‘Ramos muddling Smokey issues’

Former President Fidel Ramos is trying to muddle the issues surrounding the controversial multibillion-peso Smokey Mountain development and reclamation project, Sen. Miriam Defensor-Santiago said yesterday.

Santiago claimed Ramos is trying to confuse the issue by dragging in the reclamation projects the Public Estates Authority approved during the Aquino administration when she served as a member of the PEA board of directors.

Ramos had claimed Santiago was among the officials who approved several major reclamation projects when she sat in the PEA board from 1988 to 1991.

But Santiago said Ramos is trying to evade the issue by refusing to answer the questions raised over the legality of the Smokey Mountain reclamation project and the contract awarded to R-II Builders, owned by businessman Reghis Romero II.

Santiago had initially claimed that there was no public bidding for the contract to reclaim and develop the garbage dumpsite in Tondo, Manila.

She said the government should have canceled the contract when the developer ran out of funds and turned to state financial institutions and agencies such as the Social Security System (SSS) and the Overseas Workers Welfare Administration (OWWA) for funds.

She said R-II Builders raised about P3.1 billion in government money in violation of its contract.

But Ramos said those funds represented the agencies’ "equity or investment" in the Smokey Mountain project and did not constitute a government expense.

The national government did not appropriate a single centavo for the project, he said.

It was a smart play of words, retorted his nemesis.

Though the Senate plans to refer Santiago’s "bombshell" to two committees led by the Blue Ribbon Committee for investigation, no such referral has been made because some colleagues still want to ask her questions about her exposé.

During initial questioning made by Sen. Juan Ponce Enrile, Santiago suggested that all land reclamation projects in Manila Bay and other parts of the country be investigated as well.

These are also affected by the Supreme Court ruling in the PEA-Amari case, under which reclaimed land cannot be titled in the name of private corporations without the approval of Congress, Santiago said.

Santiago had recounted that in March 1999, Ramos authorized the NHA to enter into a joint venture agreement with R-II Builders Inc. 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 Romero-owned firm for breach of contract and damages, Santiago claimed that the Ramos administration financed the project itself at a cost of some P3.1 billion.

Santiago called on the Senate last week to investigate the project with R-II Builders of Romero.

Romero himself is also under investigation by the Bureau of Customs.

Acting Customs Commissioner George Jereos said a probe is underway following reports that Harbour Centre Port Terminals, a private wharf owned by Romero located at Isla de Balut in Tondo, is allegedly being used for smuggling activities.

The 10-hectare facility is part of the 79-hectare lot reclaimed by R-II Builders, the firm owned by Romero.

"We are looking into (the) legality (of its operations), particularly in the wake of the recent exposé made by Sen. Miriam Defensor Santiago," Jereos said.

The Philippine Ports Authority (PPA) initially gave the Harbour Centre permit to operate as a private wharf and exempted the facility from the ban on putting new terminals at the Port of Manila.

The facility is used as an off-loading area for bulk and break bulk cargoes or shipments that are not in container vans like steel, wood, and cement, on which taxes are based on its weight.

But there were reports that the 10-hectare port facility is allegedly being used for smuggling.

Last month, allegations were made that the firm was behind the smuggling of imported vegetables that flooded the local market.

Even as Harbour officials denied the reports, Jereos said they will push through with the investigations on claims that some imported goods are pilfered in the facility.