RA 7227 | SubicNewsLink

Showing posts with label RA 7227. Show all posts
Showing posts with label RA 7227. Show all posts

30 December 2022

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 


    07 August 2021

    SBMA distributes P166.16-M revenue shares to LGUs

    The Subic Bay Metropolitan Authority (SBMA) released on Friday (August 6) a total of P166,167,942.10 representing the 2021 first semester revenue shares for the eight local government units (LGUs) contiguous to the Subic Bay Freeport Zone. 

    SBMA Chairman and Administrator Wilma T. Eisma said the new release is 7.29 % higher than the P154,873,605.57 distributed in the same period last year, although far smaller than the shares given before the Covid-19 pandemic caused economic slowdown among businesses in Subic Freeport.

    SBMA Deputy Administrator for Finance Antonietta Sanqui turns over LGU revenue shares to local executives and their representatives.


    Eisma said the determination by the SBMA to stop the spread of Covid-19 here, coupled by continuous efforts to develop new revenue streams helped increase the agency’s income this year and subsequently the LGU allocations despite the economic downturn. 

    The LGUs that benefit from SBMA revenue shares are Olongapo City, the municipalities of Subic, San Marcelino, Castillejos, and San Antonio in Zambales, and the towns of Dinalupihan, Hermosa, and Morong in Bataan.

    For the first semester of 2021, Olongapo City received the highest share amounting to P38,646,910.80, followed by Subic with P25,403,910.86, and Dinalupihan with P20,667,618.91.

    The rest received their shares as follows: San Marcelino, P19,914,780.16; Hermosa, P17,301,942.69; Castillejos, P15,553,376.27; Morong, P14,439,842.95; and San Antonio, P14,239,559.46.

    Cheques for the LGU shares were turned over to LGU representatives by SBMA Deputy Administrator for Finance Antonietta Sanqui last Friday.

    Before this, the SBMA had released LGU shares totaling P656.85 million in the last two years alone. These include P203.13 million in August 2019, P175.73 million in February 2020, P154.87 million in September 2020, and P123.1 million last February.

    Meanwhile, LGU executives who attended the turnover of shares said they would use the money to fund various health programs of the LGUs, especially the fight against the Covid-19 virus.

    Mayor Elvis Soria of San Marcelino, Zambales said the funds are most welcome “especially these days when the rainy season affects many of our constituents and there’s a need to allocate funds for relief operations.”

    Subic Mayor Jonathan John Khonghun, meanwhile, said they would also use part of the money for infrastructure projects like road construction, as well as for scholarship program “now that the school year is going to begin soon.”

    The LGU shares are taken from the five-percent taxes paid by business locators in the Subic Bay Freeport and are apportioned among LGUs according to population (50%), land area (25%), and equal sharing (25%).

    Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, directs the SBMA to allocate two out of the five percent of gross income earned for LGU shares. (MPD-SBMA)

    13 September 2020

    SBMA releases P154.87-million LGU shares

    Despite the global economic downturn caused by the Covid-19 pandemic, the Subic Bay Metropolitan Authority (SBMA) still gave out revenue shares amounting to more than P154 million for the first semester to eight neighboring communities.

    SBMA Chairman and Administrator Wilma T. Eisma handed over the checks to officials from the beneficiary local government units (LGUs) who arrived at the SBMA office in succession to observe social distancing on Thursday, Sept. 10.




    Olongapo City remains to be the recipient of the biggest share with P36,020,102.98; followed by Subic, Zambales with P23,677,221.95; Dinalupihan, Bataan P19,262,853.00; San Marcelino, Zambales P18,561,184.24; Hermosa, Bataan P16,125,939.80; Castillejos, Zambales P14,496,222.41; Morong, Bataan P13,458,376.24; and San Antonio, Zambales P13,271,704.95.

    The latest LGU release was taken from the agency’s revenue collections from January to June this year.

    The LGU share is determined according to population (50 per cent), land area (25 per cent), and equal sharing (25 per cent).  Olongapo, which is a highly urbanized city, always received the biggest chunk of the shares.

    The shares are given to LGUs twice a year and are derived from two percent of the five-percent gross income taxes collected from business locators in the Subic Bay Freeport Zone.  Shares for the January to June period are released in August, while shares for July to December are given out in February the next year.

    Eisma stressed that the LGU shares were meant to augment local resources and enable stakeholder communities to carry out development projects in health, education, peace and order, and livelihood generation.

    She also pointed out that the total LGU shares given out this semester decreased a bit from the P175.7 million given out for the July to December period last year because of the slowdown in local business because of the Covid-19 pandemic.

    Meanwhile, Mayor Elvis Soria of San Marcelino, Zambales said the LGU shares would be a big boost to local communities as they grapple with the effects of the pandemic.

