SEC asked to probe if Lafayette using dummy firm

Environment Secretary Angelo Reyes asked the Securities and Exchange Commission (SEC) to investigate allegations that Lafayette, an Australian-owned mining firm, is using a law firm as a dummy corporation in the Philippines.

Though Reyes did not mention the law firm, he noted Lafayette Philippines is largely owned by Narvasa, Salazar, Fortun law office which is representing deposed President Joseph Estrada in his plunder case before the Sandiganbayan.

Reyes replied to the question posed by Tony Lopez, moderator of the weekly Newsmakers Breakfast Forum at the Manila Pavilion, who asked if he was aware of the corporate structure of Lafayette mining.

Lopez asked Reyes why a law firm is engaged in a business endeavor such as mining instead of the practice of law.

"Lafayette is owned by a medium sized Australian company, known as the Lafayette International. It is 60 percent owned by the Narvasa, Salazar, Fortun Law Office and 40 percent owned by the Lafayette Philippines," Reyes said.

"We are looking into that," he said. "If the lawyer firm is only (acting as) a dummy."

Reyes admitted the Fortun brothers, as senior partners of the law firm, are acting as defense lawyers of Estrada in his plunder trial.

The forum focused on reports that the law firm is engaging in a business endeavor, a possible violation of the code of ethics of the legal profession.

Reyes, who was a guest at the forum, has assured that he will personally look into the allegations that Lafayette’s business partner is actually a dummy corporation of Estrada.

Reyes also admitted the Department of Environment and Natural Resources (DENR) committed some lapses in monitoring the mining operations of Lafayette in Rapu-Rapu island off Albay.

The DENR suspended the mining operations of Lafayette on reports of mine tailings spills in Oct. 11 and 31 last year.

"In any event, the DENR admits its own failure in not being able to monitor, prior to the incidents," he said.

Reyes said Lafayette has already paid a penalty amounting to P10.4 million last Tuesday for the Oct. 11 and 31 mine tailings spills.

Earlier this month, Reyes lifted the suspension order against Lafayette and allowed its P1.4-billion polymetallic project to continue operations on a 30-day trial run.

Reyes said Lafayette will have to prove it can comply with environmental standards within the 30-day trial period.