that the term "endangered" means the population is threatened "in the wilds only."

"This does not necessarily mean that they are in the brink of extinction," he said.

Malabrigo said the two ipil trees will not be affected by the development and will be retained, along with five of the 18 Manila palms, while only one of the 13 narra trees is set to be transplanted. The rest will find their way into urban landscaping for the hotel-casino project.

Malabrigo also corrected the notion that the project site is densely stocked with trees, as previously described in previous media reports.


He said the project site has a tree density of less than three trees per 200 sq. meters, and thus "cannot be considered as dense since it falls short of the standard of one tree per 2 sq. meters."

Kanlungan, which has been tapped by Grand Utopia to undertake an environmental assessment of the project site, is registered with the Securities and Exchange Commission (SEC) and holds office inside the UP Los Baños campus. (SBMA Corporate Communications)

Photo Caption: Prof. Pastor Malabrigo (center), of the University of the Philippines in Los Baños (UPLB), explains to the media that replacement is the better option for trees affected by a proposed hotel-casino project in the Subic Bay Freeport. The conclusion is based on findings of a tree-week study by the non-government organization.

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NGO backs $120-million hotel-casino in Subic

Out of 282 trees at the site where the $120-million casino-hotel will be located there is one Narra tree, said Kanlungan, a nongovernment organization based in Los Baños.

Kanlungan composed of professors from University of the Philippines- Los Baños (UPLB) was tapped by Grand Utopia to conduct an initial environmental examination report for the casino hotel project in Subic.

“In our report we only found 282 trees most of them fruit bearing trees which are common,” Professor Pastor Malabrigo told The Manila Times in an interview during the site visit with media.

Contrary to the claims of Urban Planner Felino Palafox that century old trees would be cut to make way for casino-hotel project, Malabrigo said that “mahirap masabi na century old tree dahil wala tayo basihan [it would be difficult to say century old trees since there is no basis for the statement].”

He added that in their recommendation to the Subic Bay Metropolitan Authority (SBMA)ecology center, 51 trees would be retained, 70 trees would be bowled and 161 would be replaced or cut.He said that their decision to cut the trees is based on their health.

“Eight hectares of reforestation against the area is definitely much better,” Malabrigo said.“Only one Narra would be bowled and the rest are mostly common trees, it would cost around P100, 000.00 to P200, 000.00 depending on the size of the tree,” he added.

He explained that they have identified an area in Pastolan for the location of the reforestation; the ratio according to Malabrigo is 50 seedlings for each tree that would be cut. “We have already submitted the report to the ecology center for their review,” Malabrigo said.

Grand Utopia Inc., Executive Managing Director Louis Jong-Moon Choi in an interview with The Manila Times said that they are still waiting for the recommendation from the ecology center of SBMA before they can move and start operation on the site.

We will follow the decision of the Ecology Center, we don’t want to destroy the environment and we will follow Philippine laws,” Choi said.“I consider Palafox as one of the best architects in the Philippines and that is why we are surprise and curious why he is making such statements,” he added. (Anthony Bayarong, Manila Times)

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Solon urges congress to probe US$120-M hotel-casino project in Subic

QUEZON CITY-- A party list representative urged congress to fully investigate the "irresponsible accusations" made by renowned architect and urban planner Felino Palafox, Jr. against the Subic Bay Metropolitan Authority, even as she questioned Palafox' motives in "raising hell and high water" over the Grand Utopia project vis-a-vis his recommendation to transfer it to another project he designed in the Freeport.

In a privilege speech, Rep. Carissa Coscolluela called for a thorough congressional inquiry to clear the issues muddled in the "web of lies conveniently spun around a completely unrelated issue - an environmental advocacy campaign to save some trees in order to attract media attention and generate political and public support for the transfer of the resort project."

The congresswoman said she was "perplexed by the indiscriminate, arbitrary and irresponsible way that accusations have been hurled against the SBMA," - starting from the alleged cutting of trees at the site of the $120 million hotel casino project to accusations of extortion that Palafox alleged to have led to his disqualification from an earlier project - the redesign of the master plan for the Freeport's development.

"Since an outstanding member of the business community has made accusations against a government agency and its agents, let us fully investigate the matter so that truth may come out and those who might be found guilty can be punished and the innocent be spared," Coscolluela said in her privilege speech on Tuesday.

She cited the ever-changing statements Palafox and his spokespersons have been feeding to members of the media, which she said was unfair to SBMA.

"The reputation of the SBMA and its agents, including a nine-year old boy, was besmirched. They have been unfairly crucified in the court of public opinion in this trial by innuendo," said Coscolluela.

Palafox first claimed that his firm was disqualified from the master plan project's bidding since he did not come up with the 18% (of the contract price) allegedly demanded by a member of the SBMA Bids and Awards Committee (BAC).

Yet, Coscolluela stressed, records of the SBMA BAC clearly show that Palafox Associates was never disqualified from the bidding process as reported in the news, but was in fact among the final three firms short listed, added Coscolluela.

"Palafox Associates lost after all respective proposals of all qualified bidders were ranked in accordance with the set of criteria formulated under the Terms of Reference governing the bidding of the project," she revealed.

Coscolluela noted that Palafox subsequently said that his associate told him it was the son of SBMA Administrator Armand Arreza who was behind the extortion attempt - who was only nine years old at that time.

She added that Palafox later backtracked and said it could not have been instigated by Arreza or his son.

"Their (Palafox's camp) stories change everyday," said Coscolluela.

On Tuesday, she said a radio commentator revealed that sources close to Palafox identified the person behind the extortion attempt as a member of the SBMA Board of Directors named Boy Coscolluela.

"There is only one Coscolluela on the SBMA Board-- my father. He never spoke to Palafox or his associates about this project, and his name is not even 'Boy'," she said.

"Palafox and his cohorts cannot even get their lies straight," she added.

"To this day, Palafox hides behind all these people who speak for him and has not been man enough to name the alleged extortionist," she said.

The congresswoman reiterated that the matter must be brought to congress to set the record straight once and for all.

Meanwhile, Arreza said Palafox cannot accuse him of any environmental violations.

"We have made it clear that not one tree has been, or will be cut," said Arreza, explaining that the SBMA directive to project proponent Grand Utopia Inc. is to either incorporate the trees in the development plan, or ball and then relocate them.

Arreza wonders how Palafox has come up with the idea that centuries-old and heritage trees are in the area which, during the 50's until the early 60's, was reclaimed by the US Navy for leisure purposes, particularly as a mini-golf course.

Of the 336 trees in the area, 118 are considered as ornamental. More than half of the total have diameters less than 20 centimeters and are considered as saplings, Arreza said.

He clarified that the term 'urban jungle' is inappropriate, since the area, which was zoned for resort development as early as 1996, lies in the Central Business District, and is actually adjacent to SBMA offices.

"The Central Business District is where you would normally find entertainment structures like the proposed Ocean 9 Resort-Hotel," Arreza said. (SBMA Corporate Communications)

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