DOLE to sanction Chico contractor; hearing set

PINUKPUK, Kalinga -- The Dept. of Labor and Employment Cordillera is set to sanction the Chinese contractor of the huge Chico River Pump Irrigation Project here along the Chico River and areas it passes through for not submitting requirements to the DOLE.

In Baguio City, Exequiel Ronie Guzman, Dole regional director, said the Chinese company behind the P4.37-billion CRPIP did not submit documents required by the agency saying these should be given before work begins. 

A hearing on the matter at the Dole Cordillera office in Baguio was set next week.

Guzman said they investigated the matter two weeks ago and the Chinese reportedly admitted they did not have alien employment permit (AEP) and safety health program.

“These were the two areas where we saw the Chinese company committed major violations which they need to comply with. They also failed to show their corresponding pick-up license which is required being the contractor of the project," said Guzman.

Pick-up licenses are special licenses foreign companies need to comply when contracting with the Dept. of Public Works and Highways.

“We already had two hearings in Kalinga and since they could not comply, the case was forwarded to our regional office."

CRPIP is the first large infrastructure project financed by China under President Rodrigo Duterte's "Build, Build, Build" program.

According to the Philippine Contractors Board license, groups were questioning the constitutionality of the loan agreement between the Philippines and China and pushing to get a temporary restraining order.

Speculation over the Chico River stemmed from constitutionality of making patrimonial assets as collateral, as well as agreements on automatic appropriation as the deal takes away the power of the purse from Congress.

The 20-year loan deal for the CRPIP was signed by Ambassador Extraordinary and Plenipotentiary of China Zhao Jianhua and Finance Secretary Carlos Dominguez III in April 2018.
The project seeks to create canals, diverting the water from the Chico River into different areas in Tuao and Piat in Cagayan and Pinukpuk in Kalinga.
"If they will not submit and comply with the requirements for alien employment permit, we will report them to the Bureau of Immigration and Deportation for possible sanctions. So it will be the BID who will take responsibility of whatever violations they may have committed because all foreigners who work in our country needs to secure an alien employment permit," Guzman said.