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VOLUME XXVI No. 34
Tagbilaran City, Bohol, Philippines
March 4, 2012 issue
 

CAPITOL CONTENTION - No release of JVA papers

 

Now, that the shoe is on the other foot, what really was the score of an Ombudsman order to release the JVA documents sought by city hall. Is there no truth to claims that the Ombudsman ordered Capitol to release joint venture (JV) agreement documents?

If a Capitol press release is to believed, then it’s a big yes!

Copies of the documents have in fact already been in the possession of the city government as it requested thru separate Sangguniang Panlungsod (city SP) resolutions last year. A reading of her letter proves that Assistant Ombudsman Virginia Palanca Santiago merely “respectfully forwarded the matter (the request)” for the “appropriate action” of the provincial government thru Gov. Edgar Chatto. A copy of Santiago’s letter, dated February 1, was furnished to Mayor Dan Lim. Santiago also only asked the governor to “kindly inform us of the action taken by your office relative thereto” and not ordered him, as claimed to the contrary, to release the documents. Even prior to this, the province already acted on the city requests for the documents on the JV agreements on the Bohol Light Company, Inc. (BLCI) and Bohol Water Utilities, Inc. (BWUI) contrary to the mayor’s misleading claims of capitol’s denial or refusal. Chatto said the mayor’s “misleading accusations” thus only “deserve disregard” from the Ombudsman since the city requests, being already acted upon, are rendered “totally devoid of merit.”

The province observed appropriate procedure considering that the JV is a private-public partnership involving investor Salcon Group of Companies and the provincial government. The governor stressed that it is a brazen lie that capitol refused to provide JV agreement copies since his office duly acted on the demand of the mayor made thru city SP Resolution No. 11-94. (Later, another resolution numbered 11-129 was passed.) To recall, the request was indorsed to the Sangguniang Panlalawigan (capitol SP) as the matter involves policy guidance since JV engages a private investor partner which owns 70% stake while the province owns 30% share. Provincial Administrator Alfonso Damalerio II even informed the city council about it in reply to a subsequent inquiry from city SP Secretary Mansueta Sale. In October last year, the provincial board referred the city council resolution to the committee on public utilities. After deliberation, the committee recommended to refer the resolution to the Board of Directors of Salcon for the latter’s appropriate action. The committee report containing the recommendation was approved by the capitol SP in its November 18, 2011 session.

The provincial board also took into account that the JV involves a private investor and the provincial government. It was, as a matter of corporate courtesy, and in accordance with existing corporate laws, rules and regulations, to respect the corporate right of the other party to the JV in matters affecting corporate records. The governor stressed that when the province entered into the JV, it acted in its proprietary function. In his disbelief that the province did actually not refuse him, Lim again “misled” the public by accusing once more the province of refusal during a hearing on a BLCI rate application done here by the Energy Regulatory Commission (ERC) also in November last year. The ERC directed the BLCI to provide the city a copy of the JV agreement as well as of the accession agreement. The BLCI, thru its counsel, complied after thereon. That ERC instruction unwittingly reinforced capitol’s position that observes appropriate procedure, especially in the referral of the city request to the Salcon board, for the release of the JV documents. The governor provided the Ombudsman official records that further justify capitol’s faithful acts on the city request.

The Ombudsman thus learned that indeed, “the exchange of official communications by the provincial government and city government proves that the former did not refuse to act on the request.” Capitol only threaded on appropriate procedure in the release of the documents, Chatto clearly emphasized. According to the governor, “being totally deprived of merit as the request had already been acted upon, the city mayor’s misleading accusations simply deserves disregard from the Ombudsman.”

MISLEADING ONCE MORE

In his November 3, 2011 letter to the Ombudsman, Lim already accused capitol of “continued refusal” to give copies of the JV documents that made, like the BLCI, the “BWUI come into existence” which he also questioned. But only a month and a half later did the city actually formally asked for the BWUI papers when the city SP passed in its December 16, 2011 session Resolution No. 11-129, which reads: “Requesting Hon. Gov. Edgar M. Chatto To Provide Copies Of The Joint Venture Agreement Entered Into By The Province Of Bohol And The Salcon Group of Companies Being The Basis For The Operation Of the BWUI Previously Owned Exclusively By The Province Of Bohol.” As in the case of the request for copies of the BLCI papers, the Ombudsman, in its letter dated February 13, 2012, asked to be informed of the appropriate action taken contrary to claim that the governor was “ordered” to release. The Ombudsman was informed that the capitol, thru the provincial administrator, had earlier endorsed the resolution to the BWUI board for its appropriate action. The Ombudsman letter on the city request for the BWUI papers was received at capitol just last February 28. The Ombudsman was likewise informed that the BWUI board had in fact already agreed in its meeting on January 21 to furnish the city a copy of the BWUI agreement which, like that of the BLCI, is actually at present in the possession of the city government.

RESOLVED LEGALITY; UNSOLVED WATER CRISIS

While the legality and legitimacy of the JV on both light and water utilities had long been judicially settled even in high court, a water crisis in Tagbilaran City lingers on. The water problem has long been felt in Tagbilaran areas still poorly served by the waterworks system owned by the city government. Residents and other consumers in greater parts of the city served by the BWUI gave the province a pat on the back for satisfying their basic want contrary to those who have kept assailing the incompetent, inefficient city water utility. The water problem did in fact not escape from the attention of former Senate Pres. Ernesto Maceda who was with the visiting party here of Vice Pres. Jejomar Binay days ago. It is accordingly not new and surprising, therefore, to hear the otherwise long-settled JV issues rehashed whenever elections are approaching as an apparent cover-up of city hall’s neglect for its constituents in areas served by the city-owned “dry” water facility. The weekly interaction with the media on the live broadcast of the Kita ug Ang Gobernador on Friday unexpectedly indicated that right at city hall are “pipeline” proofs to the above observation. Reacting to a media query, the provincial administrator revealed that city hall itself, its essential departments and economic enterprises like market get water from the BWUI. The city residents have thus wondered why the mayor seems to fight the province’s thrust of water development as if it is an enemy of the state. (Ven rebo Arigo)

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