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Congressional Record PLENARY PROCEEDINGS OF THE 14th CONGRESS, FIRST REGULAR SESSION HOUSE OF REPRESENTATIVES Vol. 3 Wednesday, December 5, 2007 CALL TO ORDER THE SECRETARY GENERAL, reading: At 4:00 p.m., the Deputy Speaker, Rep. Simeon A. Datumanong called the session to order. THE DEPUTY SPEAKER (Rep. Datumanong). The session is called to order. NATIONAL ANTHEM THE DEPUTY SPEAKER (Rep. Datumanong). Everybody will please rise to sing the Philippine National Anthem. Everybody rose to sing the Philippine National Anthem. PRAYER THE DEPUTY SPEAKER (Rep. Datumanong). Everybody will please remain standing for a minute of silent prayer. Everybody remained standing for the silent prayer. SUSPENSION OF SESSION THE DEPUTY SPEAKER (Rep. Datumanong). The session is suspended for a few minutes. It was 4:01 p.m. RESUMPTION OF SESSION At 4:43 p.m., the session was resumed. THE DEPUTY SPEAKER (Rep. Datumanong). The session is resumed. The Deputy Majority Leader is recognized. REP. VELARDE. Mr. Speaker, I move that we call the roll. ROLL CALL THE DEPUTY SPEAKER (Rep. Datumanong). The Secretary General will call the roll. _______________ * Appeared before/after the roll call Abante .................................... Present Abaya ..................................... Present* Ablan ..................................... Agbayani ................................ Present Aggabao ................................. Present Agyao ..................................... Present Albano ................................... Present* Alcala ..................................... Present Alfelor .................................... Present Almario .................................. Present Alvarez, Antonio C. ............... Present Alvarez, Genaro Jr. M. .......... Amante ................................... Present Amatong ................................ Present Angara ................................... Present* Angping ................................. Antonino ................................ Present Antonino-Custodio ................ Apostol .................................. Aquino ................................... Present Arago ..................................... Present Arbison .................................. Arenas .................................... Arnaiz .................................... Present Arroyo, Diosdado Macapagal ...................... Arroyo, Ignacio “Iggy” T. ...... Present. Asilo ...................................... Present* Bagatsing ............................... Present Balindong ............................... Present Barzaga .................................. Present Bautista .................................. Present Belmonte ................................ Present Beltran ................................... Present Biazon .................................... Present Bichara ................................... Binay ...................................... Present Biron ...................................... Present Bondoc ................................... Bonoan-David ........................ Present Bravo ..................................... Briones ................................... Present Bulut ...................................... Present Cabilao ................................... Present No. 44 250 Cagas ..................................... Present Cajayon .................................. Present* Cajes ...................................... Present Cari ........................................ Casiño .................................... Present Castelo-Daza .......................... Castro ..................................... Present Cayetano ................................ Present Celeste ................................... Present Cerilles ................................... Chatto .................................... Present Chavez ................................... Present Chiongbian ............................. Present Chipeco .................................. Present* Chong ..................................... Present* Chungalao .............................. Present Clarete .................................... Present* Climaco .................................. Codilla ................................... Present Cojuangco .............................. Coquilla ................................. Present Coscolluela ............................ Crisologo ............................... Present* Cruz-Gonzales ....................... Present Cua, Guillermo P. ................... Present Cua, Junie E. .......................... Present Cuenco ................................... Present* Dangwa .................................. Present Datumanong ........................... Present Dayanghirang ......................... Present Daza ....................................... Present De Guzman ............................ De Venecia ............................. Present* Defensor, Arthur Sr. D. .......... Present Defensor, Matias Jr. V. ........... Present Del Mar .................................. Present Del Rosario ............................ Present Diasnes ................................... Diaz ........................................ Present Dilangalen .............................. Present* Dimaporo ............................... Present Dominguez ............................. Domogan ............................... Duavit .................................... Dueñas ................................... Present* Dumarpa ................................ Present* Dumpit ................................... Present Durano ................................... Present Dy .......................................... Ecleo ...................................... Present Emano .................................... Present Enverga .................................. Ermita-Buhain ........................ Escudero ................................ Present Estrella, Conrado III M. ......... Present Estrella, Robert Raymund M. .................. Present Fabian .................................... Fernandez .............................. Present Ferrer ..................................... Present _______________ * Appeared before/after the roll call WEDNESDAY, DECEMBER 5, 2007 Fua ......................................... Fuentebella............................. Present Garay ..................................... Present Garcia, Albert S. .................... Garcia, Pablo P. ..................... Present Garcia, Pablo John F. ............. Present Garcia, Vincent J. ................... Present Garin ...................................... Present Gatchalian .............................. Present Gatlabayan ............................. Present Go .......................................... Golez ...................................... Present Gonzales, Aurelio “Dong” Jr. D. ................ Gonzales, Neptali II M.. ........ Present Gonzalez ................................ Present* Guingona ............................... Present Gullas ..................................... Present Gunigundo ............................. Present Hataman ................................. Present Hofer ...................................... Present Hontiveros-Baraquel .............. Present Ilagan ..................................... Jaafar ...................................... Present Jala ................................... Present Jalosjos ............................ Present* Jalosjos-Carreon. ............. Javier ............................... Present Jikiri ................................. Present Joson ................................ Present Kho .................................. Present Labadlabad ...................... Present Lacson .............................. Lagbas .............................. Present Lagdameo ........................ Present Lagman ............................ Present Lapus ............................... Present Lazatin ............................. Present Ledesma ........................... Lim................................... Present Limkaichong .................... Present Locsin .............................. Present Lopez ............................... Present* Macapagal Arroyo ........... Madrona........................... Present Magsaysay ....................... Malapitan ......................... Present Mamba ............................. Present Mandanas ......................... Mangudadatu ................... Marañon ........................... Marcos ............................. Present* Matugas ........................... Maza ................................ Present Mendoza .......................... Mercado ........................... Miraflores ........................ Present Mitra ................................ Nava ................................. Present* Nicolas ............................. WEDNESDAY, DECEMBER 5, 2007 Noel ................................. Present Nograles ........................... Present Ocampo ........................... Olaño ............................... Present Ong .................................. Present Ortega .............................. Present Pablo ................................ Present Padilla .............................. Pancho ............................. Present Pancrudo .......................... Present Piamonte .......................... Present Pichay .............................. Present Pingoy .............................. Present Piñol ................................. Present Plaza ................................ Present Ponce-Enrile .................... Prieto-Teodoro ................. Puentevella ...................... Puno ................................. Ramiro ............................. Remulla ............................ Reyes, Carmencita O. ...... Reyes, Victoria Hernandez ............... Robes ............................... Present Rodriguez ........................ Present Rodriguez-Zaldarriaga .... Present Roman .............................. Romarate ......................... Present Romualdez ....................... Romualdo ........................ Present Romulo ............................ Present Roxas ............................... Present Salimbangon .................... Present Salvacion ......................... Present San Luis ........................... Present Sandoval .......................... Present Santiago, Joseph A. ......... Present Santiago, Narciso III D. .. Seachon-Lanete ............... Seares-Luna ..................... Silverio ............................ Present Singson, Eric D................ Present Singson, Ronald V. .......... Solis ................................. Present Soon-Ruiz ........................ Suarez .............................. Susano .............................. Sy-Alvarado ..................... Present Syjuco .............................. Present Taliño-Mendoza .............. Tan ................................... Present* Tañada ............................. Present Teodoro ............................ Present Teves ................................ Tieng ................................ Present Tupas ............................... Present Umali, Alfonso Jr. V. ....... Present Umali, Czarina D. ............ Present Ungab .............................. Present _______________ * Appeared before/after the roll call 251 Uy, Edwin C. ................... Present Uy, Reynaldo S. ............... Uy, Rolando “Klarex” A. . Present Valdez .............................. Present Valencia ........................... Present Vargas .............................. Present Velarde ............................. Present Villafuerte ........................ Present Villanueva ........................ Villar ................................ Present* Villarosa ........................... Vinzons-Chato ................. Present Violago ............................ Present Yap ................................... Present* Yu ..................................... Present Zamora, Manuel “Way Kurat” E. ....... Present Zamora, Ronaldo B. ........ Present Zialcita ............................. Zubiri ............................... Present The House is in receipt of official advice of absence of the following Members: Representatives Alvarez (G.), Antonino-Custodio, Arbison, Arroyo (D.), Bichara, Bravo, Cari, Castelo-Daza, Diasnes, Dominguez, Domogan, Duavit, Dy, Enverga, Ermita-Buhain, Fua, Ilagan, JalosjosCarreon, Mandanas, Marañon, Mendoza, Padilla, PonceEnrile, Prieto-Teodoro, Remulla, Reyes (C.), Roman, Seares-Luna, Singson (R.), Soon-Ruiz, Teves and Villanueva. Representatives Ocampo, Santiago (N.) and Zialcita are on official mission within the country. Representatives Ablan, Angping, Apostol, Arenas, Bondoc, Cerilles, Climaco, Coscolluela, De Guzman, Fabian, Garcia (A.), Go, Gonzales (A.), Ledesma, MacapagalArroyo, Magsaysay, Mangudadatu, Matugas, Mercado, Mitra, Nicolas, Puentevella, Puno, Ramiro, Reyes (V.), Romualdez, Seachon-Lanete, Suarez, Susano, Uy (R.S.) and Villarosa are on official mission abroad. The Speaker is present. The roll call shows that 148 Members responded to the call. THE DEPUTY SPEAKER (Rep. Datumanong). With 148 Members present, the Chair declares the presence of a quorum. REP. GONZALES (N.). Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Sr. Dep. Majority Leader is recognized. REP. GONZALES (N.). May I present an omnibus motion to defer, in the meantime, the approval of the Journal of the previous session as well as the Reference of Business. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. 252 WEDNESDAY, DECEMBER 5, 2007 REP. GONZALES. Mr. Speaker, I now move that we take up Bills on Third Reading. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. NOMINAL VOTING ON H.B. NO. 2976 ON THIRD READING REP. GONZALES (N.). Mr. Speaker, I move that we vote on House Bill No. 2976 on Third Reading. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. Pursuant to Article VI, Section 26 (2) of the Constitution, House Bill No. 2976 is a certified urgent bill. Voting on the bill on Third Reading is, therefore, in order. The Secretary General will read the title of the bill. THE SECRETARY GENERAL. House Bill No. 2976, entitled: AN ACT TO EXTEND THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AMENDING REPUBLIC ACT NO. 8178, ENTITLED “AN ACT REPLACING QUANTITATIVE IMPORT RESTRICTIONS ON AGRICULTURAL PRODUCTS, EXCEPT RICE, WITH TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS ENHANCEMENT FUND, AND FOR OTHER PURPOSES.” FIRST ROLL CALL THE DEPUTY SPEAKER (Rep. Datumanong). The Body will now vote on this bill, and the Secretary General will call the roll. THE SECRETARY GENERAL, reading: Abante ........................................... Yea Abaya ............................................ Ablan ............................................ Agbayani ....................................... Yea Aggabao ........................................ Yea Agyao ............................................ Yea Albano .......................................... Yea Alcala ............................................ Yea Alfelor ........................................... Yea Almario ......................................... Yea Alvarez, Antonio C. ...................... Yea Alvarez, Genaro Jr. M. ................. Amante .......................................... Yea Amatong ....................................... Yea Angara .......................................... Yea Angping ........................................ Antonino ....................................... Yea Antonio-Custodio ......................... Apostol ......................................... Aquino .......................................... Yea Arago ............................................ Yea Arbison ......................................... Arenas ........................................... Arnaiz ........................................... Yea Arroyo, Diosdado Macapagal ..................................... Arroyo, Ignacio “Iggy” T. ............. Yea Asilo ............................................. Bagatsing ...................................... Yea Balindong ...................................... Yea Barzaga ......................................... Yea Bautista ......................................... Yea Belmonte ....................................... Yea Beltran .......................................... Nay REP. BELTRAN. Mr. Speaker, I vote no to the ACEF. THE DEPUTY SPEAKER (Rep. Datumanong). Does the Gentleman wish to explain his vote? He has three minutes. REP. BELTRAN. I will explain my vote later in the second roll call. THE DEPUTY SPEAKER (Rep. Datumanong). The Secretary General will please continue. Biazon ........................................... Yea Bichara .......................................... Binay ............................................. Yea Biron ............................................. Yea Bondoc .......................................... Bonoan-David ............................... Yea Bravo ............................................ Briones .......................................... Yea Bulut ............................................. Yea Cabilao .......................................... Yea Cagas ............................................ Yea Cajayon ......................................... Cajes ............................................. Yea Cari ............................................... Casiño ........................................... Nay REP. CASIÑO. Mr. Speaker, may I explain my vote. THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman wishes to explain his vote. He has three minutes. REP. CASIÑO. Thank you, Mr. Speaker. REP. CASIÑO EXPLAINS HIS VOTE REP. CASIÑO. Mr. Speaker, the Agricultural Competitiveness Enhancement Fund (ACEF) was meant as a safety net for our farmers who would be victimized by the liberalization policies attendant to our ascension to the World Trade Organization (WTO). As such, it was meant as a remedial measure for the destructive effects that we, precisely, expected from our entry into the WTO. In this sense, as long as the government continues with its policy of liberalizing the economy, specifically liberalizing the agricultural sector, I think no amount of safety nets can save our agriculture and our small farmers. Precisely, this has been the experience of nine years of the Agricultural Competitiveness Enhancement Fund. Whatever safety nets WEDNESDAY, DECEMBER 5, 2007 there are did not save the small farmers. In fact, the figures that we have would show that it would be the big agricultural producers, the big corporations, who had more access to ACEF rather than the small farmers, who really needed the kind of safety nets that was envisioned. So, Mr. Speaker, extending it would not only extend a program that primarily benefits the big agricultural producers, but it would also further support the continued liberalization of our economy, of our agricultural sector which my party Bayan Muna opposes as a matter of principle. Therefore, Mr. Speaker, I cannot vote for the extension of the ACEF and I cast my no vote to this measure. Thank you, Mr. Speaker. THE SECRETARY GENERAL, reading: Castelo-Daza ................................. Castro ............................................ Yea Cayetano ....................................... Yea Celeste .......................................... Yea Cerilles .......................................... Chatto ........................................... Yea Chavez .......................................... Yea Chiongbian .................................... Yea Chipeco ......................................... Yea Chong ............................................ Yea Chungalao ..................................... Yea Clarete ........................................... Climaco ......................................... Codilla .......................................... Yea Cojuangco ..................................... Coquilla ........................................ Yea Coscolluela ................................... Crisologo ...................................... Cruz-Gonzales .............................. Yea Cua, Guillermo P. .......................... Yea Cua, Junie E .................................. Yea Cuenco .......................................... Yea Dangwa ......................................... Yea Datumanong .................................. Yea Dayanghirang ................................ Yea Daza .............................................. Yea De Guzman ................................... De Venecia .................................... Yea Defensor, Arthur Sr. D. ................. Yea Defensor, Matias Jr. V. .................. Yea Del Mar ......................................... Yea Del Rosario ................................... Yea Diasnes .......................................... Diaz ............................................... Yea Dilangalen ..................................... Dimaporo ...................................... Yea Dominguez .................................... Domogan ...................................... Duavit ........................................... Dueñas .......................................... Yea Dumarpa ....................................... Yea Dumpit .......................................... Yea Durano .......................................... Yea Dy ................................................. Ecleo ............................................. Yea 253 Emano ........................................... Yea Enverga ......................................... Ermita-Buhain ............................... Escudero ....................................... Yea Estrella, Conrado III M. ................ Yea Estrella, Robert Raymund M. .............................. Yea Fabian ........................................... Fernandez ..................................... Yea Ferrer ............................................ Yea Fua ................................................ Fuentebella .................................... Yea Garay ............................................ Yea Garcia, Albert S ............................ Garcia, Pablo P. ............................ Yea Garcia, Pablo John F. .................... Yea Garcia, Vincent J. .......................... Yea Garin ............................................. Yea Gatchalian ..................................... Yea Gatlabayan .................................... Yea Go ................................................. Golez ............................................. Yea Gonzales, Aurelio “Dong” Jr. D. ............................. Gonzales, Neptali II M. ................ Yea Gonzalez ....................................... Guingona ...................................... Yea Gullas ............................................ Yea Gunigundo .................................... Yea Hataman ........................................ Yea Hofer ............................................. Yea Hontiveros-Baraquel ..................... Ilagan ............................................ Jaafar ............................................. Yea Jala ................................................ Yea Jalosjos ......................................... Yea Jalosjos-Carreon ........................... Javier ............................................. Yea Jikiri .............................................. Yea Joson ............................................. Yea Kho ............................................... Yea Labadlabad ................................... Yea Lacson ........................................... Lagbas ........................................... Yea Lagdameo ..................................... Yea Lagman ......................................... Yea Lapus ............................................ Yea Lazatin .......................................... Yea Ledesma ........................................ Lim ................................................ Yea Limkaichong ................................. Yea Locsin ........................................... Yea Lopez ............................................ Macapagal-Arroyo ........................ Madrona ........................................ Yea Magsaysay .................................... Malapitan ...................................... Yea Mamba .......................................... Yea Mandanas ...................................... Mangudadatu ................................ Marañon ........................................ Marcos .......................................... Yea 254 WEDNESDAY, DECEMBER 5, 2007 Matugas ........................................ Maza ............................................. Yea Mendoza ....................................... Mercado ........................................ Miraflores ..................................... Yea Mitra ............................................. Nava .............................................. Nicolas .......................................... Noel .............................................. Yea Nograles ........................................ Yea Ocampo ......................................... Olaño ............................................ Yea Ong ............................................... Yea Ortega ........................................... Yea Pablo ............................................. Yea Padilla ........................................... Pancho .......................................... Yea Pancrudo ....................................... Yea Piamonte ....................................... Yea Pichay ........................................... Pingoy ........................................... Yea Piñol .............................................. Yea Plaza ............................................. Yea Ponce-Enrile ................................. Prieto-Teodoro .............................. Puentevella .................................... Puno .............................................. Ramiro .......................................... Remulla ......................................... Reyes, Carmencita O. ................... Reyes, Victoria Hernandez ................................. Robes ............................................ Yea Rodriguez ..................................... Yea REP. RODRIGUEZ. Mr. Speaker, may I be allowed to explain my vote. THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman has three minutes. REP. RODRIGUEZ EXPLAINS HIS VOTE REP. RODRIGUEZ. Mr. Speaker, during the period of individual amendments, this representation asked for the report on the Agricultural Competitiveness Enhancement Fund, and I was given the complete report of the ACEF collections and distribution of beneficiaries. To my question of how much Mindanao secured from the ACEF, I saw on the report submitted to me by the administrators of the fund that from the very start, 51 percent of the ACEF had been given to beneficiaries from Mindanao. This is rightly so because Mindanao produces 60 percent of the entire agricultural production of our country, plus the fact that even President Arroyo had already announced, and which has been implemented now, that 30 percent of the budget of the Department of Agriculture (DA), Department of Agrarian Reform (DAR) and Department of Environment and Natural Resources (DENR) be given to Mindanao. Therefore, we have seen that the ACEF has really given competitiveness and enhanced the poor farmers of Mindanao. Another reason this Representation will vote yes, aside from the fact that Mindanao receives 51 percent of the ACEF, is because the sponsor of the bill accepted this Representation’s amendment that instead of extending it for nine years up to 2015, they have accepted my proposal for a five-year extension up to only 2012. The reason for that is for us, Congress, to be able always to check the effectiveness, the equal and equitable distribution of this fund. For the foregoing reasons, this Representation, therefore, votes yes for the extension of the ACEF. Thank you very much, Mr. Speaker. THE SECRETARY GENERAL, reading: Rodriguez-Zaldarriaga .................. Yea Roman ........................................... Romarate ....................................... Yea Romualdez .................................... Romualdo ...................................... Yea Romulo ......................................... Yea Roxas ............................................ Yea Salimbangon ................................. Yea Salvacion ...................................... Yea San Luis ........................................ Yea Sandoval ....................................... Yea Santiago, Joseph A. ....................... Yea Santiago, Narciso III D. ................ Seachon-Lanete............................. Seares-Luna .................................. Silverio ......................................... Yea Singson, Eric D. ............................ Yea Singson, Ronald V. ........................ Solis .............................................. Yea Soon-Ruiz ..................................... Suarez ........................................... Susano ........................................... Sy-Alvarado .................................. Yea Syjuco ........................................... Yea Taliño-Mendoza ............................ Tan ................................................ Yea Tañada ........................................... Yea Teodoro ......................................... Yea Teves ............................................. Tieng ............................................. Yea Tupas ............................................ Yea Umali, Alfonso Jr. V. ..................... Yea Umali, Czarina D. ......................... Yea Ungab ........................................... Yea Uy, Edwin C. ................................. Yea Uy, Reynaldo S. ............................ Uy, Rolando “Klarex” A. .............. Yea Valdez ........................................... Yea Valencia ........................................ Yea Vargas ........................................... Yea Velarde .......................................... Yea Villafuerte ..................................... Yea Villanueva ..................................... Villar ............................................. Yea Villarosa ........................................ Yea Vinzons-Chato .............................. Yea Violago ......................................... Yea WEDNESDAY, DECEMBER 5, 2007 Yap ................................................ Yea Yu .................................................. Yea Zamora, Manuel “Way Kurat” E. ......................... Yea Zamora, Ronaldo B. ...................... Yea Zialcita .......................................... Zubiri ............................................ Yea SECOND ROLL CALL THE DEPUTY SPEAKER (Rep. Datumanong). The Secretary General will conduct a second call for those who have not yet registered their votes. Abaya ............................................ Ablan ............................................ Alvarez, Genaro Jr. M. ................. Angping ........................................ Antonino-Custodio ....................... Apostol ......................................... Arbison ......................................... Arenas ........................................... Arroyo, Diosdado Macapagal ................................. Asilo ............................................. Beltran .......................................... Nay REP. BELTRAN. Mr. Speaker, may I know how my vote was entered? THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman may register his vote now. REP. BELTRAN. I vote no for the ACEF. May I explain my vote? THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman has three minutes. REP. BELTRAN EXPLAINS HIS VOTE REP. BELTRAN. Ang pagpasok sa Pilipinas ng WTO ang ultimong dahilan ng liberalisasyon ng agricultural, at ang pagli-lift ng quantitative restriction kapalit ng tariff na unti-unti na ring tinatanggal ng WTO. Hindi ito malulutas ng pagkakaroon ng safety net. Sa katunayan ay isang palasak na terminong inabuso ng mga proponent ng WTO ang pagkalugi sa agrikultura bunga ng pagbaha ng higit na mas murang produktong agrikultural sa lokal na merkado. Sa karanasan ng ACEF, tanging and malalaking korporasyon ang nakikinabang at hindi ang maliliit na magsasakang siyang tinatamaan ng patakaran ng liberalisasyon sa agrikultura. Dagdag lamang itong gatasang baka ng mga agri-business at ng mga pulitiko. Ang panawagan ng mga magsasaka ay baklasin ang agrikultura sa World Trade Organization. At uulitin natin, sa laki ng pondong inilaan para sa ACEF, lalo lamang magkakaroon ng sunud-sunod at kambal-kambal na graft and corruption na pakikinabangan ng iilan at hindi ng mga magsasakang maralita. Maraming salamat po. 255 THE SECRETARY GENERAL, reading: Bichara .......................................... Bondoc .......................................... Bravo ............................................ Cajayon ......................................... Cari ............................................... Castelo-Daza ................................. Cerilles .......................................... Clarete ........................................... Climaco ......................................... Cojuangco ..................................... Coscolluela ................................... Crisologo ...................................... De Guzman ................................... Diasnes .......................................... Dilangalen ..................................... Dominguez .................................... Domogan ...................................... Duavit ........................................... Dy ................................................. Enverga ......................................... Ermita-Buhain ............................... Fabian ........................................... Fua ................................................ Garcia, Albert S. ........................... Go ................................................. Gonzales, Aurelio “Dong” Jr. D. ............................. Gonzalez ....................................... Hontiveros-Baraquel ..................... Ilagan ............................................ Jalosjos-Carreon ........................... Lacson ........................................... Ledesma ........................................ Lopez ............................................ Macapagal Arroyo ....................... Magsaysay .................................... Mandanas ...................................... Mangudadatu ................................ Marañon ........................................ Matugas ........................................ Mendoza ....................................... Mercado ........................................ Mitra ............................................. Nava .............................................. Nicolas .......................................... Ocampo ......................................... Padilla ........................................... Pichay ........................................... Ponce-Enrile ................................. Prieto-Teodoro .............................. Puentevella .................................... Puno .............................................. Ramiro .......................................... Remulla ......................................... Reyes, Carmencita O. ................... Reyes, Victoria Hernandez ................................. Roman ........................................... Romualdez .................................... Santiago, Narciso III D. ................ 256 WEDNESDAY, DECEMBER 5, 2007 Seachon-Lanete ............................. Seares-Luna .................................. Singson, Ronald V. ........................ Soon-Ruiz ..................................... Suarez ........................................... Susano ........................................... Taliño-Mendoza ............................ Teves ............................................. Uy, Reynaldo S. ............................ Villanueva ..................................... Zialcita .......................................... APPROVAL OF H.B. NO. 2976 ON THIRD READING THE DEPUTY SPEAKER (Rep. Datumanong). The results show 157 votes in favor, two against and no abstention. House Bill No. 2976 is approved on Third Reading. REP. GONZALES (N.). Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Sr. Dep. Majority Leader is recognized. REP. GONZALES (N.). Mr. Speaker, I move that the Secretary General be directed to immediately transmit a copy of the approved bill on Third Reading to the Senate. THE DEPUTY SPEAKER (Rep. Datumanong). The Secretary General is so directed to comply with the motion of the Sr. Dep. Majority Leader. REP. RODRIGUEZ. Parliamentary inquiry, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). What is the pleasure of the Gentleman from Cagayan de Oro? REP. RODRIGUEZ. Parliamentary inquiries, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman will please state his parliamentary inquiry. REP. RODRIGUEZ. Two months ago, this Representation requested that the House purchase buses for our employees and staff. Last Monday, after the sessions adjourned, when this Representation went to the main entrance to exit from the Batasan premises, I saw with my own eyes that our staff and employees of the House of Representatives were literally packed like sardines in a dilapidated bus of the House of Representatives while our fellow Members of this august Assembly have left for France and Spain with first class and business class tickets, with full-leg room, with a full seat, while our employees in the House of Representatives are still standing up, squeezing and pushing each other inside the bus. Mr. Speaker, my inquiry is, when are we going to implement the promise of the leadership for the purchase of brand new air-conditioned buses similar to those in our counterparts in the other branches of government. The Supreme Court always have new buses which are parked at Paco Park; the Senate have well-maintained brand-new buses. When can the House of Representatives be able to give our staff and personnel who are taking our buses going back to their homes and coming into office these promised brand-new buses that should be provided to them so that they will not be packed like sardines when they come in the morning here and go home at seven o’clock in the evening? May I know, Mr. Speaker? THE DEPUTY SPEAKER (Rep. Datumanong). The Sr. Dep. Majority Leader is requested by the Chair to respond to the query of the Gentleman from Cagayan de Oro. REP. GONZALEZ (N.). Mr. Speaker, the House leadership thanks the distinguished Gentleman from Cagayan de Oro for his concern although it is not a proper subject matter of a parliamentary inquiry because parliamentary inquiries refer only to rules that governs the House including past precedents. Nevertheless, I was informed by the House leadership that the concern of the distinguished Gentleman from Cagayan de Oro has already been addressed by the Committee on Accounts. I was informed that the Committee on Accounts has already approved the same. But as I have said, this is not necessarily to establish a precedent but only to inform the distinguished Gentleman as well as the Members of the House of the steps taken by the Committee on Accounts for the welfare of our House personnel. But as I have said awhile ago, let me reiterate, Mr. Speaker, it is not a proper subject of a parliamentary inquiry. REP. RODRIGUEZ. May we know, Mr. Speaker, as an ordinary inquiry, not as a parliamentary inquiry. REP. GONZALEZ (N.). As I have said, Mr. Speaker,.... REP. RODRIGUEZ. May we know when it will be bidded or if we have already set aside funds if there is a bidding process, because this is of interest to our employees in the House. REP. GONZALEZ (N.). Mr. Speaker, I was informed that it will be bidded on December and another one will be bidded on January. REP. RODRIGUEZ. So by December, we will be able to have already new buses. REP. GONZALEZ (N.). Definitely, Mr. Speaker. REP. RODRIGUEZ. Thank you. So this will be a good Christmas gift to our staff and employees who have been suffering for years now, Mr. Speaker. REP. GONZALEZ (N.). I am sure that the House leadership is not insensitive to the welfare of our House personnel. REP. RODRIGUEZ. Mr. Speaker, three months ago I requested that the ballot boxes at the South Wing be already WEDNESDAY, DECEMBER 5, 2007 returned to the Commission on Elections (Comelec). These are eyesores; these are a hazards; these are very dusty that is why I am now coughing. The presence of these dusty ballot boxes affects the health of the Members. The 2004 elections have been overtaken by the 2007 elections. May I know why, as of this time, the ballot boxes are still at the south lobby? The south lobby continues to be a bodega of all dilapidated ballot boxes. May we know why these boxes have not been returned so that we can free the south lobby and everybody can enjoy its space and its clean air. REP. GONZALEZ (N.). Mr. Speaker, before I respond to the second inquiry of the distinguished Gentleman, may I correct myself and also a further information to the Members. The transportation for our employees which is the subject of the inquiry of the distinguished Gentleman from Cagayan de Oro, one will be delivered tomorrow and the other one will be delivered on March. REP. RODRIGUEZ. I will be here tomorrow night to... REP. GONZALEZ (N.). From January to March, Mr. Speaker. So, in reference to the second inquiry, we cannot transmit yet the concerned ballot boxes because of the pending election protest concerning the vice- presidential position. REP. RODRIGUEZ. Mr. Speaker, the vice-presidential protest of Ms. Loren Legarda has two stages. The first one involves the election returns. These ballot boxes contained election returns all over the country. It has been waived already by Senator Legarda except for the election returns from Lanao del Sur. What is now still pending is the revision of ballots—part of her complaint—which do not require the documents that are placed in the ballot boxes. Because all the documents there are election returns. REP. GONZALEZ (N.). Mr. Speaker. REP. RODRIGUEZ. And a mere communication to the Supreme Court, our House would have known that there is no more need for that here and that could be returned where it should be—in the Commission on Elections. That is not anymore part of the protest, Mr. Speaker. REP. GONZALEZ (N.). Mr. Speaker, I would not like to engage in a debate with the distinguished Gentleman from Cagayan de Oro. May I just remind him that he rose on a parliamentary inquiry. I answered his inquiry and the reason we cannot immediately transmit the ballot boxes because of the pendency of an election protest. It is not debatable, Mr. Speaker, and I would not delve on the evidence, in the contents of the ballot boxes. REP. RODRIGUEZ. I would just like to remind the Secretary General to probably inform again the Presidential Electoral Tribunal hearing the case whether to ask officially if these ballot boxes are still needed here because it has been there for four years already, Mr. Speaker. I wish that they be returned already to the Commission on Elections. Thank you, Mr. Speaker. 257 THE DEPUTY SPEAKER (Rep. Datumanong). The Floor Leader is recognized. REP. MALAPITAN. Mr. Speaker, we would like to acknowledge the presence of our friends from International Alert, they are former 1986 Constitutional Commissioners, Ed Garcia, Mr. Phil Champain of the Asia Program Director, and Mr. Dan Smith, Secretary General. They are the guests of Reps. Jikiri and Tañada. THE DEPUTY SPEAKER (Rep. Datumanong). We welcome our distinguished guests. (Applause) REP. MALAPITAN. Also, Mr. Speaker, we would like to acknowledge the presence of the guest of Rep. Marc Douglas C. Cagas IV, Atty. Salvador Poquiz from the University of the East (UE) College of Law. (Applause) THE DEPUTY SPEAKER (Rep. Datumanong). The same welcome is extended by the House of Representatives to the guest of Rep. Cagas. NOMINAL VOTING ON H.B. NO. 3156 ON THIRD READING REP. GONZALEZ (N.). Mr. Speaker, I move that we vote on House Bill No. 3156 on Third Reading. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none, the motion is approved. Pursuant to Section 26(2), Article VI of the Constitution, House Bill No. 3156 is a certified urgent bill. Voting on the bill on Third Reading is, therefore, in order. The Secretary General will read the title of the bill. THE SECRETARY GENERAL. House Bill No. 3156, entitled: AN ACT CREATING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES, AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR, AND FOR OTHER PURPOSES. FIRST ROLL CALL THE DEPUTY SPEAKER (Rep. Datumanong). The Body will now vote on this bill and the Secretary General will call the roll. THE SECRETARY GENERAL, reading: Abante ........................................... Yea Abaya ............................................ Ablan ............................................ Agbayani ....................................... Yea Aggabao ........................................ Yea Agyao ............................................ Yea Albano .......................................... Yea Alcala ............................................ Yea Alfelor ........................................... Yea Almario ......................................... Yea Alvarez, Antonio C. ...................... Yea 258 Alvarez, Genaro Jr. M. ................. Amante .......................................... Yea Amatong ....................................... Yea Angara .......................................... Yea Angping ........................................ Antonino ....................................... Yea Antonio-Custodio ......................... Apostol ......................................... Aquino .......................................... Yea Arago ............................................ Yea Arbison ......................................... Arenas ........................................... Arnaiz ........................................... Yea Arroyo, Diosdado Macapagal ................................. Arroyo, Ignacio “Iggy” T. ............. Yea Asilo ............................................. Bagatsing ...................................... Yea Balindong ...................................... Yea Barzaga ......................................... Yea Bautista ......................................... Yea Belmonte ....................................... Yea Beltran .......................................... Biazon ........................................... Yea Bichara .......................................... Binay ............................................. Yea Biron ............................................. Yea Bondoc .......................................... Bonoan-David ............................... Yea Bravo ............................................ Briones .......................................... Yea Bulut ............................................. Yea Cabilao .......................................... Yea Cagas ............................................ Yea Cajayon ......................................... Yea Cajes ............................................. Yea Cari ............................................... Casiño ........................................... Castelo-Daza ................................. Castro ............................................ Yea Cayetano ....................................... Yea Celeste .......................................... Yea Cerilles .......................................... Chatto ........................................... Yea Chavez .......................................... Yea Chiongbian .................................... Yea Chipeco ......................................... Yea Chong ............................................ Yea Chungalao ..................................... Yea Clarete ........................................... Yea Climaco ......................................... Codilla .......................................... Yea Cojuangco ..................................... Coquilla ........................................ Yea Coscolluela ................................... Crisologo ...................................... Cruz-Gonzales .............................. Yea Cua, Guillermo P. .......................... Yea Cua, Junie E. ................................. Yea Cuenco .......................................... Yea Dangwa ......................................... Yea Datumanong .................................. Yea WEDNESDAY, DECEMBER 5, 2007 Dayanghirang ................................ Yea Daza .............................................. Yea De Guzman ................................... De Venecia .................................... Yea Defensor, Arthur Sr. D. ................. Yea Defensor, Matias Jr. V. .................. Yea Del Mar ......................................... Yea Del Rosario ................................... Yea Diasnes.......................................... Diaz ............................................... Yea Dilangalen ..................................... Yea Dimaporo ...................................... Yea Dominguez .................................... Domogan ...................................... Duavit ........................................... Dueñas .......................................... Yea Dumarpa ....................................... Yea Dumpit .......................................... Yea Durano .......................................... Yea Dy ................................................. Ecleo ............................................. Yea Emano ........................................... Yea Enverga ......................................... Ermita-Buhain ............................... Escudero ....................................... Yea Estrella, Conrado III M. ................ Yea Estrella, Robert Raymund M. .............................. Yea Fabian ........................................... Fernandez ..................................... Yea Ferrer ............................................ Yea Fua ................................................ Fuentebella.................................... Yea Garay ............................................ Yea Garcia, Albert S. ........................... Garcia, Pablo P. ............................ Yea Garcia, Pablo John F. .................... Yea Garcia, Vincent J. .......................... Yea Garin ............................................. Yea Gatchalian ..................................... Yea Gatlabayan .................................... Yea Go ................................................. Golez ............................................. Nay Gonzales, Aurelio “Dong” Jr. D. ............................. Yea Gonzales, Neptali II M. ................ Yea Gonzalez ....................................... Guingona ...................................... Yea Gullas ............................................ Yea Gunigundo .................................... Yea Hataman ........................................ Yea Hofer ............................................. Yea Hontiveros-Baraquel ..................... Ilagan ............................................ Jaafar ............................................. Yea Jala ................................................ Yea Jalosjos ......................................... Yea Jalosjos-Carreon ........................... Javier ............................................. Yea Jikiri .............................................. Yea Joson ............................................. Yea Kho ............................................... Yea WEDNESDAY, DECEMBER 5, 2007 Labadlabad ................................... Yea Lacson ........................................... Lagbas ........................................... Yea Lagdameo ..................................... Yea Lagman ......................................... Yea Lapus ............................................ Yea Lazatin .......................................... Yea Ledesma ........................................ Lim ................................................ Yea Limkaichong ................................. Yea Locsin ........................................... Yea Lopez ............................................ Macapagal Arroyo ........................ Madrona ........................................ Yea Magsaysay .................................... Malapitan ...................................... Yea Mamba .......................................... Yea Mandanas ...................................... Mangudadatu ................................ Marañon ........................................ Marcos .......................................... Yea Matugas ........................................ Maza ............................................. Yea Mendoza ....................................... Mercado ........................................ Miraflores ..................................... Yea Mitra ............................................. Nava .............................................. Nicolas .......................................... Noel .............................................. Yea Nograles ........................................ Yea Ocampo ......................................... Olaño ............................................ Yea Ong ............................................... Yea Ortega ........................................... Yea Pablo ............................................. Yea Padilla ........................................... Pancho .......................................... Yea Pancrudo ....................................... Yea Piamonte ....................................... Yea Pichay ........................................... Pingoy ........................................... Yea Piñol .............................................. Yea Plaza ............................................. Yea Ponce-Enrile ................................. Prieto-Teodoro .............................. Puentevella .................................... Puno .............................................. Ramiro .......................................... Remulla ......................................... Reyes, Carmencita O. ................... Reyes, Victoria Hernandez ................................. Robes ............................................ Yea Rodriguez ..................................... Yea Rodriguez-Zaldarriaga .................. Yea Roman ........................................... Romarate ....................................... Yea Romualdez .................................... Romualdo ...................................... Yea Romulo ......................................... Yea Roxas ............................................ Yea 259 Salimbangon ................................. Yea Salvacion ...................................... Yea San Luis ........................................ Yea Sandoval ....................................... Yea Santiago, Joseph A. ....................... Yea Santiago, Narciso III D. ................ Seachon-Lanete ............................. Seares-Luna .................................. Silverio ......................................... Yea Singson, Eric D. ............................ Yea Singson, Ronald V. ........................ Solis .............................................. Yea Soon-Ruiz ..................................... Suarez ........................................... Susano ........................................... Sy-Alvarado .................................. Yea Syjuco ........................................... Yea Taliño-Mendoza ............................ Tan ................................................ Yea Tañada ........................................... Yea Teodoro ......................................... Yea Teves ............................................. Tieng ............................................. Yea Tupas ............................................ Yea Umali, Alfonso Jr. V. ..................... Yea Umali, Czarina D. ......................... Yea Ungab ........................................... Yea Uy, Edwin C. ................................. Yea Uy, Reynaldo S. ............................ Uy, Rolando “Klarex” A. .............. Yea Valdez ........................................... Yea Valencia ........................................ Yea Vargas ........................................... Yea Velarde .......................................... Yea Villafuerte ..................................... Yea Villanueva ..................................... Villar ............................................. Yea Villarosa ........................................ Vinzons-Chato .............................. Yea Violago ......................................... Yea Yap ................................................ Yea Yu .................................................. Yea Zamora, Manuel “Way Kurat” E. ......................... Yea Zamora, Ronaldo B. ...................... Yea Zialcita .......................................... Zubiri ............................................ Yea SECOND ROLL CALL THE DEPUTY SPEAKER (Rep. Datumanong). The Secretary General will conduct a second call for those who have not yet registered their votes. THE SECRETARY GENERAL, reading: Abaya ............................................ Ablan ............................................ Alvarez, Genaro Jr. M. ................. Angping ........................................ Antonino-Custodio ....................... Apostol ......................................... 