    “While the LGU shares are usually budgeted for development projects, we hope it can be realigned for use in our Covid-19 response, too,” Soria said.  

    The LGU of Morong, Bataan had requested for another schedule for the release of its share. (MPD-SBMA)

    PHOTO:

    SBMA Chairman Wilma Eisma hands over LGU shares to local officials representing Olongapo City; the municipalities of Subic, Castillejos, San Marcelino, and San Antonio in Zambales; and Dinalupihan, Morong, and Hermosa in Bataan.

    26 December 2018

    House OKS proposed law to revitalize SBMA

    The House of Representatives has passed on third and final reading a measure that primarily aims to strengthen the administration and operational governance of the Subic Bay Metropolitan Authority (SBMA).

    Approved by the chamber in plenary via vote of 200-6 (yes-no), without abstention, was House Bill (HB) no.8720, or the proposed Act Revitalizing the Bases Conversion Development.


    The bill was principally authored by former President and now House Speaker Gloria Macapagal-Arroyo (2nd District, Pampanga), Reps. Geraldine Roman (1st District, Bataan), and Emi Calixto-Rubiano (Lone District, Pasay City).

    It seeks to amend two sections of Republic Act (RA) 7227 or the “Bases Conversion and Development Act of 1992.”

    In particular, HB no.8720 amends Section 13 of RA 7227 to mandate that the SBMA shall have authority and jurisdiction over all economic activities within the Subic Special Economic Zone. This covers the power to inspect and register leisure ships and pleasure yachts of any ship owner.

    For this purpose, the SBMA shall administer and maintain an open register of leisure ships and pleasure yachts subject only to such rules and regulation to be promulgated by the SBMA in consultation with the Department of Transportation (DOTr) without prejudice to the requirements of the Constitution.

    The bill also mandates the SBMA to administer and implement incentives granted to its registered business enterprises.

    Likewise, the SBMA shall fix and impose just and reasonable rates and prices for the establishment, operation and maintenance of infrastructure, services and businesses in the Subic Special Economic Zone pertaining to electronic, web and cloud data operators and providers and telecommunications; shipping and maritime business and activities; airport operations; and all other similar matters inside the economic zone.

    The bill also aims to improve the revenue collection of SBMA and thereby increase the shares of the local government units (LGUs) affected and the share of the national government. Specifically, the measure fortifies the territorial jurisdiction of the Subic Special Economic Zone by amending Section 12 of RA 7227.

    Among the changes introduced by HB 8720 to Section 12 is the inclusion of a provision that the municipalities of San Antonio, San Marcelino, and Castillejos of the province of Zambales and the municipalities of Morong, Hermosa, and Dinalupihan of the province of Bataan may cede in whole or in part their entire municipal territory to the Subic Special Economic Zone for a period of not less than 50 years.

    The measure also seeks to ensure and strengthen the public safety and security of SBMA through further amendments to Section 12 of RA 7227.

    It revises the section to state that in the event that an assistance of the military is necessary, the expenses shall be borne by the national government. HB 8720 adds that military shall not interfere in the internal affairs of SBMA except to provide necessary security and defense.

    The bill designates one seat each in the board of directors of the SBMA to represent Olongapo City, the municipalities of Castillejos, San Antonio, San Marcelino, and Subic of the province of Zambales, and the municipalities of Morong, Hermosa, and Dinalupihan of the province of Bataan.

    It also provides for one representative for the Board of Director of Bases Conversion Development Authority from the indigenous peoples (IPs) residing within the Subic Bay Freeport Zone. (Ellson Quismorio, Manila Bulletin)

    https://news.mb.com.ph/2018/12/24/house-oks-proposed-law-to-revitalize-sbma/

    26 September 2017

    Malacañang appoints Eisma SBMA chair and administrator

    PRESIDENT Rodrigo Duterte on Monday (September 25, 2017) appointed SBMA Administrator Wilma T. Eisma Chairperson and Administrator of the Subic authority for a term expiring on June 30, 2022.

    Eisma’s new appointment was made under Executive Order (EO) No. 42, which was signed by the President also on Monday.



    The new EO expressly repealed EO No. 340 signed in 2004 by then President Gloria Macapagal-Arroyo, which essentially split the powers and duties of the highest position in the Subic Agency.

    Section 3 of EO 42 provides for the appointment by the President of “the Administrator of the SBMA, who shall be the ex-officio Chairman of the SBMA Board.”

    Eisma, a lawyer and former SBMA volunteer, was appointed SBMA administrator in December 2016, two months after Malacañang named former Volunteers Against Crime and Corruption (VACC) official Martin Diño as chairman of the Subic Agency.

    However, the two officials had been at odds since May this year following Diño’s issuance of an administrative order that interfered and encroached upon the duties of the administrator, as well as on the oversight functions of the SBMA Board of Directors.

