Estrada rejected garbage deal — ex-Palace man

Ousted President Joseph Estrada had scrapped the controversial $380 million garbage collection and recycling contract of Jancom Environment Corp. (JEC) that is constantly being "resurrected," a former Estrada Cabinet member said yesterday.

Testifying before the House ecology committee chaired by Rep. Augusto Baculio of Misamis Oriental, Robert Aventajado said the former president set aside the contract because the National Economic and Development Authority (NEDA) decided that it could no longer be implemented.

Quoting a report recommendation, Aventajado said the project has been overtaken by "changes in the policy and economic environment," including the enactment of the Clear Air Act which bans incinerators.

The Jancom contract envisions a waste-to-energy process through incineration.

Aventajado chaired the Estrada administration’s flagship projects committee and the Metro Manila integrated solid waste management committee.

He said with the decision scrapping the Jancom contract, his solid waste management committee decided to pre-qualify other proponents for garbage collection and recycling without an incineration component.

He told the Baculio committee that Pro-Environment Consortium and a partnership between Dizon Mines and Vivendi were qualified for the project.

But before they could award any contract, they were restrained by the Court of Appeals upon petition by Jancom, he said.

Estrada was invited to yesterday’s hearing but could not come because of a molar operation.

The committee was also informed that the Jancom contract was signed during the Ramos administration by a special panel composed of then Environment Secretary Victor Ramos, housing czar Dionisio dela Serna and Prospero Oreta, chairman of the Metro Manila Development Authority.

But it has to be approved by the President before it could take effect, Dela Serna said.

He said Ramos refused to approve it during his last months in office because he did not want it to be seen as a "midnight deal."

During the hearing, there was confusion as to which company the government awarded the huge waste recycling contract.

Dela Serna testified that they dealt with and gave the contract to Jancom International, an Australian company, which later transferred its rights to Jancom Environmental Corp., a domestic corporation led by a certain George Mora.

However, Baculio said he had received communications from Jancom International claiming that it was the one that bagged the contract and is still interested in it.

Officials of the Mora firm told the committee that there is an "intra-corporate" dispute that is now before the courts.

The Supreme Court has ruled that the contract that the Mora company holds is valid. The ruling however does not prevent President Arroyo from denying her approval of the deal.

Mrs. Arroyo has said she was not inclined to approve it.