Ethanol blend launched despite absence of national law

It was an exciting news: yesterday’s Seaoil launch of its first E-10 gas program with no less than President Gloria Macapagal-Arroyo presiding the kick-off ceremony at the Seaoil gas station along EDSA in Quezon City.

Two other small oil companies are reportedly poised to put up E-10 gas pump dispensers in their stations. These are Eastern Petroleum Corp. and USA 88.

That’s good news. Last Saturday, Bukidnon Rep. Jose Miguel Zubiri called to inform me that the House is scheduled to complete action on his national bioethanol bill this week. This, after my column where I pointed out that the stakeholders are still waiting for clear-cut guidelines on the alternative fuel program.

But there was no stopping the interest in ethanol. This after the hurricanes in North America threatened to prod oil prices to go up higher. Last week, fuel prices in the Philippines rose by another 50 centavos, generating bawls among public transport workers. But there was some degree of ease on the pressure on them when the Land Transportation Franchising and Regulatory Board approved the P7 minimum fare for public transport in Western Visayas.

Ethanol is now considered an effective alternative fuel. It is usually blended with gasoline, mostly 10 percent. But some countries such as Brazil and the United States have already adopted ethanol-guzzling vehicles.

Ethanol is anhydrous alcohol derived from biomass such as sugarcane, cassava and other organic sources. It is sustainable. As a matter of fact, Brazil recently announced that it is ready to allocate another three million hectares to sugarcane as it gears up to produce billions of liters more of the fuel. Brazil today is the largest ethanol-exporting country in the world.

The Zubiri measure includes fiscal and non-fiscal incentives for bioethanol investments. It also includes exemptions from wastewater discharge fees of bioethanol applied to land as irrigation and fertilizer and for other agricultural purposes.

The power co-generated shall also be exempted from the universal charge under the Electric Power Industry Reform Act of 2004 (EPIRA).

The importation of vehicles using ethanol blends of 85 percent and beyond, blending equipment, special tanks for ethanol transport, and other logistical equipment for the distribution of bioethanol and bioethanol fuel shall be given preferential tariff.

As pointed out last week by Negros Occidental Gov. Joseph Marañon, there are ongoing negotiations for the establishment of two more ethanol plants in the province. The first one is in Bago City, and the other in Dacongcogon in southern Negros Occidental’s so-called CHICKS area.

Actually, the bioethanol plant in San Carlos City, northern Negros, is already poised to produce ethanol in 2007. President Arroyo presided over last month’s ground-breaking of the San Carlos plant headed by Jose Marie Zabaleta, executive director of the Philippine Sugar Millers Association.

Both Agriculture Secretary Domingo Panganiban and Sugar Administrator James Ledesma told the Philippine Sugar Technologists’ convention in Cebu barely two weeks ago, that the government is also targeting areas outside of Negros Occidental as possible sites for sugarcane cultivation to provide resources for bioethanol production plants.

Negros, it seems, may be reserved to a large extent as a sugar-producing center of the country. In short, there will be food security and alternative fuel areas.

Ukay-ukay scandal at NBI

Ukay-ukay, the trade in used clothes, has become a full-blown business in many parts of the country, including Negros Occidental.

But something happened here that seemed to fuel talk of a possible scandal. This was when agent-in-charge Primitivo Najera of the Bacolod NBI office pressed for the immediate relief of two NBI agents whom he accused of anomalous activities in connection with the raids on two ukay-ukay stores last Aug. 6 and 7.

Najera recommended the immediate relief of special investigators Menci Manapas and Ed Cawada. "They don’t like my style because they can’t make money. I have recommended their relief and the NBI central office should step in before everything deteriorates and gets personal," Najera told local mediamen.

But Manaspas and Cawada pointed out that their raids on the stores of Luis Dizon, Marlene Jong and San Carlos City ukay-ukay store owner Ligaya Buhat were covered by warrants issued by Judge Lorna Demonteverde.

Najera said charges were filed against Dizon, Jong, Nilda Bautista and Archie Esclavia for violation of Republic Act 468 despite the absence of any go-signal from the NBI central office in Manila.

Manaspas and Cawada stressed that the charges against them were mere "hearsay and had no supporting documents."

Manaspas and Cawada reportedly asked for P100,000 in exchange for the return of the goods confiscated during the raids.

The two investigators claimed that Najera escorted Dizon and Jong in filing the counter-charge of robbery against them in the office of the NBI deputy director for regional operations.

Therein lies a major puzzle: Has the ukay-ukay business assumed the proportions of jueteng that raids now require a clearance from the NBI central office even in the presence of warrants from local judges?

Strangely, why did a head of the NBI provincial office have to accompany ukay-ukay store owners to the NBI central office to lodge their counter-charges?

There’s something more than meets the eye in the scandal. Another major story was the recent hold departure order issued by the Sandiganbayan against labor arbiter Phibun Pura, who is facing charges for violation of the Revised Penal Code’s Article 210, or direct bribery.

The Sandiganbayan also ordered the arrest of Pura and set his bail at P20,000.

NBI operatives arrested Pura last Feb. 17 in the act of accepting alleged bribe money from contractor Mabini Julayco of Silay City who had a case pending before Pura.

The serving of the warrant on Pura, however, was stymied when the labor arbiter reportedly showed the latter a release order from Executive Judge Roberto Chiongson following his posting of his P20,000 bail.

Chief Inspector William Senoron said he had checked RTC clerk of court Ildefonso Villanueva, who reported that the Sandiganbayan had not received a copy of the release order of Chiongson.

The NBI entrapped Pura following his persistent requests for money from Julayco in return for the dismissal of the case filed against him by five workers seeking benefits from the M & D Contractor for contract jobs which he reportedly owed them.

Well, as they say, things are not what they appear all the time.