FVR: Miriam OK’d Smokey project

Former President Fidel Ramos turned the tables on his arch nemesis Sen. Miriam Defensor-Santiago yesterday, claiming she was among the officials who approved several major reclamation projects during the Aquino administration.

Ramos told a news conference that Santiago was a participant in at least three reclamation projects when she served as a board member of the Public Estates Authority (PEA) from 1988 to 1991.

"Miriam Defensor-Santiago, as director of the Public Estates Authority... concurred in or recommended approval of use of reclaimed lands as ‘enabling component’ in government development projects similar to Smokey Mountain," the former president said in a statement he distributed to the media at the Ninoy Aquino International Airport (NAIA) before flying to China for a speaking engagement.

Ramos ticked off several projects which was approved by the PEA, among them the R-1 Expressway Project from Roxas Boulevard to Cavite on Sept. 1, 1989.

He said several resolutions were passed by the PEA board of directors approving several reclamation projects during the administration of former President Corazon Aquino where Santiago was present as member of the board.

Ramos stressed the Smokey Mountain Development and Rehabilitation Project (SMDRP), which were among the reclamation projects approved by the PEA during the term of Mrs. Aquino, was above board.

He said the SMDRP was conceptualized by the Aquino administration because of the need to improve the quality of life of the 21,000 residents in the Smokey Mountain.

"I claim and I am fighting for the four presidents, not just mine, that this was a good project. It continues to be," Ramos said.

He stressed the project should be completed until all the 3,200 families at the former garbage dumpsite are moved in to decent low-cost housing units in the area.

Santiago called on the Senate last week to investigate the joint venture agreement between the National Housing Authority (NHA) and R-II Builders Inc. for the development of the 40-hectare Smokey Mountain area into a low-cost housing and industrial complex.

In a privilege speech, Santiago claimed that the deal was authorized by Ramos "without public bidding" and technically gave away government land to a private corporation, even shelling out some P3.1 billion from government coffers to develop the project.

She went on to brand SMDRP as "Anak ng Amari" (Child of Amari), in obvious reference to a similar large-scale scam perpetuated under the Ramos administration.

Santiago recounted that in March 1999, Ramos authorized the NHA to enter into a joint venture agreement with R-II Builders Inc., owned by Reghis Romero II, to reclaim the 40 hectares of Manila Bay area directly across the Radial Road 10 (R-10) and convert it into a housing, industrial and commercial site.

Santiago said that under the PEA-R-II contract, the Ramos administration told the public that the project will be implemented "at no cost to the government" as R-II Builders would spend for the entire project. However, this was in exchange for owning the entire reclaimed land, which was even later expanded to 79 hectares.

But instead of suing the developer for breach of contract and damages, Santiago claimed that the Ramos administration financed the project itself at a cost of some P3.1 billion.

‘A Waste Of Time’

Before his departure to Beijing, Ramos distributed to media a summary detailing the projects which were approved by PEA from the term of Mrs. Aquino up to the administration of President Arroyo.

He pointed out that a review of the projects from 1988 to 1991, during which Santiago served as member of the board of directors, indicate the PEA board approved the reclamation of thousands of hectares where parts of the reclaimed lands are conveyed to developers as payment.

Ramos said the areas approved for reclamation by the PEA would add up to 1,700 hectares of land along Manila Bay.

Ramos said 79 hectares set aside as enabling component for the Smokey Mountain Project during his administration in 1992 to 1998 pales in comparison with what the PEA, including Santiago as member of its board, approved from 1988 to 1991.

"It is interesting to note that Miriam Defensor-Santiago was present in all the PEA board meeting of said period and approved or concurred with the relevant resolutions," he said.

In the same news conference, the former president defended the Smokey Mountain project by pointing to Salvador Orola, a resident of the former garbage dumpsite whose emaciated figure was featured in the cover of Time in its May 1992 issue.

He said Orola represented the more than 25 million poor Filipinos whose lives were mired in poverty.

The Orola family, Ramos added, have since moved to one of the housing units that were built for the 3,800 families living at Smokey Mountain which had been a landmark of national disgrace.

"If the entire machinery of the government could be mobilized for (former Iraqi hostage) Angelo de la Cruz, the more that the government must pursue poverty alleviation projects such as the SMDRP because it provides the country with an opportunity to offset the negativism that has surrounded the Philippines as a result of graft and corruption, incompetence, red tape and bureaucracy," Ramos said.

He also vented his anger on lawmakers for their insistence to reinvestigate the project.

He said the Senate should not waste time investigating matters which could only put the country in worse condition in its inquiry over several projects aimed in uplifting the economic conditions of the urban poor.

"That is the challenge for the 13th Congress, to enact an economic law that would uplift the country’s economic condition. The ball is now with the 13th Congress. Are they going to waste their time investigating in aid of legislation?" Ramos asked.

As this developed, a non-government organization said former solicitor general Frank Chavez was "misinformed" over how funds from the Overseas Workers Welfare Administration (OWWA) were invested over the Smokey Mountain project.

Chavez had filed a petition before the Supreme Court questioning the payment of P1.8 billion by the Arroyo administration to several government financial institutions (GFI), including OWWA for their investment exposures in the Smokey Mountain project.

Chavez had sought to nullify the contract between the National Housing Authority (NHA) and R-II Builders to rehabilitate the dumpsite.

Ed Malay, managing director of the Center for Issues and Advocacy (CIA), claimed Chavez was apparently misinformed over the investments made by OWWA over the project.

"(The) records are public and are available for scrutiny shows that OWWA had invested more than P800 million in the so-called Smokey Mountain Asset-Backed Participation Certificate," Malay said.

Malay said such investments are approved by OWWA directors and are allowed under its charter. He stressed the investments were made and passed through the scrutiny of the Commission on Audit (COA).