    Diño had similarly quarreled with another SBMA official whom Malacañang designated as OIC-Administrator before Eisma took over.

    This conflict sparked an investigation by the House of Representative on EO 340, with the lawmakers pointing out that the SBMA Administrator was originally the sole appointee under RA 7227.

    Last month, in a hearing conducted by the House Committee on Bases Conversion, Deputy Executive Secretary for Legal Affairs Menardo Guevarra said they have recommended to President Duterte the repeal of EO 340 to ease the tension in SBMA, hence the issuance of EO 42.

    The new EO also noted that EO 340 “has created confusion with regard to the scope of authority, powers, functions and duties of the Chairman of the SBMA Board and the Administrator of the SBMA that has adversely affected the operations of the SBMA, as well as the numerous investors and locators” in the Subic Bay Freeport.

    The Palace decision to keep just one top SBMA official was immediately hailed by Subic investors, community leaders and SBMA employees, who had earlier urged Malacañang to resolve the conflict and prevent further confusion among Subic stakeholders.

    Business locators in Subic, as well as local government units in Zambales and Bataan, had earlier urged Malacañang to intervene in the conflict, and called for the appointment of a capable administrator-chairman to head the SBMA. (HEE/MPD-SBMA)

    PHOTO:

    SBMA Chairperson and Administrator Wilma T. Eisma takes her oath of office before Deputy Executive Secretary Menardo Guevarra in Malacañang Palace on Tuesday, September 26.

    18 July 2017

    SBMA awaiting Palace verdict on leadership issue

    All appears quiet at the Subic Bay Metropolitan Authority (SBMA) in the past few days, as officials and employees alike awaited Malacañang decision on the leadership row that pitted its head of agency against its chief executive officer.

    Workers at the Subic agency said on Monday that they have no inkling on who is going to stay as top official after business locators and concerned local government units called for President Duterte’s intervention to settle the issue.


    “Between Chairman Martin Diño and Administrator Wilma Eisma, we still don’t know who’s going to be chosen by President Digong,” said a female utility worker at Bldg. 229, the agency’s main office along the Waterfront Road here.

    “But of course, we want somebody who can manage the SBMA well and really has malasakit for the Subic Freeport, and one who can relate with foreign investors and represent Subic with dignity and pride,” said the employee who asked not to be named.

    Still, the management of the SBMA, which prides itself for the high morale and excellent work ethic of its employees, said that the agency is going through its businesses and services as usual.

    “We are all awaiting the President’s verdict, whatever it will be, but that doesn’t mean the world has stopped revolving over here,” said Administrator Eisma, a lawyer who started with the SBMA as a volunteer in 1992. “Our employees continue to work hard; we in the management likewise continue to work hard, and it’s a busy schedule for everybody on the ground,” she added.

    Eisma herself had been to Taiwan the other week to make a pitch for the Philippine government at the Philippine Investment Promotion Plan (PIPP) Investment Roadshow in Taipei and Taichung City.

    “Despite the leadership issue here, the SBMA has, in fact, been doing well,” Eisma said. “So well, perhaps, that even Chairman Diño, who has been criticizing the SBMA and describing it as on the verge of financial collapse, had lately announced to the media our accomplishments in terms of revenue, investments, jobs, exports, and other economic indicators.”

    Eisma also said that despite the uncertainty of retaining her SBMA post, she has faith that whatever President Duterte’s decision will be, it would be for the best of the Subic agency.

    “If it’s Chairman Diño who’d be chosen, then I’ll gladly go quietly into the night, so to speak, because after all I’m just here to serve Subic, which is my home and the home of my fellow volunteers,” she said.

    “On the other hand, if President Duterte chooses me to stay, then he can be sure that I’d give the best of what I learned and experienced in the private sector to bring the SBMA and the Subic Freeport to their rightful place as catalysts of economic development and inclusive growth in the community,” Eisma added.

    The leadership tussle between Diño and Eisma, who are both Duterte appointees, started last May when Diño issued Administrative Order No. 01-2017, which interfered and encroached upon the duties of the Administrator and CEO, as well as on the board’s oversight functions.

    Diño had also quarreled with the OIC-administrator that Malacañang had appointed before Eisma.

    The SBMA conflict sparked an investigation by the House of Representative on Executive Order No. 340, which separated the position and functions of the SBMA chairman from that of the SBMA administrator, who was originally the sole appointee under Republic Act 7227, or the Bases Conversion and Development Act of 1992.

    Lately, business locators in Subic had asked Malacañang to intervene, and called for the appointment of a capable administrator-chairman to lead the SBMA.

