Commission on Appointments-rejected Environment Secretary Regina L. Lopez was slapped with a graft complaint by a mining company for allegedly trying to extort P130 million for the benefit of a non-governmental organization (NGO) she controls.
Administrative charges were also lodged against her by Citinickel Mines Development Corp. (CMDC) before the Ombudsman on Wednesday.
In the 41-page complaint, CMDC officials alleged that Lopez used her position to impose additional requirements on them, after she froze their ore shipments.
These requirements, CMDC claimed, were not only unreasonable, but unlawful, as well, since they do not have any legal basis and go beyond the mandate of the Department of Environment and Natural Resources (DENR).
Through its legal counsel Lorna Kapunan, CMDC said Lopez not only disregarded the company’s duly-entered 25-year Mineral Production Sharing Agreement (MPSA) with the DENR when she ordered the suspension of its operations.
The complaint said Lopez also threw in hindrances that effectively scuttled the MPSA.
“Secretary Lopez is not only unaware of the limits of [her] office; she, likewise, displays a propensity to be a tyrant who cannot be reasoned out with. She imposes restrictions without regard to the law and the property rights of the public, which she serves,” the complaint said.
Charges of violations of Sections 3(a), (e) and (f) of the Antigraft and Corrupt Practices Act, Illegal Exaction, Violation of the Code of Conduct and Ethical Standards for Public Officials and Employees and Violation of the Red Tape Act of 2007 were filed against Lopez.
Kapunan said when CMDC was ordered suspended by Lopez in July 2016, they subsequently filed for a Mineral Ore Export Permit (MOEP) with the Mines and Geosciences Bureau (MGB) to enable them to remove and transport their already-mined ores from the area, so as not to endanger the environment.
The same was immediately granted by the MGB in November 2016, but CMDC was surprised when Lopez issued a memorandum on January 30, 2017, imposing additional requirements for the issuance of MOEP.
This included the establishment of a trust fund in the amount of P2 million per hectare of disturbed land.
Kapunan said CMDC appealed the memorandum, saying the imposition of the trust fund is superfluous, as it is already being covered by two trust funds set under the Philippine Mining Act.
CMDC was alarmed with regard to the new requirement of setting up of a trust fund for P2 million per hectare of disturbed land. This is because CMDC has already been depositing to two similar funds for the same purpose, pursuant to the same law, Kapunan said.
On February 17 CMDC said it received another set of more onerous conditions from Lopez for the granting of the MOEP—they were being ordered to secure a performance bond of P130 million and to use BioChar as a means of rehabilitation in their mined areas to ensure a healthy watershed.
Former Environment Undersecretary Philip Camara is the current president of BioChar.
Despite their misgivings on the additional requirements, Kapunan said CMDC referred its concern to Camara, who was then Lopez’s undersecretary.
However, things turned from bad to worse when Lopez, through Camara, imposed additional requirements for the MOEP, which included organizing an NGO called the Espanola Community Administration Services Inc. (Ecasi) for the purpose of financing the Green Economy Transitioning Area Development Plan and Program for Narra and Española, Palawan.
Lopez, through Camara, also demanded that, aside from the P2 million per hectare of disturbed land and the P130-performance bond, CMDC should deposit P1 million per vessel used to ship the mineral ores to Ecasi.
CMDC was also required to deposit the P130-million performance bond to Ecasi’s bank account, Kapunan said.
While the incorporators of Ecasi will be from CMDC at the outset, people active in the so-called community enterprises will eventually become shareholders and a private lawyer recommended by Camara will ensure that Ecasi will comply with all the directives of Lopez.
CMDC said none of these new requirements had any legal basis to support them.
Kapunan said Lopez, through her directives and letters to CMDC, violated Sections 3(A), (E) and (F) of Republic Act (RA) 3019, or the Anti-Graft and Corrupt Practices Act.
Kapunan said Section 3(A) specifically refers to any official who persuades, induces and influences another public officer to perform an act constituting a violation of rules and regulations duly promulgated by competent authority.
Lopez’s act of somehow influencing, persuading or inducing the MGB not to issue MOEP to CMDC, despite the latter’s inclination to issue the same as they had said in November 2016, are beyond her mandate (and) comes within the purview of a corrupt practice, she said.
She stressed that Lopez’s act of imposing additional requirements on their MOEP was made without any authority, because the power to do so lies with the MGB under Section 53 of the Mining Act.
Kapunan also stated that Lopez’s acts against CMDC caused undue injury to the company.
Lopez’s negligence in declaring CMDC’s mining area a functional watershed, despite the Philippine Forestry Code requirement of a prior declaration from the president of the Philippines, also harmed the company.
By doing so, Lopez lumped CMDC together with mining companies that are actually working within duly declared watersheds, effectively tarnishing CMDC’s reputation of being a responsible mining company, Kapunan said.
She added Lopez should also be held liable for violation of Section 3(e) of RA 3019 for her refusal to answer the inquiry from CMDC on the possibility of using the money from existing trust funds executed in favor of the government.
These elements are clearly in sync with Lopez’s acts as a public officer who has refused and/or neglected to act on the above stated matters, despite the ample length of time given to her, she said.
Aside from the graft charges, Kapunan said Lopez should also be held liable for Illegal Exaction for requiring CMDC to set a trust fund of P130 million for Ecasi, which has no basis under the law.
For her utter neglect of duty and misconduct, Kapunan said Lopez should also be administratively held liable.
“She exceeds the powers vested in her office by arbitrarily imposing new restrictions in the mining industry, which, to repeat, is not found under existing laws.”
“Based on the foregoing, it is crystal clear that Secretary Lopez is not only unaware of the limits of her office, she, likewise, displays a propensity to be a tyrant that cannot be reasoned out with. She imposes restrictions without regard to the law and the property rights of the public that she serves,” Kapunan also said.