Farmers draw first blood

MANILA, Philippinwes - Tobacco farmers groups have waged a legal battle against those who they believe are responsible for classifying the SICPATRACE System and Swiss company SICPA Products Security S.A. as an unsolicited proposal and an original proponent, respectively. 

Accused before the Office of the Ombudsman of committing graft and corrupt practices are Bureau of Internal Revenue (BIR) deputy commissioner Lilia Guillermo and members of the BIR BOT prequalification bids and awards committee (PBAC) for allegedly giving undue and unwarranted benefits to SICPA. 

It will be recalled that in 2006, SICPA submitted an unsolicited proposal under the build-operate-transfer (BOT) law to the Department of Finance for the use of the SICPATRACE system. The DOF endorsed the proposal to the BIR, which created the BOT-PBAC. 

The proposal, which allegedly will generate additional revenues for the government amounting to P115 billion annually, calls for introducing strip stamps with a secret, covert code that will printed with highly visible security features to enable the public to determine if they are buying cigarettes with genuine stamp features. According to SICPA, it will be at no cost to government. 

SICPA, on the one hand, will recover its investments through the assessment of a usage fee of $7 per thousand security stamps based on a minimum volume requirement of four billion stamps per year or a minimum of 80 billion sticks per year over seven years. 

The complainants quoted Guillermo as saying that this will translate to an additional cost per pack of 52 centavos that will be passed on to consumers as against the original cost of 30 centavos per pack. 

They pointed out that while SICPA’s proposal did not comply with the requirements for unsolicited proposals (that the project involve a new concept or technology, that there be no direct government guarantee), PBAC recommended that the BIR accept the proposal and confer upon SICPA the original proponent status. 

The farmer leaders said the SICPATRACE System is no longer new as the technology is already being used in bank notes and there are other security providers using the same or similar technology. They also noted that the “take or pay” provision violated the prohibition against direct government guarantee, and that the unreasonable fees and charges imposed by the system have a damaging effect upon the whole tobacco industry. 

GSIS funds in peril?

 Due to the huge amounts involved, a recent decision of the Supreme Court that could result in the Government Service Insurance System (GSIS) shelling out as much as P1 billion has generated wide interest, as well as criticism, especially among GSIS members whose funds have been put in peril. 

In the mid-50s, spouses Zulueta obtained a total of P3.12 billion in loans from the GSIS secured by a real estate mortgage on several parcels of land and covered by mother titles. When the Zuluetas defaulted, GSIS extrajudicially foreclosed the mortgage and was the highest bidder in the foreclosure sale. 

It was alleged that GSIS disposed the foreclosed lots, including what the Zuluetas claimed should have been excluded. Under the first mortgage, the Zuluetas claimed that of the 199 lots covered by the mother title, 78 lots were expressly excluded from the mortgage. The GSIS on the other hand claims that it returned some of the lots to the Zuluetas who in turn sold them. 

In 1990, their son Antonio transferred his rights in the excluded lots to a certain Eduardo Santiago who asked GSIS to return the said lots. For failure to return, Santiago went to the Regional Trial Court which ruled in his favor and ordered the reconveyance of the 78 lots, or their fair market value at around P1.17 billion if a return is no longer possible.  GSIS appealed to the Court of Appeals which affirmed the RTC ruling. 

GSIS then went to the SC which affirmed the CA decision that ruled among others that since the 78 excluded lots were already sold by GSIS to third party buyers, reconveyance is no longer possible so that garnishment of GSIS funds should be resorted to. GSIS was ordered to pay Santiago P399 million as partial satisfaction of the judgment and a hearing will be conducted to determine the value of the subject lots, after which an order of execution for the remaining amount will be issued. 

It was learned that the GSIS has asked the SC last Jan. 12 to reconsider its decision. 

The 1.3 million GSIS members out there and their dependents are still hoping that the SC will reconsider, because after all, their hard-earned money makes up bulk of GSIS’ funds. 

Caticlan controversy

So much has been written in this column about the alleged opposition to the upcoming Caticlan airport upgrading project that we felt it is but proper that the other side be discussed this time. 

According to the Caticlan International Airport Development Corp. (CIADC), contrary to some reports, there are no local group nor local government units that are opposing the development, nor are they giving up the Caticlan airport for the proposed Carabao Island airport. The reason for the latter is obvious, CIADC says. First, Carabao Island is in Romblon while Caticlan is in Aklan. Second, it is well known that crossing the channel between Boracay and Carabao is too dangerous; and third, Carabao is a barren land with no road infrastructure nor any development whatsoever, such that it might take another 20 years for the Carabao Island Airport to take off. 

As to claims that the proposed Caticlan airport upgrade will level the hill beside the airport without the necessary environmental compliance certificate (ECC), CIADC insists that an ECC was issued on July 21,2006 valid for five years and is therefore not a recycled ECC.

On the alleged non-compliance of CIADC on the ECC requirements of proper consultation with provincial officials, formation of a multipartite monitoring team, and social responsibilities with stakeholders, it has been emphasized that all these have been complied with. 

CIADC stresses that leveling the hill mound at the end of the runway will not affect the Boracay shores. It added that the project will pave the way for the economic growth of Aklan as new destination sites in the main island will open (such as Buruanga, Malay, and Ibajay).   

HIDDEN AGENDA… From B-3

Race   

Latest survey reports showed that young broadcast journalist Ed Javier is leading his closest rival the Paranaque congressional race in terms of voter preference. Javier has overtaken Edwin Olivarez in the polls with 38 percent to Olivarez’ 33 percent. A far third is the brother of incumbent mayor Jun Bernabe, Roland with 13 percent.

 Olivarez  is the son of former Paranaque mayor Pablo Olivarez. Another case of political dynasty in the works?   

The problem of the Olivarezes is that candidate Edwin left Paranaque after the clan’s political setbacks and opted to sully into Laguna politics. And now he is perceived to be attempting to make a comeback in Paranaque after losing in the Laguna gubernatorial race in 2007. 

On the SC leadership 

Senatorial candidate Franklin Drilon recently warned that lawyers will march against the members of the Supreme Court if the latter supports the appointment of a Chief Justice-in-waiting by President Arroyo. 

These lawyers, he said, will be led by the Integrated Bar of the Philippines (IBP) and the Philippine Bar Association (PBA).

Observers note that Drilon’s act of goading the IBP and the PBA to sustain the pressure on the SC is understandable. Drilon is perceived as supporting the succession by Associate Justice Antonio Carpio, which they say may be a long shot considering the latter’s group’s falling out with President Arroyo. They add that Associate Justice Renato Corona will have the edge if the President exercises her power to name Chief Justice Reynato Puno’s successor. 

But some people have observed that the IBP is not about to dip its fingers into the SC succession row, largely because the IBP leadership issue has not yet been settled. The leadership issue, observers note, arose largely because of infighting between two fraternities, one of which  counts Drilon as a member. 

Meanwhile, the PBA is led by Former Ombudsman Simeon Marcelo who is Drilon’s brod and is also part of the law firm believed to be supporting the campaign of senators Noynoy Aquino and Mar Roxas. 

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