COMP complaint vs Gina Lopez

Republic of the Philippines COMMISSION ON APPOINTMENTS Committee on Environment and Natural Resources Pasay City

OPPOSITION To the confirmation of Ms. Regina Paz L. Lopez as Secretary of the Department of Environment and Natural Resources We, ARTEMIO F. DISINI, NELIA C. HALCON, and RONALD S. RECIDORO, all of legal age, Filipinos, with office address at 809 OrtOrtigas Building, Ortigas Avenue, Pasig City, after having sworn in accordance with law, hereby depose and state that: 1.

We are officers of the Chamber of Mines of the Philippines (“Chamber of Mines”), a non-stock, non-profit association organized to promote the rights and interests of large-scale metallic mines in the Philippines. We are executing this Opposition on behalf of the Chamber of Mines, theMines, the Oppositor herein. A copy of the Resolution of the Chamber Board of Directors authorizing the undersigned to sign and file the Opposition dated ______________ 2016 is attached as Annex “A”.

2.

3.

4.

The opposition of the Chamber of Mines to the confirmation of Regina Paz L. Lopez (“Lopez”) as Secretary of Environment and Natural Resources is based on the following grounds: a.

Lopez’s recent actions and pronouncements as DENR Secretary show an undeniable biasundeniable bias against and antagonism towards largetowards large-scale mining, rendering her unfit and incapable of a responsible, fairresponsible, fair, just and balanced implementation of the Constitution, the Philippine Mining Act and related laws and regulations, and of upholding personal interest and advocacies overadvocacies over public interest. In the pursuit of her agenda to discredit and marginalize the mining industry, Lopez has shortcuthas shortcut legal and administrative processes, disregarded due process and vested rights, and even ignoredeven ignored the sanctity of contracts between the government and its Mining Contractors.

b.

Lopez is grossly unfit and does not have the administrative experience and competence to lead the Department of Environment and Natural Resources (DENR);

c.

Lopez has a poor track record in leading and managing environmental and ecotourism projects.

3.

The pronouncements made by the DENR Secretary Lopez during her press conference on 2 February 2017 during which she announced the closure of 21 mines and the suspension of five others and her announcements on the days following such press conference readily betray how (i) biased she is against large-scale mining, rendering her unfit and incapable of a responsible, fair, just and balanced implementation of the Constitution, the Philippine Mining Act and related laws and regulations; (ii) grossly unfit she is for her position,

lacking the administrative experience and competence to lead the DENR; (iii) she shortcuts legal and administrative processes to disregard due process and vested rights and the sanctity of contracts. She even lied several times in an attempt to legitimize, at least in the eyes of the public, her illegal actions.

DISCUSSION A. LOPEZ’S RECENT ACTIONS AND PRONOUNCEMENTS AS DENR SECRETARY SHOW AN UNDENIABLE BIASUNDENIABLE BIAS AGAINST AND ANTAGONISM TOWARDS LARGETOWARDS LARGE-SCALE MINING, RENDERING HER UNFIT AND INCAPABLE OF A RESPONSIBLE, FAIRRESPONSIBLE, FAIR, JUST AND BALANCED IMPLEMENTATION OF THE CONSTITUTION, THE PHILIPPINE MINING ACT AND RELATED LAWS AND REGULATIONS, AND OF UPHOLDING PERSONAL INTEREST AND ADVOCACIES OVERADVOCACIES OVER PUBLIC INTEREST. IN THE PURSUIT OF HER AGENDA TO DISCREDIT AND MARGINALIZE THE MINING INDUSTRY, LOPEZ HAS SHORTCUTHAS SHORTCUT LEGAL AND ADMINISTRATIVE PROCESSES, DISREGARDED DUE PROCESS AND VESTED RIGHTS, AND EVEN IGNOREDEVEN IGNORED THE SANCTITY OF CONTRACTS BETWEEN THE GOVERNMENT AND ITS MINING CONTRACTORS. 4.

Lopez’s handling of the mining industry in the last six months is indicative of a dangerous bias against a legitimate industry, a tendency to shortcut legal processes, to disregard due process, and even ignore the sanctity of contracts between the government and its contractors.

5.