    Before this, seven local government executives around the Subic Bay Freeport had expressed support to Eisma in the ongoing leadership tussle and decried Diño for making “a series of inappropriate, unfitting, baseless and disruptive actions” that adversely affected the SBMA. (MPD-SBMA)

    28 January 2017

    SBMA expresses keen interest in extending the Freeport fence to contiguous towns

    The Subic Bay Metropolitan Authority (SBMA) has expressed its interest in extending the present fenced area to contiguous municipalities based on the provisions of the law.

    This was announced to members of the Subic Bay Freeport Chamber of Commerce (SBFCC) in a meeting Wednesday (Jan 25) sponsored by the SBMA Labor Department in celebration of the 4th year anniversary of its SBMA-run radio program “Paggawa at iba pa” over 89.5 FM Subic Bay Radio.



    SBMA Administrator Atty. Wilma Eisma told Subic-based businessmen that according to the provisions of Republic Act 7227, the law that created the Subic Bay Freeport Zone, “the fenced areas should be extended.”

    Section 12 of RA 7227 states Subic Special Economic and Freeport Zone consist of the City of Olongapo and the municipality of Subic in Zambales, the lands occupied by the former US Naval Base and its contiguous extensions and within the territorial jurisdiction of the municipalities of Morong and Hermosa in Bataan.

    Related to this, in November 2007, Executive Order 675 was issued by then President Gloria Macapagal Arroyo amending EO 97-A allowing the extension of the secured area of the Subic Bay Special Economic and Freeport Zone (SSEFPZ) to areas within the SSEFPZ but are outside the presently fenced-in former US Naval Base.

    Under EO 675, SBMA may declare areas outside the former US Naval Base as “Additional Secured Areas” or “Additional Areas” which may be operated as “Special Economic and Freeport Zone” supervised by SBMA.

    Additional Secured Areas and Additional Areas are entitled to all tax, fiscal and other investment incentives (except real estate tax for privately-owned property). However, only secured areas may avail the duty-free privileges.

    The declaration may only take effect after a concurrence by a resolution of the concerned Sangguniang Bayan or Panglungsod.

    “That’s the dream. Fencing outside the existing fenced areas is difficult but I think it can be done and it should be done,” Eisma said, adding that at the very least, the privileges provided to investors and locators inside the Freeport should be extended.

    Eisma encouraged the locators and investors to share inputs or ideas with local government officials in the contiguous municipalities and city in a bid to expand their businesses in their areas. “Because at the end of the day, based on the provisions of the law, those areas or parts of those areas are actually part of the Freeport, she continued.

    “It is very important to work with the local government units within the contiguous zone. So, we are now working on that,” she said.

    Meanwhile, SBMA Chairman Martin Diño said the SBMA Board of Directors is now doing all the necessary steps to shorten the documentation process for new and renewing businesses in an effort to make Subic “investor and locator friendly.”

    In response, SBFCC president Rose Baldeo said the member-locators and investors are with the new management team of SBMA saying the SBFCC is fully supporting the dream of the SBMA officials. (RAV/MPD-SBMA)

    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)

    19 August 2013

    Business first for Subic – SBMA (US Military Presence Must Have Parameters)

    Despite the impending utilization of this premier Freeport by US and Japanese military forces, Subic Bay Metropolitan Authority (SBMA) Chairman Robert Garcia said that it should first function what it was mandated for, a special economic zone.

    This was bared recently during an interview with Garcia, adding that the deal should first comply with three parameters before taking into full effect, that is if it in line with the Constitution, with the Visiting Forces Agreement (VFA), and with Subic Bay Freeport as an economic zone.

    Garcia said that they need to balance the military presence while upholding Republic Act 7227, the Bases Conversion and Development Act of 1992. But Garcia also acknowledged the issue of national security and that the SBMA answers to the national government.

    “How can you say no to the President? The agency answers to the national government, and if the national government says the military presence here is for our security concerns, who are we to question them?” Garcia explained.

    One of the areas, the Alava Pier, will only be used by military vessels. Commercial wharves of the Subic Bay Freeport will not be affected by the military operations conducted by the country and its foreign allies.

    He pointed out that it will still be business as usual for the other ports. Garcia also said that Alava Pier will only be used for supply replenishment, ship repair and docking but will not be used for deployment.

    “We are in a difficult financial position, with that, we will ask for the lease and rental be paid. President Aquino also said that we should ask the US government for funding to repair the ageing Alava Pier since they will be the one who will use it more often,” Garcia said.

    Aside from the usual places like the airport and wharves, the SBMA chief still doesn’t know which facilities the military will be using. “It will be up to them, but rest assured that Subic Freeport will stay true to its mandate,” Garcia said.

