This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. VI, No. 2, February 12-18, 2006
Lafayette's 100% Foreign Ownership Shocks
House Probers, Mine Spill Victims
Anakpawis party list representative Rafael Mariano and leaders of Pambansang
Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya), a national alliance of
fisherfolk organizations and Lakas ng mga Maliliit na Mangingisda ng Bicol (Lambat-Bicol
or alliance of small fisherfolk in Bicol) were stunned by a revelation that
Lafayette Philippines Inc. is 100 percent foreign-owned. Mariano said, “This is
a violation of the Constitution and the principle of national patrimony.”
By Gerry Albert
Corpuz Escudero said Dominguez's
group merely entered into a management contract with Lafayette and was not
really the owner of Lafayette Philippines, contrary to claims of LPI chair that
they were the new owners of the controversial mining firm. "They cannot impose EO 464
to this body. This is not an issue governing national security if they so
insist. This is a people's issue on national patrimony and people's rights and
welfare,”the left-leaning lawmaker added. © 2006 Bulatlat
■
Alipato Publications Permission is granted to reprint or redistribute this article, provided its author/s and Bulatlat are properly credited and notified.
Militant solon,
victims say 2-year-old operations illegal, unconstitutional
Bulatlat
Anakpawis party list representative Rafael Mariano and leaders of Pambansang
Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya), a national alliance of
fisherfolk organizations and Lakas ng mga Maliliit na Mangingisda ng Bicol (Lambat-Bicol
or alliance of small fisherfolk in Bicol) were stunned by a revelation that
Lafayette Philippines Inc. is 100 percent foreign-owned.
"For two years, owners of Lafayette and top government officials kept the truth
about the ownership of Lafayette from the general public despite the fact that
this is in gross violation of the 1987 Constitution and the fundamental
principle of national patrimony," Mariano said in an interview with Bulatlat.
The revelation came from Lafayette Chairman, President and Chief Executive
Officer Carlos Dominguez who testified before the House Committee on Natural
Resources on Feb. 8 after Sorsogon Representative Francis Escudero, House
Minority Leader, questioned him regarding the ownership and the present
management structure of Lafayette in the aftermath of the toxic spill and the
appointment of new management announced by its mother company in Sydney,
Australia last month.
Dominguez, a former agriculture secretary, said the controlling interest in
Lafayette belongs to Lafayette Mining Ltd., an Australian company, which holds
74 percent of the mining firm's total stake. The remaining 24 percent is owned
by Philco, a Malaysian firm.
The discovery of the Lafayette ownership prompted Rep. Mariano to call for the
immediate closure of Lafayette’s mining operations in Rapu-Rapu, Albay and
recommended to the committee the filing of possible criminal and civil charges
against government officials and the company’s owners, adding that such act was
"a total betrayal of public trust and gross disregard of the 1987 Charter."
"Lafayette, the toxic-emitting giant in Rapu-Rapu has been illegally operating
for two years and this unconstitutional and unlawful act is sanctioned by
President Gloria Macapagal-Arroyo and the Department of Natural Resources,"
Lambat-Bicol secretary-general Arieto Radores told Bulatlat in a separate
interview.
The Legaspi, Albay-based fisherfolk leader insisted that Lafayette violated the
60-40 capitalization requirement in favor of Filipinos, certain environmental
laws and practices and the 1987 Constitution. "Is the Mining Act of 1995 over
and above the 1987 Constitution, which prohibits 100 percent foreign ownership?"
Radores said. "I don't think so. Lafayette is pushing the issue to the wall to
justify its' illegal takeover and corporate plunder at the expense of our
national patrimony."
Who is Rod Watt?
Rep. Escudero also questioned the role of Rod Watt, Lafayette's country manager
to the Philippines. The opposition lawmaker said Watt, as Lafayette's country
manager was acting as the top corporate boss of the mining firm. But Watt failed
to attend the hearing for undisclosed reasons, Dominguez said.
"Watt, as Lafayette's country representative is not entitled to sign checks,
hire and fire personnel and command the operations of Lafayette Philippines,"
the Sorsogon lawmaker pointed out.
Escudero said the presence and authority of Watt signified that there was no
actual transfer of interest and management and that the Dominguez group was
actually hired or elected by Lafayette's board of directors to act as the new
management of Lafayette Philippines Inc.
Last month, Dominguez and a group of new investors acquired 10 million shares of
Lafayette for AU$1 million or P39.62 million equivalent to 1.6 percent stake.
But Escudero wondered how Dominguez’s group was able to get the top management
portfolio despite the new group's very minimal shares in the company.
Dominguez insisted that the Lafayette contacted him to head the new Lafayette
management and its board of directors elected him as the mining firm's new
chairman, president and chief executive officer.
Where's Mike?
Anakpawis Rep. Mariano and leaders of Pamalakaya and Lambat-Bicol inquired why
former DENR Secretary Michael Defensor was not invited during the hearing that
lasted for more than five hours. They insisted that Defensor's presence in the
hearing was necessary so he could shed light on the controversial issue
involving Lafayette, his former office and other government officials.
