Security risk

A number of countries are now reviewing their telecommunications systems in the light of concerns being raised about Chinese IT firm Huawei Technologies Co. and its alleged strong ties with the Chinese military.

Because of its cheap pricing strategy, Huawei has not only become the world’s largest telco equipment vendor, it is also the largest IT solutions and telecom equipment vendor in the Philippines, supplying mobile phones, modems, computers, network equipment, IT solutions and Internet devices to almost all telcos in the country. The Chinese firm has also deployed its own advanced Core Network Solutions in the country.

Huawei is under suspicion in the US, where it is accused of having ties with the Chinese military and of unfairly benefitting from the availability of low-interest loans from the Chinese government. Another Chinese telecom vendor, ZTE, is also under scrutiny.

Reports have it that the US and India have earlier disapproved deals involving Huawei for similar national security reasons. A US diplomatic cable leaked by online whistle blower Wikileaks disclosed that the Pentagon was opposed to Huawei’s presence in the US, because of the company’s strong ties to the Red Army, the Chinese military. Several US senators also described an attempt by Huawei to acquire American firm 3Leaf as something that poses a national security risk. 

A staff report by the US-China Economic and Security Review Commission has warned about the national security implications of Huawei investments in the US telecom sector, because of several allegations of intellectual property piracy.

In Australia, intelligence officials have scrutinized the alleged links between Chinese military officials and employees of Huawei’s Australian offices. In the United Kingdom, an intelligence and security expert described a deal between Huawei and BT Internet, which aims to build super-fast broadband, as “very worrying.”

Meanwhile, citing concerns over national security, Taiwan’s National Communications Commission (NCC) has recently issued a ruling that requires telcos to secure an approval first from the NCC and the Investigation Bureau, before they can use core network equipment supplied by Huawei. 

Should we be worried? After all, one just has to look all around his home to see how pervasive Huawei has become in our daily lives.

Necessary activities

Without mining and logging, where would civilization be?

Almost everything we use either uses wood, mineral products, or relies upon them for production.

Unfortunately, both are highly extractive activities and not all who undertake it are responsible enough. Large, unsightly craters as a result of open pit mining, chemical leaks, displacement of communities, massive floodings and landslides have destroyed the image of mining and logging.

In one of my visits to Australia, I have had the opportunity to see how mining can become a friend, instead of a foe, to the community and the economy in general. In Australia, mining companies are extremely conscious of their public image and of their responsibilities to their shareholders and the communities, and are 100 percent committed to sustainable mining.

Modern mining boast of new ways that leave minimal environmental footprint. Take for instance the Golden Cross gold mine in New Zealand, which when closed left an ugly gaping hole in the earth, but which now has a beautiful crystal-clear lake. All of the dirt has been replanted with lush green grass, and new trees are growing.

The Philippines cannot close its doors totally to mining. Whether we like it or not, our country relies heavily on it to keep its wheels turning and its coffers not wanting.

Imposing a moratorium on large-scale mining has not brought in the benefits promised by its advocates. Take the case of Oriental Mindoro which in 2002 imposed a 25-year ban. Illegal mining and logging continues unabated and many suspect that the ban is a cover for illegal miners being operated and manipulated by some influential persons in the province.

The Department of Justice has already opined that ordinances banning mining go against national laws, such as the Mining Act. Banning otherwise legal undertakings only encourages the proliferation of illegal mining and logging activities.

Another sinister plot

Concern for the environment is one thing. Hidden agendas are another.

Why the National Commission on Indigenous People (NCIP) keeps on delaying the issuance of a certificate of precondition (CPC) to MacroAsia Corp. (MAC) so that the company can start its mining operations in Brooke’s Point, Palawan remains a mystery.

It is becoming notorious not only for delaying actionable documents but also for denying its action even when faced with documents to prove it.

In its en banc meeting last Aug. 4, the NCIP approved the issuance of the CPC for MacroAsia, more than a year after the company obtained the required free and prior informed consent (FPIC) from 883 out of about a thousand registered indigenous families.

The issuance of the CPC should have been a mere ministerial action and should have been given out 15 days after the FPIC report was submitted in March last year.

In a letter to MAC legal counsel Danilo Cortina, NCIP executive director Basilio Wandag is now denying that a 4-3 decision was reached in favor of granting the CPC.

The NCIP is reportedly holding a municipal-wide consultation on Oct. 17 among 18 barangays with a population of about 58,000, despite the fact that majority of the 3,000 population of the directly affected barangays of Maasin, Ipilan and Mambalot have already given their nod.

Observers say the consultation is an attempt to subvert the earlier FPIC process which will make the directly affected barangays a minority.

The NCIP is also saying that on the matter of issuing the CPC, the commission should be unanimous, a position which experts say has no legal basis.

Taking undue advantage

A watchdog group composed of homegrown Cebu-based businessmen, known as Anti-Graft Advocates Indignant to Saboteurs and Tax Cheaters (AGAINST), has uncovered a plot whereby well-connected legitimate real estate developers are bribing persons in authority and are engaged in tax evasion.

Over the last few months, the group has monitored and documented a certain Cebu-based developer with a project in a Philippine Economic Zone Authority (PEZA) ecozone in Apas, Cebu City. Its project, being a registered Ecozone Facilities Enterprise, is qualified for VAT zero-rating of its transactions with its local suppliers of goods, properties and services.

Unfortunately, it takes undue advantage of this privilege by buying more than what it needs and then selling it outside the ecozone to local clients and hardware stores at much cheaper prices because of the zero VAT rating.

According to AGAINST, this could not have happened without the knowledge and participation of some concerned authorities. For it to work, then there must be some sort of a collusion and surely, millions of cold cash could have changed hands right under the very noses of people who are supposed to protect the people’s money.

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