    The SBMA is the operating and implementing arm of the Government of the Philippines for the development of the 262 square mile (670 square kilometer) area of Subic Bay Freeport into a self-sustaining tourism, industrial, commercial, financial, and investment center to generate employment opportunities. This area was the former US Naval facility in Subic Bay.

    On March 13, 1992, the Philippine Congress passed Republic Act 7227, known as the Bases Conversion and Development Act of 1992, in anticipation of the pullout of the US military bases in the country.

    Section 13 of RA 7227 created the SBMA to develop and manage the Freeport which provides tax and duty-free privileges and incentives to business locators in the special economic zone.

    To date, Subic Bay Freeport has around 90,000 employees with close to 1,200 companies who are investing and banking on Filipino skills. Touted as the economic flagship of the country, Subic Freeport was once the biggest earning economic zone in the country.(Jonas Reyes, Manila Bulletin)

    08 July 2013

    Subic wows Japan defense chief

    Seeing the economic capabilities of this premier Freeport, Japanese Defense Minister Itsunori Onodera came here to talk to Subic Bay Metropolitan Authority (SBMA) officials on how to convert Okinawa into the next Subic Freeport.

    Onodera’s delegation, who came before the 19th annual Cooperation Afloat Readiness and Training (CARAT), met with SBMA Chairman Robert Garcia, who showed off an audio video presentation of how Subic Bay Freeport transformed from a military base into the country’s economic flagship.

    Last year, the United States and Japan agreed that about half the US Marines in Okinawa will soon leave, a move that could help alleviate the Japanese resentment building up due to the presence of Americans in their island.

    The move is also one of the plans of the Obama administration in the US to spread their military forces all over the Pacific region, a move that has irked the Chinese government.

    The planned transfer would leave the Japanese government parcels of land that they can use for other purposes, mainly economic.

    Subic Bay Freeport’s Cinderella tale came when the US military left the area after the eruption of Mt. Pinatubo.

    On March 13, 1992, the Philippine Congress passed Republic Act 7227, known as the Bases Conversion and Development Act of 1992, creating the Subic Bay Freeport as the first Philippine free port, in anticipation of the pullout of the US naval base facilities.

    Section 13 of RA 7227 created the SBMA and with free port incentives lobbied for by Richard Gordon – the city mayor then – resulting in an amendment granting tax and duty-free privileges and incentives during the bicameral committee hearings. Consequently, Gordon, then the mayor of the City of Olongapo, became the first SBMA chairman.

    Mayor Gordon with 8,000 volunteers took over the facility to preserve and protect US$8 billion worth of property and facilities when the last US Navy helicopter carrier USS Belleau Wood sailed out of Subic Bay on Nov. 24, 1992 and started the conversion of the military base into a free port like Hong Kong and Singapore.

    Richard Gordon was SBMA chairman until June 1998, when then President Joseph Estrada issued Administrative Order No. 1, appointing former Bataan Representative and Harvard-trained Felicito C. Payumo in Gordon’s stead.

    In August 2004, then President Gloria Macapagal-Arroyo issued Executive Order No. 340, reorganizing the SBMA’s Board of Directors, and defining the powers, functions and duties of the chairman. (Jonas Reyes, Manila Bulletin)

    23 November 2012

    SBMA honors volunteers in celebration of 20th Subic Freeport anniversary

    The Subic Bay Metropolitan Authority (SBMA) celebrated the 20th founding anniversary of the Subic Bay Freeport this week by honoring volunteers who helped develop the country’s first free port.

    The SBMA, led by chairman and administrator Roberto Garcia, gave a fitting tribute to the pioneer volunteers who worked hard in protecting the facilities left here by the US Navy in 1992 and converting the former naval base into a special economic zone.

    A special flag-raising ceremony held on Monday kicked off the week-long anniversary celebration, which included other activities like the Subic 20th Anniversary Photo Contest and Exhibit, as well as the Great Subic Weekend Sale organized by the local business community.

    The week was capped with a thanksgiving mass and a recognition ceremony for the 290 volunteers who have been with the SBMA for the past 20 years, as well as ten pioneer investors who began operating in the Freeport in 1992-1993.

    The ceremony was followed by the traditional lighting of the Christmas tree to start the Christmas season here, a fireworks display and an anniversary concert.

    “Without the volunteers, the Freeport would not be the way it is today,” Garcia said. “The volunteers have a very, very significant role in creating a modern and progressive Subic Freeport.”

    Garcia also noted that in the past 20 years Subic has grown into a premier logistics, tourism and investments hub, with over 1,500 locators doing their business in the Freeport and generating close to 90,000 jobs.

    “Subic Bay Freeport is now very vibrant, a very exciting place especially now that a lot of attention has been focused on the Philippines because of reforms initiated by the Aquino administration,” he said.

