Everybody knows...

After listening to so many accounts about fuel smuggling or tax-avoidance through SBMA or the Subic eco-free port, it is quite surprising that the usual suspects have actually invested more instead of scaling down or downsizing.

According to several sources, even bigger problems are expected to crop up with the entry of a company based in mainland China that operates through Singapore called inxion. The company in question has reportedly leased or entered into a “partnership” or a leasing arrangement with well-known Filipino businessmen who have taken over the huge fuel storage tanks that Coastal Petroleum, a US company (or the United States government?) left behind.

I could hardly believe a source when he told me that the storage tanks have the capacity of 8 million tons of fuel. Sorry but my calculator failed at first attempt. To put this capacity into perspective I guess it becomes believable when you consider that Subic used to be a refueling base for the United States Navy when they patrolled the ASEAN theater.

Subic Bay did service various aircraft carriers, transport ships, as well as various types of aircraft. In order to do so, they needed more than just a gas station. That is where the irony lies. Suspected smugglers inside the Freeport have always started by saying that their purpose of business is to supply fuel requirements inside SBMA or for ships that dock at SBMA.

People in the fuel business as well as government are wondering if there is really enough business within SBMA to interest a foreign group to operate a fuel supply station capable of supporting an armada or the US seventh fleet.

The even bigger worry for some is the risk to “international security” not just national security. Subic Bay has remained a strategically important facility and allowing foreign entities to study, familiarize and operate fueling operations in such a port is reminiscent of allowing foreign “gardeners” and “road crews” to map out an invasion plan as the Japanese did in World War II.

Are the people at the SBMA so keen on getting rent in exchange for our national security? Given the global financial crisis and business slowdown, how can a foreign company justify leasing US Navy storage capacities?

Assuming that the company from mainland China is not planning to invade us, what about the potential for hoarding? I recall that Iran was accused of maintaining such types of storage facilities and used them to create artificial supply shortages. SBMA may not be as massive as Iran’s facilities, but in the event of a global shortage, some people are obviously planning to make a large profit at our expense.

If those scenarios were not bad enough, I also learned from my sources that there is a direct pipeline between the eight-million ton storage tanks inside Subic and Clark Export Processing Zone, which used to be Clark Air Base. This makes a lot of sense since the pipeline was practical for the US planes that needed to refuel in Clark.

The pipeline would apparently be very interesting and attractive to anyone who wants to take imported fuel such as gasoline and diesel outside of Subic without anyone knowing when and how much “leaked out”. I guess the next thing we need to find out is what company or companies have bought or leased all of the properties where that pipeline runs!      

I can’t fault INXION or Coastal Petroleum or any group for thinking big. But given the fact that the authorities inside the SBMA seems to be the only people who don’t know what’s going on, I would suggest that the Philippine government simply take over the fueling requirements at Subic, Clark and all other freeports by getting the legitimate oil companies to form a consortium for each location. Being competitors, they won’t let one get ahead of the other and the government plugs a major leak!

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It’s not about automation, stupid!

Pardon the editorial license but certain people involved with the election automation program of the Comelec are trying to mislead the public about the real issue. They are trying hard to tell the public that those questioning the bidding and the winning company are against poll automation.

Sorry but the issue about having poll automation was settled a long time ago. If it were not, there would be no bidding in the first place. The questions being raised right now is the credibility or capability of the winning bidder especially after their local partner backed out an hour before the formal announcement.

To make matters worse, many sectors are now wondering why the Comelec leadership is in such a hurry to jump into bed with Smartmatic? As I wrote in my earlier column, this was the exact scenario that happened in Venezuela where Smartmatic found a willing partner in government and where Hugo Chavez romped off with the elections.

An issue that will certainly need to be addressed is what will happen to the Comelec in terms of being the client? In becoming the partner of Smartmatic and paying for the bill, the service provider will end up becoming a free loader while the principal ends up having a conflict of interest.

Of even bigger interest is WHY did the local partner of Smartmatic…TIM drop out of what was suppose to be a financial and historical achievement for their group considering they already won the bid?

Incidentally, guys like Senator Escudero ought to check some of the other bidders who went up against Smartmatic. I nearly fell off my chair when Senator Dick Gordon mentioned that one of the bidders was a company named Sequoia. That coincidentally was one of the names used by a Smartmatic subsidiary in the US. Sorry guys, but if they turn out to be on the same team, then this would amount to a fearless, shameless attempt to fool Filipinos.