Mariano said Defensor cannot and should not invoke EO 464, a Palace order
directing all government officials to refrain from attending legislative
inquiries including budget hearings.
But Agusan del Norte Rep. Leovigildo Banaag, chair of the House Committee on
Natural Resources said Defensor was originally invited but his committee decided
to drop his name in the list of invitees and resource persons after President
Arroyo transferred him to Malacañang as chief of the Presidential Management
Staff (PMS). But Banaag said his committee will invite Defensor in the next
hearing of the committee.
The list of invited guests and resource persons include newly-appointed DENR
Secretary Angelo Reyes, Sec. Estrella Alabastro of the Department of Science and
Technology (DoST), Malcom Sarmiento, Director of the Bureau of Fisheries and
Aquatic Resources (BFAR), Benjamin Philip Romualdez, President of the Chamber of
Mines, Sorsogon Gov. Raul Lee, Albay Gov. Fernando Gonzales, Rep. Edcel Lagman
(1st district, Albay), Rep. Carlos Imperial (2nd district, Albay), Rep. Joey
Salceda (3rd district, Albay), DENR Undersecretaries Armando de Castro and
Deinrado Dimalibot, Jeremias Dolino, Director of the Mines and Geosciences
Bureau (MGB) and Director Lolibeth Medrano of the Environmental Management
Bureau (EMB).
The regional officers of DENR Region V were also invited in last week's hearing
together with local government officials of Rapu-Rapu and nearby towns of
Sorsogon headed by Rapu-Rapu Mayor Dick Galicia, Mayor Greg Azore of Barcelona,
Sorsogon, Mayor Benito Doma (Prieto Diaz, Sorsogon), Mayor Deogracias Ramos Jr.
(Gubat, Sorsogon), Mayor Juan Guysayko (Bulusan, Sorsogon) and Sorsogon City
Mayor Sally Lee.
Cease and desist
DENR officials who attended the hearing said the cease-and-desist order slapped
on Lafayette mining is still in effect until such time the Australian mining
firm is able to complete the set of environmental requirements.
For his part Dominguez said the new management under his tenure will abide by
the DENR's cease-and-desist order. He said the new management will focus on
three main concerns namely: finding out the actual causes and effects of the two
mine spills, reaching out to all communities by listening to their views and
concerns while at the same time direct benefits of the project to the affected
sectors and host communities, and ensuring necessary environmental safeguards so
that the project would be allowed to resume operations in the soonest possible
time.
But Dominguez's statements raised the eyebrows of local government officials,
representatives of church groups and people's organizations who attended the
hearing. "We were not born yesterday not to understand this kind of political
drama being staged by the Lafayette group and their beneficiaries in
Malacañang," said Pamalakaya chairman Fernando Hicap. "These Johnny-come-lately
actors are rushing to the scene to save the day for Lafayette and Malacañang's
flagship project."
5-point demand
At the hearing, Pamalakaya presented a 5-point demand for the resolution of
Lafayette tragedy: permanent closure of Lafayette mining, indemnification of all
victims of the two mine spills, nullification of contract between Dominguez
group and Lafayette regarding the management contract, the filing of criminal
and civil cases against Lafayette and other government officials involved in
Lafayette twin spills, the repeal of the Mining Act of 1995.
Pamalakaya, Lambat-Bicol and Pamalakaya-Sorsogon suggested that Lafayette be
initially slapped with a P1-billion fine to compensate fisherfolk and residents
affected by the Oct.11 and 31, 2005 mine spills.
"Aside from the P10.7 million fine slapped against Lafayette, concerned agencies
and local government should also demand an initial P1 billion fee for the damage
the twin mine spills had caused to subsistence fisherfolk and affected
residents," the groups stated.
"The fisherfolk through their recognized organizations, associations and
cooperatives should undertake the management and distribution of the proposed P
1 billion funds for relief and recovery efforts for the livelihood lost during
the environmental tragedy," they added.
Pamalakaya also stated that Lafayette should also set aside billions of pesos
for the rehabilitation of Albay Gulf, specifically the waters surrounding and
encompassing Rapu-Rapu and entire coastal towns of Sorsogon province.
"The indemnification and relief aspects, including the rehabilitation process
are just part and parcel of the comprehensive social and economic
responsibilities of Lafayette," the group added. "The permanent closure of this
Australian mining corporation is the principal demand of the people that should
be addressed by the national government and local authorities to make sure this
catastrophic event won't happen again."
Radores likewise urged Sorsogon Gov. Raul Lee. Albay Gov. Fernando Gonzales and
the local government units in the provinces of Albay and Sorsogon to declare
Lafayette Philippines an illegal foreign entity after the Feb. 8 hearing by the
House Committee on Natural Resources found out that Lafayette was 100 percent
owned by foreign investors. Bulatlat