260 WEDNESDAY, DECEMBER 5, 2007 Arbison ......................................... Arenas ........................................... Arroyo, Diosdado Macapagal ................................. Asilo ............................................. Beltran .......................................... Nay REP. BELTRAN. May I explain my vote, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman has three minutes. REP. BELTRAN EXPLAINS HIS VOTE REP. BELTRAN. I vote no on House Bill No. 3156. First, may I request that my name be deleted in the bill as its co-author. My main objection is that, it is just expanding the regular authority that we have now in aviation and the public funds are going to be provided in order to assure that the operations of the expanded authority would be achieved. However, based on experience, almost all authorities created are failures. Therefore, if this bill is only for the expansion of the authority — because the title of the bill itself says creating the Civil Aviation Authority—I am constrained to vote no to this bill. THE SECRETARY GENERAL, reading: Bichara .......................................... Bondoc .......................................... Bravo ............................................ Cari ............................................... Casiño ........................................... Castelo-Daza ................................. Cerilles .......................................... Climaco ......................................... Cojuangco ..................................... Coscolluela ................................... Crisologo ...................................... De Guzman ................................... Diasnes .......................................... Dominguez .................................... Domogan ...................................... Duavit ........................................... Dy ................................................. Enverga ......................................... Ermita-Buhain ............................... Fabian ........................................... Fua ................................................ Garcia, Albert S. ........................... Go ................................................. Gonzalez ....................................... Hontiveros-Baraquel ..................... Ilagan ............................................ Jalosjos-Carreon ........................... Lacson ........................................... Ledesma ........................................ Lopez ............................................ Macapagal Arroyo ........................ Magsaysay .................................... Mandanas ...................................... Mangudadatu ................................ Marañon ........................................ Matugas ........................................ Mendoza ....................................... Mercado ........................................ Mitra ............................................. Nava .............................................. Nicolas .......................................... Ocampo ......................................... Padilla ........................................... Pichay ........................................... Ponce-Enrile ................................. Prieto-Teodoro .............................. Puentevella.................................... Puno .............................................. Ramiro .......................................... Remulla ......................................... Reyes, Carmencita O. ................... Reyes, Victoria Hernandez ................................. Roman ........................................... Romualdez .................................... Santiago, Narciso III D. ................ Seachon-Lanete............................. Seares-Luna .................................. Singson, Ronald V. ........................ Soon-Ruiz ..................................... Suarez ........................................... Susano ........................................... Taliño-Mendoza ............................ Teves ............................................. Uy, Reynaldo S. ............................ Villanueva ..................................... Villarosa ........................................ Zialcita .......................................... APPROVAL OF H.B. 3156 ON THIRD READING THE DEPUTY SPEAKER (Rep. Datumanong). The results show 160 votes in favor, two against and no abstention. House Bill No. 3156 is approved on Third Reading. REP. GONZALEZ (N.). Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Sr. Dep. Majority Leader is recognized. REP. GONZALES (N.). Mr. Speaker, I move that the Secretary General be directed to immediately transmit to the Senate a copy of the approved House Bill No. 3156 on Third Reading. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. REP. GONZALEZ (N.). Mr. Speaker, I move that we approve.... THE DEPUTY SPEAKER (Rep. Datumanong). The Sr. Dept Majority Leader is recognized. WEDNESDAY, DECEMBER 5, 2007 SUSPENSION OF SESSION REP. GONZALEZ (N.). May I ask a few minutes’ suspension of session, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The session is suspended for a few minutes. It was 5:43 p.m. 261 HIGH SCHOOL SAN ROQUE ANNEX FROM ANTIPOLO NATIONAL HIGH SCHOOL AND CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE SAN ROQUE NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR” By Representative Gatlabayan TO THE COMMITTEER ON BASIC EDUCATION AND CULTURE AND THE COMMITTEE ON APPROPRIATIONS RESUMPTION OF SESSION At 5:45 p.m., the session was resumed. THE DEPUTY SPEAKER (Rep. Datumanong). The session is resumed. The Floor Leader is recognized. REP. MALAPITAN. Mr. Speaker, I move that we proceed to the Reference of Business. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. The Secretary General will please read the Reference of Business. REFERENCE OF BUSINESS The Secretary General read the following House Bills and Resolutions on First Reading and Committee Reports, and the Deputy Speaker made the corresponding references: BILLS ON FIRST READING House Bill No. 3166, entitled: “AN ACT PROVIDING FOR THE ESTABLISHMENT OF A MULTI-PURPOSE SPORTS CENTER IN THE 2ND DISTRICT OF THE CITY OF ANTIPOLO, PROVINCE OF RIZAL, TO BE KNOWN AS THE ‘ANTIPOLO CITY DISTRICT 2 SPORTS CENTER’ AND APPROPRIATING FUNDS THEREFOR” By Representative Gatlabayan TO THE COMMITTEE ON YOUTH AND SPORTS DEVELOPMENT AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3167, entitled: “AN ACT SEPARATING ANTIPOLO NATIONAL HIGH SCHOOL SAPINIT ANNEX FROM ANTIPOLO NATIONAL HIGH SCHOOL AND CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE SAPINIT NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR” By Representative Gatlabayan TO THE COMMITTEE ON BASIC EDUCATION AND CULTURE AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3168, entitled: “AN ACT SEPARATING ANTIPOLO NATIONAL House Bill No. 3169, entitled: “AN ACT SEPARATING ANTIPOLO NATIONAL HIGH SCHOOL MAXIMO L. GATLABAYAN ANNEX FROM ANTIPOLO NATIONAL HIGH SCHOOL AND CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE MAXIMO L. GATLABAYAN NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR” By Representative Gatlabayan TO THE COMMITTEE ON BASIC EDUCATION AND CULTURE AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3170, entitled: “AN ACT SEPARATING ANTIPOLO NATIONAL HIGH SCHOOL CALAWIS ANNEX FROM ANTIPOLO NATIONAL HIGH SCHOOL AND CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE CALAWIS NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR” By Representative Gatlabayan TO THE COMMITTEE ON BASIC EDUCATION AND CULTURE AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3171, entitled: “AN ACT SEPARATING ANTIPOLO NATIONAL HIGH SCHOOL CUPANG ANNEX FROM ANTIPOLO NATIONAL HIGH SCHOOL AND CONVERTING IT INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS THE CUPANG NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR” By Representative Gatlabayan TO THE COMMITTEE ON BASIC EDUCATION AND CULTURE AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3172, entitled: “AN ACT PROVIDING FOR THE RECONSTRUCTION OF THE CANAO NATIONAL BRIDGE FORMERLY PASUNGLAO NATIONAL BRIDGE IN THE CITY OF TABUK ALONG THE TABUK-LUBUAGAN-BONTOC ROAD PROVINCE OF KALINGA AND PROVIDING FUNDS THEREFOR” By Representative Agyao TO THE COMMITTEE ON PUBLIC WORKS AND 262 WEDNESDAY, DECEMBER 5, 2007 HIGHWAYS AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3173, entitled: “AN ACT PROVIDING FOR THE ESTABLISHMENT OF A BARANGAY HEALTH CENTER IN BARANGAY DANGTALAN, MUNICIPALITY OF PASIL IN THE PROVINCE OF KALINGA AND APPROPRIATING FUNDS THEREFOR” By Representative Agyao TO THE COMMITTEE ON LOCAL GOVERNMENT AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3174, entitled: “AN ACT SEPARATING THE MACUTAY BARANGAY HIGH SCHOOL ANNEX IN BARANGAY MACUTAY, MUNICIPALITY OF RIZAL, PROVINCE OF KALINGA FROM ITS MOTHER SCHOOL, THE RIZAL NATIONAL SCHOOL OF ARTS AND TRADE, AND CONVERTING INTO AN INDEPENDENT NATIONAL HIGH SCHOOL TO BE KNOWN AS MACUTAY-PALAO NATIONAL HIGH SCHOOL AND APPROPRIATING FUNDS THEREFOR” By Representatives Agyao and Mamba TO THE COMMITTEE ON BASIC EDUCATION AND CULTURE AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3175, entitled: “AN ACT INSTITUTIONALIZING A NATIONAL LAND USE POLICY, PROVIDING THE FRAMEWORK AND MECHANISMS FOR IMPLEMENTING THEREOF” By Representative Cerilles TO THE SPECIAL COMMITTEE ON LAND USE House Bill No. 3176, entitled: “AN ACT CONVERTING THE ZAMBOANGA DEL SUR MEDICAL CENTER IN THE CITY OF PAGADIAN, PROVINCE OF ZAMBOANGA DEL SUR, INTO THE ZAMBOANGA DEL SUR REGIONAL HOSPITAL, AND APPROPRIATING FUNDS THEREFOR” By Representative Cerilles TO THE COMMITTEE ON HEALTH AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3177, entitled: “AN ACT CONVERTING THE MARGOSATUBIG REGIONAL HOSPITAL IN THE MUNICIPALITY OF MARGOSATUBIG, PROVINCE OF ZAMBOANGA DEL SUR, INTO THE MARGOSATUBIG CENTER FOR TUBERCULOSIS AND OTHER RESPIRATORY DISEASES, AND APPROPRIATING FUNDS THEREFOR” By Representative Cerilles TO THE COMMITTEE ON HEALTH AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3178, entitled: “AN ACT TRANSFERRING THE BUREAU OF FISHERIES AND AQUATIC RESOURCES FROM THE DEPARTMENT OF AGRICULTURE TO THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES” By Representative Reyes (C.) TO THE COMMITTEE ON GOVERNMENT REORGANIZATION AND THE COMMITTEE ON AQUACULTURE AND FISHERIES RESOURCES House Bill No. 3179, entitled: “AN ACT TO REGULATE THE TRADE, MARKETING, ADVERTISING AND PROMOTION OF INFANT FORMULA AND FOR OTHER PURPOSES” By Representative Gunigundo TO THE COMMITTEE ON HEALTH House Bill No. 3180, entitled: “AN ACT DECLARING THE AREAS AROUND AND BETWEEN AGLUBANG-IBOLO RIVERS IN THE MUNICIPALITIES OF BACO, NAUJAN AND VICTORIA, ALL IN THE PROVINCE OF ORIENTAL MINDORO AND THE MUNICIPALITY OF SABLAYAN, PROVINCE OF OCCIDENTAL MINDORO A PROTECTED WATERSHED LANDSCAPE UNDER THE NATIONAL INTEGRATED PROTECTED AREAS SYSTEM, AND FOR OTHER PURPOSES” By Representatives Valencia, Umali (A.) and Villarosa TO THE COMMITTEE ON NATURAL RESOURCES House Bill No. 3181, entitled: “AN ACT STRENGTHENING THE BUREAU OF FOOD AND DRUGS (BFAD) BY ESTABLISHING LABORATORY FACILITY EACH IN LUZON, VISAYAS AND MINDANAO AND REGULATORY FIELD OFFICE IN EVERY PROVINCES AND CITIES, AND APPROPRIATING FUNDS THEREFOR” By Representative Syjuco TO THE COMMITTEE ON HEALTH House Bill No. 3182, entitled: “AN ACT PROVIDING FOR THE COMPULSORY DISCLOSURE OF FIRE SAFETY STANDARDS AND MEASURES IN CAMPUS BUILDINGS” By Representatives Arroyo (D.), Romualdez, Go, Gonzales (A.), Puno and Enverga TO THE COMMITTEE ON PUBLIC ORDER AND SAFETY AND THE COMMITTEE ON HIGHER AND TECHNICAL EDUCATION House Bill No. 3183, entitled: “AN ACT GRANTING ALL QUALIFIED SENIOR CITIZENS TWENTY PERCENT (20%) DISCOUNT ON GASOLINE, KEROSENE, LIQUEFIED PETROLEUM GAS (LPG) AND OTHER PETROLEUM PRODUCTS, WEDNESDAY, DECEMBER 5, 2007 AMENDING FOR THE PURPOSE SECTION 4 OF REPUBLIC ACT NO. 7432, OTHERWISE KNOWN AS ‘AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES’, AND FOR OTHER PURPOSES” By Representatives Arroyo (D.), Romualdez, Go, Gonzales (A.), Puno and Enverga TO THE COMMITTEE ON POPULATION AND FAMILY RELATIONS House Bill No. 3184, entitled: “AN ACT CREATING A DEPARTMENT OF FISHERIES AND AQUATIC RESOURCES, PROVIDING FOR ITS POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES” By Representatives Arroyo (D.), Romualdez, Go, Gonzales (A.), Puno and Enverga TO THE COMMITTEE ON GOVERNMENT REORGANIZATION AND THE COMMITTEE ON AQUACULTURE AND FISHERIES RESOURCES House Bill No. 3185, entitled: “AN ACT TO PRESCRIBE, AS A PRIORITY PROGRAM, THE SCIENTIFIC PROPAGATION, CULTURE, PROCESSING AND UTILIZATION OF RATTAN, CREATING FOR THIS PURPOSE THE PHILIPPINE RATTAN DEVELOPMENT OFFICE, ALLOCATING FUNDS THEREFOR AND FOR OTHER PURPOSES.” By Representatives Arroyo (D.), Romualdez, Go, Gonzales (A.), Puno and Enverga TO THE COMMITTEE ON AGRICULTURE AND FOOD House Bill No. 3186, entitled: “AN ACT ESTABLISHING THE BOHOL SECOND DISTRICT ENGINEERING OFFICE IN THE PROVINCE OF BOHOL TO BE LOCATED IN THE MUNICIPALITY OF UBAY, PROVINCE OF BOHOL, AND APPROPRIATING FUNDS THEREFOR” By Representative Cajes TO THE COMMITTEE ON PUBLIC WORKS AND HIGHWAYS AND THE COMMITTEE ON APPROPRIATIONS House Bill No. 3187, entitled: “AN ACT DIRECTING THE USE OF COMPRESSED NATURAL GAS (CNG) FOR PUBLIC UTILITY VEHICLES (PUVs) IN METRO MANILA, ESTABLISHING THE NATURAL GAS VEHICLE PROGRAM FOR PUBLIC TRANSPORT, AND FOR OTHER PURPOSES” By Representative De Venecia TO THE COMMITTEE ON ENERGY House Bill No. 3188, entitled: “AN ACT PROVIDING STIFFER PENALTIES FOR THE CRIME OF THEFTAND ROBBERY OF PORTABLE TELECOMMUNICATION DEVICES” 263 By Representative Arago TO THE COMMITTEE ON REVISION OF LAWS RESOLUTIONS House Resolution No. 354, entitled: “RESOLUTION CALLING FOR AN INVESTIGATION, IN AID OF LEGISLATION, BY THE APPROPRIATE HOUSE COMMITTEE ON THE RECENT BIDDING FOR THE PRIVATIZATION OF THE NATIONAL TRANSMISSION CORPORATION IN RELATION TO THE ALLEGED IRREGULARITIES THAT ATTENDED IT” By Representative Suarez TO THE COMMITTEE ON RULES House Resolution No. 355, entitled: “A RESOLUTION URGING THE HOUSE COMMITTEE ON ENERGY TO LOOK INTO THE VARIOUS ISSUES AS LAID DOWN HEREIN BELOW AFFECTING THE PROPOSED LEGISLATION ON RENEWABLE ENERGY” By Representative Magsaysay TO THE COMMITTEE ON RULES House Resolution No. 356, entitled: “RESOLUTION URGING THE HOUSE OF REPRESENTATIVES THROUGH THE COMMITTEE ON PUBLIC INFORMATOIN AND COMMITTEE ON PUBLIC ORDER AND SECURITY TO INVESTIGATE, IN AID OF LEGISLATION, THE ALLEGED VIOLATIOIN BY THE POLICE OF PRESS FREEDOM ON THE OCCASION OF THE MANILA PENINSULA HOTEL STAND-OFF ON NOVEMBER 29, 2007” By Representative Abante TO THE COMMITTEE ON RULES House Resolution No. 357, entitled: “RESOLUTION RESPECTFULLY URGING THE EXECUTIVE, THROUGH THE HONORABLE SECRETARIES OF FINANCE AND AGRICULTURE TO NOW TAKE DEFINITE AND POSITIVE STEPS TOWARDS MEANINGFUL UTILIZATION OF THE COCONUT LEVYASSETS, PARTICULARLY THE TWENTY-FOUR PERCENT (24%) SAN MIGUEL CORPORATION (SMC) SHARES DECLARED BY THE SANDIGANBAYAN AS BELONGING TO THE GOVERNMENT IN TRUST FOR ALL THE COCONUT FARMERS – TO FINALLY GIVE MEANINGFUL RELIEF TO THEIR CONTINUING DIFFICULTIES AND IMPOVERISHMENT” By Representative Alcala TO THE COMMITTEE ON AGRICULTURE AND FOOD House Resolution No. 358, entitled: “RESOLUTION RESPECTFULLYURGING THE TRAFFIC REGULATORY AGENCIES PARTICULARLY THE LAND TRANSPORTATION, AND FRANCHISING BOARD, THE PHILIPPINE NATIONAL POLICEAND THE METRO MANILA AUTHORITY TO TAKE 264 WEDNESDAY, DECEMBER 5, 2007 CONCRETE AND SERIOUS STEPS TOWARDS CONSISTENT ENFORCEMENT OF TRAFFIC LAWS, RULES AND REGULATIONS TO PREVENT OR MINIMIZE INCREASING TRAFFIC ACCIDENTS” By Representative Alcala TO THE COMMITTEE ON TRANSPORTATION House Resolution No. 359, entitled: “A RESOLUTION CONDEMNING IN THE STRONGEST TERM THE HIGH HANDED MANNER THE POLICE AUTHORITIES IMPLEMENTED THE ARREST OF SENATOR ANTONIO TRILLANES IV, A MEMBER OF THE 14TH CONGRESS AND JOURNALISTS WHO COVERED THE MANILA PENINSULA HOTEL SIEGE IN MAKATI CITY ON NOVEMBER 29, 2007 AND CALLING AN INDEPTH CONGRESSIONAL INVESTIGATION ON THE INCIDENT TO PREVENT A REPEAT OF THE SAME IN THE FUTURE” By Representative Asilo TO THE COMMITTEE ON RULES COMMITTEE REPORTS Report by the Committee on Local Government (Committee Report No. 101), re H.B. No. 3206, entitled: “AN ACT AMENDING SECTION OF REPUBLIC ACT NO. 6769, ENTITLED, ‘AN ACT CREATING THE MUNICIPALITY OF SAN JOSE IN THE PROVINCE OF [SURIGAO DEL NORTE] DINAGAT ISLANDS’” recommending its approval in substitution of House Bill No. 1441 Sponsors: Representatives Arnaiz, Ecleo and the members of the Committee on Local Government TO THE COMMITTEE ON RULES Report by the Committee on Local Government (Committee Report No. 104), re H.B. No. 3224, entitled: “AN ACT PROVIDING FOR THE REAPPORTIONMENT OF THE LONE LEGISLATIVE DISTRICT OF THE PROVINCE OF AGUSAN DEL SUR” recommending its approval in substitution of House Bill No. 548 Sponsors: Representatives Arnaiz, Plaza and the Members of the Committee on Local Government TO THE COMMITTEE ON RULES SUSPENSION OF SESSION THE DEPUTY SPEAKER (Rep. Datumanong). The session is suspended. It was 5:50 p.m. RESUMPTION OF SESSION At 5:50 p.m., the session was resumed. THE DEPUTY SPEAKER (Rep. Datumanong). The session is resumed. REP. MALAPITAN. Mr. Speaker, I ask that the Honorable Teofisto DL. Guingona III be recognized for his personal and collective privilege. THE DEPUTY SPEAKER (Rep. Datumanong). The distinguished Gentleman from Bukidnon is recognized. For what reason does he rise? REP.. GUINGONA. Mr. Speaker, I would like to talk about the recent controversy on the bidding of the Transmission Corporation or Transco. Report by the Committee on Foreign Affairs (Committee Report No. 102), re H.B. No. 3216, entitled: “AN ACT DEFINING THE ARCHIPELAGIC BASELINES OF THE PHILIPPINE ARCHIPELAGO, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 3046, AS AMENDED BY REPUBLIC ACT NO. 5446” recommending its approval in substitution of House Bill No. 1202 Sponsor: Representative Cuenco TO THE COMMITTEE ON RULES THE DEPUTY SPEAKER (Rep. Datumanong). How does this affect his integrity, honor, and duty, as a Member of the House of Representatives? Report by the Committee on Local Government (Committee Report No. 103), re H.B. No. 3223, entitled: “AN ACT CREATING A BARANGAY TO BE KNOWN AS BARANGAY MANGMANGA IN THE MUNICIPALITY OF SAN EMILIO, PROVINCE OF ILOCOS SUR” recommending its approval in substitution of House Bill No. 1494 Sponsors: Representatives Arnaiz, Singson (E.) and the Members of the Committee on Local Government TO THE COMMITTEE ON RULES QUESTION OF PRIVILEGE OF REP. GUINGONA REP. GUINGONA. Mr. Speaker, the Transmission Corporation affects everyone, not only us lawmakers but all Filipinos. This is the backbone where electricity is transmitted throughout the country. THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman has 10 minutes. REP. GUINGONA. Thank you, Mr. Speaker. Mr. Speaker, this country is about to witness a scam, a controversy that makes the NBN-ZTE deal look very very trivial. But it does not involve buying or contracting a project. It involves selling one of the few remaining crown jewels of the Filipino taxpayer and the power consumer. This is the National Transmission Corporation or Transco. On December 12, unless public opinion, or unless the regional trial court stops the Power Sector Assets and WEDNESDAY, DECEMBER 5, 2007 Liabilities Management Corporation (PSALM) from pushing through with an obviously controversial bidding, the entire transmission grid of our Republic will be sold for a little more than $3 billion. That is $3billion, roughly 10 times the value of the botched ZTE deal. The sale is in compliance with the provisions of the Electric Power Industry Reform Act (EPIRA), which promised rational and reasonable power