San Fernando City and La Union Province

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By Renee F. De Guzman

San Fernando City, La Union (8 August) -- The Bases Conversion Development Authority is bidding out the engineering contract for the expansion and upgrade of the San Fernando Airport in La Union.

The upgrade of the airport is one of the new infrastructure projects mentioned by President Gloria Macapagal Arroyo in her State-of-the-Nation Address as part of the country's blueprint for development.

BCDA president and chief executive Narciso Abaya said the initial budget requirement is P203 million for the expansion, would be provided by the agency.

The upgrading will enable San Fernando Airport to accommodate bigger commercial planes such as the B-737s and will help attract more investors and tourists to Northern Luzon.

The set bidding of San Fernando Airport proves that PGMA's plan in the SONA is solid, doable, on track- contrary to the criticism and skepticism aired by some analyst and detractors.

The country has a long way to go to realize the economic vision but everything is doable.

The Philippines is on the right track in preparing the runway for economic take off. (PIA La Union)

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By Henry S. Lagasca

SAN FERNANDO CITY, La Union (10 August) -- There will always be doubters as to the transparency and subterfuge of high government officials that has kept ordinary citizens in the dark on controversial issues that are of public concern.

For one, the takeover of the Poro Point seaport last Saturday was reportedly instigated by a close ally of Malacanang, upon prodding the Bases Conversion Development Authority (BCDA) through its subsidiary, the Poro Point Management Corporation (PPMC) and the Philippine Ports Authority (PPA) which wrestled control of the said seaport from the Poro Point Industrial Corporation (PPIC), a private investor bulk handling firm operating in the seaport since 1999.

News sources said that Ilocos Sur Gov. Chavit Singson, because of his "import business", is the interested party behind the takeover of the port of San Fernando.

Singson, in an interview with the media, however, refuted these allegations saying that the BCDA was merely correcting PPIC's "lop-sided" contract forged during the Estrada administration where it was allowed to lease the port complex for 25 years with a maximum of P50-million rental a year.

But BCDA chair Narciso Abaya, however, vehemently denied "he was acting in the interest of Singson".

He said he don't have a hand in helping Singson gain control of the port.

The issue in this case was that the PPIC violated environmental laws and lacks an environmental compliance certificate (ECC). The DENR had acted on the issue when San Fernando Mayor Mary Jane C. Ortega reported the wastes discharges from the port in the bay area affecting marine resources. Investigation results prompted the DENR to issue a cease-and desist order.

The PPIC said that the lack of ECC should not be the reason to cancel the contract.

La Union Gov. Victor F. Ortega urged both parties to end the standoff by observing the rule of law to prevent a violent ending to the takeover.

Meanwhile, vessels docked at the seaport unloaded their cargo starting Tuesday under the supervision of the PPA. But Port Manager Silverio Mangaoang, Jr. said port operations are still far from normal due to barricades set up by PPIC workers.

The PPIC, on the other hand, called on the BCDA and the PPMC to respect the temporary restraining order (TRO) issued by the court stopping these agencies from a forcible takeover of the seaport.

The PPIC had obtained a TRO from the San Fernando RTC last Monday but the PPA refused to budge escalating tensions to the standoff.

PPIC's Rene Venturina said the company would exhaust all legal means so it would continue to operate the seaport. (PIA 1)

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A San Fernando City, La Union court yesterday issued a temporary restraining order against the Bases Conversion Development Authority, stopping the agency from forcibly taking over the Poro Point seaport and its bulk terminal facilities.

The court told the BCDA to cease and desist from further alleged infringements of the rights of private operator Port Point Industrial Corp.

Judge Robert Cawed issued the order following a complaint by PPIC in the aftermath of a forcible armed takeover by the BCDA, its subsidiary Poro Point Management Corp. and armed personnel of the Philippine Ports Authority.

The Poro Point seaport is currently the object of a legal case filed by PPIC against the BCDA and subsidiary PPMC. The suit stemmed from a board resolution passed by PPMC which sought to pave the way for a takeover of the facility. The La Union business community opposed the takeover, fearing fear that it would drive away investors from the region.

Earlier, a San Fernando City court issued a temporary restraining order and a subsequent writ of preliminary injunction against the BCDA and PPMC.

The injunction issued by executive judge Victor Viloria last month prevented BCDA and PPMC from implementing a takeover resolution and ordered the two to observe the terms and conditions of the earlier agreements signed between the port operator and BCDA.

The takeover followed earlier reports that BCDA and PPMC had asked the PPA to seize operations of the port. PPIC president Emmanuel Moran said the PPA had apparently acted on the basis of a letter from the Department of Environment and Natural Resources asking the PPIC to explain the alleged absence of an environment clearance certificate for the Poro Point port.

PPIC legal Counsel Brigido Dulay said “BCDA and PPMC should be reminded that there is an existing injunction from the court ordering them to maintain the status quo.”

Dulay also warned that the forcible takeover of the seaport and bulk terminal could send strong negative signals to businessmen and investors in the Northern Luzon region that the government does not respect “the rule of law” nor the sanctity of business contracts.

Dulay said the use of massive armed force by PPMC and PPA during the weekend takeover “is a frightening picture of what the government could do when it wantonly disregards the order of the Court for some puzzling political reasons.”

Dulay said “there is no legal basis for the armed takeover.”

