"This is not only highly unethical but downright immoral and criminal," said Alvarez. "We will file appropriate criminal and administrative charges against officials involved in this sham and we will not hesitate to remove them from office."
The Philippines was one of 30 countries which signed the Protocol on Substances that Deplete the Ozone Layer, which was drafted in Montreal, Canada.
The Philippine Senate had ratified the protocol. Alvarez, then chairman of the Senate committee on environment, authored the resolution ratifying the protocol.
The DENR, under the helm of former congressman Antonio Cerilles, approved the issuance of permits last year to eight new industry players for the importation of more than 200 metric tons each of refrigerant R-12 dichloroflouromethane (CFC-12), used by small and medium enterprises servicing old refrigerators and car airconditioners.
The eight firms were Maris Marketing Corp., Shezura Marketing Corp., Fedayeen Trading, Vines Realty Corp., Arrow Merchandising, Elite Adjusters and Surveyors Inc., Imperial Sea Corp. and Canadian Asian Enterprises.
The companies imported a total of 1,330.43 metric tons of CFC-12 worth $1.995 million or P99.872 million, at $1,500 per metric ton.
Seven other firms holding old permits were also allowed to import 1,302.39 metric tons of the substance.
Alvarez said the total volume of CFC-12 imported last year reached 2,632.82 metric tons, costing about $3.349 million or P197.461 million.
In 1994, the country was the recipient of a $17.52-million Ozone Project Trust and Fund Grant Agreement from the World Bank, United Nations Development Program, United Nations Environmental Program and United Nations Industrial Development Organization (UNIDO).
The fund was intended as a financial mechanism for the Montreal Protocol, enabling developing countries with low ODS consumption to meet the increment cost of adopting the protocol’s control measure.
The DENR issued Department Administrative Order No. 2000-18 on "chemical control order" for ODS, outlining a phaseout schedule for CFC imports, with gradual reduction each year, from 1999 to 2010.
Under Section 3.2 (a) of the order, the use of CFC-11 and CFC-12 on new equipment or products are banned starting Jan. 1, 1999. Alvarez said the new importations set the country behind schedule by 10 years.
DENR records show that the government has been on schedule since 1993 when the protocol took effect in the country, with ODS consumption dropping from 4,295.82 metric tons in 1998 to 2,093.85 metric tons in 1999.
However, ODS use shot up to 2,909 metric tons last year, or an increase of 815 tons.
"These new players successfully hoarded CFC-12, knowing fully well that the government will soon require the use of hydrocarbons, which are more expensive," Alvarez told reporters.