Upon her acceptance of President Duterte’s offer for her to head the DENR, she said in an interview: “I don't like mining, the foreigners and the rich are the only ones benefitting from it, but the farmers and the fishermen suffer.” (22 June 2016, Manila Bulletin, 22 June 2016) 6.

As is well known, the stock market reacted negatively to the announcement of her appointment, with the market capitalization of mining companies dropping bydropping by

2

as much as P48.6 billion compared with the level as of June 20, 2016June 20, 2016, before the announcement was made.1 2 7.

In its 4 July 2016 issue, the Malaya reported: “While not saying that she will ban any form of mining, Regina Lopez, the new mining minister, says it can cause suffering among the poor and has described it as madness even to consider open pit mining because of the environmental impact.” Such type of mining is allowed by law and she cannot, as DENR Secretary, unilaterally refuse to implement a valid law, much more amend the lawit.

8.

The Manila Bulletin reported her to have said: “I don't like Tampakan at all. Not even a little bit. It's a seven hundred football field, open-pit mine on top of an agricultural land. xxx. There is no way I will ever, ever, ever allow a seven hundred football field open pit mine on top of an agricultural land. It's immoral. I don't know what the law is but to me, it is socially unjust of business companies to put the lives of the farmers there and the indigenous people at risk."3 As DENR Secretary, she should know the law and that the FTAA for the Tampakan project is a contract that the government must honor.

9.

The foregoing quotations manifest her strong bias against mining and indifference to laws and legal procedures.

10.

In May 2015, then DENR Secretary Ramon J. Paje issued DENR DAO 2015-07 mandating that all MPSA and FTAA holders secure ISO 14001 Certification within one (1) year after the effectivity of the Administrative Order or by May 2016. The ISO 14001 is an international standard that specifies the minimum requirements for an environmental management system that can systematically and competently address environmental issues within an organization.

11.

In July 2016, Lopez herself has said that adherence to ISO 14001 is compliance with the highest standard of responsible mining. With such a mindframemindset, she proclaimed that she will require ISO14001 compliance among all the mining companies as an ISO certification was “was proof of compliance with the highest global standards for environmental management”. O, bviously, she was unaware then that, to comply with DENR DENR DAO 201507 mandating that all MPSA and FTAA holders secure ISO 14001 Certification, most mining companies had already been ISO 14001-certified as of May 2016.

12.

Recovering from her blunder, she issued on July 8, 2016 DENR Memorandum Order No. 2016-01 mandating the conduct of an audit of all operating mining companies in the 1 Ms. Lopez has announced on several times occasions that she did not care about stock prices. In an interview with ABS CBN News Channel, when asked for her reaction regarding the drop of mining stocks upon the announcement of her acceptance of the DENR post, she replied that mining investors may be “making money based on the suffering of the people” (22 June 2016, Philippine Star), again an indication of her strong bias against mining. But the stock market is a barometer of the public’s (including foreign investor’s) confidence in the economy. More than that, the stock market is an effective tool for fund-raising for corporations to meet their financial requirements, for research, exploration, operations, capital investments/expansion as well as compliance with various regulations.

Any responsible government official would care about the stock market in general.

2 Ms. Lopez has announced several times that she did not care about stock prices. In an interview with ABS CBN News Channel, when asked for her reaction regarding the drop of mining stocks upon the announcement of her acceptance of the DENR post, she replied that mining investors may be “making money based on the suffering of the people” (22 June 2016, Philippine Star), again an indication of her strong bias against mining. But the stock market is a barometer of the public’s (including foreign investor’s) confidence in the economy. More than that, the stock market is an effective tool for fund-raising for corporations to meet their financial requirements, for research, exploration, operations, capital investments/expansion as well as compliance with various regulations. Any responsible government official would care about the stock market in general.

3 Manila Bulletin, “Lopez shelves $5.9-B Tampakan mine project”, July 27, 2016.

3

country despite the existence of regular environmental monitoring processes by the Environmental Management Bureau (EMB) and the Mines and Geoscience Bureau (MGB), and the prior procurement of the ISO14001 certification. Regional Mine Audit Teams were still ordered created, to be composed of DENR officials, representatives from the Mines and Geosciences Bureau (MGB), Environmental Management Bureau (EMB), and THIRD PARTY EXPERTS. 13.