PPIC operates the port with a valid contract and the BCDA and PPMC have yet to prove otherwise, he said.

BCDA president Narciso Abaya earlier said only the court could declare the contract null and void.

Dulay warned that BCDA and PPMC “are treading on dangerous grounds by attempting to use the environmental clearance certificate issue in the armed takeover attempt.”

“That may not hold water when they face the legal consequences of their recent move,” he said.

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Arroyo seen key to row in Poro Pt. port

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ARMED personnel of the Philippine Ports Authority stand guard as the agency takes over operations at the Poro Point port. The port operations resumed after a brief standoff, but its private operator is bracing for a long legal battle to fend-off attempts to rescind its contract to operate the port on the basis of environmental charges

By Yolanda Sotelo-Fuertes
Inquirer
Last updated 03:20am (Mla time) 08/11/2006

Published on Page A14 of the August 11 2006 issue of the Philippine Daily Inquirer

DAGUPAN CITY—The regional trial court in San Fernando City extended to 20 days the 72-hour temporary restraining order it issued to the Philippine Ports Authority (PPA) and other agencies that ordered them to stop the takeover of the Poro Point seaport.

The TRO, which expired on Thursday, was issued by Judge Robert Cawed against PPA general manager Silverio Sevilla, PPA port manager Silverio Mangaoang Jr., Transportation Secretary Leandro Mendoza and officials of the Bases Conversion Development Authority (BCDA) and the Poro Point Management Corp. (PPMC).

Despite the conflict, operations at the seaport have been continuous since Tuesday and vessels have not stopped unloading their cargo at the port’s two piers.

Consignees of cargo at the seaport said they were confident that the PPA could control the situation.

“The situation is more stable now as the port’s gates are open and our trucks can enter. In fact, we have more vessels coming in next week,” said Nomer Merfe, operations manager of the Soil Tech Agricultural Products. The firm has two vessels docked at the seaport.

Environment flaw

On July 26, the Department of Environment and Natural Resources ordered the Poro Point Industrial Corp. (PPIC) to stop operating the Poro Point seaport because of lack of environmental compliance certificate and alleged violations of environmental laws.

Mendoza then ordered the PPA to take over the port’s operations, including stevedoring, arrastre, berth management and special services related to cargo handling.

Silverio Mangaoang Jr., PPA port manager, said the hearing for the preliminary injunction set on Thursday morning did not push through after PPA lawyers walked out of the proceedings. The lawyers cited procedural lapses by the court.

PPIC lawyer Brigido Dulay said that if the PPA refused to honor the new TRO, the company would file other cases against Mangaoang or ask the court to cite him in contempt.

“We are considering several options … But we will exhaust all legal actions if the PPA will continue to defy the order of the court. We hope we are still a country of laws,” Dulay said in a telephone interview.

Court questioned

The PPA cited Presidential Decree 1818 that prohibits courts from issuing restraining orders or preliminary injunction against public utilities operated by the government.

PPA and PPIC officials also denied knowing about the involvement of Ilocos Sur Gov. Luis “Chavit” Singson in the takeover.

Mangaoang said he did not know if Singson had a hand in the takeover, adding that he had not seen the governor in the seaport for a long time.

“We have competence in cargo handling,” Mangaoang said.

Rene Venturina, PPIC port manager, said he did not know anything about Singson’s supposed hand in the takeover.

Venturina said the PPIC only wanted to continue operating the port.

A businessman said five trucks servicing the fertilizer companies were vandalized. The windshields of two trucks were smashed, the side mirror of one was broken and the wheels of two others were punctured. With a report from Tonette Orejas, Inquirer Central Luzon

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BCDA Public Affairs
BCDA
Monday, July 31, 2006

The feasibility study and development plans, as well as the funds, are already in place for the upgrading of the San Fernando Airport in La Union, one of the new infrastructure projects mentioned by President Gloria Macapagal Arroyo in her recent State of the Nation Address, according to the Bases Conversion and Development Authority.

In fact, BCDA President and CEO Narciso Abaya said they are already bidding out the detailed engineering and design contract for the expansion of the airport, located inside the Poro Point Special Economic and Freeport Zone in San Fernando City.

Initial budget requirement for the expansion is P203 million which will be provided by the BCDA. The upgrading will enable San Fernando Airport to accommodate bigger commercial planes such as the B-737s and help attract more tourists and investors to Northern Luzon, Mr. Abaya said.

The detailed engineering design contract will determine the needed physical and navigational aspects of the planned development, as well as the consultant’s deliverables, project cost estimates and detailed plans to enable the airport to accommodate bigger planes.

Some of the major components of the San Fernando Airport Development Plan, prepared by the UP Planades in 2003, are the extension of the runway by 480 meters, relocation and construction of a new control tower, removal of obstructions along the runway approach, and improvement and extension of the current terminal building.

The plan likewise calls for the upgrading of the runway, taxiway and apron pavements, completion of a perimeter fence, expansion of the vehicular parking area, acquisition of a major foam tender firefighting equipment, construction of a water system, upgrading of the power system, and installation of runway end identification lights and precision approach path indicators.

The BCDA is positioning Poro Point as a major entertainment and tourism hub in Northern Luzon because of its strategic location. Aside from the San Fernando airport, Poro Point also hosts a commercial seaport, an industrial zone and an entertainment center.

