Tuesday, October 18, 2016

MGB appointment throws cloud over mine audits



Posted on October 11, 2016

REGULATORS officially released yesterday the contents of a presidential order appointing a replacement to engineer Leo L. Jasareno, the official who oversaw an audit of the environmental practices of miners.


The replacement throws the industry into further uncertainty, mining companies said, as it threatens to prolong the audit process, putting the future of many mining operations under a cloud.

A letter from the Office of the President to the Mines and Geoscienes Bureau (MGB) was shown to reporters Monday, naming Mr. Jasareno’s acting replacement and transmitted by Executive Secretary Salvador C. Medialdea on Sept. 28.

“I am pleased to transmit herewith the appointment letter of Wilfredo G. Moncano, signed by President Rodrigo R. Duterte, as Acting Director IV, Mines and Geosciences Bureau, Department of Environment and Natural Resources (DENR), vice Leo L. Jasareno” Mr. Medialdea wrote.

In a copy obtained by BusinessWorld last week, the same letter was received by the DENR on Sept. 30, a few days before the release of the mine audit results. The audit , identified 20 more miners to add to the 10 earlier recommended for suspension. On Oct. 4, Mr. Jasareno, in a presentation, reported on the audit results.

Mr. Jasareno was the acting director IV of the MGB and was designated as the officer-in-charge senior undersecretary of the agency, placing under his purview the operations of the Environmental Management Bureau. Functions delegated to him include the conduct of the mine review via a special order signed on Aug. 3 by Environment Secretary Regina Paz L. Lopez.

Mr. Jasareno headed the MGB for the past five years but had to file a resignation letter after the president ordered appointees of former President Benigno S. C. Aquino III to vacate their positions.

“With the issuance of the order of the president, then the position of acting director IV of Leo now goes to Attorney Moncano. Attorney Moncano has taken his oath of office. In the meantime he will remain as the regional director of MGB Region XI,” Environment Undersecretary and MGB Concurrent Director Luis A. Jacinto told reporters on Monday.

In a brief phone interview on the same day, Mr. Jasareno confirmed that he no longer holds a position in government but “is assisting the secretary” who will now head the audit while waiting for the pending approval of the letter she earlier sent to the Office of the President recommending Mr. Jasareno hold a certain position in the Environment Department.

Asked for comment, the Chamber of Mines of the Philippines (CoMP) said that the appointment is “cause for concern for us primarily because he is the person tasked to head the audit.”

CoMP Vice-President for Legal and Policy Ronald V. Recidoro, in a phone interview on Monday, added: “We are concerned that this will lead to further delays and have an impact on the final outcome... It impacts the reputations of the companies named during the (Oct. 4) press conference and prolongs the uncertainty.”

Mr. Recidoro also raised the issue of Ms. Lopez moving to place the audit directly under her supervision.

“It can lead to many unintended consequences,” CoMP’s Mr. Recidoro added, without elaborating.

Ms. Lopez assured, however, that the mine audit will stay on track. “It goes on. The good has to be done,” she said in an earlier phone interview.

Ms. Lopez added that she intends to engage the president in a dialogue with the aim of keeping Mr. Jasareno in some capacity, with continued involvement in the audit.

“I will meet the president first. I don’t want to go against him but if someone did good you don’t let him go. What he did in the audit, it takes a lot of courage,” she added.

Mr. Jasareno had said that the DENR will send out to miners the reports on the findings of their respective operations accompanied with letters requiring miners to explain why their operations should not be suspended.

Mr. Recidoro said that miners have not received the audit reports.

The DENR has recommended the suspension 30 metal miners representing three-quarters of the industry.

Of these, 18 are nickel producers that account for 55.5% of the country’s total nickel ore output based on last year’s production. -- Janina C. Lim

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