    Garcia also stressed that Subic helped thrust the country to the forefront of the global shipbuilding industry by enlisting Hanjin Heavy Industries Corporation among its business locators, thereby making the Philippines the base of the fourth largest shipbuilding facility in the world.

    Garcia added that he hopes to achieve the vision of making Subic the premier free port in Asia by enforcing good governance.

    “Together with the board of directors we have been working very hard not just to achieve economic success, but also to achieve the vision of Subic under a program of good governance following the President’s program of ‘Daang Matuwid’,” he said. “This sets the right business climate for investors to come in and invest in Subic.”

    In 1991, the Congress passed Republic Act 7227 or the Bases Conversion and Development Act, which created the Subic Bay Freeport and Special Economic Zone, and mandated the Subic Bay Metropolitan Authority to govern the free port.

    Subic, which was previously the biggest American military base outside the United States mainland, was formally turned over to the Philippines when the US naval forces left on November 24, 1992 after the Philippine Senate rejected the extension of the RP-US Bases Treaty. (FMD/MPD-SBMA)

    PHOTO:
    SBMA Chairman Roberto Garcia leads a special flag-raising ceremony on Monday in honor of Subic volunteers, which served to kick off the week-long celebration of the 20th anniversary of the Subic Bay Freeport. Assisting him are SBMA senior deputy administrator for operations Ramon Agregado, SBMA deputy administrator for business Raul Marcelo, and members of the SBMA Law Enforcement Department.


    12 April 2012

    Court stops VAT on imported fuel in Clark, Subic freeports

    CLARK FREEPORT – A Regional Trial Court (RTC) in Angeles City has stopped the Bureau of Internal Revenue (BIR) from imposing value-added tax (VAT) on all petroleum and petroleum products that are imported and/or brought directly from abroad via freeport and economic zones, including this premiere freeport.

    The court has issued a writ of preliminary injunction, ordering the BIR, its agents, representatives, or assigns, and all persons acting in its place and stead from enforcing directly or indirectly Revenue Regulation No. 2-2012.

    RTC Branch 58 Presiding Judge Philbert Iturralde said in his seven-page resolution that the regulation contradicts Republic Act 7227, the law that created Subic and Clark Freeport Zones. Republic Act 9400 later amended RA 7227.

    “This Court, in the exercise of its sound judicial discretion, finds the prayer for the issuance of the writ of preliminary injunction to be impressed with merits and hereby grants the same,” the decision said.

    Iturralde ordered petitioner, Pampanga 1st District Representative Carmelo Lazatin, to post a P15-million injunction bond to answer for any damage that may be suffered by the BIR in the event that the court should later determine that the lawmaker is not entitled to the relief prayed for. (Mark Anthony N. Manuel, Manila Bulletin)

    20 March 2012

    Judge halts VAT collection on econzone oil imports

    Business locators in this free-port zone rejoiced after a regional trial court (RTC) issued a temporary restraining order (TRO) stopping the Bureau of Internal Revenue (BIR) from implementing additional taxes on petroleum products imported into special economic zones.

    The order, which was issued on Friday by RTC Branch 58 in Angeles City, Pampanga, directed Finance Secretary Cesar Purisima and BIR Commissioner Kim Jacinto-Henares “to cease and desist from implementing/enforcing the assailed Revenue Regulation No. 2-2012 for the duration of 20 days.”

    Presiding Judge Philbert Iturralde also set a hearing on a plea for a writ of preliminary injunction for March 21, and presentation of the petitioner’s evidence on March 29.

    The court issued the TRO on a petition filed by Rep. Carmelo Lazatin of the First District of Pampanga and found merit in the motion because of its urgency as the assailed regulation would have taken effect 15 days after its publication.

    Danny Piano, president of the Subic Bay Freeport Chamber of Commerce (SBFCC), said Subic Bay Freeport businessmen objected to the imposition of additional tax on petroleum products because the new regulation was in conflict with the tax-free regime in Subic under Republic Act (RA) 7227.

    If implemented, the new regulation would have increased gasoline pump prices here by about 12 percent and also resulted in a bureaucratic nightmare, Piano added.

    “The good news, albeit temporary, is that there is now a temporary restraining order on the revenue regulation,” he told SBFCC members in a letter on Friday. “The chamber will continue to work to have the revenue regulation rescinded or revoked permanently.”

    The Subic chamber wrote a letter to President Aquino on March 7 expressing its opposition to the BIR regulation, saying that RA 7227, which created the Subic Bay Freeport Zone, specifically provided that the Subic Special Economic Zone shall be operated and managed as a separate customs territory.

    This provision ensured the “free flow or movement of goods and capital within, into and exported out of the Subic Special Economic Zone, as well as provide incentives such as tax and duty-free importations of raw materials, capital and equipment,” the SBFCC said.

