NBI Report - Conclusion of Facts and Law

(Lazi Mining)

by Rene Rocamora

The National Bureau of Investigation (NBI) conducted an investigation into the Lazi mining operations when Eufemia S. Crouse, Cielo Lumacad and Solomon & Associates filed a complaint with the NBI against Joseph K. Lo and Ariel Tambuyat for alleged arson arising from the land boundary disputes ranging from encroachment and violation of the Environmental Compliance Certificate (ECC) by the Lazi Bay Resources & Development, Inc. (LBRDI) and Goodyield Resources & Development, Inc. (GRDI).

Here are excerpts of the report submitted by Special Investigator Roger La. