Thursday, February 15, 2018

Renewal of DMCI’s mining port permit puts 2 ex-PPA executives in hot water

By Joel R. San Juan -

THE Office of the Ombudsman has recommended the filing of graft charges against the former general manager of the Philippine Ports Authority (PPA) and his assistant in connection with the alleged anomalous renewal of DMCI’s port permit in Barangay Bolitoc, Santa Cruz, Zambales, whose mining operations were previously suspended for environmental concerns.
In a resolution released to the media on Wednesday, the Ombudsman found merit to the complaint filed by Agham Party-list, through its president Angelo Palmones, against former PPA General Manager and lawyer Juan Sta. Ana and former PPA Assistant General Manager Raul Santos.
The Ombudsman, however, cleared of any liability officials of DMCI led by Isidro Consunji, chairman and president of DMCI Holdings Inc.; DMCI Mining Corp. Rodolfo Cabuary, liaison manager/representative of DMCIHI; Cesar Simbulan Jr., president and COO of DMCIMC; and Herbert M. Consuji, vice president and CFO of DMCIHI.
The Ombudsman found probable cause to indict Sta. Ana and Santos for violation of Section 3(e) of Republic Act 3019, before the Sandiganbayan.
“The public respondents, with manifest partiality [and] evident bad faith or gross inexcusable negligence, gave unwarranted benefits, advantage and preference to DMCIMC as…shown in their inaction on complainant’s letters to them,” the 11-page resolution approved by Ombudsman Conchita Carpio- Morales read.
The Ombudsman noted that Sta. Ana ignored complainant’s letters, informing him of the irregularity in the issuance of DMCIMC’s port permit and demanding its cancellation and revocation.
Agham accused the two former PPA officials of a  proving the renewal of DMCI’s port permit despite the absence of mandatory requirements, particularly the Foreshore Lease Agreement as provided for by PPA rules and regulations.
The group said such an agreement would be impossible to be executed in favor of DMCI considering that the land directly butting its lot is not foreshore but a land formation that was cut through by DMCIMC.
Since there is no foreshore area directly abutting DMCIMC’s lot, then DMCIMC cannot be considered a littoral/riparian owner and should not have been allowed to operate a port.
The Ombudsman did not give weight to the claim of the respondents that a mere application for a foreshore lease agreement with the Department of Environment and Natural Resources is sufficient to grant the port permit.
While the respondents argue that a foreshore lease application and payment of occupancy fees are sufficient for the renewal of DMCIMC’s port permit, the Ombudsman said, they were not able to fully explain why the port permit was renewed on the basis only of the miscellaneous lease application and payment of occupancy fees, in clear violation of PPA rules and regulations.
“Public respondents’ claim that DMCIMC’s foreshore lease application was converted to a miscellaneous lease application is not supported by the records and does not justify the deviation from the PPA rules and regulations on the issuance and renewal of port permits,” the Ombudsman stated.
“In fact, the records show that DMCIMC’s foreshore lease application had already expired and that a separate miscellaneous lease application has been filed thereafter, thereby negating respondents’ claim,” the Ombudsman added.

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