Investigate, stop the Laiban Dam deal

News Release
July 22, 2009

Bayan Muna Partylist Representative Teddy Casiño warns that the shady deal between the Metropolitan Waterworks Sewerage System (MWSS) and the San Miguel Bulk Water Company, Incorporated (SMBWCI) to build the Laiban Dam in Tanay could wreak havoc on the lives of around 10,000 residents, Metro Manila consumers who will have to pay higher water rates, and the Filipino people in general as the deal adds to the long list of corruption cases under the Arroyo administration.

According to Casiño, "Its apparent that the negotiations between the MWSS and the SMBWCI were hastily done without the benefit of an open bidding, considering the project would involve more than P48-billion pesos of taxpayers money".

"There seems to be utter brazenness and lack of transparency in this deal, just like in other anomalous billion-peso projects under the Arroyo administration that we have consistently exposed and opposed," said Casiño.

To date, the Arroyo administration is host to controversial deals such as: the IMPSA deal (year 2001, involving $2 million), PIATCO (2003, $20 million), Northrail project (2004, $50 million), Mega Pacific deal (2004, P500 million), Diosdado Macapagal Blvd. (2004, P600 million), NBN-ZTE broadband deal (2007, $32.9 million), and World Bank road projects (2009, $33 million).

"These funds, had they been properly allocated under a pro-people government, could have provided for the health, education and other basic needs of the people," said Casiño. "But instead, under Arroyo's bankrupt regime, taxpayers' money easily go to the corrupt and greedy," he added.

Casiño said that the progressive partylist bloc had earlier filed House Resolution 510 in March 31, 2008 because the Laiban project threatened to displace thousands of indigenous peoples, destroy their ancestral lands and cultural heritage, and severely affect their very survival as a people.

"In addition, we are filing another resolution for an investigation of this bigger-than-the-NBN-ZTE deal involving MWSS and big businessmen allied with the Arroyos," said Casiño.

"If the deal contains nothing inimical to the people's interests, if there is nothing onerous or suspicious, if the parties involved here have nothing to hide, then the details surrounding this Laiban Dam project should be revealed. The public deserves to know these things," said Casiño.

Under the deal, the MWSS may be obliged to buy water from the SMBWCI and pay for unused water. This will result to higher water rates to be burdened by the consumers while both the MWSS and the SMBWCI are assured of huge profits. The Laiban Dam project could increase the cost of water in Metro Manila to P45 per cubic meter from the present P30 to P33 per cubic meter.

Casiño said "The present water shortage in some areas can be addressed by the Manila Water and Maynilad by repairing all leaking pipes, and by minimizing theft so that 4,000 MLD of raw water may be delivered".

"Even if the aim to build a new dam to provide for the needs of consumers were decades-old, rushing into a "sweetheart deal" only spells disaster for the people. The progressive partylist bloc aims to stop this Laiban deal not only to protect the people's rights to clean, safe and affordable water. We are opposing the project for the clear danger it brings," concludes Casiño.###

Bayan Muna's recently filed House Resolutions

House Resolution 1195: A Resolution Directing the House Committee on Agrarian Reform to Investigate the Failure of Comprehensive Agrarian Reform Program in the Case of Hacienda Looc in Nasugbu, Batangas, with the End in View of Protecting the Farmer-Beneficiaries and Other Residents Whose Rights are Being Continously Violated by the Manila Southcoast Development Corporation Owned by Business Tycoon Henry Sy

House Resolution 1157: A Resolution Directing the House Committee on Ways and Means to Conduct an Inquiry, in Aid of Legislation, on the Basis of Department of Finance (DoF) Order No. 17-09, which Restricts the Entry or and Imposes Duties on Imported Books, as well as its Impact on the People's Access to Educational, Scientific, and Cultural Materials

House Resolution 1137: A Resolution to Conduct an Inquiry, in Aid of Legislation, On the Correct Manner of Singing the Philippine National Anthem Given the Controversy Surrounding the Rendition of Singer Martin Nievera During the Hatton-Pacman Fight on May 3,2009 and Whether There is a Need to Amend Republic Act No. 8491 or the 'Flag and Heraldic Code of the Philippines'

House Resolution 1126: A Resolution Directing the House Committee on Good Government to Investigate Alleged Overpricing and Other Irregularities in the Procurement of Instant Noodles in Line with the Feeding Program of the Department of Education

