In a letter to Environment Secretary Ramon Paje, Finance Secretary Cesar Purisima said PIC has paid only US$1.25 million of the US$263.8 million it owed to the government since 1996.
The amount is for the purchase of state’s interest in Nonoc Mining Industrial Corp. (Nonoc), which had the mining rights in the Surigao Mineral Reservation.
The purchase was made under the terms of an Amended and Restated Definitive Agreement (ARDA) executed in 1996 by the PIC, Nonoc, and the government through the Asset Privatization Trust (now Privatization Management Office).
The ARDA was executed after the PIC defaulted in its previous agreement with government and the original mineral production sharing agreement was revoked by the government. The company, having said it had entered into a deal with a “financially able partner,” then sought and was allowed re-negotiation through an amended agreement.
Under the amended deal however, Purisima said PIC still had not settled its obligations to the government, stressing that its $1.25 million payment was only "less than one percent" of the total amount it had to pay.
“With PIC’s failure to meet amortization payments, PMO demanded that PIC comply with its obligations under the ARDA or it will be constrained to exercise its remedies under the ARDA,” the letter stated.
“Instead of complying with PMO’s demands, PIC filed a complaint against the PMO to prevent it from exercising its available remedies in the ARDA. The case was filed on 2 February 2003," it added.
"Despite the lapse of eight years, there is no indication as to when the case will be decided by the courts. In the meantime, PMO is deprived of its remedies under the ARDA while PIC is able to continue mining the project area through subcontractors.”
The Finance chief said there were reports that said Hinatuan Mining Corp., Philnico’s subcontractor, "as well as other entities have been continuously conducting mining operations and shipping nickel ore from the project area."
“The PMO has been forced to expend considerable resources in order to defend and vindicate the rights and interest of the Republic. These efforts will however be all for naught if PIC or its subcontractors are allowed to continuously deplete the mineral resources while at the same time tying up the matter in court," the letter explained. (from philstar)
3 comments:
One of the biggest plundering operations in the Philippines. The minerals belong to the Filipino people. How come the swindler cabarus group still stealing they should be all behind bars?
While I reserve venturing into the arguments that are pretty fuzzy and not open to public scrutiny what is apparent is the fact that the agreements/contracts entered into between the parties concerned where either haphazardly prepared, carefully worded, prescient to benefit the mining company and sway against the State while affording leeway to exercise control and option in all ways but one (to mine it). It not only criminally restrains (The State) from pursuing legal actions much less knock on their very doorsteps to collect what is due, but puts it on the begging/aggrieved side.
What is vivid to me are the observations, that I gather from the media in general (please do correct me if I’m wrong).
1.) That the agreement/contract was like how Judas sold and betrayed (JC) Jesus to the powers that be, only this time the irony is (JC) Jesus Cabarrus was the collaborator.
2.) The contract was “designed and amended” without scrutiny and those appointed as caretakers of State’s assets are either incompetent, corrupt, fledgling in experience or have no backbone.
3.) The Provisions focused solely on the mining rights (bestowed/transferred ownership/operators) to Philnico, which (maliciously) can legally defer actual mine/mining production to inhibit itself from paying dues, yet are not prohibited from subletting (hauling/shipping-out ore). When technically defined, is just that, moving soil from point A to point B, hence, not binding to any wording or provision in the contract. The State can only look helplessly in horror, because it is not a part thereof. Meanwhile (Philnico) it can suspend payment amortizations because “ACTUAL MINING PRODUCTION” is not taking place.
While I reserve venturing into the arguments that are pretty fuzzy and not so open to public scrutiny, what is apparent is the fact that the agreements/contracts entered into between the parties concerned where either haphazardly prepared, intrinsically suited and carefully worded, prescient to benefit the mining company and dastardly sway against the State while affording leeway to exercise control and option in all ways but one [to "MINE" it]. The move not only shackles the hands of the State from pursuing legal actions much less knock on their very doorsteps to collect what is due, but position itself on the begging/aggrieved side.
What is vivid are the observations, that are typically disseminated thru the media in general (please do correct if it's wrong) and dissecting it in plain language is:
1.) That the agreement/contract was like how Judas sold and betrayed (JC) Jesus to the powers that be, only this time the irony is (JC) Jesus Cabarrus was the nemesis' collaborator.
2.) The contract was “suitably designed and amended” without deep-rooted scrutiny for its repercussion and those appointed to represent as caretakers of the State’s assets were sorely incompetent, corrupt, fledgling in experience, no backbone or just doing lip service if not plain stupid, and...
3.) The Provisions focused solely on the mining rights (bestowed/transferred- ownership/operators) "of" Philnico, who legally can defer actual mine/mining production to inhibit itself from paying dues, yet are not constrained from subletting or purveyorship (hauling/shipping-out ore). Thus, when technically defined, is just that - moving soil from point A to point B - hence, not binding to any wording or provision in the contract (not illegal)The State and its local folks can only watch helplessly in horror for the horrendous mistake it entered into, because it is not a part of said provision. Meanwhile (Philnico) can suspend payment amortizations because “ACTUAL MINING PRODUCTION” is not taking place, while riding gungho as it reaps profits left and right on the very noses of the poor thru a translucent firewall that continues to happen everyday.
Post a Comment