The current airport is currently served by at least one commercial airliner, Asian Spirit. However, the airport can only accommodate smaller turbo prop airplanes that carry a maximum of 60 passengers, while 737s have a 200-seat capacity.

Poro Point’s vast entertainment and tourism potential is underscored by the fact that La Union boasts some of the country’s finest beaches, and is a mere one hour drive to Baguio City. It is also a short distance away from the famed Hundred Islands in Pangasinan by sea, while the pilgrim towns of Agoo and Manaoag are also close by.

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AS I SEE IT
By Neal Cruz
Inquirer
Last updated 01:47am (Mla time) 08/11/2006

Published on Page A10 of the August 11, 2006 issue of the Philippine Daily Inquirer

WHAT can a businessman do if government agencies decide to take over his business illegally? He can seek relief from the courts. But what if the government agencies refuse to obey orders of the court? He is helpless, and the only thing left for him to do is to go to the hills and plot how to get even later on.

That is what is happening at the seaport in Poro Point in San Fernando, La Union, because a politician from a neighboring province wants to take over operations at the port. The port is now closed, ships cannot load or unload cargo because the Philippine Ports Authority wants to forcibly take over the facility but workers at the port barricaded the premises. Ships have to pay $9,000 (P462,780) demurrage fees for each day that they stay at anchorage. The legal operator was able to secure a temporary restraining order from a La Union court, but the raiders refused to obey it and said outright they wouldn't honor it. What is happening is anarchy, and it is being caused by the government whose duty is precisely to see to the orderly enforcement of the laws. Right now, it is brute force that is reigning in Poro Point.

Let me give you a background: The Poro Point seaport, more than 15 hectares in size, was built in the 1960s. It was being managed by the Philippine Ports Authority when it was turned over to the Bases Conversion and Development Authority (BCDA). In a public bidding, the BCDA leased it to a private investor for 50 years. The private investor is Bulk Handlers Inc. (BHI), one of the country's leading and most experienced seaport
operators. It also operates the world-class Batangas Port.

BHI then formed the Poro Point Industrial Corp. (PPIC), a consortium with Poro Point Management Corp. (PPMC) and the BCDA. PPIC manages the day-to-day operation of the port.

PPIC paid the BCDA P50 million annually as stipulated by the contract, which also provides that the BCDA will turn over to PPIC 18 more hectares of land for the use of the port. The BCDA did not live up to this contractual obligation. Nevertheless, PPIC continued to pay it P50 million a year.

It was a good deal for the BCDA, but a politician close to the administration wanted to take over the facility. The BCDA, starting in 2000, looked for but failed to find an excuse to declare the contract with PPIC null and void.

Nevertheless, PPMC passed a resolution declaring the 1999 contract between the BCDA and BHI "null and void," paving the way for the physical takeover of the facility. BHI went to court and questioned the move.

The regional trial court of San Fernando slapped the BCDA and PPMC with a temporary restraining order, and then a preliminary injunction. The court ordered the government agencies to maintain the status quo.

The whole government then ganged up on the poor port operator, as though its different agencies were in a conspiracy to kick out PPIC. The Department of Environment and Natural Resources (DENR) declared that PPIC has no Environmental Compliance Certificate (ECC). PPMC issued PPIC a "cease and desist" order on its operations. Transportation and Communication Secretary Leandro Mendoza ordered the PPA to take over the operations of the port. The La Union police and the Philippine Coast Guard were asked to help enforce the order of the Department of Transportation and Communication.

Finally, armed men were sent in to take over the facility. But the security personnel and workers of PPIC barricaded the port. Nevertheless, the armed men were able to occupy part of the port.

The court issued another 72-hour restraint order on the BCDA et al. but the raiders said they would not honor it.

Meanwhile, four large cargo vessels at the port cannot unload their cargo of fertilizer while smaller vessels cannot load from their warehouses because of the barricades. The intended recipients of the cargo are impatiently waiting for their consignments. The businessmen have asked President Gloria Macapagal-Arroyo to intervene and let due process of law take its course and prevent them from suffering huge business losses. But what if the whole thing has the blessings of Malacañang? Could it be true that the President is now a hostage to politicians?

However you look at this, it does appear that some government officials are conspiring to forcibly take over the operation of a legitimate business. BHI and the BCDA have a legal contract. The contract was concluded after a public bidding. There is no irregularity linked to the bidding. PPIC was doing its obligations under the contract even if BCDA has not fulfilled all its obligations. Port operations were going smoothly. There were no complaints from shipping operators.

But suddenly, the government wanted to take over the whole operation and the facility simply because of a missing ECC. PPIC was not given a chance to secure that ECC. Instead, administration officials used Gestapo tactics to grab the port.

Decent citizens cannot but be revolted by this use of brute force against ordinary citizens. Can it be that this is now the real policy of the Arroyo administration? I would like to believe that this is more the work of a cabal of rogue public officials who are mad with power. Will the President do something to prevent this miscarriage of justice?

The motive of the BCDA in trying to kick out an investor is suspect. Why is it obsessed with kicking out PPIC, which has been faithfully living up to its part of the deal while allowing another investor to keep Camp John Hay despite billions of pesos in arrears owed to the BCDA?