House Resolution 1067: Resolution Directing the Committee on Government Enterprises and Privatization and Committee on Civil Service to Conduct an Investigation, in Aid of Legislation, on the Alleged Failure of the Government Service Insurance System (GSIS) to Effectively Perform its Mandate to Provide Social Security Benefits to its Members

House Resolution 1066: Resolution Directing the Committee on Transportation to Conduct an Investigation, in Aid of Legislation, on the Alleged Rigging of the Bidding Process on the Manila North Harbor Modernization Project That Imperils Informal Settlers, Dock Workers, Vendors and Other Port Users

House Resolution 1065: Resolution Directing the Committee on Transportation to Conduct an Immediate Inquiry, in Aid of Legislation, on the Impact of Department of Transportation and Communications Order Number 2008-39 that was Allegedly Hidden from the Transport Groups and the Public Since it Raises Fines and Penalties for Traffic and Administrative Violations Levied by the land Transportation Office Against Drivers, Conductors and Operators of Motor Vehicles

House Resolution 1064: Resolution Directing the Committee on Human Rights to Conduct an Investigation, in Aid of Legislation, on the Killing of Environmentalist and Anti-Mining Activist Eliezer “Boy” Billanes, Chairperson of the South Cotabato, Cotabato, Sultan Kudarat, Saranggani, General Santos City, Davao Del Sur – Alliance for Genuine Development (SocCSkSarGenDS – AGENDA) Last March 9,2009 in Koronadal City Allegedly by Elements of the 27th Infantry Battalion Four Hours After Holding a Dialogue with the Military

House Resolution 1046: Resolution Directing the Committee on Human Rights to Conduct an Investigation, in Aid of Legislation, on the Condemnable Brutal Abduction, Torture and Extrajudicial Killing of Rebelyn Pitao, Allegedly Perpetrated by the 10th Infantry Division of the Armed Forces of the Philippines

House Resolution 1045: Resolution Expressing the Profound Condolences of the House of Representatives on the Demise of Mr. Francis Durango Magalona, Known as the “King of Filipino Rap Music” to Millions of Filipinos

House Resolution 1020: Resolution Directing the Committees on Foreign Affairs and National Defense and Security to Jointly or Separately Conduct an Inquiry, in Aid of Legislation, on the Impact of the RP-US Balikatan Joint Military Exercises to Our Nation’s Sovereignty and the Safety of the People in the Bicol Region

House Resolution 1019: Resolution Calling for the Termination of the RP-US Visiting Forces Agreement Because it Tramples on Philippine Sovereignty, it is an Unequal Agreement Considering the Continued Refusal of the U.S. Government to Surrender Custody of CPL. Daniel Smith, and its Unenforceable in the United States of America

House Resolution 1000: Resolution Directing the Committee on National Defense and Security to Conduct an Investigation, in Aid of Legislation, on the Alleged Misuse of Citizen’s Armed Forces Geographical Units (CAFGU) Funds

House Resolution 999: Resolution Strongly Opposing the Appointment of Retired Gen. Jovito Palparan Jr. to Any Post in Government Due to His Reprehensible Track Record of Extrajudicial Killings, Enforced Disappearances, Torture and Other Violations of Human Rights and International Humanitarian Law Committed Mostly Against Activists Allegedly by Troops and Agents of the Armed Forces of the Philippines Under His Command Especially in Southern tagalong, Eastern Visayas and Central Luzon and Who Remains Unaccountable for the Long Trail of Human Rights Violations Attributed to Him

House Resolution 997: Resolution Directing the Committee on Ecology to Conduct an Investigation, in Aid of Legislation, on the Effects of Large-Scale Mining Activities on the Environment and People’s Livelihood in Oriental Mindoro

House Resolution 961: A Resolution Directing the Committee on Banks and Financial Intermediaries to Conduct an Investigation, in Aid of Legislation, on the Health of the Philippine Pre-Need Industry in Light of the Global Financial Crisis

House Resolution 949: Resolution Directing the Committees on Overseas Workers Affairs and Foreign Affairs to Conduct an Inquiry, in Aid of Legislation, on the Unreasonably Huge Increase of Consular Service Fees Collected From Overseas Filipinos by Philippine Diplomatic Posts in the Eurozone

House Resolution 948: Resolution Directing the Committee on Ecology to Conduct an Inquiry, in Aid of Legislation, on the Ongoing Construction of a Dumpsite Project in Barangays Maly and Guinayang, San Mateo, Rizal that Appears to Endanger the Lives and Livelihood of the People of the Town and the Marikina Watershed Reservation

source: Bayan Muna

Sponsorship speech of Rep. Casiño for House Bills 1724, 3029, 3030

Delivered during the hearing of the House Committee on Energy
August 20, 2008

The four House bills being proposed by representatives from the party lists Bayan Muna, Gabriela and Anakpawis – HB 1724 repealing the Oil Deregulation Act of 1998, HB 3029 regulating the industry, HB 3030 establishing a centralized oil procurement mechanism, and HB 3031 re-establishing state ownership of Petron, which is in another committee – are attempts to legislate medium-term solutions to the problems plaguing the oil industry.

