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Business

Even gov't is stuck in courts

HIDDEN AGENDA -

When the Supreme Court was accused of allegedly flip-flopping on some of its decisions, the credibility of the judicial system was put to question.

Even the government appears to have fallen victim to the system. Many government cases are aging in various trial courts around the country when it is up against big firms and personalities.

In a recent gathering of the Management Association of the Philippines (MAP), Finance Secretary Cesar Purisima took note of this as one of the big challenges that the administration of PNoy has been dealing with. The government itself is stuck in many courts in the country.

He cited as an example the government case against Pacific Nickel Philippines, Inc. on its purchase of the government stake in Nonoc Mining Industrial Corp. in Surigao. The case remains stuck in Makati and Surigao courts for years now after the privatization deal during the Ramos administration reportedly went unheeded.

Pacific Nickel, a subsidiary of Philnico Industrial Corp. (Philnico), reportedly has not yet fully settled the $263.8 million due to the Privatization Management Office, formerly Asset Privatization Trust, under the Amended and Restated Definitive Agreement (ARDA) signed in 1996. Purisima said only $1.2 million had been paid and the government is pursuing a case that remains stuck in court. In the meantime, the mining company reportedly continue its operations despite the $300 million plus it owes the government now.

The finance chief disclosed that more government cases are pending in various courts for many years now. The cases of PhilExim guarantees, the Bureau of Customs’ run-after-the smugglers (RATS) and RATES campaigns are just among the many government cases covering billions of pesos that remain stuck in courts, Purisima said.

Purisima should communicate this issue constantly for the public to understand where PNoy was coming from when he took it by himself to challenge our judiciary. Initially, it looks like PNoy was heading for a showdown with the judiciary when his administration was pursuing cases against former President Arroyo and impeached CJ Corona. It appears that it goes beyond politics. And Purisima was right in saying that it is a big challenge for PNoy.

How can government make sure that investments come in without creating an environment where there is a level playing field, where there is transparency, and where the courts can be trusted to make their decisions based on merits.

More of this kind of explaining is what PNoy needs for him to be understood by the public. PNoy also needs the likes of Purisima in communicating what this administration is really up to. Our judicial system might indeed be flawed. If there is one good thing that this administration has done so far, that is in sending a clear signal that it is no longer business as usual, whether that move is popular or not.

 For comments, e-mail at [email protected]

AMENDED AND RESTATED DEFINITIVE AGREEMENT

ASSET PRIVATIZATION TRUST

BUREAU OF CUSTOMS

FINANCE SECRETARY CESAR PURISIMA

GOVERNMENT

MAKATI AND SURIGAO

MANAGEMENT ASSOCIATION OF THE PHILIPPINES

NONOC MINING INDUSTRIAL CORP

PACIFIC NICKEL

PACIFIC NICKEL PHILIPPINES

PURISIMA

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