But Even even before the audit of many mining companies had even started, she already announcedwas already quoted by a major broadsheet as saying,: “I do suspect that we'll probably close more mines given the number of complaints.” 4 She made similar statements on various occasions , as followspre-empting and prejudging the results of the audit, predicting the closure of many mining operations even without seeing the audit reports: a. “More companies will have the same fate (as the 7 that were suspended earlier) in the next few days xxx.”5 b. “The Philippines could suspend more mines in a crackdown on environmental abuses that has halted operations of 10 miners”. 6 c. Referring to Leo Jasareno: "He is a good man. He really is a good man. He's good, honest and dynamic. With Leo's able help, we have been able to close down 10 mines.

We're gonna close down eight more."7 d. “The Department of Environment and Natural Resources plans to suspend more mines for violating environmental regulations after already halting operations at 10 sites”, Environment Secretary Regina Lopez said, as the government wrapped up a seven-week review.” xxx Environment and Natural Resources Secretary Regina Lopez declined to say how many moremany more mines will be suspended but told Reuters that "there will absolutely be more suspensions." 8 a. "There will be more suspensions, without a doubt. We will announce on Thursday but (I'm sure) there will be more."9 9.

True to her word, prior to the start of the Mine Audit, she declared the suspensions of ten (10) mining companies without the prerequisite notice, investigation, and hearing mandated under the Mining Act of 1995 (RA No. 7942). These mines were: Ore Asia Mining, Emir Mining, Mt. Sinai Mining, LNL Archipelago, Benguet Nickel Mines, Eramen Minerals, Zambales Diversified Mining, Citinickel Mines, Berong Nickel Corp, Claver Mining, and Hinatuan Mining’s Manicani ore transport operations.

10.

The Mine Audit Teams were given one month to conduct the audit of all mining operations and submit the pertinent report to Lopez thru Leothru Leo Jasareno. During the audit, members of the audit teams intimated to the miningthe mining companies such off-therecord statements as: (i) they) they were instructed to recommend the suspension of companies that otherwise passed; (ii) there will be repeat audits of companies that pass which the Secretary wants suspended or closed down; and (iii) the Secretary gave instructions that audit reports should recommend the suspension of at least one mining company per province. Such statements proved to be prophetic.

4 Malaya Business Insight, “Never on my watch: Lopez on Tampakan”, July 28, 2016.

5 Manila Bulletin, “New MGB Director takes over amid mining audit”, August 1, 2016.

6 Reuters.com, “Philippines could suspend more mines in environmental crackdown”, August 25, 2016.

7 Inquirer.net, “Gina defends DENR exec; ‘not happy’ with another”, August 29, 2016.

8 Malaya Business Insight, “Lopez to suspend more mines”, September 6, 2016.

9 Philippine Star, “More mining firms face suspension – DENR”, September 14, 2016.

4

11.

For most member companies of the Chamber of Mines, their exit interviews with the respective audit teams indicated that they had passed the audit. One membercompany, Lepanto Consolidated Mining Company, was even issued a signed audit report stating that “The Company substantially complied with the pertinent provisions of the Environmental and Mining laws, rules and regulations, thus No penalty is recommended by the Team.”

12.

Late in the morning of September 27, 2016, Lopez held a televised press conference where she and Jasarenoand Jasareno announced that 20 more companies were recommended for suspension for failing the mine audit. Stock prices took another beating.

Drops in prices of mining companies ranged from 5.6% to 19% in one day (afternoon vs. morning prices). Such drop was otherwise unwarranted because, as discussed above, the mining companies concerned had not actually been suspended and were clueless until then as to what were the bases for the recommendation against them.

13.

The announcement was not preceded by any show cause letter or warning, save a hastily transmitted facsimile late the previous day or that same morning signed by Jasareno advisingJasareno advising the companies of certain major findings and that the DENR “shall be forwarding soonest the pertinent audit report for your guidance”.

14. No final reports were ever transmitted to the companies. More importantly, NO ACTUAL SUSPENSION ORDERS WERE ISSUED THAT DAY. 15.