rates for consumers, but ended up increasing the power costs for consumers due to deliberate calibrated delays in its implementation by this administration. Three billion dollars is the indicative price, as gleaned from an earlier failed bidding in 2006 where only one corporation, Citadel Holdings Inc., controlled by businessman Ricky Delgado submitted its tender. The PSALM thus resolved to hold another bidding, and in newspaper accounts, kept floating the $3 to $4 billion estimate of Transco’s worth. And so the PSALM did initiate a bidding process with an invitation to bid on July 23, this year. Five corporations expressed interest to bid, namely: 1. San Miguel Energy Corporation and TPG Aurora, a British Virgin Island company, represented by Ramon Ang; 2. The consortium of Citadel Holdings and the Power Grid Corporation of India which is represented by Ricky Delgado and Amalia S. de la Rosa; 3. The consortium of Two Rivers Pacific Holdings Corporation and Terna-Rete Electrica Nazionale S.P.A., represented by Jose Ma. Lim. 4. Monte Oro Grid Resources Corporation and the State Grid Corporation of China, owned by the People’s Republic of China, represented by Walter Brown; and the 5. Consortium of La Costa Development Corporation and SNC Lavallin of Canada, represented by Salvador B. Zamora and former Finance Secretary Roberto de Ocampo. Under the documented bidding procedures, each prospective bidder must submit a pre-qualification proposal where it must prove its financial and technical qualifications to bid for Transco assets. Among the qualifications is that the Filipino partner or investor must prove that it is capable of funding an equity investment of at least $300 million. How then does he do that? Four ways, as the PSALM directed: 1. The Filipino investor has a net asset value or market capitalization of at least $300 million; 2. It has an affiliate that has a net asset value or market capitalization of at least $300 million, and shall enter into a financial support arrangement with the consortium that is bidding for the project; 3. It maintains accounts with a qualified bank and the average aggregate daily balance for at least three months as of the date of certification by the bank, is at least $300 million; and 4. It is able to present an opinion from a highly qualified bank that the bank is highly confident that such Philippine investor has the ability to fund an equity investment in an amount of not less than $300 million. La Costa Development Corporation was the first to comply with the pre-qualification financial requirements. It also presented the duly authenticated consular requirements to prove its partnership with SNC Lavallin of Montreal, the world’s second largest electric power 265 player, and one of Canada’a largest corporations. In short, La Costa was the first to comply, Mr. Speaker. And it bore in silence the extension of the deadline for the pre-qualification engineered by the officials of the PSALM— the first extension was October 12, till a final date of October 31— obviously bending backwards to satisfy other bidders. But lo and behold, on October 31, 2007, La Costa was surprised that they were disqualified through a letter of Mr. Jose Ibazeta, the person in charge of the PSALM. At this point, I would like to bring up the issue of impartiality of Mr. Ibazeta. In a newspaper article of the Philippine Daily Inquirer, Senate Minority Leader Aquilino “Nene” Pimentel alleged a conflict of interest in the privatization process. Senator Pimentel alleged that Ibazeta has been a director since 1987 of the International Container Terminal Services, Inc. (ICTSI) whose chairperson is businessman Enrique Razon Jr., one of the bidders of Transco. “Ibazeta is also a board member,” the article alleges, “of Razon’s various domestic and international port subsidiaries and interests.” According to the article, Razon is a powerful businessman close—I repeat, close—to President Gloria MacapagalArroyo and her husband Jose Miguel and leads the Monte Oro Consortium that is bidding for Transco assets with the backing from State Grid Corporation of China. According to Senator Pimentel, the least that Mr. Ibazeta should have done was to inhibit himself. Despite an urgent petition for reconsideration by La Costa, the PSALM simply publicized its decision through the print media, pre-qualifying four bidders, La Costa excluded. In its October 31 decision, the PSALM also disqualified Citadel Holdings, perhaps realizing that they had qualified the same consortium in 2006 and in fact was the only company to submit the bid of some $3 billion, the PSALM considered it. But La Costa was left out in the cold, because in so many words, Mr. Ibazeta and the board which includes the Secretary of Finance, the Secretary of Energy, the Secretary of Trade and Industry, did not find credible a bank certification attesting to the financial capability of La Costa headed by former Secretary of Finance De Ocampo and Mr. Salvador Zamora. Mr. Speaker, Transco is presently owned and operated by the government, by the republic. And despite the government’s notorious inefficiency, it nets $400 million each year. Assuming no change in levels of efficiency, if someone bids $3 to $4 billion dollars, he gets his investment back anywhere from seven to 10 years. Mr. Speaker, that does not include the hefty earnings from the roll of the steady money stream of $400 million annually. More than that, $400 million is what would you earn by using Transco grid for the transmission of electric power as presently operated. But I would like to point out that the same transmission grid has a fiber optic grid that is presently being used as a communication backbone by the Transco. And if we will recall, University of the Philippines (UP) Professors Raul Fabella and Emmanuel de Dios, in their paper on the National Broadband Project, precisely mentioned that the government already possesses the backbone for a national broadband network, and that is Transco. The bidding for Transco is about the purchase of two government assets for the price of electric power transmission and a national broadband backbone. So I really wonder why the PSALM keeps talking in terms of the value of one asset 266 WEDNESDAY, DECEMBER 5, 2007 which is the electric transmission, $3 to $4 billion, when it is actually selling two precious assets, the other being the national broadband network that Transco is presently operating. In an interview by Philippine Daily Inquirer, La Costa vice-chairperson Roberto de Ocampo stated that La Costa was intent on bidding at a minimum of $6 billion had it been allowed to participate. Mind you, Mr. Speaker, this is double the indicative price of the PSALM’s $3 billion. By the simple expedient of writing off La Costa, a financially capable buyer whose technical capability is represented by one of the world’s most prestigious corporations, the management of the PSALM has shown an obvious partiality that must be investigated. Mr. Speaker, the sale of Transco will obviously affect every Filipino. We must make sure that we do this properly. There is also the issue of national security. Remember that the Transco is the backbone for electric power transmission and has the potential for a communications broadband backbone. It is important that whoever controls Transco must be loyal to the nation and the people. Let me make it more vivid, Mr. Speaker. Just imagine if someone else has his hands on your backbone. If he has your best interest at heart, he will take care of your backbone. But if that person wants to destroy you, all he has to do is break your backbone, snap your backbone in two and you will be paralyzed. May God have mercy on us if we make the mistake of turning over these two backbones to an entity that has an agenda that is detrimental to our nation. Mr. Speaker, I resolve and I must insist that the bidding process of Transco be investigated. Thank you, Mr. Speaker. certifying that La Costa and a particular individual, Mr. Zamora, were together good for $300 million. The Gentleman is correct, maybe we should look into this. And the objection of the PSALM is that why is it joint? Why could they not secure a certification that La Costa, the consortium only, was good for $300 million? By the way, If I may, I am assured by a taipan that the $300 million is peanuts in this business because what they will earn everyday once they control Transco is unimaginable. So, what was wrong? Did the PSALM explain what is wrong with having two accounts—La Costa and Mr. Zamora—certifying to the availability of $300 million Why is that inferior to having only La Costa? REP. GUINGONA. Mr. Speaker, it seems that the PSALM did not adequately explain, it merely stated such. REP. LOCSIN. Mr. Speaker, since $300 million, as my friend told me, is “peanuts” why could La Costa, just for the hell of it, not comply with the strict letter of the PSALM requirement and come out with a bank certification that La Costa is good for a picayune amount of $300 million. REP. GUINGONA. Precisely, La Costa has filed a motion for reconsideration but it was not an urgent petition for reconsideration, and the PSALM chose to ignore it. Right now, Mr. Speaker, the contents of the motion for reconsideration are not in my hands. I think, they should be part of the investigation as to why La Costa was so summarily put out of the bidding process. THE DEPUTY SPEAKER (Rep. Datumanong). What is the pleasure of the distinguished Gentleman from Makati City? REP. LOCSIN. Mr. Speaker, is the honorable Gentleman suggesting that the documents of all the other bidders be accessed by this Congress or the appropriate committee, so that we can compare whether the bank certifications of all the other bidders are distinct from that of La Costa? And in what respect the bank certifications of the other bidders are superior to that of La Costa’s joint certification. REP. LOCSIN. Is the honorable Gentleman’s speech susceptible to interpellation? REP. GUINGONA. Only in the sense that we are looking for an obvious bias. REP. LOCSIN. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). He may if he so desires. REP. GUINGONA. Yes, of course. THE DEPUTY SPEAKER (Rep. Datumanong). Then the distinguished Gentleman from Makati City will please proceed with his interpellation. REP. LOCSIN. Mr. Speaker, could the honorable Gentleman again detail to us the particular bid that was rejected and the grounds for its rejection. REP. LOCSIN. That is right. REP. GUINGONA. Only in the sense that we are looking for an obvious bias not to the point of taking over the functions of the PSALM with regards to privatization. REP. LOCSIN. No, I do not think there is any suggestion of taking over the functions of the PSALM but simply that everybody should see whether all the other bidders have submitted identical documents. REP. GUINGONA. Yes. REP. GUINGONA. Mr. Speaker, the grounds for rejection was that some did not consider or believe the certification from the bank, I think it is Security Bank, attesting to the financial capability of La Costa. REP. LOCSIN. Mr. Speaker, I believe the exact objection was that the certification of the bank stated that they were REP. LOCSIN. And only La Costa sticks out, and that was why it was... REP. GUINGONA. Yes, definitely, and we must remember that of all the bidders, La Costa complied on time. WEDNESDAY, DECEMBER 5, 2007 REP. LOCSIN. And they have everything except the certification. Yes, that is true. REP. GUINGONA. The PSALM did not say anything. Instead it extended twice the deadline to obviously accommodate other bidders. REP. LOCSIN. By the way, who are the other bidders, could the Gentleman name the personalities behind them? REP. GUINGONA. San Miguel Energy Corporation and TPG Aurora, a British Virgin Island company, represented by Ramon Ang. REP. LOCSIN. Wait a minute. A Virgin Island company, what does that mean, many virgins or is it a post office box? 267 of collusion, why would the PSALM bother to exclude anyone? What would be the basis of their bias? REP. GUINGONA. Right now, Mr. Speaker,.... REP. LOCSIN. Animosity? REP. GUINGONA. Obviously, it is speculation that is why I think we should delve into it. REP. LOCSIN. Is it possible because he is related to the head of the opposition? REP. GUINGONA. (Laughter) REP. LOCSIN. No, I mean, the honorable Gentleman should answer this because he is the one who raised the issue. REP. GUINGONA. I am not privy to that, Mr. Speaker. REP. GUINGONA. Yes, Mr. Speaker, but... REP. LOCSIN. Who else? REP. LOCSIN. And everything here is speculative. REP. GUINGONA. The consortium of Citadel Holdings, the Power Grid Corporation of India, which is represented by Ricky Delgado and Amalia S. dela Rosa, the consortium of Two Rivers Pacific Holdings Corporation and Terna-Rete Electtrica Nazionale S.P.A. represented by Jose Maria Li,. Monte Oro Grave Resources Corporation and the State Grid Corporation of China, owned by the People’s Republic of China, represented by Walter Brown... REP. LOCSIN. Yes, I know Mr. Walter Brown. He seats with me in Filadril. REP. GUINGONA. ...and the consortium of La Costa. REP. LOCSIN. And the consortium of La Costa. Is the honorable Gentleman suggesting that these four other bidders have colluded to exclude La Costa? REP. GUINGONA. No, I am suggesting that, Mr. Speaker, I am saying that we should look at the issue of partiality or impartiality of the PSALM. REP. LOCSIN. Mr. Speaker, La Costa said that it was prepared to bid $6 billion, twice the indicative price of $3 billion that all the other bidders will follow. Is it possible that the honorable Gentleman is suggesting that these other three or four—probably the Italians are out of it because everybody is trying to exclude them anyway because they have backers in the Philippines— bidders have colluded to exclude a bidder who does not go along with them and who comes out with a preposterously big bid? REP GUINGONA. That would be a speculation, Mr. Speaker, but right now the focus of my speech should be on the partiality of the management of the PSALM. As to collusion, I do not find any present indication of it. REP. GUINGONA. Yes, Mr. Speaker, but right now the answers to those questions, I think, can be revealed at a later investigation. REP. LOCSIN. But is the bidding not on December 12? REP. GUINGONA. Yes, it is. REP. LOCSIN. So this call for an investigation, with all the business of the House, is almost pointless. REP. GUINGONA. In the sense that it might be in aid of legislation... REP. LOCSIN. No, it would be... REP. GUINGONA. ...and galvanizing public opinion. Which, hopefully, may snowball and convince the PSALM to postpone the bidding to a later date. REP. LOCSIN. So, we cannot pursue the collusion angle. Would the Gentleman know if one of the conditions of the bid is that all the other bidders who lose cannot join the winner? Because if they can join the winner in the winning bid, then this bid was a sham, and the only thing that they would be concerned about was to make sure that no one bidded too far above the indicative price. REP. GUINGONA. Mr. Speaker, I am not privy to that. I do not know if that is a condition to the bidding. REP. LOCSIN. I understand that La Costa has gone to court. REP. GUINGONA. Yes, it has, Mr. Speaker. REP. LOCSIN. But if there is bias, Mr. Speaker, there must be a reason for it. If the honorable Gentleman is not prepared to accuse San Miguel, Delgado and Walter Brown At this juncture, Deputy Speaker Simeon A. Datumanong relinquished the Chair to Rep. Rene M. Velarde. 268 WEDNESDAY, DECEMBER 5, 2007 REP. LOCSIN. I understand that the PSALM has said that it will abide by the ruling of the Court of First Instance or regional trial court. REP. GUINGONA. They should, Mr. Speaker. REP. LOCSIN. Does the Gentleman have any idea? At this point, this issue is now in court. REP. GUINGONA. Yes, Mr. Speaker, the issue of the exclusion of La Costa, but we must look also into the issue of partiality of the PSALM. REP. LOCSIN. If the PSALM were to try to correct its alleged partiality, would it not be prevented by the existence of a lawsuit, a court case? REP. GUINGONA. No. REP. LOCSIN. And should that court case not be withdrawn? REP. GUINGONA. The point is, if the PSALM would manifest that it would be willing to rectify itself, then, of course, the lawsuit could be withdrawn, Mr. Speaker. REP. LOCSIN. On the other hand, the PSALM might say, “But what if we win the court case?” then we would have considered for nothing. REP. GUINGONA. That is possible, Mr. Speaker. REP. LOCSIN. So basically, we should wait for the action of the court because the remedy is already there. was no history of partiality in the past by the PSALM, then there will not be any partiality in the future, I do not think that.... REP. LOCSIN. No, what I am getting at is perhaps we are not looking closely enough at those past transactions. REP. GUINGONA. I see, Mr. Speaker, all right. REP. LOCSIN. Mr. Speaker, may I ask the last question. Since this is a matter that is already in the courts. What would the honorable Gentleman wish this Congress to do? Preempt the court? REP. GUINGONA. We should look into the partiality regardless of the court case, that is one. The other is, as a member of the Power Commission—to which both my distinguished colleague and I are members—we should also take this up. I hope at that time it would not be moot anymore. I hope that the meeting will take place prior to the sale. REP. LOCSIN. The Power Commission, I believe, meets on December 13, the day after the bidding. REP. GUINGONA. There we have it. REP. LOCSIN. Thank you very much, Mr. Speaker. REP. CASIÑO. Mr. Speaker. REP. ALFELOR. Mr. Speaker. REP. CASTRO. Mr. Speaker REP. CRISOLOGO. Mr. Speaker. REP. GUINGONA. As I said, Mr. Speaker, the intention is also to galvanize public opinion; to put in question the partiality of the PSALM’s management in selling assets of the government. This will not be only save the PSALM. There will be other assets. REP. LOCSIN. That was our other issue. REP. GUINGONA. No, the issue is the partiality of the PSALM in handling the privatization and the PSALM will handle a lot more other assets. If it cannot be partial now, it cannot be partial later. REP LOCSIN. Mr. Speaker, speaking of a universal partiality, did the honorable Gentleman notice any partiality in the sale of the PNOC-EDC to – what was the company? I think we were both informed of that—I forgot—the Lopezes, right? Did the Gentleman notice any partiality in that sale? THE PRESIDENT OFFICER (Rep. Velarde). The Dep. Majority Leader is recognized. REP. CASTRO. Mr. Speaker. SUSPENSION OF SESSION REP. CRISOLOGO. I ask for a minute suspension of session, Mr. Speaker. THE PRESIDING OFFICER (Rep. Velarde). The Dep. Majority Leader is recognized. It was 6:22 p.m. RESUMPTION OF SESSION At 6:23 p.m., the session was resumed. REP GUINGONA. None that I know of, Mr. Speaker. REP. LOCSIN. The amount of the sale was a whopping P40 billion. Is there any other instance of partiality by the PSALM? REP. GUINGONA. Mr.Speaker, I know where the Gentleman is getting at. It does not mean that since there THE PRESIDING OFFICER (Rep. Velarde). The session is resumed. REP. CRISOLOGO. Mr. Speaker, before we extend the time of the Honorable Guingona, may we acknowledge the presence of some of our guests from the Medical Action Group, the Little Sisters of Jesus, Sons of Charity and WEDNESDAY, DECEMBER 5, 2007 OXFAM who are here in support of the Cheaper Medicines Bill. (Applause) THE PRESIDING OFFICER (Rep. Velarde). Please rise. We welcome them to the House of Representatives. We are honoured by their visit. REP. CRISOLOGO. Mr. Speaker, I move that we extend the time of the Honorable Guingona. THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. REP. ALFELOR. Mr. Speaker. REP. CASIÑO. Mr. Speaker. REP. CRISOLOGO. Mr. Speaker, I ask that the Honorable Teodoro A. Casiño be recognized as the next interpellator. THE PRESIDING OFFICER (Rep. Velarde). The Honorable Casiño is recognized. REP. CRISOLOGO. He will be followed by the Honorable Alfelor. THE PRESIDING OFFICER (Rep. Velarde). He will be followed by the Honorable Alfelor. REP. CASIÑO. Thank you, Mr. Speaker. Would the good Gentleman from Bukidnon yield to a few questions? REP. GUINGONA. Certainly, Mr. Speaker. REP. CASIÑO. Thank you. Now, I will not anymore delve too much on the details of the particular bidding for Transco which will be happening within this month. But I would rather look at the privatization program of the PSALM in general. I understand that aside from Transco, many other assets will be privatized by the PSALM. In fact, a few years back they have started in privatizing the generation plants. May I know the relationship between the privatization of Transco and the privatization of other assets of the National Power Corporation (Napocor). REP. GUINGONA. Mr. Speaker, the power sector has been divided by the EPIRA into four sectors: the generation, transmission, distribution, and supply sector. The EPIRA is mandated to privatize the generation principally for efficient operation so that the open-access system can be utilized, and that consumers can have the freedom of choice when it comes to choosing which generating plant or generating entity it wishes to buy power from. REP. CASIÑO. Thank you, Mr. Speaker. The EPIRA was approved in June 2001, and under the law, six months after the enactment of the EPIRA, the PSALM should have started selling off these assets. But it has been seven years since the EPIRA came into law, and yet, the latest 269 report of the PSALM, as of August 2007, shows that out of 31 plants identified for privatization, it has successfully bid out only nine generating plants. May I know the explanation for this very dismal performance of the PSALM with regard to privatization. REP. GUINGONA. Last meeting at the Energy Commission, I asked Mr. Ibazeta who is in charge of the privatization, the head of the PSALM, if they already had the implementing rules and regulations (IRR) for the privatization of plants under independent power producer (IPP) administration, he said that up to now they still have no implementing rules and regulations for the PSALM. When asked why, he said they are waiting for a World Bank study which would be the template for the implementing rules and regulations. He also said that he just recently sat as the head of PSALM. I also asked him why his predecessors have not come up with any implementing rules and regulations. He could not answer. He bluntly told me that he did not know the answer to the question. I guess, there has been a deliberate calibrated slow-down in the privatization of these assets, especially the NPC plants under IPP administration. And one can speculate that the one who has the right to purchase the coal in those plants is the National Power Corporation. At this juncture, the Presiding Officer relinquished the Chair to Deputy Speaker Simeon A. Datumanong. REP. CASIÑO. Aside from that, I am aware of several biddings of power plants that have failed for various reasons. REP. GUINGONA. One of the main reasons for the failed bidding is the refusal of the Napocor to give transition-supply contracts. These are one-year or two-year contracts which give the power plant the contract or the right to sell, the right to be assured that there will be a buyer of the power that they produce. That is why some of the plants like Masinloc took quite a while because there was no transition-supply contract attached to the asset. REP. CASIÑO. Mr. Speaker, I distinctly remember around two years ago, I filed a resolution and there was an investigation in to the failure of the Masinloc Power Plant where the PSALM sold the power plant to a fly-by–night operator. The bidding pushed through. They actually sold the plant. But because it was a fly-by-night operation, it was not able to put up with the requirements later on, and so the plant was rebid again for $930 million and was sold eventually at twice, I think. REP. GUINGONA. Almost double. REP. CASIÑO. Almost double the original price of the original bidding which did not push through. Now, we are just talking about power plants, the most expensive reached $930 million. Yet, in the bidding of the small generating assets, the small power plants, it has taken seven years and we have only sold nine out of 31. Obviously, there are a lot of problems regarding the procedures, regarding the bidding process of these plants. Now they are going to bid out what the Gentleman say is the crown jewel of the industry, the 270 WEDNESDAY, DECEMBER 5, 2007 Transmission Corporation, the backbone of the industry itself with an expected sale of at least $3 billion. Is there not a problem, Mr. Speaker? Iyong sa maliliit nga namomroblema na tayo sa pagbebenta dahil maraming anomaly, maraming hindi maintindihan kung bakit hindi maibenta nang maayos yet, we are selling the crown jewel at this very time. REP. GUINGONA. Definitely, Mr. Speaker, there is wisdom in what the Gentleman is saying. This Representation is also not averse to having Transco remain in government assets or maybe to break it down and sell its components. Because Transco has three components: the lines itself, the physical wires; the metering service; and the operation center. The operation center is something like a traffic policeman in an intersection, and also the three components of Transco. REP. CASIÑO. Yes. REP. GUINGONA. Plus now added, which we stumbled upon, because the Senate investigated the ZTE contract, there is a communications fiber optic backbone. So, it is not only the crown jewel, it is more than a crown jewel right now because it even has fiber optic communication backbone. And we should thread very carefully in privatizing this. My position is, if at all we privatize this, let us make sure it remains in the hands of Filipinos. REP. CASIÑO. But why the rush? Why is the government rushing the sale of Transco. It still has more than 20 or 22 plants to sell. I remember a few Years ago, during the debates on the EPIRA, the idea was that before selling the crown jewel, which was Transco, the PSALM would first sell the smaller assets. I know that the sense of the debates before was that Transco will be the last to be privatized because it is a very strategic part of the industry, and the priority should be on the smaller assets. When we succeed in selling these assets and perfect probably the bidding process and everything that goes with them, the crown jewel would be sold. Would that not be sticking to that kind of framework? Would that not be a better approach? But the question precisely is, why does it appear that the government is rushing its sale? REP. GUINGONA. There is wisdom in the Gentleman’s words, Mr. Speaker, and I am one with him in asking that question, why the rush when it is not even capable of privatizing the other assets? Why sell the crown jewel when it is not capable of selling the others? I think we should really look into it and maybe we should postpone the sale of Transco. REP. CASIÑO. I remember during the budget hearings, one of the approaches of the Development Budget Coordinating Council (DBCC) in saying that we will have a balanced budget by 2008, is that the government will be selling assets. And I am not so sure if I recall hearing Transco as among the assets to be sold. I understand that the shares in San Miguel, the shares in Meralco, the shares in the Philippine Long Distance Telephone Company (PLDT), all in all, I think more than a P105 billion was expected to be raised from the selling of these assets. Would the same logic not hold true in this case? Probably, the government is rushing the sale so it would have a big source of revenue so that by 2008 perhaps, they could say that, indeed, they achieved the balanced budget? Would that kind of an obsession of having a balanced budget be a reason they are now rushing the sale of Transco? REP. GUINGONA. Yes, I agree with the Gentleman, Mr. Speaker. It is not secret that the government wants to cover up its deficit and its main strategy right now is to sell government assets. Unfortunately for all of us, these are onetime deals and once they are sold, they are lost forever. REP. CASIÑO. And haste makes waste. As I earlier mentioned, in the case of the Masinloc Power Plant, if we did not complain and without the public outcry against the winning bid of this YNN Corporation, a “fly-by-night” operation, if that deal was not stopped, we would have sold Masinloc at 50 percent off the actual price that it could have fetched in an honest-to-goodness bidding. So, the same case could happen in Transco especially with these details now of alleged partiality of the board, we might be selling it for cheaper than what it could actually fetch in. REP. GUINGONA. Definitely, especially now that we have stumbled upon the fact that it has a fiber-optic network where the buyer cannot only operate a power distribution network but a communications network all over the country. REP. CASIÑO. That is correct. Thank you, Mr. Speaker. Now, just for the relevance of this discussion to the ordinary Filipino, what significance does Transco have to the consumers of electricity? REP. GUINGONA. Every consumer has an electric bill and transmission is one of the components in the electric bill. REP. CASIÑO. Yes, in fact, I asked my staff to get my electric bill and I noticed that in the billing summary, transmission cost actually is the third biggest portion of the bill. At least in my bill, it takes up 11.4 percent of the total amount. This is next to distribution and generation which takes up the bulk. In one of the hearings that we had a few weeks ago, I asked Mr. Ibazeta if in the sale of the Transco they considered in the bidding the impact on the prices of electricity considering that transmission cost eats up a very big percentage of electricity cost, he said that that is not factored in in the bidding process. In other words, as far as the PSALM is concerned, they do not care whether the bid affects the prices of electricity. They simply assume that by selling Transco, it would result in lower electricity rates. For what reason, it is still not clear. But if the rates go astronomically high, if the bids for Transco is higher than usual, this will eventually affect the prices of electricity. It also appears that as far as the PSALM is concerned, that is not a factor which is a problem for me because the EPIRA is supposed to bring prices down. It is supposed to be good for the consumers and yet, they are going through a bidding process with no regard at all to WEDNESDAY, DECEMBER 5, 2007 how it would affect the prices of electricity. What could the distinguished Gentleman say to that? REP. GUINGONA. Two points, Mr. Speaker: One, privatization is premised on a bet and the bet is that a private entity, because of operating efficiencies, can bring prices down. That is the bet, but sometimes it can go wrong. REP. CASIÑO. The problem with Transco is that it is a monopoly. There is no competition with Transco. When a bidder gets Transco, it gets the whole thing. It is not like a power plant where we have an open access market later on, and we have to compete. The Transco is an automatic monopoly. So, there will be no market forces to bring the prices down. I think, in the bidding process, there should be a consideration that the prices are reasonable enough to pull down prices rather than push it up because we are selling a natural monopoly, we are selling a backbone to which there will be no competition. REP. GUINGONA. I agree, Mr. Speaker. I do remember Transco people saying that Transco cannot be broken up for example, in the Luzon, Visayas, and Mindanao grids, simply because, our Transco, if we take it as a whole, is still a very small grid, and therefore, there will not be economies of scale. REP. CASIÑO. Yes. Mas matindi pa po sa Meralco iyan. Meralco controls 80 percent of Metro Manila and its surrounding areas, but once you get Transco, you get the whole thing. THE DEPUTY SPEAKER (Rep. Datumanong). With the permission of the two Gentlemen on the floor, the time of the Gentlemen from Bukidnon has already lapsed and unless this is extended by the House there will be no further interpellation. 271 REP. CASIÑO. I hope we shall be able to come up with something in order to prevent that bidding or even if the bidding pushes through we will be able to come up with a measure or an action that can prevent it if indeed the bidding is problematic and there is partiality with regard to the PSALM. I think Congress should have that power to stop this anomaly. We are not talking about a sari-sari store here, we are not talking about a toothbrush or a house, we are talking about the backbone of the entire power industry plus a very valuable communications backbone. REP. GUINGONA. Mr. Speaker, if it will be found out that there is patent partiality, then I am sure the courts would void the bid even if it has already gone through. REP. CASIÑO. We shall see. In any case, Mr. Speaker, I join my colleague from Bukidnon in his concern on this matter and I hope that the House can come up with some remedial measures to remedy the situation. Thank you, Mr. Speaker. REP. GUINGONA. Thank you, Mr. Speaker. REP. ALFELOR. Mr. Speaker. REP. MALAPITAN. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Darumanong). The Floor Leader is recognized. REP. ALFELOR. May I be recognized to interpellate, Mr. Speaker. REP. MALAPITAN. Mr. Speaker, I ask that the Honorable Felix R. Alfelor Jr. from the Fourth District of Camarines Sur be recognized. REP. ALFELOR. Thank you, Mr. Speaker. REP. CRISOLOGO. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Dep. Majority Leader is recognized. REP. CRISOLOGO. Since we are taking up a very important matter, I move that we extend the time of the Honorable Guingona by another 10 minutes, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. The time of the Gentleman from Bukidnon is extended by 10 minutes. THE DEPUTY SPEAKER (Rep. Datumanong). The distinguished Gentleman from Camarines Sur is recognized. What is his pleasure? REP. ALFELOR. I would like to interpellate the honorable Guingona. THE DEPUTY SPEAKER (Rep. Datumanong). Will the distinguished Gentleman yield to interpellation? REP. GUINGONA. Most certainly, Mr. Speaker, with pleasure. REP. CASIÑO. Thank you, Mr. Speaker. As a last point, because I know there will be others who will be interpellating, Congress can still do something to stop the bidding on December 12? What can be done by this House? THE DEPUTY SPEAKER (Rep. Datumanong). The distinguished Gentleman from Camarines Sur will please proceed. REP. GUINGONA. Maybe a resolution but I do not think there is enough time really, unless we can galvanize public opinion. It is really more on a public opinion play. REP. ALFELOR. Mr. Speaker, the distinguished Gentleman mentioned that there were six bidders for Transco, and that of the six bidders five were pre-qualified and one was disqualified. Is that it? REP. ALFELOR. Thank you. 272 WEDNESDAY, DECEMBER 5, 2007 REP. GUINGONA. Yes, Mr. Speaker. REP. ALFELOR. Does the Gentleman have any objection on the pre-qualification of the five other bidders? REP. GUINGONA. Right now, I am not in a position to be able to assess that, Mr. Speaker. REP. ALFELOR. But the Gentleman is not objecting to the pre-qualification of the five other bidders. REP. GUINGONA. Right now, I have no objection. REP. ALFELOR. His only objection is that La Costa was not pre-qualified, and he thought that La Costa is qualified. He mentioned also some criteria and the last one was an opinion from the bank that the Filipino investor is qualified to invest $300 million, is that it? That is the only missing factor that disqualified La Costa. challenging the decision of the PSALM for I think it is too far-fetched to impute motivation considering that it has prequalified five bidders and this other one was not even fatal. I mean, the decision to disqualify La Costa was not fatal because it could have replaced the certification with another bank. Besides, as the Gentleman said, they were qualified to pay $6 billion. It could have shown and satisfied the doubt of the PSALM in disqualifying La Costa on the basis of the last criterion which was the opinion of the bank. REP. GUINGONA. Mr. Speaker, was that a speech or a question? REP. ALFELOR. No, I am just trying to explain. REP. GUINGONA. Several minutes elapsed before the Gentleman gave me time to answer. REP. ALFELOR. The Gentleman may answer. I am sorry. REP. GUINGONA. It had a certification from a bank. REP. ALFELOR. Yes. Then what... REP. GUINGONA. So, it did comply. REP. ALFELOR. I thought that was the main reason La Costa was disqualified. REP. GUINGONA. No. In my view, it qualified. In the view of the PSALM, it did not find the bank credible enough. REP. ALFELOR. In other words, La Costa could still remedy the situation by perhaps presenting a more credible bank. Could it not do so? REP. GUINGONA. Probably so. But it is the view of La Costa that the bank that certified it is credible enough. REP. ALFELOR. Yes. But the determining point there is the PSALM which the determines the qualification of the bidder and the opinion of La Costa is not germane. I mean, what matters is the opinion of the PSALM. I think the Gentleman cannot accuse the PSALM of partiality considering that it has pre-qualified already five, and the last one, La Costa, was the only one not pre-qualified because it thought that the bank that certified it was not qualified. Why did La Costa not seek another opinion from another bank? There are so many banks all over the world. Why did it have to go to court and insist on the opinion of the bank which PSALM did not believe in? I mean, the situation could have been remedied right then and there by replacing the bank that certified into the bankability of the Filipino investor. I mean, why did they not do it? Is the Gentleman imputing motivation on the part of Mr. Ibazeta who made the decision? Why would Mr. Ibazeta do that? I mean, why would he target La Costa and not the other five bidders? The Gentleman cannot say that he was favoring any one of the bidders because there were five bidders. So, it would have been illegal if there were only very few bidders and all the rest were disqualified and only one bid was qualified. In this case, bidders were actually pre-qualified and only one La Costa was disqualified, that is why it is REP. GUINGONA. Yes, but what was his question? What are his questions? He asked a lot of questions. REP. ALFELOR. The Gentleman can answer any one of them. He was imputing motivation on the part of the PSALM in disqualifying one bidder but he is not objecting to the pre-qualification of the other five. REP. GUINGONA. No, I am not objecting. Mr. Speaker, for the Gentleman’s information, the bank that certified La Costa was Security Bank, an established bank in the Philippines. It is very questionable why the PSALM would find the certification of Security Bank not adequate enough. REP. ALFELOR. That is his opinion. But his opinion does not matter. It is the opinion of the PSALM that matters. Not even the opinion of La Costa, is it not? I mean, we have to kowtow to the... REP. GUINGONA. That is why we should look into it because there are so many opinions. It is highly questionable why an established bank like Security Bank should not be afforded credibility by the PSALM. Maybe, had it been something like the Rural Bank of Sorsogon, obviously, it should not be given credibility. But that is not the case, Mr. Speaker. REP. ALFELOR. Mr. Speaker, the money involved here is $300,000 and that is something like several billion pesos, and $300 million multiplied by 40 is around P1.5 billion. And Security Bank is not one of the first five big banks in the Philippines, I guess. I mean if he is imputing malice on the PSALM, I think it is not well founded considering that .... REP. GUINGONA. I am saying that there is partiality and we should look at it. There are indications of partiality. We should look into these matters. REP. ALFELOR. Anyway, is this matter beyond the reach of the national government? I mean, are we helpless at this moment? WEDNESDAY, DECEMBER 5, 2007 REP. GUINGONA. No, Mr. Speaker. The PSALM can reverse itself and Ibazeta can inhibit himself from the bidding process in this transaction. That is one. Second, it can reconsider the documents submitted by La Costa. So, the national government is not helpless. REP. ALFELOR. Yes, but Mr. Ibazeta was not connected with any of the five. 273 REP. GUINGONA. Thank you, Mr. Speaker. REP. BARZAGA. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). What is the pleasure of the distinguished Gentleman from the Second District of Cavite? REP. VELARDE. Mr. Speaker. REP. GUINGONA. That is what we have to look into, Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). For the information of the distinguished Gentlemen on the floor, the extended time of the Gentleman from Bukidnon has already elapsed. And since there seems to be no more motion for extension... REP. VELARDE. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). The Dep. Majority Leader is recognized. REP. VELARDE. Mr. Speaker, I move that the time of the Honorable Guingona be extended by another 10 minutes. REP. BARZAGA. Mr. Speaker, will the distinguished Gentleman from Bukidnon yield to some interpellation? THE DEPUTY SPEAKER (Rep. Datumanong). With the permission of the Gentleman from Cavite, the Dep. Majority Leader has a manifestation to make. The Dep. Majority Leader is recognized. REP. VELARDE. Yes. Thank you very much, Mr. Speaker. With the indulgence of the Gentleman from Cavite, the distinguished Gentleman from the Second District of Capiz was first to reserve his right to interpellate the Honorable Guingona after the Honorable Alfelor. SUSPENSION OF SESSION THE DEPUTY SPEAKER (Rep. Datumanong). Is there any objection? (Silence) The Chair hears none; the motion is approved. The time of the Gentleman from Bukidnon is again extended by another 10 minutes. REP. GUINGONA. Mr. Speaker, all the Gentleman’s points are factual, like whether or not Mr. Ibazeta is in fact a director of the ICTSI. It is not a matter of debate. These things can be ascertained with a high degree of veracity. What it needs is looking into. It does not need a debate. REP. ALFELOR. So the Gentleman is not imputing any malice except that he just wants the House to be part also of the thing that is happening. I am quite interested because I am the Chairman of the Committee on Privatization and Government Enterprises, and perhaps, this will fall into my lap. So I am quite interested in knowing more about the fact. Anyway, there is another one who would like to interpellate the Gentleman. I would like to thank the distinguished Gentleman for bringing up the matter especially in my case because that is the realm of my committee. I am quite sure that it will be passed to us and perhaps we can make a more detailed discussion and study on the matter. Anyway, the fact that the matter was brought to this House is quite commendable especially considering that Transco is, I think, the most valuable, and as they say, the crown jewel of privatization. We should delve into this matter more thoroughly before we dispose of it. That is why I have asked the Gentleman if it was beyond the reach of the national government. He said we are not helpless in this regard and a lot of things could still be done especially by Congress. Thank you. THE DEPUTY SPEAKER (Rep. Datumanong). The session is suspended for one minute. It was 6:56 p.m. RESUMPTION OF SESSION At 6:57 p.m., the session was resumed. THE DEPUTY SPEAKER (Rep. Datumanong). The session is resumed. REP. CASTRO. Mr. Speaker. THE DEPUTY SPEAKER (Rep. Datumanong). With the kind manifestation of the Gentleman from the Second District of Cavite to give way to the Gentleman from Capiz, the latter is now recognized. For what reason does he rise? REP. CASTRO. Mr. Speaker, may this Representation be allowed to interpellate the Gentleman from Bukidnon. THE DEPUTY SPEAKER (Rep. Datumanong). He may if the Gentleman from Bukidnon so yields. REP. GUINGONA. Yes, Mr. Speaker, gladly. THE DEPUTY SPEAKER (Rep. Datumanong). The Gentleman from Capiz will please proceed. REP. CASTRO. Mr. Speaker, before I proceed with my interpellatin, I would like to manifest that the chance to interpellate the Gentleman from Bukidnon is a rare opportunity and I consider myself to be one of those who 274 WEDNESDAY, DECEMBER 5, 2007 are lucky today for having been given this opportunity. For the Gentleman from Cavite, rest assured that my interpellation will not be kilometric so as to deprive him of his time to interpellate the Gentleman from Bukidnon. Mr. Speaker, I do not question the validity as well as the intention of the Gentleman from Bukidnon for having delivered a privilege speech that dwells on the bidding of Transco. In fact, I will not discuss with him anything about the details which attended the bidding because, in the first place, this Representation has been made aware by the Gentleman from Bukidnon that the matter has already been brought to court. Therefore, I am leaving the question of whether the bidding is valid or not to the court that has taken jurisdiction over the case because it properly belongs to the domain of our courts. But there are only two items that caught the interest of this Representation during the time that the Gentleman from Bukidnon was being interpellated by the distinguished colleague from Makati City. The first item that caught my attention is that the Gentleman from Bukidnon would want the bidding of Transco to be investigated by this Chamber through the appropriate committee because he wants to galvanize a public opinion on whether the bidding is tainted with bias or not. Mr. Speaker, my question is: Is it not that the purpose of an investigation in this Chamber is in aid of legislation or in exercise of oversight committee but not to galvanize public opinion? listen to the public. After all, we all serve at the pleasure of the public. REP. GUINGONA. I think the Gentleman is correct, Mr. Speaker. One of the point of of the privilege speech is to galvanize public opinion outside prior to the bidding in the hope that the PSALM may be able to correct itself. Iba talaga ang may nagsasabi sa iyo ng, “Pare, baka naman mali ka. Tingnan mong mabuti ang ginagawa mo.” Di ba? Iba iyon kesa sa walang nagsasabi sa iyo, hindi ba? Second, the investigation is in aid of legislation and by the time it gets to the committee—the bidding is on December 12—the bidding is finished already. So, at that point, it will be in aid of legislation for future privatization biddings. Hindi lang naman po iyon ang ibibid-out ng PSALM. Marami pa naming assets sa energy industry ang ibibid-out ng PSALM. At kung may kakulangan man, kung may partiality man, baka naman puwede nating baguhin sa pamamagitan ng pagbabago ng batas. So, dalawang aspeto lang iyon. The first, galvanizing public opinion only up to the point where the PSALM in the hope that it may or would want is able to correct itself. REP. CASTRO. Mr. Speaker, I do not disagree. With the pronouncement of the Gentleman from Bukidnon that we were all elected by the people, yes. We do not have business to stay here if we were not elected by the people. But we have a procedure to follow in the House of Representatives and this procedure should not be mixed up, that we investigate to create or galvanize public opinion. Because if that is so, then investigation in the House of Representatives would be abused to create and galvanize public opinion and it is a deviation from the purpose of an investigation in the House which is: in the exercise of our oversight function; and in aid of legislation. And the matter of galvanizing public opinion is a collateral matter insofar as investigation is concerned which may result knowingly or unknowingly. But the point is, investigation is not for the purpose of galvanizing a public opinion. At this juncture, Deputy Speaker Simeon A. Datumanong relinquished the Chair to Rep. Rene M. Velarde. REP. CASTRO. What the Gentleman understands is regardless of any public opinion which may be created as a result of any investigation in this Chamber, the public opinion is immaterial insofar as the House of Representatives is concerned. This Chamber investigates only for purposes of matters, in aid of legislation, or in exercise of its oversight function, not to create an opinion. As I said, any public opinion which may be created as result of an investigation is not the concern of the House of Representatives as a result of the proceedings conducted therein. REP. GUINGONA. Mr. Speaker, we are elected Representatives. We represent the people. We should listen to the opinion of the people. That is what gives us the power to legislation. REP. CASTRO. I do not disagree, Mr. Speaker. REP. GUINGONA. Mr Speaker, we cannot legislate in a vacuum. REP. GUINGONA. Is there a … REP. CASTRO. Mr. Spealer, do I understand from the Gentleman from Bukidnon that he would want the appropriate committee to investigate in order to galvanize an opinion. And as a result of the investigation the attention of the PSALM may be called or it could be warned that if ever the present bidding or is tainted with bias, the investigation could serve as deterrents or wake-up call for future bidding is that what the Gentleman from Bukidnon would want this Representation to believe? REP. GUINGONA. If that is one of the possibilities, yes, Mr. Speaker because an investigation generates interest from the public. And when the public listens, opinions are made. And when opinions are made, public officials should REP. CASTRO. On the basis … REP. GUINGONA. Is there a question, Mr. Speaker? REP. CASTRO. I am not through yet. On the basis of that rationalization, will the Gentleman from Bukidnon state with disposition that investigation is being requested as a result of his privilege speech to galvanize public opinion? That is my question. REP. GUINGONA. May I now speak, Mr. Speaker. REP. CASTRO. Gladly, Gentleman from Bukidnon. WEDNESDAY, DECEMBER 5, 2007 REP. GUINGONA. (Laughter) Mr. Speaker, the Gentleman said that there was violation of procedure. Wala naman pong violation ang procedure. Wala namang violation ng Rules of the House kapag imbestigahan ang isang subject matter na may alleged partiality ang in charge sa bidding. Mr. Speaker, maybe the Gentleman is confusing the cause and effect. The process is, from the revelations that may come out in the investigation, public opinion will be formed. So, that is the effect of the investigation. REP. CASTRO. If that is the point of the Gentleman that a public opinion may be formed or galvanized as a result of an investigation, knowingly or unknowingly but more importantly, intentionally or unintentionally, because galvanizing a public opinion is not the purpose of any investigation in this Chamber, then this Representation will join the Gentleman from Bukidnon. But again, as I said, if an investigation is conducted and sought for in this Chamber as the primary purpose or primary intention to galvanize public opinion, then I am sorry, I cannot. In any event, I believe that this Representation as well as the Gentleman from Bukidnon have made their position clear, may I be allowed to go to another point which is the second subject of my interpellatin. When interpellated by the Gentleman from Makati City, my recollection is vivid that the Gentleman from Bukidnon is not sure whether the bidding of Transco was tainted with bias or not. That is why the Gentleman from Makati City said, that the investigation sought for as a result of the privilege speech of the Gentleman from Bukidnon, has no basis because as of this time, the Gentleman from Bukidnon could not say with certainty whether there is a bias or not. Does the Gentleman from Bukidnon agree with my restatement of the proceeding that transpire awhile ago? REP. GUINGONA. No, I am sorry, Mr. Speaker, there is patent bias. That is my stand, that is why we should look into the matter. REP. CASTRO. Will the Gentleman from Bukidnon educate this Representation as to what bias he was referring to? REP. GUINGONA. The obvious disqualification of La Costa which was already mentioned several times from the bidding procedure, and more importantly also the alleged connection of Mr. Ibazeta to one of the companies that is in the bidding of Transco. So, mayroong alegasyon. Kailangan tingnan natin, hindi ba? REP. CASTRO. Could the Gentleman advise this Representation as to what is the allegation referred to? REP. GUINGONA. I beg the Gentleman’s pardon, Mr. Speaker. REP. CASTRO. Will the Gentleman from Bukidnon advise this Representation as to what was the allegation. He said there was an allegation that is why we should look into it. Could I be advised as to what this allegation is, Mr. Speaker? 275 REP. GUINGONA. Let me repeat what I stated. At this point, I would like to bring up the issue of the partiality of Mr. Ibazeta. In a newspaper article of the Philippine Daily Inquirer, Senate Minority Leader Aquilino Pimentel alleged a conflict of interest in the privatization process. Senator Pimentel alleged that Mr. Ibazeta has been a director since 1987 of the International Container Terminal Services Incorporated (ICTSI) whose chair is businessman Enrique Razon, one of the bidders of Transco. Mr. Ibazeta according to the article, and according to Senator Pimentel, is also a board member of Razon/s various domestic and international port subsidiaries. According to the article, Senator Pimentel said that Mr. Ibazeta should have inhibited himself. REP. CASTRO. Therefore, it is loud and clear that the basis of the investigation sought for by the Gentleman from Bukidnon as a result of his privilege speech is the revelation or the statement of Senator Pimentel as written in the Philippine Daily Inquirer. Mr. Speaker, are we supposed to investigate on the basis of a statement by a senator or a member of the Senate? Instead of knowledge and research that each or any Member of this House could have come up? REP. GUINGONA. G. Ispiker, mayroong aligasyon at ang mga aligasyon na ito ay malalaman naman natin sa mga dokumento sa pamamagitan ng imbetigasyon. Would it not be better for good governance if we were to find out the truth of this allegation? REP. CASTRO. Of course. REP. GUINGONA. Then we have it, Mr. Speaker. Thank you. REP. CASTRO. Of course. I also join the Gentleman in looking for the truth, but my point is, if the basis of the investigation is the statement of Senator Pimentel, does the Gentleman from Bukidnon would want to impress that the statement of Senator Pimentel is an indicia of bias of the PSALM or anybody else? That is why we should investigate. REP. GUINGONA. We should investigate the allegation, regardless of the source. I am a bit surprised that the Gentleman takes offense that it comes from a Senator of this Republic. REP. CASTRO. No, that is his statement, I did not say that. He was the one who said that. REP. GUINGONA. Would it have been different had it come from Senator Manuel “Mar” A. Roxas II? REP. CASTRO. No, it is still the same, it is he who said that. It is not me. REP. GUINGONA. Is the Gentleman sure, Mr. Speaker? THE PRESIDING OFFICER (Rep. Velarde). With the kind indulgence of the Honorable Guingona and the 276 WEDNESDAY, DECEMBER 5, 2007 Honorable Castro, the Chair would like to remind them that the extended time of the Honorable Guingona has expired, unless there is a motion from the floor. THE PRESIDING OFFICER (Rep. Velarde). The distinguished Gentleman from Cavite, the Honorable Elpidio Barzaga, is recognized. REP. CASTRO. So as to wind up the interpellation of this Representation, may I request a 10-minute extension of the time of the Honorable Guingona through the distinguished Dep. Majority Leader. REP. BARZAGA. Thank you very much, Mr. Speaker. Mr. Speaker, will the distinguished Gentleman from Bukidnon agree that under existing laws, the PSALM has the legal authority to conduct a public bidding for the sale of Transco? PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. The time of the Honorable Guingona is extended by another 10 minutes. REP. CASTRO. That is why I said that whether it is Senator Roxas, Senator Pimentel or any of the Senators in the Senate, I do not really care. But my only question is, when we investigate there should be more or less basis for the investigation, because if the statement of Senator Pimentel is not an indicia of bias that would warrant an investigation, that would then be the basis of an investigation that we want to conduct in the House of Representatives? That is my point, Mr. Speaker. REP. GUINGONA. May I speak, Mr. Speaker? Maybe so, but we must take into account another factor that there is a party here alleged to have suffered a damage, and that is La Costa. So, taken together there is sufficient basis, in my opinion, for delving into the matter with the greater degree of detail. REP. CASTRO. The Gentleman from Bukidnon has a point. My point is, in the absence of at least a prima facie indication of bias there is no basis for any investigation, otherwise, investigation before this Chamber could be used as fishing instrument or fishing expedition. Definitely, fishing expedition would waste time and resources of this Chamber and the taxpayer especially that in connection with the fishing expedition there is an attempt to galvanize a public opinion. That is the point of this Representation. In any event, Mr. Speaker, I congratulate the Gentleman from Bukidnon for having brought this matter to the attention of this Chamber. Let me put on record that in search of truth, as stated by the Gentleman from Bukidnon, I join him and I will continuously join him. I thank the Gentleman from Bukidnon for having given this Representation the rare privilege to interpellate him. Thank you, Mr. Speaker. REP. GUINGONA. I also thank the Gentleman. REP. GUINGONA. Yes, of course. It has the legal authority. REP. BARZAGA. And as point out in the course of the privilege speech, as well as in the course of interpellation, the public bidding is scheduled on December 12. Unfortunately, one of the prospective bidders, La Costa, was disqualified by the PSALM to participate in the scheduled bidding on December 12. In fact, a case has already been filed in court by La Costa questioning its disqualification. Will the distinguished Gentleman from Bukidnon agree that in the absence of any temporary restraining order (TRO), the Congress of the Philippines—even assuming that we conduct an investigation—does not have the power to stop the scheduled bidding on December 12 regarding Transco? REP. GUINGONA. Barring a court order, I will concede to that. REP. BARZAGA. Mr. Speaker, in the course of the interpellation by our colleague from Capiz, the distinguished Gentleman from Bukidnon admitted that one of the bases of the proposed investigation was the statement made by Senator Aquilino Pimented that there was bias and partiality insofar as Mr. Ibazeta is concerned. My inquiry is, will the Gentleman from Bukidnon give us information as to whether or not on account of the exposé of Senator Pimentel an investigation in the Senate was requested by Senator Pimentel himself. REP. GUINGONA. I believe so, Mr. Speaker. REP. BARZAGA. Mr. Speaker, although I have not heard any news about said investigation, I will give the benefit of the doubt insofar as the answer of our colleague is concerned. My other inquiry is, in the event that this Body should conduct an investigation on the basis of an exposé coming from a Senator of the Republic of the Philippines, would it not be violative of the basic rule of parliamentary courtesy, most especially if we consider that according to our distinguished colleague, there is also a pending investigation in the Senate? REP. CRISOLOGO. Mr. Speaker. THE PRESIDING OFFICER (Rep. Velarde). The Dep. Majority Leader is recognized. REP. CRISOLOGO. Mr. Speaker, I ask that the Honorable Elpidio F. Barzaga Jr. from the Second District of Cavite be recognized to interpellate the Honorable Guingona. REP. GUINGONA. I do not think we should be splitting hairs here. Come on. This is an issue imbued with great public interest. It will affect us all. This is Transco, the backbone of the electric power industry. Mabuti kung ito ay private transaction lang between two individuals, pero hindi po. This affects the entire nation. And for us to be splitting hairs is, I think, unfair to the Filipino people. WEDNESDAY, DECEMBER 5, 2007 277 REP. BARZAGA. Mr. Speaker, in the course of the discussion, I gathered that La Costa, more or less, is willing to bid for Transco in the sum of $6 billion, whereas the other prospective bidders who have been pre-qualified would be bidding only P3 billion. Will that be correct? detrimental to the consumer. But we must remember, the point is to gather enough funds so as to cover the budget deficit. Again, let met state the principle, the more money the government receives, the better for the government and the easier for it to reduce its budget deficit. REP. GUINGONA. No, Mr. Speaker, La Costa did state that they were willing to bid $6 billion, and the $3 billion is not the bid of the other bidders, no. It is the indicative price as given by the PSALM. REP. BARZAGA. I reserve my judgment insofar as that issue is concerned. Thank you very much to my distinguished colleague. Thank you very much, Mr. Speaker. REP. BARZAGA. Would it be a correct impression that based on the privilege speech, perhaps one of the reasons La Costa was disqualified was because it would be offering a much bigger bid as compared to the other bidders who have been pre-qualified by the PSALM? REP. GUINGONA. That would be mysterious if we disqualify someone on the basis of having a higher bid, Mr. Speaker. REP. BARZAGA. So, what would be the answer, Mr. Speaker? Would that be one of the reasons? REP. GUINGONA. That would be mysterious for disqualifying somebody for wanting to bid higher, Mr. Speaker. REP. BARZAGA. Assuming that that would be correct, will it be good or bad for the government as well as for our country? REP. GUINGONA. Thank you. REP. CRISOLOGO. Mr. Speaker. THE PRESIDING OFFICER (Rep. Velarde). The Dep. Majority Leader is recognized. REP. CRISOLOGO. Since there are no more interpellators, I move that the privilege speech of the Honorable Guingona be referred to the appropriate committee. THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. The speech of the Honorable Guingona and the interpellations thereto are referred to the appropriate committee. REP. HONTIVEROS-BARAQUEL. Mr. Speaker. REP. GUINGONA. Ang prinsipyo rito, mas maraming mas mataas na bid mas maraming perang papasok para sa gobyerno. REP. CRISOLOGO. Mr. Speaker, I ask that the Honorable Ana Theresia N. Hontiveros-Baraquel of the Akbayan Party-List be recognized. REP. BARZAGA. Mr. Speaker, in the course of the interpellation by our colleague, Congressman Teodoro Casiño, we fully understand that Transco once it would be privatized, it would have a significant effect insofar as our electric power bills are concerned, will that be correct? THE PRESIDING OFFICER (Rep. Velarde). The distinguished Lady from Akbayan Party-List, the Honorable Ana Theresia N. Hontiveros-Baraquel is recognized. For what purpose does she rise? REP. GUINGONA. The Transco will affect us whether it is privatized or not, it will always affect all of us. REP. BARZAGA. Will it be a logical and right conclusion that assuming that the Transco would be privatized and the bid is $6 billion, a very high bid, ultimately, the net result is that the Filipino people would be paying a higher rate of electricity as compared when a bidder made a bid at a lesser amount? REP. GUINGONA. What is the Gentleman driving at, Mr. Speaker? Does he mean the lowest bidder should win, is that what he is saying? REP. BARZAGA. I am not saying that. I am just saying what would be the overall effect insofar as the ordinary Filipino consumer is concerned. REP. GUINGONA. What he is implying is that, if it is $6 billion and it will be passed on, therefore, it will be more REP. HONTIVEROS-BARAQUEL. I rise on a matter of personal and collective privilege, Mr. Speaker, on the case of the Sumilao farmers who have been marching for almost two months now for land and justice. THE DEPUTY SPEAKER (Rep. Datumanong). The Lady will please proceed. QUESTION OF PRIVILEGE OF REP. HONTIVEROS-BARAQUEL REP. HONTIVEROS-BARAQUEL. Thank you, Mr. Speaker. G. Ispiker, mga kagalang-galang na kapwa Kinatawan, maganding gabi po sa inyong lahat. A group of farmers from the Mapadoyonong Panaghiusa sa mga Lumad Alang sa Damlag (MAPALAD) and the San Vicente Landless Farmers Association (SALFA) has been walking towards Manila from their homes in San Vicente, Sumilao, Bukidnon for almost two months now. Their journey has taken them around 1,700 kilometers from their homes. 278 They braved the tempestuous weather brought by the typhoons that hit the country recently. No one wavered, not even due to sickness or fatigue, and the farmers marched on. On October 10, 1997, they displayed the same determination and bravery when they began a hunger strike in front of the Department of Agrarian Reform (DAR). Their cry for justice moved the entire nation but their victory was fleeting, and they were shortchanged by institutions that were supposed to stand up for agrarian justice. Not to be defeated, exactly 10 years after, they left their homes in Bukidnon to march to Malacañang. What prompted these farmers to take drastic actions such as the hunger strike and this long torturous walk is a long story—a story of their hopes and dreams, a story of their heartaches, frustrations and defeat, and a story of their continuing will and sacrifice to have a piece of land that they can call their own. In 1995, these landless farmers became the beneficiaries of a 144-hectare tract of irrigated prime agricultural land then owned by Norberto Quisumbing Sr. For no apparent reason and without any explanation, DAR concealed this fact from the farmers despite their constant inquiries to the DAR’s municipal office in Sumilao. They only learned that they already own the land when a court informed them that their property was subject to a petition for cancellation of title. They attempted to take possession of the land but were driven away forcibly by armed guards of Norberto Quisumbing. Mr. Quisumbing had filed a petition for land conversion to the DAR. He claimed that the land was in the site of the proposed Bukidnon Agro-Industrial Development (BAIDA) which promised the construction in the area of a school, the Development Academy of Mindanao, a hotel, a golf course, housing facilities and other establishments. Former DAR Secretary Ernesto Garilao rejected the application for conversion with finality. But Quisumbing had his own allies. Then, Bukidnon Governor Carlos Fortich wanted to reverse the decision of Secretary Garilao, so he wrote to the Office of the President asking the President to convert the Quisumbing property. Even without a formal application from the landowner and merely on the basis of the letter of the governor, then Executive Secretary Ruben Torres approved the conversion. This prompted the Sumilao farmers to go on hunger strike. They refused to take anything but water until their case was resolved. Their action brought their case to the public’s attention and soon enough public opinion was heavily on their side. Twenty-eight days after the farmers went on hunger strike, then President Fidel V. Ramos issued his infamous “win-win formula” in which 100 hectares were to be distributed to the farmers while Norberto Quisumbing Sr. would retain the remaining 44 hectares. With the compromise decision, the farmers, in good faith, lifted their hunger strike and went back home to Bukidnon. Mr. Quisumbing had other plans though. Unhappy with President Ramos’ decision, he went to the Supreme Court to question the President’s decision. The high court, on the basis of a mere technicality, decided in favor of Mr. Quisumging. The court said that the land conversion was final and executory because the DAR did not file an appeal on time. With heavy hearts, the farmers respected the decision. Some of them became beneficiaries to the adjacent 66-hectare Carlos Estate which they cultivated communally since the WEDNESDAY, DECEMBER 5, 2007 half-a-hectare award for each farmer was barely sufficient to sustain a family. Meanwhile, after winning the case, the Quisumbings sold the land to San Miguel Foods, Incorporated (SMFI) in 2002 for P36 million. What happened to the Bukidnon Agro-Industrial Development Area which was the basis of the exemption of the property from the CARP? Apparently, Mr. Speaker, the proposed agroindustrial development area was a mere excuse to evade the agrarian reform program. Our agrarian reforms laws are clear. All converted land should comply with the conversion plan within five years of the granting of the conversion order or else it would be reverted to its previous classification and be covered by agrarian reform. The land that was sold to San Miguel remained idle for the most part of the last 10 years, not a single development took place. It was only of late that the SMFI began to build a piggery, something that is not even in compliance with the conversion plan that was the basis of the conversion order. On the basis of these violations, the Sumilao farmers filed a petition with the DAR on November 3, 2004 to revoke the conversion order. After sitting on the case for more than two years, the DAR ruled that the agency does not have jurisdiction over the land because it was the Office of the President that granted the conversion order. The farmers then filed a petition before the Office of the President, which, on the 2nd day of the Sumilao March, ruled that it has no basis because the farmers allegedly do not have any legal standing. The farmers appealed the decision, and finally the Office of the President reversed its earlier ruling and remanded the case to the DAR last week. The Sumilao farmers are already near their journey’s end. They have finally reached the National Capital Region on Monday, December 2, 2007. They are nearing the end of their 1,700-kilometer trek, but their case is back to square one in the hands of the DAR. The Sumilao farmers have already asked the DAR Secretary Nasser Pangandaman to issue a cease and desist order to San Miguel to stop all irreversible constructions on the land while the DAR is reviewing the case. Why Secretary Pangandaman has taken his time to review the case and issue a cease-and-desist order is surprising. The local offices of the DAR have already reported that the conversion order was violated and should be revoked. In a memorandum to Secretary Pangandaman on September 24, 2007, DAR Region X Director John Maruhom reported that there is nothing in the said landholding that would indicate compliance with the development proposals submitted by NQSRMDC and that the sale of the landholding clearly revoked the non-interest of Quisumbing to follow the order. Maruhom added that even San Miguel Foods, Inc., which is limited to the use of the land authorized in the conversion order, also “failed to comply with the approved development plan” submitted by Mr. Quisumbing. Five years since the approval of the Conversion Order, San Miguel Foods, Inc. was “illegally beginning to construct structures for the Farrow-to-Fish Hog Farm which is inconsistent and totally opposed to the enumerated development proposal submitted by Quisumbing. Director Maruhom recommended that neither Mr. Quisumging nor SMFI be allowed to invoke the conversion WEDNESDAY, DECEMBER 5, 2007 order to prevent the issuance of Notice of Coverage. He affirmed that the order is only valid as the conditions contained therein are strictly followed. Since none of the conditions were complied with, the conversion order lost whatever legal effect it may have insofar as the status of land is concerned. Mr. Maruhom concluded that since the land was in fact not converted and thus remained agricultural, the DAR should issue a Notice of Coverage to distribute the 144-hectare landholding to qualified beneficiaries. Akbayan hopes that DAR Secretary Pangandaman will not succumb to the pressure of big business and will act according to the reports of the DAR’s local offices. Mr. Speaker, the farmers are already here in the capital of the country. How many days should the farmers of Sumilao deprive themselves of food in order to get a piece of land that they need to produce the food that we consume? How many miles do they have to walk to achieve agrarian justice? How many slippers —I am holding a pair of slippers—do they have to wear out, Mr. Speaker? Dozens of this are attached to the GT that has accompanied the Sumilao farmers the last two months over 1,700 kilometers. How many slippers do they have to wear out to holes from walking? The farmers went on hunger strike in order to give their children a decent future. Ten years after, their own children are marching to Malacañang to reclaim a future that was denied them by a government that failed to fulfil its own obligation. They will be in Congress tomorrow, December 6, 2007, to ask Congress to act and act with promptness when the laws that this Chamber enacts for social justice are ignored, trampled upon, violated and used to cause injustice. AKBAYAN hopes that Congress will meet with them and stand up for them, as the Committee on Agrarian Reform has invited us to do. Akbayan has filed Resolution No. 353 to call for an inquiry on conversion orders and how, just like in the case of the Sumilao farmers, they are being used to evade the CARP coverage. The use of conversion orders as a strategy to evade the CARP should be addressed, otherwise, this country’s attempt to deliver social justice would be naught. This Representation has also authored House Bill No. 1257, a bill that seeks to reform our Comprehensive Agrarian Reform Law (CARL). If we do nothing and allow the law to expire next year, then we will effectively shut down any hope for landless farmers like the Sumilao farmers. If we merely extend the CARP without reforming its loopholes, we are bound to allow the same plight that befell the Sumilao farmers to befall others. We need not only extend the CARP but more importantly to reform it. Let us act on the urgent legislation on the CARP before it is too late for the landless, like the Sumilao farmers. We implore Congress to also appeal to the corporate social responsibility and conscience of San Miguel Corporation. A 144-hectare property is nothing compared to the multi-billion peso assets of this giant corporation. It would not hurt them if they give up this property to secure the future of the Sumilao farmers. The contested land is a small speck in the company’s assets, but the land is the world to the Sumilao farmers. This land is their life. The plight of the Sumilao farmers needs our attention and our response. If their 1,700-kilometer journey on foot 279 has been hard and torturous, their struggle for land is much longer, much more difficult and torturous. Let the House of Representatives be an instrument of justice for the Sumilao farmers and the multitude of other landless farmers like them. Hinihikayat namin kayong lahat, mga mahal na kasama, na sumama sa paglalakbay ng mga magsasaka ng Sumilao. Maraming salamat po sa inyong lahat. Mabuhay ang mga magsasaka ng ating sambayanan! THE PRESIDING OFFICER (Rep. Velarde). The Floor Leader is recognized. REP. MALAPITAN. Mr. Speaker, I move that the speech of the Honorable Hontiveros-Baraquel be referred to the appropriate committee. THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. The speech of the Honorable Hontiveros-Baraquel is referred to the appropriate committee. REP. MALAPITAN. Mr. Speaker, I move that we proceed to the Reference of Business. THE PRESIDING OFFICER (Rep. Velarde). The Secretary General will please read the Additional Reference of Business. ADDITIONAL REFERENCE OF BUSINESS The Secretary General read the following Committee Report, and the Presiding Officer made the corresponding reference: COMMITTEE REPORT Report by the Special Committee on Reforestation (Committee Report No. 105), re H.B. No. 375, entitled: AN ACT TO SPUR THE PLANTING OF A BILLION TREES AND FOR OTHER PURPOSES” recommending its approval with amendments, in consolidation with House Bills Numbered 2959 and 2971 Sponsors: Representatives Alvarez (G.), Golez, De Venecia and Teodoro TO THE COMMITTEE ON RULES REP. MALAPITAN. Mr. Speaker, I move for the change of referral of the following measures: House Bills No. 97 and 1955, from the Committee on Trade and Industry to the Committee on Labor and Employment. THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. REP. MALAPITAN. House Bills No. 775, 780 and 2603, from the Committee on Good Government to the Committee on Civil Service and Professional Regulation. 280 THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. REP. MALAPITAN. House Bill No. 1733, from the Committee on Ways and Means to the Committees on Civil Service and Professional Regulations, and Trade and Industry. THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. REP. MALAPITAN. House Resolution No. 336, from the Committee on Rules to the Committee on Accounts. WEDNESDAY, DECEMBER 5, 2007 THE PRESIDING OFFICER (Rep. Velarde). Is there any objection? (Silence) The Chair hears none; the motion is approved. ADJOURNMENT OF SESSION REP. MALAPITAN. Mr. Speaker, I move that we adjourn the session until four o’clock in the afternoon of Monday, December 10, 2007. THE PRESIDING OFFICER (Rep. Velarde). The session is adjourned until Monday, December 10, 2007 at four o’clock in the afternoon. It was 7:44 p.m.
