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Business

Readers dig deeper into pipeline mess

BIZLINKS - Rey Gamboa -

Once again, we received a number of comments from our readers on the broiling issue surrounding the discovered pipeline leak that plagued a condominium in Makati as well as citizens in the surrounding environ. The first one comes from Enrique Anonas.

“I just read your article on FPIC in the Bizlinks column of The Philippine Star dated Nov. 5, 2010 and I couldn’t help myself from speaking out. May I suggest that your column publish the names of the present top executive officers and listed major stockholders of FPIC?

“This move might enlighten big business that avoiding corporate social responsibility is for the bygone era and bad for business. Not only do the Filipinos need change in government practices but the private sector should do its share as well.

“The country’s President has all good intentions but he will need all the help we can give him. Let’s do our share. Income and profit is not everything as our planet is now finding out.”

Pipeline ownership

The General Information Sheet filed by First Philippine Industrial Corporation with the Securities and Exchange Commission states that the pipeline firm is owned 60 percent by First Filipino Holdings Corp., a Lopez company.

The remaining 40 percent is owned by Shell Petroleum Co. Ltd. with headquarters at the Shell Center in London. If I remember right, Caltex (now Chevron) had a 20 percent interest in the pipeline originally, but had opted to sell it.

A cursory check of FPHC’s corporate website confirms the current ownership structure. FPIC has its own website (www.fpic.com.ph) but was not accessible at the time of our search.

A passionate letter

The next reader has sent us a well-written but lengthy reaction to the pipeline incident. It’s worth printing word for word, so we have halved it, with the first part in today’s column, and the remaining half in Friday’s column. Here is what Volney Ricafort has to say.

“You must be wondering why I’m passionate about this issue. Well, I was a resident of Bangkal in the 70s. My daughter rented at West Tower with her husband and four-month old son, until they were ordered to vacate the building on July 21st due to the fuel seepage.

“Initially, we thought that once the pipeline leak (from the start we had no doubt that the pipeline, approximately 11 meters away, transporting three types of fuel at 8 million liters daily was the source) was plugged, residents could then return to resume their lives.

“However, after hearing from knowledgeable people, we realized that the seepage had been ongoing for a few months, if not years, and pollution had reached the community’s bedrock and aquifer. It will take years and a lot of funds to make the neighborhood safe to live in again.

“Unfortunately, FPIC, whose pipeline is the source of the fuel seepage, has remained arrogant and indifferent to the hazards it had inflicted on the community.

Blame game

“The opening sentence of your first paragraph could very well have read as follows: “The mystery of the leaking pipeline finally resolved and the culprit named... the blame game now starts.”

“After months of corporate deceit in misleading the public about the real source of the fuel seepage, but still ending up caught with ‘their hand in the cookie jar,’ so to speak, FPIC now looks to blame other personalities.

“First to be blamed is ND, the foreign company which conducted UT testing of the pipeline. FPIC claims the test results from ND showed no leaks in their pipeline – these are the same test results that FPIC waves around.

“However, as has been shown, the fuel seepage continued, meaning there was still a leak in the pipeline. Now, FPIC seeks pass the blame to this company, whose expensive test, they say, they relied on.

“FPIC cannot now seek to excuse itself by pointing to the company they themselves, no one else, had hired. Having been in the pipeline business since 1967, FPIC should have been knowledgeable about the best methods to maintain their pipeline and the best companies to conduct the tests.

“I am not in their business, yet I was able to check which of tests FPIC had contracted for did not work; furthermore, I was able to identify which equipment and method truly locates leaks in pipelines. After 43 years, FPIC should have done better than me. That they did not is an indictment on their competence and ability to safely operate a pipeline.

“Now, if their UT test overlooked the leak in the Interchange, how can the public be assured there are no other leaks along the whole length of their pipeline? Bangkal had West Tower’s basement, which served as a catch basin and a detector for the community.

Hold your breath. We’ll return on Friday for more from Volney Ricafort.

Enter the politicians

Meanwhile, there’s a scheduled hearing today by the Senate committee on environment and natural resources headed by Senator Juan Miguel Zubiri. Apart from the usual grandstanding, let’s hope our politicians/lawmakers do some serious work to pave the way for new investments on critical logistics infrastructure which are of modern and world-class standards, and that antiquated and dangerous facilities are scrapped.

Collegiate basketball update

Four additional members of the elite Sweet 16 finalists emerged after the Luzon-Metro Manila zonal qualifying games of the PLDT-SMART sponsored Champions League (PCCL) 2010 Philippine Collegiate Championship. These are the National University Bulldogs, Letran Knights, UE Warriors, and the surprise of the tournament, Lyceum of the Phils. Pirates.

The last two slots in the Sweet 16 Finals are up for grabs in the VisMin zonals, one of the highlights of the ongoing “Cebu Basketball Festival” at Cebu City. Competing are the Southwestern University Cobras, University of San Carlos Warriors (Visayas region champion), University of Iloilo Wildcats and Agro-Industrial Foundation College Sailors (Mindanao region champion).

The main feature of the “Cebu Basketball Festival” is the opening of the Sweet 16 Finals on November 18, 2010 at Cebu Coliseum. With Cebu City mayor Mike Rama gracing the event, the opening ceremonies include the presentation of local cultural dances by CESAFI member schools.

ABS-CBN network will televise live on Studio 23all the Sweet 16 games at Cebu City on November 18 and 19 starting at 2 p.m.

Visit www.CollegiateChampionsLeague.net for more details about the 2010 Philippine Collegiate Championship.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.

BANGKAL

CEBU BASKETBALL FESTIVAL

CEBU CITY

FPIC

PHILIPPINE COLLEGIATE CHAMPIONSHIP

PIPELINE

VOLNEY RICAFORT

WEST TOWER

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