On November 8, 2016, Lopez issued Special Order No. 2016-655 creating a technical review committee for the mine audit, to be led by the Undersecretary for Legal Affairs. The technical review committee was tasked mainly with the review of the results of the mine audit and the subsequent comments of the mining companies, and to submit a formal report of its findings and recommendations. On November 23, 2016, Lopez issued a Revised Special Order appointing MGB Assistant Director Danilo Uykieng as Chairman of the technical review committee.

16.

However, even before the technical review committee could submit a formal report of its findings and their recommendations to Lopez, she called for a press conference on February 2, 2017, where MGB officials were reportedly prevented entry and which was attended by Alyansa Tigil Mina and other anti-mining NGOs, announcing the suspension of five (5) mines, and the closure of twenty-three (23) others for (a.) operating in “functional” watersheds (b.) unresolved agricultural issues, and (c.) general environmental violations. 10 17.

In subsequent interviews, Lopez categorically said that she will not reconsider her decision, saying that she opted to close many of the mines permanently so she can access their rehabilitation funds.That is why all members were again shocked when, in another televised press conference on February 2, 2017 where MGB officials were reportedly prevented entry and which was attended by Alyansa Tigil Mina and other anti-mining NGOs, Sec. Lopez announced the closure of 21 mining companies and suspension of five for (a.) operating in “functional” watersheds (b.) unresolved agricultural issues, and (c.) general environmental violations.

18.

19.

S

10 For SUSPENSION were: OceanaGold (Phils.), Inc., Lepanto Consolidated Mining Co., Citinickel Mines & Devt Corp., Ore Asia Mining Corp., and Strongbuilt Mining Devt Corp. For CLOSURE were: (in Zambales) Benguet Nickel Mines, Eramen Minerals, Inc., Zambales Diversified Metals Corp., LNL Archipelago Minerals, Inc.; (in Homonhon) Mt. Sinai Mining Exploration & Devt Corp., Emir Minerals Corp., Techiron Mineral Resources, Inc.; (in Dinagat Islands) AAM-Phil Natural Resources Exploration, Krominco, Inc, Sinosteel Phils H.Y. Mininng Corp., Oriental Synergy Mining Corp., Wellex Mining Corp., Libjo Mining Corp., Oriental Vision Mining Phils.; (in Surigao del Norte) Adnama Mining Resources Corp., Claver Mineral Devt Corp., Platinum Group Metals Corp., CTP Const. and Mining Corp., Carrascal Nickel Corp., Marcventures Mining & Devt Corp., Hinatuan Mining Corp.

5

20.

She did not define ‘functional watershed’ and seems to have effectively amended Section 19 of Republic Act 7942, providing, among others, that MPSA or FTAA applications shall not be allowed in ”“proclaimed watershed forest reserves”. Disregarding said Section 19 to suit her fancy means that therethat there will be absolutely no mining anywhere because the entire archipelago consistconsists of watershedsof watersheds, as every land form has water underneath it.

21.

In any event, without further delving into the merits of the grounds she cited, what is glaring and important is that the companies concerned were never accorded due process. The companies concerned were vilified on national television without any prior notice of suspension or closure, nor the requisite show-cause letter.

22.

Even prior to the press conference, representatives of member companies who visited the DENR that day (February 2) noticed that there was a huge tarpaulin outside the DENR listing the companies for closure and for suspension. Also, the Facebook page of Secretary Lopez contains the same listing, with pictures of companies and grounds for suspension or closure. All done without prior notice!

23.

During the press conferenceconference, she was asked about the MGB’s findings.

She replied: “MGB is recommendatory but I visited the people myself, I used my judgment.

Whatever they did has no value because I made my decision as Cabinet secretary.” (Malaya Business Insight, Feb. 3, 2017) 20.

Asked if the DENR can provide the recommendation/ reports of MGB, Lopez declined to provide them, saying the report of MGB is in contrast with the decision of the DENR. “xxx “ But [B]ut MGB has been really, really slow and I am not happy with them at all.

MGB just recommends and at the end of the day, I make the decision.” (Manila Bulletin, February 3, 2017.)

21.

Secretary Lopez lied deliberately misspoke about her observance of due process.

