Select Page
PNOC-EC action allows government to weigh Malampaya options

PNOC-EC action allows government to weigh Malampaya options

by | Apr 12, 2023 | Gotcha

logo of Philippine National Oil Company 

GOTCHA

written on December 31, 2021

 

Vital electricity supply using Malampaya gas is assured – for now. Giant Shell will continue pumping fuel from the offshore rig in Palawan to generators in mainland Luzon. Buyout of Shell by an inexperienced, undercapitalized shop was not approved by the state PNOC-Exploration Corp. This gives government time to weigh options for the country’s energy security.

One such option is to extend Shell’s operating contract beyond the January 2024 expiration. Shell since 2017 has been asking the Dept. of Energy for 15 additional years. Gas can still be extracted for three to five years followed by oil underneath.

“Near wells” can be developed within the vast Service Contract 38. The Senate energy committee under Sherwin Gatchalian has been informed. Various business and law groups urge government to look into it.

Another option is for PNOC-EC to take over the entire operation upon expiration. Then it can bid out to global subcontractors. That way the government can maximize hundred-billion-dollar revenues, said petroleum geologist Eduardo Mañalac.

“National oil companies worldwide look forward to taking over upon expiration of private operators’ contracts,” added Mañalac. The former energy undersecretary and PNOC president cited the buildup of knowhow by Indonesia’s Pertamina and Malaysia’s Petronas after takeovers. Norway’s sovereign wealth fund is over $1 trillion, the world’s biggest, sourced mainly from government-run Statoil.

Gatchalian the other week commended PNOC-EC for “upholding national interest.” Fueling 20 percent of the country’s energy and more than 30 percent of Luzon’s, he said Malampaya “is an asset of future concern. [PNOC-EC] put first the interest of Filipinos and generations to come.”

PNOC-EC, which owns ten percent of Malampaya’s operation, withheld consent of Shell’s buyout by Davao City tycoon Dennis Uy. The state firm’s president, retired Lt. Gen. Rozzano Briguez, disclosed it during the Dec. 15 Senate hearing, but would not detail the reasons.

Only a month old and with $100 (P5,000) paid-up capital, Uy’s Malampaya Energy XP Pte Ltd bought Shell Petroleum NV’s 45 percent in May for $460 million, Senate hearings showed. Retroactive Jan. 1, 2021, the purchase was to be concluded this year-end, Uy’s parent Udenna Corp. announced. But the Petroleum Exploration and Production Act (P.D. 78) and the operating contract require partner PNOC-EC’s prior consent. Without it, no go.

With that, Shell Philippines Exploration Corp. will go on extracting Malampaya gas, legal manager Kiril Caral told the hearing. “Without the consent of the PNOC-EC we will be unable to pursue the sale at the moment,” he said. “We’re very disappointed … We will continue to engage with them to find out if there is anything we can do to address the concerns that might have led them to this decision.”

Atty. Rico Domingo said the PNOC-EC action proved that there was no consent prior to the sale earlier this year. That debunks DOE claims in earlier hearings, noted the president of the Philippine Bar Association: “Shell will have to stay because it has a contract till 2024.”

Domingo is legal adviser in the graft complaint against Energy Sec. Alfonso Cusi, PNOC-EC, Uy, Udenna, Malampaya XP, UC Malampaya Philippines Pte Ltd, Shell and Chevron. Complainants are geologist Balgamel de Belen Domingo and Filipino-American lawyers Loida Nicolas Lewis and Rodel Rodis.

Six-week-old UC Malampaya, another Udenna subsidiary, bought Chevron’s 45 percent in October 2019 for $565 million. Capital: $40 million. Still-unregistered UC Malampaya sealed the sale in April 2019, the complainants allege. Cusi and Uy deny accusations of gross negligence and undue advantage to the private parties.

Lauding PNOC-EC board directors, a group of citizens publicized in part: “Your decision … is justified and in order. It is important to the national interest to protect PNOC-EC’s ten percent amounting to P3-5 billion, and government’s 60-percent profit share of P75 billion annually.

“We request you to remain steadfast … We hope that as a result of your assertive wisdom, [Shell] will be obligated to stay as operator and provide expert, technically competent, safe and healthy environment for Malampaya.

“Should you be subjected to any kind of pressure from any source or quarter to change your resolve, be assured of our staunch and unwavering support.”

Signatories: Dr. Celia Lamkin, founder, National Youth Movement-West Philippine Sea; Retired Justice Antonio Carpio; former foreign secretary Albert del Rosario; Leonardo Cuaresma, Scarborough Shoal fishermen leader, Masinloc, Zambales; Ramon de Leon, Noveleta, Cavite; Sonny Fernandez, Antipolo City; Jerry Adevoso, Grand Commander, Golden Kris Fraternal Society (Descendants of Filipino WWII Veterans); Rev. Jerry Bitoon, San Pablo City; Medardo Alfonso, founder, Catangcas Aguman Capampangan, Rome, Italy; Amb. Bayani Mangibin, Iloilo City; Prof. Nicanor Melecio, convenor, Maka Kalikasan, Dagupan City; Fr. Albert Alejo, SJ.