Exactly what are these problems? From a layman’s perspective, these are the following:

1. Frequent and steep oil price hikes;
2. Transfer pricing and other unfair practices of the foreign-dominated oil cartel;
3. The inability of the State to protect the people from the oil oligopolies;

These were the very same problems supposed to be addressed by the Oil Deregulation Act some 10 years ago. But these problems persist and have even worsened.

Since the first deregulation law in 1996, there have been at least 81 rounds of oil price hikes. Prices have risen by some 400%. Since Mrs. Arroyo came to power, prices have increased by 275%. In 2006, prices increased 36 times. This year, prices have increased by at least 18 times.

Deregulation was supposed to break the stranglehold of the oil cartel, the so-called Big 3 of Shell, Petron and Caltex. To date, they are still the dominant players, controlling 85-90% of the market and practically all oil refineries. The cartel’s profits, both here and abroad, are at an all-time high. Their monopoly operations have become more sophisticated. As an effect, the smuggling of oil has become a rampant practice.

In the face of all these, the state has failed to protect the people. Deregulation has tied the hands of the government and reduced it to being a mere spectator – shouting and pleading with the oil companies every time oil prices go up but not being able to actually do anything about the situation. In most cases, the Department of Energy and the President herself become the spokespersons and apologists of the oil companies.

What do we propose?

Basically, we want to develop a strong national oil industry that is:
• Owned and controlled by Filipinos
• Regulated, transparent and accountable, with the State itself as a major player; and
• Sustainable, aimed towards self-sufficiency and geared for national development

Towards this aim, we are proposing the following measures:

HB 1724 repeals RA 8479 or the Downstream Oil Deregulation Act of 1998.

HB 3029 creates a 6-person Petroleum Regulatory Council – a quasi-judicial regulatory body that will:

• monitor, regulate and hold hearings on oil and petroleum prices
• maintain a comprehensive database on the industry
• manage a buffer fund, called the Oil Price Buffer Fund (OPBF)

Unlike the previous Oil Price Stabilization Fund (OPSF), the proposed buffer fund is for the strict and unique purpose of cushioning the impact of frequent and drastic price fluctuations. It prohibits all other reimbursements and specifically prohibits the President from tapping the fund. After five years, funds may be invested in secure instruments.

HB 3030 - Creates the National Petroleum Exchange Corp. as a subsidiary of the Philippine National Oil Company (PNOC). Within 4-5 years, the Exchange Corp. is envisioned to be in-charge of importation, storage, sale and distribution of all oil and petroleum products in the country.

The state-owned PNOC-NPEC shall formulate a Centralized Petroleum Procurement Plan, which will determine the country’s total oil requirements including the formation of a buffer supply, and negotiates accordingly with suppliers, whether private or state-owned, for the best prices and terms.

Integral to the operation of both bills is the government buy-back of Petron, as envisioned in HB 3031. This is to be done in stages, with government initially controling 51% of the company and then 100% within four years. Petron is to be reoriented as a state-owned company with social and developmental functions and responsibilities. Four billion pesos is initially allotted for the buy-back, with the rest to come from future the earnings.

There are other features of the bill which I leave to the committee’s discretion to deliberate on.

Thank you, Mr. Chairman.

Towards a pro-Filipino and pro-people Mining Act

To our comrades in KAMP, our compatriot indigenous peoples from north to south, the Center for Environmental Concerns, guests and observers, warmest militant greetings from Bayan Muna!

During the Marcos dictatorship, the joke used to be that Ferdinand and Imelda Marcos had a very simple mining policy: that is mine, this is mine, everything is mine. I guess the times have not changed that much.

Seriously now, the policy framework of the current government, as enshrined in the Mining Act of 1995, can be summed up as follows: the more the merrier, the bigger the better. Never mind if the site targets are in populated areas. Never mind if most, if not all remaining mineral deposits in the country are in the ancestral domains of our tribal brothers and sisters. Never mind if mining operations are environmentally hazardous. As long as it is large-scale, foreign-owned, and geared for export, then by all means, mine the country. It is a policy premised on the sell out of our indigenous peoples, the national patrimony and the environment.

