Mining companies operating in remote areas with zero military presence are forced to pay revolutionary tax or risk attacks by communist-led New People’s Army (NPA) rebels in insurgent-infested hinterland areas.
Interviewed at the sidelines of the ongoing 64th Annual National Mine Safety and Environment Conference (ANMSEC) in Baguio City, Wilfredo G. Moncano, director of the Mines and Geosciences Bureau (MGB), said mining companies paying revolutionary taxes as claimed by President Duterte is “a reality.”
On Tuesday President Duterte called on the mining sector to stop paying “revolutionary tax” to the communist insurgents or face closure.
Duterte issued the warning in his speech during an event in Taguig City, saying mining companies should stop giving in to the demands of the Communist Party of the Philippines-New People’s Army (CPP-NPA) “in the interest of the security of the state.”
He said, without exception, all mining companies are paying taxes to the NPA, and added the rebel movement would not thrive if the companies shun paying revolutionary tax to the rebels.
Duterte has recently called off peace talks with the National Democratic Front of the Philippines and threatened to declare the CPP-NPA as “terrorists,” highlighting its “extortion” activities.
According to Moncano, mining companies are being asked to pay revolutionary taxes by NPA rebels.
In some instances, NPA rebels burn heavy equipment of mining companies as punishment for refusing to pay revolutionary taxes.
Some mining companies hire and deploy heavily armed security guards who are sometimes backed by paramilitary forces to deter NPA attacks.
“This is one of the issues raised by President Duterte. It is a reality. I was once working with a private mining company. In the remote area, tagilid ka talaga doon [you are left to fend for yourself], unless you establish your own security force. Sa bundok naman [in the hinterlands], it is either you decide whether you establish your own Cafgu [Citizens Armed Forces Geographical Unit] or hire a private- security force,” he added.
Moncano said companies are allowed to ask the government to provide them with security forces.
“I was the MGB regional director of Region 11, and the commander in the area advised the mining companies there that if they intend to secure their areas, they are allowed to set up like military force [under] special Capcom [Capital Region Command] because it is supervised by the government. It will be a business decision. It will be very expensive because it will require them to hire people to secure their operations,” Moncano said.
According to Moncano, hiring and deploying heavily armed security guards backed by military or paramilitary forces is also a common practice among mining companies to protect its mine investment from NPA rebels.
Asked whether he would consider recommending the deployment of more troops to protect mining operations in remote areas, Moncano said, “It is not really up to the MGB. It is up to the Department of National Defense to make such recommendations to the President how to secure mining companies.”
Rep. Jesse C. Mangaoang of the Lone District of Kalinga, in his brief speech during the 64TH ANMSEC Minerals Industry Symposium, said as long as mining companies are giving their fair share to the government and the communities, mining operations will continue in the Philippines.
He said the House of Representatives is tackling six mining-related issues, including a new fiscal regime, open-pit mining ban, the ban on mineral export and Speaker Pantaleon D. Alvarez’s proposal to require legislative franchise for the government.
Sought for comment on the issue of revolutionary taxes imposed by the NPA, the official said he is unaware of any mining company having to pay revolutionary taxes to do business.
Mangaoang said even politicians in Kalinga do not succumb to such pressures exerted by NPA rebels.
1 comment
The bloody mining companies don’t pay taxes which make them very rich and can afford to provide for their own private armies !!! Mining companies in the Philippines are the devil’s instrument on earth !!!