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Marcos ‘still disqualified’ despite payment of tax liabilities – lawyer

Marcos ‘still disqualified’ despite payment of tax liabilities – lawyer

by | Apr 12, 2023 | Gotcha

PNA photo of Ferdinand Marcos Jr.

GOTCHA

written on December 29, 2021

 

Bongbong Marcos is not qualified to run for president as a convicted tax evader. Besides, he has not paid the court-imposed fines for the crime. That‘s despite his claim of belatedly settling his tax liabilities.

BBM lost his right to election or appointment to public office due to tax evasion, lawyer Howard Calleja told Balitaan sa Maynila media forum Thursday. The perpetual disqualification stays due to conviction under the National Internal Revenue Code.

Calleja differentiated among the disqualification, the fines and the court order to pay tax dues. The disqualification and fines are penalties, while the tax payments are obligations, the 1Sambayan convenor explained.

“Yung pagbayad does not save them or allow them to run for public office or for the presidency dahil po, uulitin ko po, kahit na nagbayad ka, nandiyan pa rin po ‘yung penalty of perpetual disqualification,” Calleja expounded on Teleradyo’s On the Spot.

“Ang sinabi po ng korte sa paglabag po ni Ferdinand ‘Bongbong’ Marcos Jr. sa tax code, simple lang po. Siya po ay magbayad ng tax na hindi pa niya binabayaran, number one. Number two, siya po ay magbayad ng penalty na ini-impose po dahil siya po ay nag-violate,” Calleja added.

Last Wednesday, BBM’s spokesman said the presidential aspirant no longer owes the government anything. The Bureau of Internal Revenue supposedly certified his settlement of about P67,000 in long overdue income taxes.

The next day, Calleja pointed out that the certification pertains only to BBM’s unpaid income taxes for 1982, 1983, 1984 and 1985. In sentencing him for non-filing of returns and non-payment of taxes, the Quezon City Regional Trial Court imposed fines of P2,000 for each of the first three years, and P30,000 for 1985. That has to be paid to the court, a separate branch of government, Calleja said.

The court certified in November having no record of the payment by BBM of the P36,000 penalty. It was issued on request of lawyers of petitioners to cancel BBM’s certificate of candidacy. The petitioners maintain that he perjured twice in the sworn COC in disclaiming ineligibility and criminal conviction that forbids him from public office.

“So, ganito po ‘yun: ‘Yung kanya pong pinakita ay BIR at hindi po RTC,” Calleja said. “I would give them the benefit of the doubt. I will not question if the receipt is correct or anything; let’s grant them that. Pero malinaw na hindi pa sila nagbabayad ng penalty sa paglabag sa batas ng taxation o ng pagbayad ng buwis o pag-file ng income tax return.

“Ibig sabihin po, kahit nagbayad, siya rin po ay still perpetually disqualified for any public office whether elective or appointive, klarong-klaro po ‘yan,” Calleja added.

BBM had sought reversal of the RTC ruling, but the Court of Appeals affirmed it. He then went to the Supreme Court but ultimately withdrew the case. Hence, the verdict of the Court of Appeals holds.

Public calls have been made for the Comelec to decide at once on BBM’s cases. The cancellation of his COC and three disqualification petitions pend at the Second Division; three more disqualification cases are with the First Division.

The poll body has a tight deadline to decide which candidates’ names are to be included in the ballot. Taking weeks, ballot printing and distribution have to be completed well before the May 9 elections.

BBM’s tax evasion issues involve the least amounts attributed to his family’s misdeeds. The Supreme Court has upheld several plunder and corruption cases against BBM’s deposed dictator-father Ferdinand Marcos and mother Imelda Romualdez Marcos. The couple was accused of illegally amassing up to $30 billion in cash and bonds, jewelry, corporate stocks and real estate in the Philippines and abroad. Offspring BBM, Imee and Irene were implicated as accomplices.

Five SC affirmations of the ill-gotten wealth cases were during the presidencies of Cory Aquino, Gloria Macapagal Arroyo, Noynoy Aquino and Rodrigo Duterte, retired Chief Justice Artemio Panganiban recounted recently.

The Marcoses have also racked up unpaid estate taxes, according to retired SC justice Antonio Carpio. They have ignored BIR notices now totaling P203.8 billion, he said.

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Christmas in our isles, same time next year

Christmas in our isles, same time next year

by | Apr 12, 2023 | Gotcha

photo from Philippine News Agency

GOTCHA

written on December 24, 2021

 

(First published 1978 in TV Times magazine; last of two parts)

How we look forward to the holidays, whence we find reason to give and receive, forgive and forget, drink and be merry. How we fill it with meaning and message for young and old. How we see in celebration new blessing and renewal to spice up our workaday lives. Life in our isles without Christmas is unimaginable.

Dec. 24 and 31 are the season’s busiest days – preparing food for the coming feasts. In Barrio Capulaan, Villasis, Pangasinan, the womenfolk cook a black-rice delicacy, deremen or inlubi. Young glutinous palay, still milky in the chaff, is burnt over smoldering bamboo halves. While still hot, the palay is pestled and winnowed clean of chaff. Children gather round as the women sway to the strum of a coconut shell fiddle, cutibeng.