You know better than I the catastrophic impact of such a mining policy. The big time mining projects and applications for the same have fomented divisions and conflicts in and among various tribes and have caused the forced evictions and displacement of indigenous peoples in Abra, Benguet, Cagayan, Nueva Vizcaya, Mindoro, Zambales, Caraga, Davao Oriental, SoCSKSarGen, the Zamboanga Provinces, and in non-IP areas like Samar and Negros, to name a few.

The entry of mining companies severely alter the customary laws and ways of life of our indigenous communities. Their laws, interests and opinions are least considered by the government and mining firms. The word of the DENR secretary and the President usually prevail over any opposition from the communities. The current Mining Act and related laws allow the use of deception, bribery and strong-arm tactics to force mining operations into an area.

Many tribal communities have become severely divided between those for and against mining. So does mining destroy not only the environment and the people's livelihood but their families as well. No amount of royalties and local taxes can compensate for IP communities displaced by mining operations. Their land is their life.

Bayan Muna stands with the indigenous peoples, environment defenders and the rest of the Filipino people who oppose this kind of a mining policy. While we hold the view that mining is highly important in nation building, it should not be done at the expense of our people's rights and the environment. Our country's natural wealth of mineral resources is finite and needs to be reserved for Filipino citizens and optimally exploited for the genuine development of the nation.

In this light, we are one with you in opposing all forms of foreign, large-scale mining operations in the country. We are one with you in asserting your rights and protecting the environment. We are one with you in calling for the repeal of the Mining Act of 1995.

In this light, we must work towards a new mining policy that respects human rights, especially those of indigenous peoples, and gears the industry towards building a progressive, independent and self-reliant national economy. This of course should be based on the requisites of addressing the country's industrialization requirements and to modernize the backward and inefficient agriculture production under a framework of genuine agrarian reform, social justice and food security.

Such a mining policy would be the complete opposite of the current government framework that is premised on nothing but profits and tongpats, thus the stress on large-scale, foreign mining operations for export.

We believe that we can promote and propagate our People's Mining Policy with renewed vigor and in an additional arena, the halls of the legislature. Our measure (House Bill 1793) to repeal the Mining Act of 1995 is now pending in the House Committee on Natural Resources. We have realized, though, that it is not enough to call for the repeal of the Mining Act. If we want to up the ante and totally engage government in a policy debate on matter, it is important to come up with a concrete, alternative proposal. This is the importance of fleshing out the People's Mining Policy into an alternative piece of legislation. We hope KAMP and all tribal organizations will help us in crafting such a bill.

Such a pro-Filipino mining bill is premised on the principle that our national patrimony - our finite mineral resources, our lands, our biodiversity - should be conserved and developed according to our terms and our needs as a people. It should not be exploited just to meet the demands of the free market.

In particular, we hope to take the cue from your sector on the following issues:

1. the right of indigenous peoples to self-determination and ancestral domain;

2. a wider and more democratic free, prior and informed consent (FPIC) process for all communities affected by mining, especially IP Communities;

3. democratic consultations and participation at every stage and level of mining activity in tribal lands;

4. job priority, security, living wages, safe working conditions for mine workers;

5. stringent application of international environmental standards and safeguards;

6. a total mining ban in environmentally- critical areas and conservation priority areas;

7. absolute prohibitions on the dumping of mine wastes and tailings into rivers, lakes and seas.

These are just some of the ideas that we would want to incorporate into the pro-Filipino mining bill. You are in the best position to contribute your ideas on what the indigenous peoples would want to include in the bill we are to draft.

Let me emphasize though that we harbor no illusions that Congress will pass such a bill or change the current situation faced by the indigenous peoples. Our bill will be a political statement, an alternative policy that will show the public what should be done. Its main aim will be to expose the criminal nature of the present policy and the government that implements it and to engage government and the industry in a public debate to highlight the issues and push forward our mass campaigns against large-scale, multinational mining operations.

In other words, this will just be an additional arena for our battle. Our main battle front is still in our communities. Our main weapon is still our mass struggles and campaigns.

We shall await your proposals for inclusion in the pro-Filipino mining bill to be filed by Bayan Muna in Congress.

Thank you and tuloy ang laban ng katutubo at sambayanang Pilipino! #