In the February 6, 2017 broadcast of the television morning show “____” “Headstart” with Karen Davila February 6, 2017, Sec. Lopez stated that the companies have all been served their letters of suspension or closure. The next day, in the same show, this time with Atty. Ronald Recidoro as guest, Sec. Lopez texted Ms. Davila (which was read on-air to the televiewers) admitting that she had not issued any order thus far, and had she had originally intended to just issue an Omnibus Directive, but she was advised by her legal department that this could not be done, so she will be sending individual notices “soonest”.

24.

Lopez ignored proper administrative procedure by publishing the names of the companies for closure and suspension: a.

If there had been specific findings of violations of the Mining Act, or of terms of the Mineral Production Sharing Agreement (MPSA), complaints should have been filed with the MGB. The Mining Act provides that the MGB shall have the authority “to cancel or cause the cancellation, after due process, mining rights, mining applications and mining claims for non-compliance with existing laws, rules and regulations.”11 b.

If there had there been violations of the conditions of any Environmental Compliance Certificate (ECC), or of the Clean Air Act (R.A. No. 8749), or the Clean Water Act (R.A. No. 9275), complaints should have been filed with the EMB or the 11 Sec. 7, Chapter II, DENR DAO 2010-21, otherwise known as the “Revised Implementing Rules and Regulations of RA 7942.”

6

Pollution Adjudication Board (PAB). The EMB Director may issue a Cease and Desist Order (CDO) based on violations under the Philippine EIS System to prevent grave or irreparable damage to the environment.12 c.

If there had there been disputes involving rights to mining areas, or involving surface owners, occupants and claimholders, a complaint should have been filed with the Panel of Arbitrators. The Mining Act provides that the panel shall have exclusive and original jurisdiction to hear and decide on these disputes. 13 NO SUCH COMPLAINTS WERE EVER FILED. 22.

To date, the DENR has yet to issue an order to any of the named companies informing them of the specific findings against them, and of the specific laws or regulations they had violated.

23.

Clearly, Lopez’s actions thus far have been UNFAIR and VIOLATIVE OF DUE PROCESS, and caused tremendous damage and mental anguish to the 28 named companies, their contractor-partners, their financial lender and investors, and the capital markets here and abroad, but more importantly, the many men and women who work in the mining industry and the many stakeholders in the most remote rural communities relying on mineral resources as their source of livelihood 24.

Apart from being an unnecessary duplication, Lopez’s mine audit is also tainted with manifest partiality and funding irregularities. Known anti-mining Civil Society Organizations (CSOs) such as Alyansa Tigil Mina (ATM) and their allied grassroots organizations were included as part of the mine audit teams.

25.

Lopez’s DMO 2016-01 required the presence/inclusion of third party EXPERTS. None of the CSOs invited/included in the audit teams were “expert” in any field that may be relevant to the audit process. No geologists, social scientists, or even community health experts were part of the audit teams. The CSO representatives do not qualify as experts as they are clearly INCOMPETENT in these fields and can claim no relevant expertise. More importantly, being anti-mining organizations, these CSOs have a clear conflict of interest and could not have contributed to a fair and impartial mine audit.

26.

In fact, mining companies even report that the CSO representatives in their respective audit teams did nothing but air their opposition, unsupported by evidence, to the mining project being audited and conduct selective interviews with residents in the community.

27.

Her actions conflict with government’s policy direction on mining/to encourage responsible mining. In all, Lopez’s anti-mining bias, her cavalier attitude towards the rights of companies, and her careless disregard for the sanctity of contracts and administrative procedure make her absolutely unfit to be Secretary of the DENR.

B.

REGINA PAZ L. LOPEZ DOES NOT HAVE THE ADMINISTRATIVE EXPERIENCE AND COMPETENCE TO LEAD THE DENR

12 Sec. 16, DENR DAO 2003-30, otherwise known as the “Implementing Rules and Regulations (IRR) for the Philippine Environmental Impact Statement (EIS) System.”

13 Sec. 77, Rep Act No. 7942, otherwise known as the “Philippine Mining Act of 1995.”

7

28.