Laboriously-prepared Yuletide fare are never laid to waste. Families partake of the Dec. 24 Noche Buena and Dec. 31 Media Noche in superstitious solemnity. The affairs signify thanksgiving, solidarity, prosperity. During family reunions, among Tagalogs, the most prosperous tio or tia shower coins as children and adults scramble for possession. The coins, or sura, are kept for good luck.

The inventory of Yuletide food conjures many a childhood memory: jamon, queso de bola, suman, malagkit, salabat, tsokolate. In pre-inflation times, castañas and grapes were found on tables of middle-class families. These days they are content with undersized apples and oranges, kiat-kiat.

Christmas food varies by region. Northern Luzon folk have kilawen, papaitan, lechon kawali, dinaldalem, kaldereta and pacpac (crispy fried pig ears), along with delicacies linapet, tupig, bibingka, kaskaron and tamales nga ipon. Warays and Bicolanos prepare humba, dinuguan, adobo, balisoso and ibos. In Panay, Noche Buena is never complete without puto-puti, kalamay-hati, bandi and baebae. Misamis holiday fare consists of sotanghon with torta, kalderetang kambing, yema and pastillas. In Cebu haleyang ube, morcon and biko top off the meal. Liquor is present in all. The overflow of food and wine is directly proportionate to the amount of Christmas bonus.

Christmas and New Year come with a bang. Filipinos blend the merriment of Christmas with the noisemaking of New Year. Midnight sparklers, bamboo cannons, fireworks greet both days.

As merrymaking dies down, children gather round the Christmas tree to open presents from parents, ninong, ninang –sometimes from Santa Claus and the Three Kings, though they’re not very popular among country bumpkins.

Province kids spend Christmas and New Year visiting relatives and godparents who might have forgotten to deliver gifts. Benefit balls are held at the town plaza on the night of the 25th or the 1st by religious and civic organizations. Teenagers and olds display the latest dance craze from Manila.

Non-Christians observe the season too. Igorots of Sinapaoan and Bantinan, Santa Fe, Nueva Vizcaya, celebrate Christmas Eve with a much awaited cañao. Food and rice wine, tapuy, spice up a night of dancing. Festivity starts with the chieftain summoning elders to a palaver where richer clansmen are tapped to shoulder feasting expenses. They donate cows, pigs, rice, ubi and jars of aged tapuy.

To the Kalasan of Aritao, Christmas is a communal affair. Family heads contribute cash or kind. Girls decorate the chieftain’s house and premises with flowering vine gathered from the forest. After an intoxicated ritual of chanting and dancing, they dine as a community.

Mindanao Muslims observe Maulid un Nabi, Birth of the Prophet. Like Christmas of Christians, it is for them a season for forgiveness. Jealousies and grievances are deferred; an atmosphere of generosity pervades. The imam is seen at the town square showering children with coins and candies. If well-to-do, he may treat the town to a pagjamo or blowout.

Season’s greetings are expressed in different tongues – linguistic proof of the day’s significance to Filipinos. The Tagalog Maligayang Pasko is Naimbag a Pascuayo in Ilocano, Napia nga Pascua in Ibanag, Maugmang Paskuwa in Bicolano, Maupay nga Pasko in Waray, Malipayon nga Pascua in Hiligaynon, Malipayong Pasco in Cebuano.

On Holy Innocents’ Day, Dec. 28, country tots in flowing blankets roam the barrio, singing tunes similar to those sung during pangangaluluwa on All Saints and All Souls Days. The songs beg for prayers and, more importantly, treats and goodies. The olds had better comply lest chicken in their yard serve as unwilling feasts and Christmas lanterns get pricked with holes. In Alcala, Cagayan and Pakil, Laguna, laundry, benches, ladders and other portable items left outside the kubo (hut) find their way to the barrio square, victims of April Fool’s-style pranks.

The Feast of the Three Kings is Pasko ng Matatanda among Tagalogs and Bicolanos. Elders take time out from house chores to visit relatives, compadres, comadres and friends. The spirit of gift giving extends to this last day of the season, as richer kinsmen dole cash to needy ones.

As in the Panunuluyan, the Magi are depicted in folk drama in Gapan (Nueva Ecija), Malolos (Bulacan) and Gasan (Marinduque). A street play reenacts the search for the Christ Child by following the path of the Christmas star, actually the biggest and most impressive parol in town. They ride about on mules until the star disappears near the designated Herod, seated on a throne at the church patio. Herod demands them to reveal Baby Jesus’ location. After which, the star reappears, the Wise Men continue their trek and finally find the Holy Family in the kubol at the other end of the church courtyard. Herod, meanwhile, orders his guards to slay all newborn baby boys, whereupon children scamper for the safety of their mothers’ saya. An avenging angel casts a spell on Herod, who turns mad and goes around town laughing wildly – and grabbing free drinks at carinderias.

As the 22 long days of the Filipino Yuletide season draw to a close, sleepy towns and distant barrios recover from the tiring festivity. Visiting relatives pack up for the trip back to the city, while the peasant folk shake off the hangover to resume the daily grind of farm work.

Some do not bother to take down the parol, letting it hang the year round, a sad and forlorn reminder to last them the next 12 months.

Merry Christmas to all.

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Suspended for doing duty? Bank staff decry maltreatment

Suspended for doing duty? Bank staff decry maltreatment

by | Apr 12, 2023 | Gotcha

Shutterstock photo Super King Air 350

GOTCHA

written on April 12, 2023

 

Philippine National Bank’s board of directors meets with urgency today. Agenda seems but a speck of PNB’s P1.15-trillion assets, P11.4-billion profit, 8,550 personnel and 670 branches.

But the speck can inflame crisis. It concerns the suspension since March of PNB’s administrative staff. They allegedly were not informed of their offenses or afforded a chance to explain.

Their suspension came right after they reported an irregular, overpriced aircraft repair. An officer linked to the $3-million expense supposedly instigated their punishment.

Top management is in disarray. Initially supportive, superiors of the admin staff purportedly have abandoned them. Two board directors were cited in a March 8 pseudonymous complaint as aware of the events.

The suspended staff decried the sudden black mark on their employment records. They may be unable to transfer to other financial institutions. Some have been with the 107-year-old bank before tycoon Lucio Tan bought it from government in 2005. They worry about the suspension’s effect on their retirement.

If not resolved fast, the Bangko Sentral, Department of Labor, Philippine Stock Exchange and Bureau of Internal Revenue will swoop in.

Already the punishment of the investigators is affecting PNB affiliates Philippine Airlines and Basic Holdings Aviation of the Lucio Tan Group. Mr. Tan, 88, chairs the three firms and the group.

Repeated efforts were exerted over two days to contact bank EVP Aida Padilla and corporate fleet VP Clive Kian on their known mobiles – to no avail. Known as a straight-shooter but downed by Covid-19, president Florido Casuela declined an interview.

On Oct. 28, 2020 Mr. Tan approved the overhaul of PNB’s King Air executive jet’s two engines. Price: $230,000. Local offeror was Manila Aerospace Products Trading for overhauler Pratt & Whitney of Canada.

June 18, 2021 MAPTRA billed PNB $2,958,800.30, including 12-percent VAT for the overhaul.

Next day Kian, on a Basic Holdings form, signed the purchase order and payment request. Also on June 19 Kian, on PNB stock requisition form, signed for the same. He is executive assistant to chairman & CEO Mr. Tan, who reportedly is now frail and forgetful from age.

Stunned, PNB bosses sought the help of PAL, the country’s largest airline, to check the technicals and possibly haggle down the price.

Oct. 25, 2021 PAL specialist officers wrote Kian: “We cannot help but raise our earnest concern about the costly repair to MAPTRA.”

An online check showed that a brand-new King Air engine costs only $845,169, or $1,690,338 for two. After it was questioned for not offering such alternative, MAPTRA asked P&W to send a quotation for brand-new.

On top of P&W’s $1,690,338, MAPTRA tacked on a non-negotiable 15-percent administrative cost of $293,945.58. Add import costs, VAT and supposed “work in progress,” total for brand-new was $3,086,142.24.

Overhaul of $2,958,800.30 looked cheaper. Still PAL probers stuck to the $230,000 “duly signed by our beloved Chairman Dr. Lucio C. Tan.”

Receiving PAL’s investigation report, PNB’s board deferred payment. Told to probe on its own, the bank admin staff prepared their own report to Casuela for relay to the board.

Instead they were investigated by PNB internal auditors. Supposed findings: Habitual tardiness, improper uniform, sharing of passwords, missing furniture and collusion with scrap buyers.

The staff decried lack of due process: “If only our beloved Kapitan is made aware of this illegal act, he will not agree to us being insulted and treated this way. Sir Kapitan will surely admonish our officers for failing to protect the interest of the bank and rights of the employees.”

PNB doesn’t punish without hearing all sides, Senior VP Claro Fernandez said. Too, it encourages whistle-blowing, even if anonymous, for sustainability and as part of compliance with BSP rules.

Though unaware of the issue, Fernandez said “preventive suspension is done to avert purloining of documents. It is obligatory for the president and Human Resources to act on such cases.”

 

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

No substitution if Marcos candidacy is voided

No substitution if Marcos candidacy is voided

by | Apr 12, 2023 | Gotcha

PNA photo of Bongbong Marcos

GOTCHA

written on December 10, 2021

 

Despite eight petitions against Bongbong Marcos’ presidential run, his name will be in the ballot. Printing starts in five weeks. But Comelec proceedings and appeals to the Supreme Court will take months. A cliffhanger on Election Day, May 9, 2022, is if BBM’s votes shall be counted.

Preliminaries were slow. The Comelec Second Division allowed BBM’s lawyer’s delay despite the poll body’s “non-extendible” deadlines. As recipient of the first petition, it has yet to consolidate seven others, including those raffled off to the First Division. One petition, supported by a second, wants BBM’s certificate of candidacy (COC) nullified. Three aim to disqualify him for criminal past. Two seek to remove him as nuisance candidate. The eighth questions his party nomination.

Nullification of candidacy seems open and shut. BBM perjured twice in his COC, which voids it under the Omnibus Election Code, petitioners allege. First, BBM misclaimed under oath that he was “eligible for the office I seek to be elected to.” Second, he denied having been “found liable for any offense which carries the accessory penalty of perpetual disqualification to hold public office.”