    It added that RA 7227 stated that aside from the 5-percent tax on gross income, “no taxes, local and national, shall be imposed within the Subic Special Economic Zone,” and that, “in case of conflict between national and local laws with respect to tax exemption privileges in the Subic Special Economic Zone, the same shall be resolved in favor of the latter.”

    The Subic chamber also told the President that RR 2-2012’s provision calling for a “joint supervision over the facilities with the BIR, through the assignment of revenue officers,” simply adds another layer of bureaucracy, which has the potential for more corruption. (Henry Empeño, Business Mirror)

    29 June 2010

    SBMA adopts new scheme for release of LGU share from corporate taxes

    The Subic Bay Metropolitan Authority (SBMA) will soon be collecting the two percent share of contiguous local government units (LGUs) from corporate taxes paid by business locators in this free port, instead of the Bureau of Internal Revenue (BIR).

    This was announced by Subic authorities during a forum held under the auspices of the Department of Finance (DOF) for some 300 representatives of companies in the Subic Bay Freeport Zone.

    “We are doing this to make sure that the LGU shares are distributed quickly,” SBMA administrator and CEO Armand Arreza explained.

    He said that previously, Subic locators forward their corporate tax, or five percent of their gross income earned, straight to the BIR, which automatically remits payments to the national treasury.

    Thereafter, the Department of Budget Management (DBM) releases the two percent share to the LGUs concerned.

    Arreza also said that since the creation of the SBMA, the 2 percent share was only distributed for a few years, resulting to a lot of complaints from LGUs.

    “The funds could have been used to finance LGU development projects and provide for basic support services in health, education, and peace and order,” Arreza noted.

    “So it is but right and lawful that the LGUs receive their share on a regular basis,” he stressed.

    According to Republic Act No. 9400, which amended RA 7227 or the Bases Conversion and Development Act of 1992, no national and local taxes shall be imposed within the Subic Special Economic Zone except for a five percent tax on gross income earned by business enterprises within the zone.

    Accordingly, the corporate tax shall be remitted as follows: three percent to the National Government, and two percent to the SBMA for distribution to LGUs affected by the declaration of, and contiguous to the zone.

    The two percent share is divided according to population (50%), land area (25%), and equal sharing (25%).

    The contiguous communities include the City of Olongapo and the municipalities of Subic, San Antonio, San Marcelino and Castillejos in Zambales, and Morong, Hermosa and Dinalupihan in Bataan.

    In the forum, Arreza said that there will be no other changes in the computation of the corporate taxes, except for splitting the check into two: 60 percent to be forwarded to the BIR and 40 percent to the SBMA Treasury Department.

    Aside from Arreza, BIR assistant revenue district officer Maglangit Dicampong was present to address concerns raised by business locators. The forum speakers also included SBMA senior deputy administrator for internal services Ramon Agregado, SBMA deputy administrator for finance Cristina Millan, and SBMA treasury department manager Paulita Yee.

    For her part, Millan assured the locators that the SBMA will issue guidelines to address matters regarding the new collection scheme for corporate taxes.

    The new scheme will be implemented starting with the locators’ second quarter tax payments. (SBMA Corporate Communications)

    27 August 2009

    Gordon bill to expand Subic, Clark ecozones gains support

    A proposal by Senator Richard Gordon to allow the Subic Bay Metropolitan Authority (SBMA) and the Clark Development Corporation (CDC) to develop more economic zones in neighboring areas gained more adherents during committee deliberations on Wednesday.

    Gordon, who heads the Senate Committee on Government Corporations and Public Enterprises, received assurances from concerned national government agencies, government corporations and local government units (LGUs) that they would support development thrusts in the Subic-Clark growth corridor as envisioned in Gordon’s bill.

    The agencies included SBMA and CDC, Bases Conversion and Development Authority (BCDA), Philippine Ports Authority (PPA), Department of Finance (DoF), and the Philippine National Railways (PNR).

    Representatives from the provincial governments of Zambales and Bataan likewise attended the hearing and expressed support to the proposal.

    According to Gordon, Senate Bill No. 143 seeks to maximize the vision of the Subic-Clark growth corridor to decongest Manila and open up more livelihood opportunities in areas between the Subic, Clark and Manila, as well as along the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEx).

    Gordon also said that by creating more special economic zones near the two free ports, the government could optimize the use of the three airports in Subic, Clark and Manila, the two seaports in Subic and Manila, and the connecting highway and railway in Luzon.

    Agreeing to Gordon’s proposal, SBMA Administrator Armand Arreza suggested that funds for the acquisition of lands for conversion into economic zones be sourced out from the 5 percent gross revenue tax collected by SBMA and CDC from their business locators.