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REPORTS have it that Narciso Abaya, president of the government’s Bases Conversion and Development Authority (BCDA), has resorted to extreme measures in dealing with a major headache, the dispute over the management of Poro Point port.

According to dispatches from La Union, heavily armed men tried to raid and occupy the offices of the Poro Point port and bulk terminal last weekend. They were repulsed by the watchmen of Poro Point Industrial Corp. (PPIC), the private company that holds a live contract to manage the port.

His indelicate handling of the dispute has thrown into question the BCDA boss’ leadership abilities and, more important, judgment. Need we recall that it was under Abaya’s watch as chief of staff of the Armed Forces of the Philippines that a multibillion-peso fiasco—involving the disgraced AFP comptroller Maj. Gen. Carlos Garcia—erupted?

The gunmen were reportedly dispatched by a BCDA subsidiary, Poro Point Management Corp. (PPMC), and the Philippine Ports Authority (PPA). The PPMC is said to be controlled by relatives and flunkeys of an Ilocano politician close to the Palace.

The raid came on the heels of Abaya’s request to Secretary Leandro Mendoza of the Department of Transportation and Communications that the PPA—an agency attached to the DOTC—enforce a takeover of the Poro Point port from the PPIC.

Sources said the raid could have resulted in a bloodbath. Evidently, Abaya underestimated the PPIC’s resolve to stand by its conviction that it possesses a valid contract to operate the port inside the former US naval station. The operator did not blink in the face of the armed threat.

Last Monday a La Union court issued a temporary restraining order stopping the BCDA from forcibly taking over the port. However, Abaya and his underlings reportedly refused to honor the TRO. According to port employees, Abaya’s subordinates merely laughed off the court order. This was also reported by the sheriff who tried to serve it.

How the judge who issued the TRO will respond to BCDA’s brazen contempt of court, nobody can say for sure. What the incident does throw into question is the practice of appointing retired generals to highly sensitive posts in government-owned and -controlled corporations that require tact in handling investor relations.

The Port Point brouhaha began as a business dispute. In business circles, such conflicts are resolved through, perhaps, a technical committee made up of representatives of the protagonists who try to resolve their differences through negotiation. Disputes can also be brought to arbitration whereby a mutually acceptable third party helps to settle the impasse. In extreme cases, the matter is brought to court where either party could seek judicial relief and indemnity for damages.

But never should a business dispute be allowed to degenerate into an armed confrontation. Mao Zedong may have said that power grows out of the barrel of gun—but the Chinese communist leader was no businessman, was he?

And neither apparently is Abaya, who seems to have reached his wit’s end as he desperately tries to put an end to the Poro Point impasse. It is a case where one party refuses to budge and the other is not inclined to stop pushing.

According to published reports, the BCDA is bent on abrogating the contract it signed in 1999 with the PPIC, the private investor that won the bid to operate the port.

The BCDA has yet to take pains to explain why it wants to get out of its contract with the PPIC. The BCDA is rumored to be under pressure from powerful political quarters to do so. To be sure, the rumors remain unconfirmed but what could possibly be motivating the BCDA from getting itself out of a perfectly legitimate arrangement with the PPIC?

What is publicly known is that there has been no violation of the Poro Point contract on the part of the private investor. On the contrary, it is the BCDA that has not delivered several hectares of land it committed to the PPIC under the 1999 deal. Here is yet another case where the government has failed to live up to its part of the deal and now wants to penalize the offended party.

From a business dispute, the Poro Point issue is starting to look like an armed conflict, thanks to the storm troopers dispatched to enforce the BCDA board’s arbitrary cancellation of its deal with the PPIC.

Above all, Abaya’s blunder has sent shockwaves through business circles, locally and worldwide—as the international wire agencies have picked up the issue. The global media will once more report evidence that it is not worth the while of investors to do business in the Philippines—where contracts can be voided at the whim of politicians and business operations can be raided by armed goons.

Investor relations require diplomacy and patience. Rules and laws govern business conduct. Observers thought Abaya knew as much, which was why he never made good on his threat last year that he would take over Camp John Hay from the financially beleaguered CAP group of Bob Sobrepeña, which owed the BCDA P3 billion in arrears.

Those observers were wrong. Last weekend Abaya opted to apply armed might against an investor that does not owe the BCDA a single centavo. In contrast, Sobrepeña continues to enjoy playing golf at John Hay—thanks to the general.

Big blunder, indeed.

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By Ayen Infante

08/11/2006

The Bases Conversion Development Authority (BCDA) was “pressured” into reversing a study which found no basis for terminating a contract it signed with current operator Poro Point Industrial Corp., BCDA legal counsel Arnel Casanova said yesterday.

Casanova did not identify the source of the pressure but said the individual is “a former BCDA official.”

Investors in Poro Point seaport and bulk terminal yesterday also challenged former Armed Forces chief and BCDA chairman Ret. Gen. Narciso Abaya to reveal the source of the apparent political pressure which led to the forcible takeover of the facility last Saturday.

Poro Point Industrial Corp. (PPIC) president Jun Moran said Abaya — who is a native of Ilocos Sur, a province under the control of the current governor, Luis “Chavit” Singson, a close political ally of President Arroyo—is now being made to disclose the

source of the alleged pressure “to clarify the true reason for the violent assault on a legitimate business operation”.

PPIC operates the Poro Point facility on the basis of a 25-year contract it signed with BCDA in 1999.

Moran made the call in the light of the disclosure of Casanova that a former BCDA official had pressured him to reverse a legal study done by BCDA which concluded that there is no legal basis for terminating the contract with the current operator.

It was BCDA lawyers themselves who told Abaya that the contract is valid, Moran pointed out. Because Abaya had ordered the takeover despite the warning of his own legal counsel, the political pressure must really be strong, he added, hinting that presidential pressure could have been at play in the forced takeover.

In a 2004 memorandum, Casanova apparently told Abaya that former Poro Point Management Corp. (PPMC) head Juanito Antonio told him about the pressure to reverse the BCDA stand on the legality of the private operator’s contract.

“On a number of occasions, lawyer Antonio either called or personally visited me in my office to persuade and convince me to reverse the legal study made by BCDA regarding the contract allegedly due to an instruction from an influential person,” Casanova told Abaya.

PPMC is a BCDA subsidiary. Antonio has been replaced by lawyer Felix Singson Racadio as head of the said agency. Singson-Racadio is a relative of Governor Singson who was reportedly seen in the area during the morning of Aug. 5, Saturday, when the forced entry of armed-men in Poro Point took place.

The revelation by BCDA’s legal counsel about the political pressure and the recent violent take over of Poro Point conveys to the business community that government decisions on business issues are no longer governed by law, Moran stressed.

This has been further aggravated by the BCDA and PPMC decision to ignore an injunction issued by the San Fernando City court stopping them from taking over Poro Point, he added.

The wanton disregard for court orders and the advice of their own legal counsels send us a very frightening signal regarding the conduct of business in this country, he added.

A group of German investors recently urged President Arroyo to step into the Poro Point row amid growing perceptions in the international investor community that “laws are no longer respected in the government’s dealings with businessmen.”

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By Ayen Infante

08/10/2006

While the forced takeover of Poro Point in La Union by a group of government-sent heavily-armed men was happening last Aug. 5, Ilocos Sur Gov. Luis “Chavit” Singson was witnessed as having arrived in the area and even stayed at Puerto Resort, a private resort adjacent to the terminal.

According to a source privy to the Poro Point take-over, Singson was brought in by his private plane that landed in San Fer-nando, La Union, that morning.

The governor was allegedly seen and heard communicating through a hand-held radio with one of his close relatives who was inside the area giving the Singson instructions to uniformed personnel.

The source added the current chairman of the Bases Conversion Development Authority, the government’s joint venture partner of Poro Point Industrial Corp. (PPIC), is Filadelfo Singson-Rojas, while the current president of the BCDA subsidiary Poro Point Management Corp. (PPMC) is Felix Singson Racadio. Both are said to be close relatives of the governor.

The source also noted that witnesses during the impeachment of then President Joseph Estrada were appointed as directors of PPMC. These are Emma Lim and Carmencita Itchon who were all employees of Chavit Singson.

The source also confirmed that armed men and other officials who forced their entry in the area were personnel of the Philippine Ports Authority (PPA), Philippine Navy, Coast Guard and BCDA.

On August 4, 2006, without the benefit of any prior notice to or technical conference with PPIC as required by its own rules and regulations, the environmental management bureau of the Department of Environment and Natural Resources (DENR) suddenly served a cease and desist order (CDO) dated July 25 2006 against PPIC allegedly for failing to secure a separate Environmental Compliance Certificate ( ECC). The Poro Point seaport project was previously granted an ECC on May 2000.

On August 7, PPIC filed for a temporary restraining order (TRO) which was granted by the court. When it was served by the court sheriff, it was defied by BCDA –PPMC saying they are beyond the power and jurisdiction of the courts, he added.

The San Fernando Regional Trial Court Branch 29 issued a TRO halting the forcible takeover by BCDA-PPMC and PPA elements of the seaports facilities. The leadership of PPMC refused to honor and accept the TRO issued by the court resulting in a stand-off and escalation of tension in the Poro Point seaport.

Meanwhile, the BCDA appeared to have ignored the opinion of its own General Counsel who said there is no legal basis for the termination of its contract with private investors Bulk Handlers, Inc. (BHI) which operates the Poro Point seaport and bulk terminal as part of the PPIC consortium.

The BCDA move came despite a court order stopping the agency and its subsidiary PPMC from taking over the facility from BHI.

BHI was awarded the contract for the management of the port by BCDA in 1999 following a public bidding for the project. BHI then formed the PPIC consortium together with BCDA and its subsidiary PPMC.

PPIC president Jun Moran revealed that as early as October 2002, BCDA General Counsel Arnel Casanova had already submitted a comprehensive legal study which concluded that a termination of the contract with BHI would have no basis in law.

Why the BCDA was looking for ways to abrogate a legitimately awarded contract puzzles them to this day, Moran said, adding that Casanova had bucked apparent internal efforts at the BCDA to junk the Poro Point deal. He said a 2004 memorandum by Casanova showed the BCDA counsel’s strong opposition to moves by some BCDA officials to terminate the contract.

“It is the height of irresponsibility to recommend the termination of the contract with BHI,” the Casanova memorandum said.

“As general counsel, I cannot allow the BCDA directors and management to be led blindly to the terrible risk of litigation and prosecution,” the Casanova memorandum added.