Records show otherwise. BBM was convicted by the Court of Appeals’ final judgment in October 1997 of tax violation. He did not file income tax returns for 1982-1985 when he was Ilocos vice governor then governor. The CA inexplicably had deleted the lower court’s other verdict of tax evasion and penalty of imprisonment. Still it found BBM guilty of non-filing for four consecutive years. It ordered him to pay tax deficiencies, surcharges and fine of P2,000 per year for 1982-1984, and P30,000 for 1985.

The National Internal Revenue Code perpetually disqualifies convicts from public office. The Election Code debars candidacies of convicts of crimes involving “moral turpitude.”

Retired chief justice Artemio Panganiban quoted jurisprudence in his recent Inquirer column to define moral turpitude. It is “everything done contrary to justice, modesty or good morals; an act of baseness, vileness or depravity in the private and social duties which a man owes.”

The implication on BBM is stark. “If his COC is cancelled because of material misrepresentation, it is void from the start and he was never a valid candidate,” retired Supreme Court justice Antonio Carpio replied to a query from The STAR. “He cannot be substituted because he was never a candidate.”

Panganiban differentiated between disqualification of candidacy and COC cancellation. Disqualification is filed for offenses against the Election Code. It allows substitution by another candidate with the same surname from the same party. But “if the candidacy of BBM is cancelled or denied due course, he cannot be substituted because such cancellation or denial legally means that the COC never existed. Thus, BBM votes will not be counted.”

*      *      *

Crisis is opportunity for market endearment. Cebu Pacific fully refunded its customers for flight cancellations during the pandemic. It returned P8.2 billion cash, not vouchers or digital travel fund, from January 2020 to September 30, 2021. After completing refund requests and resolving all cases filed at the Civil Aeronautics Board, the airline views this as a competitive advantage.

The pandemic disrupted flights of all Philippine carriers. Complaints at the CAB skyrocketed in 2020 and continued to soar this year, according to a STAR special report. The 2,691 cases involving domestic flights in 2020 was more than three times the 712 in pre-crisis 2019. Nine in ten of the complaints in 2020 were for refunds. Cebu Pacific lost no time settling all its obligations.

Also despite the pandemic, Cebu Pacific won investors’ trust. It stabilized its future with fresh capital, $250 million from IFC and Indigo. It signed a P16-billion ten-year syndicated loan with domestic banks. A stock rights offer in March 2021 raised P12.5 billion.

Remaining liquid, Cebu Pacific continued to offer affordable service and made a digital pivot to make flying easy. This enhanced passenger trust and loyalty, said CEO Lance Gokongwei: “We recognize that we can contribute to a higher purpose. It is incumbent upon us to help uplift the lives of people.”

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

For economy’s sake, Mr. President, please stop Uy’s Malampaya takeover

For economy’s sake, Mr. President, please stop Uy’s Malampaya takeover

by | Apr 12, 2023 | Gotcha

PNA photo of Malampaya gas field

GOTCHA

written on December 8, 2021

 

I feel presumptuous as a journalist of 44 years to directly address the highest leader. But desperate times call for desperate measures. So I beg you, President Duterte, stop the takeover by your Davao City friend Dennis Uy of our Malampaya gas field.

Malampaya is the crown jewel of Philippine petroleum assets. It supplies one-fourth of Luzon’s electricity. Operating it entails technical expertise, financial stability and management savvy. Otherwise,  Malampaya collapses. That would be disastrous.

Two subsidiaries of Uy’s Udenna Corp. bought 90 percent of Malampaya’s operations. Both have no experience in exploration or production:

• UC Malampaya Philippines Pte Ltd was registered in Singapore (UEN 201928740R) Sep. 1, 2019. Paid-up capital: $40 million. (Derived by Senator Sherwin Gatchalian from Singapore Accounting and Corporate Regulatory Authority) Four months earlier, Apr. 30, the still unregistered company sealed the buy-out of Chevron’s 45-percent share, a graft complaint alleges. Guarantor was mother Udenna Corp. Sale of $565 million was formalized on Oct. 25, 2019, announced on Nov. 13.

Of the total price, $375 million was borrowed from New Zealand and Singapore banks. $157 million was from “proceeds of Chevron’s 45-percent entitlement from Malampaya” up to March 2020. Remaining $33 million was “equity proceeds, from increase in capital.” Senate hearings deduced that UC Malampaya got 14 times its worth not from solid assets but loans, backed by guaranteed earnings from Chevron itself, and future capital call.

• Malampaya Energy XP Pte Ltd was listed in Singapore (UEN 202112248K) Apr. 7, 2021. Paid-up capital: $100, or P5,000. It bought Shell Petroleum NV’s 45 percent for $460 million on May 20, 2021. “To be completed by end-2021, it would be retroactively effective Jan. 1, 2021,” Shell said.

By this yearend Uy would control 90 percent of Malampaya.

Established in 1879 and 1907 respectively, Chevron (Caltex) and Shell have a combined 256 years of experience in petroleum and alternative energy. Each has hundred-billions worth of capital and petro reserves. Udenna’s subsidiaries were both one-and-a-half months old when they gobbled up the global giants.