    “The challenge would be in the consolidation of the adjoining lands, and to spur the development of the prospective ecozones we shall need adequate funding,” Arreza said, pointing out that most of the lands along the SCTEX are already titled, based on a recent survey conducted by the Subic-Clark Alliance for Development Council (SCADC).

    Meanwhile, PNR chairman Mike Defensor commended Gordon for coming up with a proposal to hasten the development of the Subic-Clark growth corridor.

    Defensor revealed that his agency will be starting the Northrail project next month to enhance the benefits of the SCTEx and encourage more trade and livelihood opportunities in the Central and Northern Luzon regions.

    “We will support the development of more economic zones,” Defensor pledged.

    He added that, in particular, the Northrail project will further boost existing means to transport commuters and products in the area.

    In the same hearing, Gordon also brushed off concerns by representatives of the Philippine Economic Zone Authority (PEZA) that Gordon’s proposal would duplicate the PEZA law by creating another agency to oversee economic zones.

    “This is not a territorial tug of war. What I want to see out of this bill is just development,” Gordon added.

    Aside from getting their support, Gordon also asked the concerned agencies and LGUs represented in the hearing to form a technical working group to collate suggested measures for incorporation in the bill.

    “We’ll put the bill on the floor in two weeks,” Gordon said.

    Two other measures seeking to amend Republic Act No. 7227, otherwise known as the Bases Conversion and Development Authority Act of 1991, are under deliberation by Senate committees.

    The bills, which both seek to expand revenue allocations from the sale, lease, joint ventures and other transactions involving military bases and reservations in the country, are authored respectively by senators Jinggoy Estrada and Rodolfo Biazon. (SBMA Corporate Communications)

    21 March 2009

    17 years after RA 7227: SBMA cites Subic Freeport’s economic contributions

    Officials of the Subic Bay Metropolitan Authority (SBMA) said that Subic Bay has significantly achieved its business objectives of attracting investments and generating employment opportunities after 17 years of existence as a special economic zone and free port.

    SBMA Chairman Feliciano Salonga and SBMA Administrator Armand Arreza jointly cited Subic’s economic contributions on Thursday, after the agency marked the 17th year of the passage of Republic Act 7227, which created, among others, the Subic Special Economic and Freeport Zone (SSEFZ).

    RA 7227, also known as the Bases Conversion Development Act of 1992, mandated the development of the SSEFZ into a self-sustaining, industrial, commercial, financial and investment center to generate employment opportunities in and around the zone and to attract and promote productive foreign investments.

    It was signed into law by President Corazon C. Aquino on March 13, 1992, after its consolidated version was finally passed by both the House of Representatives and the Senate the month before.

    “The Subic Bay Freeport, we are proud to say, has consistently delivered on its objectives in the past 17 years,” Salonga said. “And it will continue to deliver despite the hurdles brought about by the ongoing global economic slowdown,” he added.

    “One bright note here is the continuing increase of our labor force, which grew by almost 18 percent last year. The biggest chunk of this – or more than 41 percent – are employed in the services sector; followed by shipbuilding/marine-related services, which employ some 35 percent of our work force,” Salonga said.

    He also pointed out that the 87,502 jobs in the Subic Freeport as of December 2008 “is more than thrice the number of workers employed by the US Navy at the heydays of the then Subic Naval Base.”

    Arreza said meanwhile that in the 17 years since the Subic Freeport has existed, the SBMA has generated $5.75 billion in committed investments, $11.21 billion in exports, and P2.21 billion in seaport revenues.

    He added that with the operation of various investor-firms since 1992, the Subic Freeport had also contributed to the national treasury a total of P9.93 billion in collections by the Bureau of Internal Revenue (BIR), and P55.35 billion in cash and non-cash collections by the Bureau of Customs (BoC).

    Arreza also revealed that despite the global economic downturn, the agency is actually eyeing further growth through a new development roadmap that has identified five major investment areas in the free port – namely, logistics, manufacturing, shipbuilding, tourism, and business process outsourcing and knowledge-based industries.

    “After fulfilling our mandate of attracting investors and creating jobs, we have to re-invent the purpose of the SBMA. Now we’re aiming to take the Subic Freeport, as well as the neighboring communities, to a higher level — creating a multiplier effect in Central Luzon and the rest of the national economy,” said Arreza.

    Arreza added that the importance for the SBMA to deliver on its key metrics cannot be overemphasized “because Subic has always been an enabler from the time it was born 17 years ago to today.”

    “If Subic succeeds, it creates a positive image for the country as well. If Subic goes down, it can drag the rest of the country, too. This is why our biggest moral purpose is to unite around a sense of achievement for the sake of our country,” Arreza concluded. (SBMA Corporate Communications)

    PHOTO:
    The SBMA head office at the Subic Bay Freeport Zone: continuing to deliver 17 years after its creation in 1992.