In the same memorandum, Casanova inferred at apparent pressure on him to reverse his position that the BHI contract with BCDA is legal and binding. Casanova told BCDA president Narciso Abaya and BCDA chair man Singson Rojas that Juanito Antonio, then president of PPMC predecessor John Hay-Poro Point Management Corporation had conveyed to him the alleged political pressure.

“I have to state that in a number of occasions, lawyer Antonio either called or personally visited me in the office to persuade and convince me to reverse the legal study made by BCDA regarding the BHI contract allegedly due to an instruction from an influential person,” the Casanova memorandum disclosed.

The memorandum also showed that Casanova had clearly warned Abaya and Singson-Rojas on the risk of an illegal takeover of the facility.

“If the BHI contract should be terminated, then let it be due to a clear legal infirmity and factual consideration and after extensive research and study, but never for political expediency,” the Casanova memorandum said.

“I dread the day that our legal opinions will be written to satisfy the whims of the gods of the heavens by risking our Management and Board as lambs to be sacrificed in the altar of political horse-trading,” Casanova warned.

Moran said the forcible armed take over of the port facility has sent strong signals that the BCDA is “willing to disregard court orders and the legal processes just to enforce its will on a helpless private investor”.

The Special Committee on Bases Conversion of the House of Representatives, meanwhile, said it will look into the reported environmental violations committed by the private operator of the Poro Point seaport in San Fernando, La Union and its lack of an environmental compliance certificate which prompted th Department of Environment and Natural Resources to issue a cease and desist order against the firm last Friday.

Rep. Edwin C. Uy (2nd District, Isabela), the committee chairman, said the committee will also look into other possible violations committed by Bulk Handlers, Inc., the private operator of the seaport which is located inside the Poro Point Special Economic and Freeport Zone.

For his part, Abaya said the BCDA would fully cooperate with the House inquiry and told Uy that that BCDA would submit a detailed report on the issues regarding Poro Point.

The DENR issuance of a CDO against the Poro Point Industrial Corporation (PPIC), the joint venture company between BHI and the government, prompted the Department of Transportation and Communication to order the Philippine Ports Authority to assume the seaport operations at Poro Point to avoid any service disruption.

Uy, also vice chairman of the House Special Committee on North Luzon Growth Quadrangle, said his committee will try to determine what measures the House could adopt to prevent similar incidents in the future.

Poro Point is a former military base of the United States and is being developed by the BCDA as an investment destination and growth engine for Northern Luzon. However, contract disputes with BHI have hindered the ecozone’s development.

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Chavit tagged as brains in Poro Pt takeover

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Ilocos Sur Gov. Luis "Chavit" Singson has dismissed rumors linking him to the ongoing legal battle to wrest control for port operations at Poro Point in La Union, a newspaper reported Friday.

"[This is] a malicious distortion of facts by some people with vested interests," the Philippine Star quoted a statement from Singson.

Singson, however, admitted that Filadelfo Rojas is his cousin. Rojas is chairman of the Bases Conversion Development Authority (BCDA), a government agency allegedly leading the takeover from Poro Point Industrial Corp. (PPIC), a private contractor who won commercial rights to operate the port in 1999.

The Ilocos Sur politician's name cropped up in the legal battle over the port after talk had it that "political figure from the North" wanted to control its operations.

Singson, however, said that his named is being dragged into the controversy. He blamed detractors "detractors, particularly those whose interests [were] adversely affected" by the ouster of ex-president Joseph Estrada.

He added that port operations were given "to cronies through political accommodation."

The governor identified a certain Manny Tan, an alleged crony of the former president, as the one behind what he termed as a "sweetheart deal."

Court issues 2nd TRO

Singson's denial of involvement in the controversy followed a La Union court's temporary restraining order Thursday that stopped BCDA and its subsidiary, Poro Point Management Corporation (PPMC), from taking over the Poro Point.

Lawyer Brigido Dulay, counsel for PPIC, said the San Fernando, La Union Regional Trial Court issued the 17-day TRO after BCDA ignored the last court-issued order.

PPIC president Emmanuel Moran said cargo vessel operations at the port remain suspended due to a standoff between PPIC and the Philippine Ports Authority (PPA).

"[Operations] are disrupted because our people are being stopped on their way for work," Moran told a radio interview.

"The situation here has not subsided and we are still on standby. The [PPA] is determined to take over our operation," Moran added.

Moran urged authorities to clarify which group has the legal right to operate the port."We welcome anyone who could help in ending the conflict here. We are working under a valid contract," he said.

The standoff between PPIC and PPA officials ignited after Transportation and Communications Secretary Leandro Mendoza ordered PPA to take over the operations of the corporation.

PPMC also issued PPIC a cease-and-desist order on its services.

PPA claims PPIC failed to secure an environmental compliance certificate from the Department of Environmental and Natural Resources, which is a violation of the corporation's management contract with the PPMC.

PPIC security prevented PPA officials, Coast Guard personnel and armed policemen from entering the port last Saturday.

Moran said they refused to give up the port's operation after the San Fernando City Regional Trial Court issued a TRO. He said a similar court order was also issued Monday.

"We have no other recourse but [to seek legal intervention]," he said. With a report from DZMM

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The Philippine Ports Authority has pulled out its personnel from the Poro Point seaport and bulk terminal in San Fernando, La Union, following a 17-day temporary restraining order issued by a regional trial court.

Poro Point Industrial Corp., operator of the seaport, welcomed the pullout, saying it was “a good sign that the agency was ready to respect the law and the court” and that it would help restore normal operations in the facility.

The PPA move came six days after it deployed armed men in the facility in a bid to expel PPIC from the port. The authority also acted on the orders from Transportation Secretary Leandro Mendoza, who said the takeover was “pursuant to the request of the Bases Conversion Development Authority.”

The BCDA request came in the wake of an ongoing court battle with PPIC over the operation of the port. PPIC holds a 25-year contract for the management of the port.

BCDA earlier sought to nullify the deal but has been stopped by a court injunction.

PPIC president Emmanuel Moran Jr. said San Fernando PPA port manager Silverio Mangaoang had formally informed him that the agency “was formally turning over the port operations” back to PPIC.

PPIC and PPA also jointly notified Poro Point port users that “all existing vessels presently berthed and all incoming vessels will now be handled by PPIC and the Poro Integrated Port Services Inc., the accredited cargo handler.”

Moran said the compliance of PPA to the court order “will now allow the normal and respected legal processes to resolve the questions on the bid of the BCDA to take over Poro Point.”

He said the armed takeover of the port “was unfortunate and totally unnecessary.” Moran also expressed dismay “over the apparent haste exercised by BCDA and its subsidiary, Poro Point Management Corp., to take over the facility despite an ongoing court case.”

“BCDA’s and PPMC’s haste may have unnecessarily dragged the PPA into the fray. It is unfortunate that PPA had been unwittingly used in the internal conflict,” he said.

Moran also urged BCDA and PPMC officials “to follow the PPA example and start obeying and respecting the authority of the court.”

Moran warned that the refusal of BCDA and PPMC officials to honor the recent court TRO was sending a wrong signal to the international business community “that there is no rule of law in the country.”

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By Elaine Ruzul S. Ramos

Bases Conversion Development Authority president and chief executive officer Narciso Abaya yesterday denied there was political pressure on the agency to take over the controversial Poro Point seaport from its private operator.

“In my entire professional career, including my stint as Armed Forces of the Philippines chief of staff, I have never been influenced nor dictated upon by any person or group on how to discharge my lawful duties,” Abaya said in a statement.

“I stand by my earlier statement that only the courts can declare the contract of PPIC null and void. However, the contract is not at issue in what is happening today at Poro Point.”

Abaya said the real issue in Poro Point was the lack of an environmental compliance certificate (ECC), which Poro Point Industrial Corp. should have secured in the first place.

“This is the reason why the Department of Environment and Natural Resources issued a cease-and-desist order against the company. And for as long as the DENR has not lifted the [order], the company should not be able to operate the seaport,” he said.

The BCDA chief said the DENR directive called for a stop in PPIC’s port operations until the clearance was secured.

“There was potential disruption of services at the seaport so the BCDA requested the Philippine Ports Authority, the government agency tasked to manage all seaports, to assume operations. We cannot simply abandon this important government facility and hamper the trade and commerce in Northern Luzon. This is our duty at BCDA,” Abaya said.

He stressed the environmental violations was separate from the question of the legality of the private company’s contract to operate the Poro Point seaport.

He added the order issued by Judge Robert Cawed on Aug. 10 clearly respected the DENR’s jurisdiction over environmental issues.

Earlier, PPIC said the attempted takeover of the seaport by armed personnel allegedly hired by the BCDA and unit Poro Point Management Corp. would send wrong signals to investors.

In a separate statement, PPIC said BCDA, PPMC and PPA were “deliberately misleading the public by insinuating the violent armed takeover of the Poro Point seaport facilities from its legitimate operator was based on an environmental issue.”

PPIC said it had complied with all its environment-related obligations. The clearance, it added, was not a requirement when the Poro Point port was built by the PPA itself in the 1960s.

“PPIC has exercised utmost caution and has adhered to the highest standards on the matter of waste disposal and management. The apparent presence of incremental waste matters on the waters alongside the loading areas is normal in any port operation,” PPIC said.

“They must admit that the ultimate reason is political pressure. This is the reason why BCDA has made the violent takeover despite the warning of its own legal counsel that such a move has no legal basis,” PPIC said

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By Juliet Labog-Javellana
Inquirer
Last updated 08:29am (Mla time) 08/15/2006

Published on Page A13 of the August 15, 2006 issue of the Philippine Daily Inquirer

SEN. Miriam Defensor-Santiago yesterday filed a resolution asking the Senate to investigate the government’s takeover of port operations at Poro Point in La Union.

The administration senator said the takeover was “unconstitutional, illegal and immoral” and reflects a police state.

Santiago, in her resolution, said she wants the Senate committee on environment to investigate the “abusive behavior” of the Environmental Management Bureau of the Department of Environment and Natural Resources and the Coast Guard and Philippine National Police personnel assigned to La Union.

She made no mention of the allegations the forcible takeover was at the behest of Ilocos Sur Gov. Luis “Chavit” Singson, who helped depose President Joseph Estrada and install President Macapagal-Arroyo to power.

Earlier reports said it was Singson who pushed for the government takeover. He denied the allegation.