Newborn, they lack financial, management and technological expertise. Taking over Malampaya operations is not buying “a car, a building or any ordinary asset,” the Philippine Bar Association analogized. The newbies can subsume the 55 or so experienced gas rig scientists and technicians. But vital too are such management tools as track record, institutional knowledge, funds, credit lines, suppliers, industry contacts and more.

Without those, operations can collapse. Extracting gas three kilometers below sea level and pumping it 500 kilometers to Batangas power plants can falter. Luzon will plunge into prolonged blackouts. Factories, offices, stores, banks, hospitals, schools, hotels, resorts, restaurants, churches will shut down. Filipinos will be unable to work, study or worship from home as there will be no power for WiFi and gadget charging. Water service will stop. Food distribution will be disrupted. An economy struggling from pandemic can relapse.

That scenario is not far-fetched, Mr. President. It has happened before, though on a smaller scale. You cited it in your 2016 campaign speeches. I refer to my exposés on faulty maintenance of Metro Rail Transit-3.

PH Trams was only two months old when chosen by the Dept. of Transportation to replace global giants Sumitomo and Mitsubishi Heavy Industries in October 2012. Capital: P625,000. No experience in rails, only connections to the ruling party then. It was paid P57.5 million a month for ten months. After using up the inventory it scrimped on vital parts for trains, tracks, signalling, power supply and stations. Shunned by suppliers, it subcontracted fly-by-night Bulacan foundries for wheel, axle and brake repair. Air-conditioning, catenaries, elevators and escalators broke down. Despite absorbing the old technical staff, PH Trams flunked DoTr standards.

You quoted me, Mr. President, that MRT-3 was “an accident waiting to happen.” It did happen – many times. Trains suddenly braked and doors opened between stations, injuring riders. Or simply conked out, forcing them to alight and hobble to the nearest exit. A train overshot the end-station and crashed onto the steel barrier; motorists below the elevated tracks were hurt.

They did not stop there, as you will recall, Mr. President. In the midst of congressional inquiries and court indictments, DOTr merely replaced the maintenance companies twice but with the same cronies behind new fronts: a house constructor, a general merchandiser, an agricultural supplier and a plumber. They even tried to gag me with a court order. Your administration ended the deterioration in 2017.

You can rescind the Malampaya takeover too, Mr. President. National and energy security depend on it.

P.D. 87, The Oil Exploration and Development Act of 1972, requires Department of Energy consent for entry, share transfers and exit of service contractors. DOE Circular 2007-04-003 details the procedures. Both allegedly were ignored in Malampaya.

Philippine National Oil Company-Exploration Corp., despite holding only ten percent, owns the $4.2-billion rig and pipeline. It could have matched Udenna’s offers to Chevron and Shell, then brought in experienced companies, experts say. It could even have left the two un-recompensed for walking away before contract expiration in 2024.

Energy Secretary Alfonso Cusi claims to have no authority to meddle in the purely private transaction. Strictness of the Procurement Reform Act and the GOCC Governance Law and the pandemic supposedly constrained him from exercising right of first refusal. The Integrated Bar of the Philippines and PBA say otherwise.

Mr. President, the ball is in your hands.

Sinovac safety efficacy and price still need clarifying

* * *

Catch “Sapol” radio show, Saturdays, 8-10 a.m., dwIZ (882-AM)

            “Gotcha: An Exposé on the Philippine Government” is available as e-book and paperback. Get a free copy of “Chapter 1: Beijing’s Bullying and Duplicity”. Simply subscribe to my newsletter HERE. Book orders also accepted there.

Sinovac safety efficacy and price still need clarifying

Site Terms & Conditions (scroll down for the buttons)

This site, jariusbondoc.com, is free for your use.

However, we do have some terms and conditions which you can find below. By continuing to use or to read from this site, that means you understand and agree to comply with the terms and conditions.

I. PRIVACY POLICY

This privacy policy (“policy”) will help you understand how jariusbondoc.com uses and protects the data you provide to us when you visit and use https://jariusbondoc.com/ (“website”, “service”).

We reserve the right to change this policy at any given time. If you want to make sure that you are up to date with the latest changes, we advise you to frequently visit this page.

 

What User Data We Collect

When you visit the website, we may collect the following data:

  • Your IP address
  • Your contact information and email address
  • Other information such as interests and preferences
  • Data profile regarding your online behavior on our website

 

Why We Collect Your Data

We are collecting your data for several reasons:

  • To better understand your needs
  • To improve our services and products
  • To send you promotional emails containing the information we think you will find interesting
  • To contact you to fill out surveys and participate in other types of market research
  • To customize our website according to your online behavior and personal preferences

 

Safeguarding and Securing the Data

jariusbondoc.com is committed to securing your data and keeping it confidential. jariusbondoc.com has done all in its power to prevent data theft, unauthorized access, and disclosure by implementing the latest technologies and software, which help us safeguard all the information we collect online.

 

Our Cookie Policy

Once you agree to allow our website to use cookies, you also agree to use the data it collects regarding your online behavior (analyze web traffic, web pages you spend the most time on, and websites you visit).

The data we collect by using cookies is used to customize our website to your needs. After we use the data for statistical analysis, the data is completely removed from our systems.

