Senate panel to probe Cebu port operator

The Senate committee on government corporations and public enterprises would investigate alleged anomalies committed by some officials of a giant port operator in Cebu, Sen. John Osme—ña said yesterday.

Osmeña, who chairs the committee, said they would look into the allegations of Pedro Arias, former president of the Associated Labor Union (ALU), that some officials of Oriental Port and Allied Services Corp. (Opascor), headed by Democrito Mendoza, had committed estafa by allegedly diverting about P750 million of Opascor’s income to other family-owned corporations.

Arias alleged that Mendoza, along with Benjamin Akol, Herminio Vida, Tomas Riveral, Dennis Mendoza and Democrito Mendoza Jr., also defrauded the Cebu Port Authority (CPA) of its share in the revenue of Opascor by under-declaring its collection.

"The officials also sold non-existent shares of Opascor stock, violating the Securities Act and deluding members of ALU into believing that they were shareholders when, in truth, they were just issued fake shares," Arias claimed.

Opascor is an enterprise of laborers organized after former President Corazon Aquino decided to privatize government corporations, including the National Development Co. which was then operating the National Stevedoring and Lighterage Corp. at the Cebu port.

Opascor was granted a 10-year contract by the Philippine Ports Authority on Jan. 9, 1990, giving it the exclusive right to service all foreign vessels at the Cebu international port.

The CPA, which took over the management of the Port of Cebu from the PPA on Jan. 1, 1996, turned down the application of Opascor for a renewal of its contract on June 17, 1999.

Opascor, however, got a restraining order from the court and was able to continue handling port operations until July 9, 2001.

Osmeña said his committee would subpoena CPA Commissioner and Opascor senior vice president Tomas Riveral and Opascor vice president for corporate planning Lesar Ortega to appear in a hearing on May 16.

He stressed, however, that his committee would concentrate on violations of the Securities Act and Opascor’s alleged under-declaration of income.

"The estafa case will be referred by the committee to the prosecutor since that is criminal in nature," Osmeña said.