Based on her public Wikipedia page14, Lopez attended Assumption College and Newton College of the Sacred Heart in in Boston, apparently without earning any degrees.15 However, she is supposed to have a Master’s Degree in Development Management from the Asian Institute of Management and a Doctorate Degree in Humanities (Honoris Causa) from the Ateneo de Naga University.

29.

Lopez spent 20 years as a yoga missionary in Europe, India, and Africa, returning to the Philippines only in the late 1990s. Little is known about Lopez before she sat as the Managing Director of the ABS- CBN Foundation. Lopez is most recognized only as an active spearhead of some of the Foundation’s core projects, Kapit Bisig Para sa Ilog Pasig, Bayan ni Juan, and Bantay Kalikasan. Lopez apparently has no experience in leading and managing in an executive capacity any organization other than the Foundation.

30.

Her appointment as DENR Secretary brings to fore the key issues of competence and conflict of interest. She is clearly inexperienced and incompetent to head and manage a key executive department, especially one as complex as the DENR. More importantly, the Lopez Family’s many involvements in the energy sector highlight the glaring conflict of interest: How will she resolve the environmental catastrophes that involve her family’s energy business, such as the 2010 FPIC pipeline leak that effectively ruined the West Tower Condominium?

31. The DENR is one of the largest departments of government, responsible for governing and supervising the exploration, development, utilization, and conservation of the country's natural resources. It has thousands of employees spread over sixteen (16) regional offices, six (6) staff bureaus 16, and nine (9) attached agencies 17. In 2015, it had a budget allocation of Php21 billion, Php18 billion of which was under the direct control of the Office of the Secretary.

32. Perhaps aware of her inadequacies, Lopez seems totally dependent on her favouritefavorite consultant, Leo L. Jasareno. Despite Jasareno’s having been fired twice by President Duterte, he continues to hold office in the DENR to advise Lopez.

33. Jasareno was removed for the first time by President Duterte when the latter appointed Mr. Mario Luis Jacinto as Undersecretary and concurrently, Director of the Mines and Geosciences Bureau on Julyon July 27, 2016. Lopez had then designated Jasareno as Senior Undersecretary.

34. Jasareno was again removed when President Duterte appointed on SeptemebrSeptember 28, 2016 Mr. Wilfredo Moncano as Acting Director IV of eh MGB, DENR vice Leovice Leo L. Jasareno.

14 https://en.wikipedia.org/wiki/Gina_Lopez 15 In an interview with Dr. Solita Monsod, in the latter’s program, “Bawal ang Pasaway” on 4 July 2016, Lopez admitted that she did not finish college, having left college prematurely to become a yoga missionary.

See also: http://pinoynewsonline.info/gina-lopez-admits-not-being-able-to-graduate-heres-what-happened/

16 The staff bureaus under the DENR are: Environmental Management Bureau (EMB), the Mines & Geosciences Bureau (MGB), the Ecosystems Research and Development (ERD), the Forest Management Bureau (FMB), the Land Management Bureau (LMB), and the Biodiversity Management Bureau (BMB).

17 The agencies attached to the DENR are: The National Mapping and Resource Information Authority (NAMRIA), the Laguna Lake Development Authority (LLDA), the Natural Resources Development Corp.

(NRDC), the National Water Resources Board (NWRB), the Philippine Forest Corporation (PFC), the Philippine Mining Development Corp. (PMDC), the Philippine Reclamation Authority (PRA), and the Palawan Council For Sustainable Development (PCSD).

8

35. Jasareno has been holding on to his space in DENR, without any official position other than Consultant, and has proven to be a very loyal and dependable ally to Lopez. He was present during the February 2, 2017 press conference, where MGB officials had been prevented entry for “not being invited.”

36.

All the declarations of Lopez discrediting and alienating thealienating the MGB (disregarding its recommendation and calling it really, really slow), which is the agency with the direct charge in the administration and disposition ofdisposition of mineral lands and mineral resources (Section 9, R.A. 7942) indicate her being clueless as to her obligations as department secretary andsecretary and principles of public administration and management.

37.