Please note that cookies don’t allow us to gain control of your computer in any way. They are strictly used to monitor which pages you find useful and which you do not so that we can provide a better experience for you.

If you want to disable cookies, you can do it by accessing the settings of your internet browser.

 

Links to Other Websites

Our website contains links that lead to other websites. If you click on these links jariusbondoc.com is not held responsible for your data and privacy protection. Visiting those websites is not governed by this privacy policy agreement. Make sure to read the privacy policy documentation of the website you go to from our website.

 

Restricting the Collection of your Personal Data

At some point, you might wish to restrict the use and collection of your personal data. You can achieve this by doing the following:

 

  • When you are filling the forms on the website, make sure to check if there is a box which you can leave unchecked, if you don’t want to disclose your personal information.
  • If you have already agreed to share your information with us, feel free to contact us via email and we will be more than happy to change this for you.

 

jariusbondoc.com will not lease, sell or distribute your personal information to any third parties, unless we have your permission. We might do so if the law forces us. Your personal information will be used when we need to send you promotional materials if you agree to this privacy policy.

 

II. COPYRIGHT NOTICE

All materials contained on this site are protected by the Republic of the Phlippines copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of jariusbondoc.com or in the case of third party materials, the owner of that content. You may not alter or remove any trademark, copyright or other notice from copies of the content.

However, you may download material from jariusbondoc.com on the Web (one machine readable copy and one print copy per page) for your personal, noncommercial use only.

If you wish to use jariusbondoc.com content for commercial purposes, such as for content syndication etc., please contact us at jariusbondoconline@gmail.com.

Links to Websites other than those owned by jariusbondoc.com are offered as a service to readers. The editorial staff of jariusbondoc.com was not involved in their production and is not responsible for their content.

 

III. TERMS OF SERVICE

 

  1. GENERAL RULES AND DEFINITIONS

 

1.1 If you choose to use the jariusbondoc.com service (the “Service”), you will be agreeing to abide by all of the terms and conditions of this Agreement between you and jariusbondoc.com (“jariusbondoc.com “).

 

1.2 jariusbondoc.com may change, add or remove portions of this Agreement at any time, but if it does so, it will post such changes on the Service, or send them to you via e-mail. It is your responsibility to review this Agreement prior to each use of the Site and by continuing to use this Site, you agree to any changes.

 

1.3 If any of these rules or any future changes are unacceptable to you, you may cancel your membership by sending e-mail to jariusbondoconline.com (see section 10.1 regarding termination of service). Your continued use of the service now, or following the posting of notice of any changes in these operating rules, will indicate acceptance by you of such rules, changes, or modifications.

 

1.4 jariusbondoc.com may change, suspend or discontinue any aspect of the Service at any time, including the availability of any Service feature, database, or content. jariusbondoc.com may also impose limits on certain features and services or restrict your access to parts or all of the Service without notice or liability.

 

  1. JARIUSBONDOC.COM CONTENT AND MEMBER SUBMISSIONS

 

2.1 The contents of the jariusbondoc.com are intended for your personal, noncommercial use. All materials published on jariusbondoc.com (including, but not limited to news articles, photographs, images, illustrations, audio clips and video clips, also known as the “Content”) are protected by copyright, and owned or controlled by jariusbondoc.com or the party credited as the provider of the Content. You shall abide by all additional copyright notices, information, or restrictions contained in any Content accessed through the Service.

 

2.2 The Service and its Contents are protected by copyright pursuant to the Republic of the Philippines and international copyright laws. You may not modify, publish, transmit, participate in the transfer or sale of, reproduce (except as provided in Section 2.3 of this Agreement), create new works from, distribute, perform, display, or in any way exploit, any of the Content or the Service (including software) in whole or in part.

 

2.3 You may download or copy the Content and other downloadable items displayed on the Service for personal use only, provided that you maintain all copyright and other notices contained therein. Copying or storing of any Content for other than personal use is expressly prohibited without prior written permission from jariusbondoc.com or the copyright holder identified in the copyright notice contained in the Content.

 

  1. FORUMS, DISCUSSIONS AND USER GENERATED CONTENT

 

3.1 You shall not upload to, or distribute or otherwise publish on the message boards (the “Feedback Section”) any libelous, defamatory, obscene, pornographic, abusive, or otherwise illegal material.

 

3.2 (a)Be courteous. You agree that you will not threaten or verbally abuse jariusbondoc.com columnists and other jariusbondoc.com community Members, use defamatory language, or deliberately disrupt discussions with repetitive messages, meaningless messages or “spam.”

 

3.2 (b) Use respectful language. Like any community, the Feedback Sections will flourish only when our Members feel welcome and safe. You agree not to use language that abuses or discriminates on the basis of race, religion, nationality, gender, sexual preference, age, region, disability, etc. Hate speech of any kind is grounds for immediate and permanent suspension of access to all or part of the Service.

 

3.2 (c) Debate, but don’t attack. In a community full of opinions and preferences, people always disagree. jariusbondoc.com encourages active discussions and welcomes heated debate in our Feedback Sections. But personal attacks are a direct violation of this Agreement and are grounds for immediate and permanent suspension of access to all or part of the Service.

