Pmdc mess

The government’s Philippine Mining Development Corp. (PMDC) is in such a huge mess right now.

And unless this mess is cleaned up fast, any hope that this government-owned and controlled corporation can help attract foreign mining investments should better be set aside.

The name PMDC may be unknown to many, but is burdened with such a huge role in the economy that many wonder why Environment Secretary Lito Atenza has not stepped in to break the current impasse at the company.

PMDC is tasked with opening to serious investors about 65 non-performing mining tenements in the country, covering a total of 68,000 hectares of mineral-rich lands. The previous permits for the mining tenements were canceled by government for failure of their holders to commence business operations.

For all intent and purposes, the mining tenements are abandoned with no claimants. What we have here are opportunities being lost to pump-prime the economy, fund infrastructure projects and public services.

The mining industry generates much-needed jobs not only at mine sites but in downstream industries like jewelry-making. In short, mining done right can be the country’s ticket to prosperity as the Philippines is the world’s fifth most mineral-endowed nation.

Last year, foreign mining players invested some $500 million in the Philippine mining sector. But this amount is peanuts compared to the sector’s true potential.

Clearly, PMDC has its job cut out for it. Except PMDC can’t.

Industry observers note that until the controversy surrounding the assumption of PMDC chair Heherson Alvarez as concurrent PMDC chief executive officer (CEO) is resolved, then PMDC can be likened to a lame duck.

Sources from the grapevine revealed that because of the untenable situation in which only one man formulates the policies and executes them at the same time, the Development Bank of the Philippines (DBP) had stopped the release of PMDC’s loan amounting to around P500 million.

DBP insiders say the bank’s management frowns on Alvarez holding both positions of chair and CEO at PMDC for being contrary to good corporate governance. Alvarez’s assumption of the CEO post had also been questioned by PMDC board members and insiders for having been done under questionable circumstances last year.

An Alvarez ally in the board, Christopher Carrion, even drew flak for reportedly falsely informing President Arroyo about the alleged appointment of Alvarez as CEO.

Allegedly in exasperation, the President issued Executive Order 689 last Dec. 27 transferring back PMDC from her office to the Department of the Environment and Natural Resources (DENR). This makes the PMDC mess Atienza’s problem.

Unless DBP releases the loan, PMDC will be paralyzed. But more importantly, the jobs of thousands of mine workers and the livelihood of many Filipinos are being compromised by the standstill at PMDC and the mine sites and the lack of funding.

Secretary Atienza must act now. As for Alvarez, being one of the primemovers of the People Power revolution, he better search deep in his heart if the spirit of EDSA still remains.

Disservice to Filipinos

Why our government chooses to be more popish than the Pope is something that still bothers me and many others.

Take the case of the sugar industry. It seems that not enough effort is being exerted by government negotiators to prevent the demise of the local sugar industry when duties on sugar imports from ASEAN countries are brought down to zero by 2010 from the current level of 38 percent.

The Confederation of Sugar Producers Associations (Confed), the country’s largest aggrupation of sugar farmers led by Bukidnon Gov. Joe Zubiri,  has been leading the struggle to keep the local sugar industry afloat. After all, Philippine sugar farmers are doing everything to improve competitiveness against imported sugar. But the sad fact remains that the playing field in the region is simply not level. While Thai sugar farmers are enjoying varied forms of assistance from their government in the form of lower-priced inputs and more affordable credit, Filipino farmers are struggling from the high cost of fertilizers and the fact that banks refuse to accept agricultural lands as collateral for loans. Filipino farmers can only do so much. There are certain cost elements that are beyond their control. So why should our government allow Filipino farmers who are the Davids in this fight to be pitted against foreign farmers or the Goliaths in a match that is obviously designed in favor of the bigger fighters? Not even Manny Pacquiao should be brought to fight against the heavyweights. That is not how the game is played.

Another notable example of how our own government has been acting against our own interest is the case of the local airline sector.

According to Cebu Pacific (CEB), it can exceed its goal to carry seven million passengers this year if it is allowed to match the Clark-Hong Kong service of Hong Kong Express that started last week. Unfortunately, this Filipino airline does not enjoy the same privilege a foreign airline enjoys in the Philippines. CEB’s application last year to fly from Clark to Hong Kong, among other destinations, was turned down by the Hong Kong Civil Aviation due to the lack of entitlements.

On the other hand, Hong Kong Express can mount the same service because of Executive Order no. 500A of President Arroyo which virtually opened up Clark to foreign carriers.

Clark should have been CEB’s fourth hub if it were allowed to fly to Hong Kong from here. CEB’s Candice Iyog explains that making Clark the staging point for various international destinations is strategically important for the following reasons: first, those from northern Luzon do not have to travel all the way to Manila to catch their international flights; second, this will unlock economic opportunities in the North; and third, this will prepare Clark for its eventual expanded role as an international gateway. Iyog emphasizes that CEB has always been for reciprocal open skies and agreeable to a competitive set-up because this would give the Philippine carriers the same opportunity being given to foreign carriers in vying for passengers and operating new routes.

Readers’ corner

“ I agree with you this funfare has been going a long way already.

“Jun Lozada was (for me) at first a credible witness but now that he has been enjoying so much limelight and been going around with his piece, it seems to me that he has lost his “credibility”. Nakakainis na kasi eh it seems he is using this to run his own politics. And I reckoned after all this that he will run for public office. With a tag name of “Filipino’s hero”. Its crap already.

“Second, not only Joey de Venecia but also his family particularly Mr and Mrs Jose de Venecia. I heard one of the congreeman telling JDV “Bakit ngayon lang?” Yes, I have that same question as well. Bakit ngayon ka lang nag sasalita? Is it because he was ousted from his office? Nakakaawa talaga tayong mga Pilipino.

“I would like to question everybody’s motive in bringing up this NBN investigation - Is it because you wanted to help the Filipino people know the truth behind it or you would like to know why were you not included in the commissions? I equally praise Senator Miriam Defensor-Santiago’s statement - “Pinagaawayan kung sino ang nakakuha ng malaking parte” - Name withheld upon request

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