Actually, it is doubtful if Lopez can really supplant the decisions and findings of the MGB. Being a regulatory agency, pursuant to Sections 38, 39 and 43 of the Administrative Code, Lopez has but administrative supervision over the MGB, NOT CONTROL AND SUPERVISION. This means that Lopez has no power to review, reverse, revise, or modify the decisions of the MGB in the exercise of its regulatory or quasi-judicial functions.

C.

LOPEZ HAS A POOR TRACK RECORD FOR LEADING AND MANAGING ENVIRONMENTAL AND ECO-TOURISM PROJECTS.

38.

32.

Ms. Lopez does not have the necessary knowledge, expertise, and competence for the position. Based on her previous undertakings relative to environmental protection reported by the media, she has a tendency to ignore procedural rules, and disregard regulations on the handling and custody of public funds. The incidents discussed below highlightbelow highlight Lopez’s incompetence and/or lack of understanding of current environmental laws and the sanctity of contracts and which show her poor track record for leading and managing environmental and eco-tourism projects.

37.1.

37.2.

37.3. 33.

THE SABSABAN FALLS “ECO-TOURISM” PROJECT IN PALAWAN. In 2012, the Palawan Council for Sustainable Development (PCSD) sought the closure of an “eco-tourism resort” started by the ABS-CBN Foundation (AFI) in the province for its failure to secure the necessary permit/clearance for the project as required by the Strategic Environmental Plan (SEP) for Palawan Act before it started occupying and converting SabsabanSabsaban Falls in Brooke’s Point town into an ecotourism resort. Lopez was then managing director of AFI. 37.4.

37.5.

37.6. AFI should have secured an individual SEP clearance for the occupation of Sabsaban Falls, development of the place, cutting of trees, construction of cottages and others.

37.7.

37.8. In view of the supposed violation, Teodoro Baltazar, head of the PCSD Enforcement Unit, filed a complaint in the PCSD Adjudication Board against AFI 9

managing director Lopez and 18 local government officials who purportedly allowed the project to proceed without requiring a prior SEP clearance. Baltazar petitioned the adjudication board to issue a cease and desist order against Lopez’s group “until it has secured an SEP clearance from the PCSD.” 18 38.

39.

39.1. The Brooke’s Point Federation of Tribal Councils (BPFTC) had also accused Lopez and AFI’s Bantay Kalikasan of failing to practice what she preaches when AFI’s construction crew forcibly took over their ancestral land at Sabsaban Falls in Brgy.

Aribungos, Brooke’s Point, Palawan. Lopez and Bantay Kalikasan had planned to put up offices and ecotourism facilities—a hotel, restaurant, function areas—on the land. Already, 25 trees had been cut and four lodging structures had been put up for which the foundation was charging P25,000 for a day’s stay. The BPFTC has since filed an action for damages against Lopez and her foundation with the National Commission on Indigenous Peoples (NCIP) asking for P2.3 million in damages. 19 39.2. Under the Indigenous Peoples’ Rights Act, any development work undertaken in ancestral domains must go through the Free Prior Informed Consent (FPIC) process. Any project in an area considered sacred by IPs should be undertaken with consideration not just for the environment but also the rights of the IPs. 39.3. In this case, Lopez and her cohorts completely ignored and disregarded the statutory and administrative requirement that the NCIP FPIC validation process should have been done prior or immediately after the start of the project.

For the reference of the committee, copies of news articles relative to Lopez’s handling of the Sabsaban Falls “Eco-Tourism” Project in Palawan are attached as Annexes “B”, “B-1”, et seq.

For the reference of the committee, copies of news articles relative to Ms. Lopez’s handling of the Sabsaban Falls Project are attached as Annexes “B”, “B-1”, et seq.

40.

THE LA MESA ECOPARK PROJECT FUNDS. In 1999, the Save La Mesa Watershed Project was started by AFI’s Bantay Kalikasan, in partnership with the Metropolitan Waterworks and Sewerage System (MWSS). The project’s aim was to restore the 33-hectare La Mesa Watershed which became a spoiled eco-location due to widespread illegal poaching and logging. Five years after the reforestation plan, the La Mesa Watershed was reopened to the public, this time as the La Mesa Ecopark, that now charged Php50.00 per head upon admission, and additional fees for swimming, biking, horse-back riding, and other recreational activities within the park.