 

3.3 The Feedback Sections shall be used only in a noncommercial manner. You shall not, without the express approval of jariusbondoc.com, distribute or otherwise publish any material containing any solicitation of funds, advertising or solicitation for goods or services.

 

3.4 You are solely responsible for the content of your messages. However, while jariusbondoc.com does not and cannot review every message posted by you on the Forums and is not responsible for the content of these messages, jariusbondoc.com reserves the right to delete, move, or edit messages that it, in its sole discretion, deems abusive, defamatory, obscene, in violation of copyright or trademark laws, or otherwise unacceptable.

 

3.5 You acknowledge that any submissions you make to the Service (i.e., user-generated content including but not limited to: text, video, audio and photographs) (each, a “Submission”) may be edited, removed, modified, published, transmitted, and displayed by jariusbondoc.com and you waive any moral rights you may have in having the material altered or changed in a manner not agreeable to you. You grant jariusbondoc.com a perpetual, nonexclusive, world-wide, royalty free, sub-licensable license to the Submissions, which includes without limitation the right for jariusbondoc.com or any third party it designates, to use, copy, transmit, excerpt, publish, distribute, publicly display, publicly perform, create derivative works of, host, index, cache, tag, encode, modify and adapt (including without limitation the right to adapt to streaming, downloading, broadcast, mobile, digital, thumbnail, scanning or other technologies) in any form or media now known or hereinafter developed, any Submission posted by you on or to jariusbondoc.com or any other website owned by it, including any Submission posted on jariusbondoc.com through a third party.

 

3.6 By submitting an entry to jariusbondoc.com’s Readers’ Corner, you are consenting to its display on the site and for related online and offline promotional uses.

 

  1. ACCESS AND AVAILABILITY OF SERVICE AND LINKS

 

4.1 jariusbondoc.com contains links to other related World Wide Web Internet sites, resources, and sponsors of jariusbondoc.com. Since jariusbondoc.com is not responsible for the availability of these outside resources, or their contents, you should direct any concerns regarding any external link to the site administrator or Webmaster of such site.

 

  1. REPRESENTATIONS AND WARRANTIES

 

5.1 You represent, warrant and covenant (a) that no materials of any kind submitted through your account will (i) violate, plagiarize, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or (ii) contain libelous or otherwise unlawful material; and (b) that you are at least thirteen years old. You hereby indemnify, defend and hold harmless jariusbondoc.com, and all officers, directors, owners, agents, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable attorneys’ fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by you or any user of your account of this Agreement or the foregoing representations, warranties and covenants. You shall cooperate as fully as reasonably required in the defense of any such claim. jariusbondoc.com reserves the right, at its own expense, to assume the exclusive defense and control of any matter subject to indemnification by you.

 

5.2 jariusbondoc.com does not represent or endorse the accuracy or reliability of any advice, opinion, statement, or other information displayed, uploaded, or distributed through the Service by any user, information provider or any other person or entity. You acknowledge that any reliance upon any such opinion, advice, statement, memorandum, or information shall be at your sole risk. THE SERVICE AND ALL DOWNLOADABLE SOFTWARE ARE DISTRIBUTED ON AN “AS IS” BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF TITLE OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. YOU HEREBY ACKNOWLEDGE THAT USE OF THE SERVICE IS AT YOUR SOLE RISK.

 

  1. COMMUNICATIONS BETWEEN JARIUSBONDOC.COM AND MEMBERS

 

6.1 If you indicate on your registration form that you want to receive such information, jariusbondoc.com, its owners and assigns, will allow certain third party vendors to provide you with information about products and services.

 

6.2 jariusbondoc.com reserves the right to send electronic mail to you for the purpose of informing you of changes or additions to the Service.

 

6.3 jariusbondoc.com reserves the right to disclose information about your usage and demographics, provided that it will not reveal your personal identity in connection with the disclosure of such information. Advertisers and/or Licensees on our Web site may collect and share information about you only if you indicate your acceptance. For more information please read the Privacy Policy of jariusbondoc.com.

 

6.4 jariusbondoc.com may contact you via e-mail regarding your participation in user surveys, asking for feedback on the Website and existing or prospective products and services. This information will be used to improve our Website and better understand our users, and any information we obtain in such surveys will not be shared with third parties, except in aggregate form.

 

  1. TERMINATION

 

 

7.1 jariusbondoc.com may, in its sole discretion, terminate or suspend your access to all or part of the Service for any reason, including, without limitation, breach or assignment of this Agreement.

 

  1. MISCELLANEOUS

 

8.1 This Agreement has been made in and shall be construed and enforced in accordance with the Republic of the Philippines law. Any action to enforce this agreement shall be brought in the courts located in Manila, Philippines.

 

8.2 Notwithstanding any of the foregoing, nothing in this Terms of Service will serve to preempt the promises made in jariusbondoc.com Privacy Policy.

 

8.3 Correspondence should be sent to jariusbondoconline.com.

 

8.4 You agree to report any copyright violations of the Terms of Service to jariusbondoc.com as soon as you become aware of them. In the event you have a claim of copyright infringement with respect to material that is contained in the jariusbondoc.com service, please notify jariusbondoconline.com. This Terms of Service was last updated on November 7, 2020.