JAMES LAYUG "MAGDALO" for Congressman

By MIRIAM CORONEL FERRER
ABS-CBN; 03/13/2010

Everyone has been focused on the election trail, and while we’re not looking, the government is fast tracking the selling of valuable government assets.

The issues surrounding the selling of the Food Terminals in Taguig and the real estate owned by government in Fujimi, Japan have already come out in the open. But still outside of the public glare is the ongoing negotiation to sell the 10 percent share of the government in the Malampaya oil field.

If Malacanang manages to arm twist the Philippine National Oil Company-Exploration Corporation (PNOC-EC) board to sign the deed of sale – and it seems they are trying their darnedest to pull this through — the billions of fresh funds from the sale will immediately prop up the sagging coffers of this administration. But the Filipino people and Philippine government will lose forever significant and potentially higher annual revenues from the resource in the next 20 years.

Gas from Malampaya fuels the 2,700 megawatt power plant in Batangas. So far, Malampaya is the biggest oil and gas producing field in the country. It is estimated to contain 3 trillion cubic feet of gas and 40 million barrels of recoverable oil reserves. However, there are indications that it has much more in store not only in the Malampaya structure, but also in the nearby prospects that Shell and the Service Contract 38 joint venture have identified and will be drilling soon.

The government plans to sell Malampaya for about US$300 million or P14 billion. In 2008, the PNOC-EC earned P3.08 billion, most of which came from Malampaya earnings. At this rate, and assuming steady gas prices and volume of sales, it can easily raise the $300 million in six years without having to sell the goose that lays the golden egg.

In fact, the Malampaya consortium has already fully recovered its initial $4.5 billion investment. It started operation only in 2001.

Obviously, disposing of the asset now will immediately strip the government, starting with the next administration, of a sustained and significant revenue source.

Without the Malampaya asset, the PNOC-EC’s net worth would be decimated. It won’t have the capacity to invest in other exploration projects.

The government plan is to eventually sell 60 percent of the PNOC-EC. But without the Malampaya goose, it won’t fetch much. If it sells PNOC-EC with its Malampaya share intact, it can fetch a much higher value for the same share. So why is the government so keen to sell the shares now?

This is the not the first time, the GMA administration tried to sell the participating interest of the PNOC-EC in Malampaya. In 2005, it approved the sale of half of Its participating share to the Korean LG company. But several people in government managed to block the planned sale. With only three months to go before a new administration takes over, high-ranking government officials are once more working fast to swing a deal asap.

Speculations as to motives are naturally rife when a government-brokered deal is evidently unwise from a business investment point of view and fraudulent from a governance perspective. Some surmise the funds will be diverted to private pockets, or electioneering. Others think the administration wants to exit without the shameful legacy of a huge budget deficit. That’s why they badly need the green bucks-transfusion. Still others cannot help think of even more sinister plots in the offing, such as the eventual privatization of the much devalued PNOC-EC at bargain prices to a favored investment group.

The president has promised a smooth transition to the next administration. And while we have yet to see through this promise, we have before us very high-ranking government officials hell-bent on using their terminal powers to squeeze the most benefit for themselves.

The president has been filling up all appointive positions with people whom we will have to suffer even after she has stepped down. It seems she will appoint the chief justice of the Supreme Court during the election ban period even at the cost of a constitutional showdown. It is pathetic that an incoming AFP chief’s inaugural speech is a plea for trust, given how little there is on both the appointer and appointee.

And now, we have this impending sell-out of a prime revenue-generating government asset for one more short-term and self-serving gain.

E-mail: mcf178@yahoo.com

Magparehistro! Bumoto!

Kung sawa ka na sa korupsyon, kahirapan, at kagutuman. Kung nais mo ng magandang bukas para sa ating mga kabataan. Kung nais mo ng mapayapa, maunlad at masaganang pamayanan. Lumahok sa halalan sa Mayo 2010 at gamitin ang lakas ng balota upang maging instrumento sa pagpili ng mga tamang lider para sa ating bayan. Panahon na upang tayo ay kumilos, manindigan at isulong ang pagbabago na nais nating makamit. Magpa-Rehistro! Bumoto! (more…)

By James Layug

10/16/08

Recently federalism has been an issue because of the Bangsamoro Juridical Entity that was crafted by the GRP-MILF peace panel. The BJE included the very controversial MOA-AD that defined the territorial boundaries and political powers therein of the Bangsamoro authority which in effect is creating a state within the state. As a parallel effort, Senator Nene Pimentel has submitted to the Philippine Senate a joint resolution to convene the Congress into a constituent assembly for the purpose of revising the constitution that will create eleven (11) States out of the Republic and establish a federal system of government. Likewise in the House of Representatives, Speaker Nograles is also pushing for constitutional amendments through con-ass. Malacanang is very happy to support this development because a change in our form of government from central-bicameral republic to federal-parliamentary system would translate to term extension for GMA. Under these circumstances I am sharing my thoughts on Federalism… (more…)

MANILA, Philippines—It was the strongest message former President Corazon Aquino has so far issued, and it was roundly applauded in the largest rally against moves to revise the Constitution in three years.

Here we are again in the midst of the shameful abuses of the powerful that seek to destroy our sacred laws, she said in Filipino (“Subalit narito muli tayo, sa gitna ng walang-hiyang pang-aabuso ng mga makapangyarihang nagnanais na sirain ang mga pinakayakap sa ating mga batas.”)

“Over the years, I have learned to endure pain and sadness,” said the cancer-stricken People Power icon in a statement read by her grandson Kiko Dee at the rally attended by thousands in Makati City Wednesday.

“But perhaps, there is nothing that causes me greater pain than to see our people betrayed again and again by those they have elected to lead and serve them. To those of us who fought long and hard to restore our democracy, the pain deepens at the thought that all our gains have so quickly been eroded.”

Estimates of the crowd that gathered in the intersection of Paseo de Roxas and Ayala Avenue ranged from 5,200 by police to 13,000 by organizers of the multisectoral rally against an attempt by President Gloria Macapagal-Arroyo’s allies to convene a constituent assembly (Con-ass) and amend the Constitution. The Philippine Daily Inquirer put the crowd at 10,000. (more…)