Santiago said the takeover of the private operations of the Poro Point Industrial Corporation (PPIC) and Bulk Handlers Inc. was suspicious because it was in defiance of the temporary restraining order issued by a regional trial court in San Fernando, La Union.

But she said the Philippine Ports Authority, “in a highly questionable and suspicious maneuver” created a PPA-San Fernando Port Services to manage the seaport a day after the EMB “swooped down on the seaport” and served a cease-and-desist-order allegedly due to the lack of an environmental compliance certificate.

She noted media reports that the “suspicious memoranda and notices were served by armed personnel and agents who forced their way into the seaport, resulting in uncontrollable violence and physical injuries.”

“… (T)he incidence of violence and apparent brutal flouting of the rule of law is indicative of a police state or a military state, without any explanation of the legal basis for such unconstitutional, illegal and immoral means,” Santiago said in her resolution.

Lawyer Brigido Dulay, legal counsel of the PPIC, said in a statement that the “hastiness of the release of the CDO makes it highly suspect and evidently was done without due process.”

The statement quoted Dulay as questioning the timing of the CDO, saying it came shortly after the San Fernando City Regional Trial Court issued an injunction against BCDA and PPMC stopping the takeover bid.

“This seems to indicate that the DENR move was just part of the whole takeover plot and may have been meant to circumvent the court order,” Dulay was quoted as saying.

“We have been operating the port for so long. Why is it only now that DENR wants us to stop what we are doing?” he said.

The DENR regional office in Ilocos Sur denied it had a hidden agenda in issuing a cease and desist order against the operations of the PPIC at the Poro Point port.

In the statement, Dulay said the PPIC has “religiously observed the principles and procedures of sound environmental management.”

He said the PPIC has installed a shore reception facility for waste at the pier. The waste deposited in the facility, he said, is regularly collected by the Barangay Poro Garbage Disposal Unit and disposed of at the city’s sanitary landfill.

Dulay also quoted Ric Esteban, an officer of the Environmental Management Bureau, as saying the PPIC needed no separate ECC since the port had been operating since 1982 when an ECC was not required for port operations.

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ECC issued in 2000 for Poro operations

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By Yolanda Sotelo-Fuertes
Inquirer
Last updated 05:34am (Mla time) 08/16/2006

Published on Page A17 of the August 16, 2006 issue of the Philippine Daily Inquirer

DAGUPAN CITY—Tension remains high at the Poro Point seaport in San Fernando City, La Union as businessmen, their ships docked at the port, continue to lose millions of pesos.

Port operators appealed to Sen. Miriam Defensor Santiago to include in her investigation the politics behind the government’s attempt to take over the port.

The businessmen sought a return to normal operations to prevent further losses from demurrage fees.

One of the suffering companies is Soil Tech Agricultural Products Corp., which pays P179,725 daily in demurrage fee for a vessel docked at the pier since Aug. 4 with fertilizer cargo. The firm was forced to send its other vessels to the Subic Bay Freeport.

Rene Venturina, Poro Point Industrial Corp. (PPIC) port manager, said some of those involved in the takeover bid were reviving charges that PPIC was collecting higher fees.
“That issue, brought out by the Bases Conversion Development Authority in 2000, was already addressed long ago,” he said. PPIC has a 25-year lease contract with the BCDA to operate the port.

“It used to take seven to 10 days to unload 5,000 metric tons of cargo, but it takes us only three to four days. We take care of cargo handling because it is [the port’s] heart and soul. If your services are lousy, they won’t go to your port,” Venturina said.

In a statement, PPIC said it was appealing to Santiago to help ferret out the truth behind the takeover.

Venturina said the firm was ready to present evidence, documents and footage to prove that the environmental violations that it was being accused of were all wrong and were just meant to justify the takeover.

Santiago described the takeover as “illegal, immoral and reminiscent of a police state.”

Brigido Dulay, PPIC legal counsel, said in the statement that the Senate should also investigate revelations made by Arnel Casanova, BCDA legal counsel, about political pressure exerted on him to reverse his study affirming that the lease contract was valid and the takeover of the port had no basis.

Dulay cited records purportedly showing that Casanova had revealed who pressured him to BCDA president Narciso Abaya.

In a memorandum to Abaya and BCDA chair Filadelfo Singson-Rojas, a cousin of Ilocos Sur Gov. Luis “Chavit” Singson, Casanova said a BCDA director called and visited him several times to pressure him to reverse the results of his study.

Casanova, in his memorandum, said the official told him that the instruction came “from a very influential person.”

Dulay said it was important that the Senate investigation ferret out the identity of the “very influential person.”

Singson, who was key to the rise to power of President Macapagal-Arroyo, has repeatedly denied involvement in the takeover.

The regional Department of Environment and Natural Resources also said it had no hidden agenda in enforcing a cease-and-desist order (CDO) on port operations.

PPIC said the CDO was issued shortly after a court in San Fernando stopped the takeover bid.

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[TheCameraReturns]

Hi. Just curious.. I used to spend summer vacations in La Union as a child. Is Nancy Theater still there? We would also go to the beaches in Bauang. Nalinac Resort comes to mind.

[TheCameraReturns]

Hi. Just curious.. I used to spend summer vacations in La Union as a child. Is Nancy Theater still there? We would also go to the beaches in Bauang. Nalinac Resort comes to mind.