Chavit denies hand in port controversy

Ilocos Sur Gov. Luis "Chavit" Singson dismissed reports alleging his involvement in the takeover of the Poro Point seaport as "a malicious distortion of facts by some people with vested interests" in the Northern Luzon seaport.

In a statement, Singson admitted that Bases Conversion Development Authority (BCDA) chairman Filadelfo Rojas is his cousin, but stressed that Rojas is "highly qualified for the position" and is "not corrupt."

Singson denied having exerted influence on Rojas to wrestle control of Poro Point, saying that both the BCDA and the Poro Point Management Corp. (PPMC) have their respective boards of directors composed of highly professional and independent individuals.

He claimed that his name is being dragged into the Poro Point controversy by his "detractors, particularly those whose interests (were) adversely affected" by the ouster of former President Joseph Estrada.

Singson asked that politics be kept out of the Poro Point controversy, adding though that the seaport "was given to these cronies through political accommodation."

"We should let it run smoothly, efficiently and profitably out of reach of politics," he said.

Singson claimed that the Poro Point Industrial Corp. (PPIC), which is contesting the Philippine Ports Authority’s takeover of port operations, is a "favored" corporation which he said got special concessions from the Estrada administration through a certain Manny Tan, an alleged "Erap crony."

He recalled that in 1999, the BCDA was allegedly pressured to enter into a contract with the PPIC for the latter to manage and administer the Poro Point seaport and undertake the development of the 30-hectare seaport, 50-hectare industrial area, and all reclamation works there.

Singson claimed that the contract further stipulated that the PPIC was committed to invest P840 million for development activities, particularly the construction of a 50-hectare industrial park and a commercial center.

"But since it started operating the port in 1999 up to the present, no development has been undertaken. This in itself is a gross violation of the contract. Why didn’t the PPIC honor its commitment to build an industrial park and commercial center that should have enhanced the development of the seaport to be at par with international standards?" he said.

The contract, according to Singson, further stated that the PPIC was required to remit fixed annual revenue of P50 million to the national government.

He said the sum shall be adjusted upwards by 10 percent only on the 10th year and by another 10 percent every five years thereafter.

Yet, Singson said the Poro Point seaport, in 1999, was already earning much more than P50 million annually for the government.

"Isn’t this ‘sweetheart deal’ with a favored crony a clear disadvantage to the government?" he asked. — With Teddy Molina