40.1. A Commission on Audit (COA) Report for the years 2004 to 2009 revealed that AFI had unilaterally decided to get another 15 percent over its 30 percent share in the La Mesa Eco-Park’s net income. In the Memorandum of Agreement (MOA) signed between AFI, the MWSS, and the Quezon City Government, the parties agreed that income from the La Mesa Eco-Park would be shared three ways: 40% to MWSS, 30% to the Quezon City government, and 30% to AFI. 20

18 Inquirer Online, “Palawan body seeks temporary closure of Lopez’s eco-tourism project”, June 25,

2012.

19 Inquirer Online, “Tribals to Gina Lopez: Keep off our land”, June 7, 2012.

20 Del Castillo, “Gina Lopez goes ballistic”, Business Mirror, November 17, 2014.

10

40.2. It was reported that, since 2005, AFI, led by Lopez, has held on to all income from the project, and no distribution of the MWSS’ share has been done by the Foundation. To remedy the breach, the COA Report recommended that AFI immediately submit the annual financial reports and remit to MWSS its corresponding share of income as required under the MOA. For the reference of the committee, copies of news articles relative to Ms. Lopez’s handling of the La Mesa Ecopark Project are attached as Annexes “C”, “C-1”, et seq.

41.

THE PASIG RIVER REHABILITATION PROJECT. In 2010, Lopez was appointed by President Benigno Aquino III to head the Pasig River Rehabilitation Commission (PRRC), with the mission to clean up the Pasig River. However, in a 2012 Report, the COA found that, instead of “removing rubbish,” the PRRC, headed by Lopez, had “created more junk … bungling its P17.7-million cleanup of Metro Manila’s biggest waterway”. The COA said that millions of Pesos worth of recycling equipment had been rendered junk because the PRRC had only ONE (1) working materials recovery facility (MRF) out of the 10 recycling centers it committed to build over the last four years. 21 The COA Report concluded that “(This is) tantamount to wastage of funds and deprived the beneficiaries of the benefits that could have been derived therefrom.” Asked by Dr. Solita Monsod about this fiasco in her show “Bawal ang Pasaway” on 4 July 2016, Lopez replied that she had not foreseen the need for the LGU’s consent to provide space for the MRFs so they did not have a place to put up the planned facilities. To avoid further wastage, she just gave away the equipment to LGUs and NGOs, and in the same breath implying that her responsibility over these equipmentthis equipment were now also transferred.

41.1. Lopez’s poor management of the river cleanup effort is evident. With only one (1) working materials recovery facility (MRF), the rest of the cleanup equipment have not been stored properly and are now rusting away, non-operational and deteriorated due to exposure to rain, heat, and stray animals living inside the structures. More evidently, the Pasig River today remains dead, black, and stinking.

For the reference of the committee, copies of news articles relative to Ms. Lopez’s handling of the Pasig River Rehabilitation Project are attached as Annexes “D”, “D-1”, et seq.

42.

Lopez’s inconsistent and loose attitude on the handling and custody of government resources is alarming because of the enormity of the responsibilities she is being made to assume as DENR Secretary, and the long-term repercussions her incompetence and inexperience will have, not just on the environment, but on the people’s health and welfare for years to come.

43.

We haveWe have executed this affidavit to attest to the truth of the foregoing and for the purpose of opposing the confirmation of Ms. Regina Paz L. Lopez as Secretary of the DENR. IN WITNESS WHEREOF, I we have hereunto affixed my our signatures this_______ 13 day of October February 2016 2017 in ___________ Makati City. th

ARTEMIO F. DISINI

__________________ _______________NE

21 Inquirer Online, “COA scores Pasig River rehab for junky cleanup”, July 3, 2013.

11

Affiant

LIA C. HALCON Affiant

RONALD S. RECIDORO Affiant SUBSCRIBED AND SWORN to before me in Quezon City, this____ 13th day of October 2016February 2017, affiants exhibiting to me his the following government-issued ID with No._____________ identification as proof of his their identityidentities.: Name Artemio F. Disini Nelia C. Halcon Ronald S. Recidoro

Identification Card/No.

Doc. No._____; Page No._____; Book No.____; Series of 20162017.

12

Date and place of issue