KASIBU, Nueva Vizcaya -- OceanaGold Philippines Inc., the world’s third largest mining company, has filed grave coercion, graft and corruption and harassment cases against Nueva Viscaya Gov. Luisa Lloren Cuaresma along with four other provincial officials with the Office of the Ombudsman.
OceanaGold is a Financial or Technical Assistance Agreement (FTAA) contractor for the Philippine government in Barangay Didipio, Kasibu, Nueva Vizcaya gold-copper mining project with an estimated annual production of 227,000 gold equivalent ounces (at A$-$500/oz and Cu=$D1.90/LB).
In its 67-page criminal complaint affidavit, OceanaGold named Cuaresma, Board member Edu Balgos, Nueva Vizcaya Senior Police Insp. Iringan, Provincial Environment and Natural Resources officials Francisco Tolentino and Danny Ramos respondents in the grave coercion, graft and harassment cases. OGPI general manager Gil Maglaque said in their complaint that Cuaresma’s Nov. 23, 2007 and April 9, 2008 cease and desist orders caused undue delay and injury to the P150 million mining project of the Philippine government.
The top provincial official’s May 12, 2008 forcible entry into the project area and Cuaresma’s unlawful order on OceanaGold to pay quarry taxes amounting to about P28 million smacks on graft, and an act unbecoming and enough ground for them to file the case.
Balgos was quoted in the complaint as saying “Pasensiya na, trabaho lang.” and “Ang Oceana kasi hindi inayos si Gov, kung binayaran, ‘di na sana tayo hahantong sa ganito.” Only recently, OceanaGold, whose president Stephen Orr assured President Arroyo in their meeting in New Zealand in May 2007 that his company is committed to developing a mining industry based on international corporate social responsibility best practice, got a 60-day temporary restraining order from the Court of Appeals against Cuaresma’s CDO.
“OceanaGold is dedicated to the highest environmental standards. We will continue to work directly with local communities and the relevant government and regulatory authorities to ensure the Didipio project delivers social, economic and development opportunities,” Orr assured President Arroyo then.
Cuaresma issued the two CDOs on OceanaGold’s failure to settle quarry taxes on its earth-moving preparatory works worth P28 million but Maglaque countered in their complaint with the Ombudsman that the governor issued the CDOs without first issuing any tax assessment or any proof that “OceanaGold had not paid the assessment and neither she nor any tax collection suit filed” .
As FTAA contractor OceanaGold has the right to extract materials within the FTAA area and under the Mining Act rules and regulations and the ongoing activities could not be categorized as “quarrying” and more so, not taxable.
And as such, Cuaresma and the other respondents may have violated Section 3 of RA 3019 or the Anti-graft and Corrupt Practices Maglaque said. Meanwhile, Cuaresma is ready to answer raps filed against her by a foreign-owned mining firm which she slapped a cease-and-desist order for disregarding a collection order for quarry fees and provincial taxes being levied by the province.
According to Rachel Magday-Itchon, executive assistant of Cuaresma, who is now on official travel to the United States, this is what the governor has been waiting for to clear her name from whatever accusations have been levied against her.
“She is more than willing to face the charges in court, especially so, since she believed in the justness of what she is fighting for, which is for the interest of the provincial government and the Novo Vizcayanos,” Itchon said.
Itchon, in a statement for the governor, said: “Gov. Cuaresma also wishes to assure her constituents to remain calm at this new challenge from a foreign firm that wishes to dominate the affairs of a part of her province in total disregard of the interests of Nueva Vizcaya. She is more than willing to face these charges before the Ombudsman and believes in the justness of her position.” – With CL
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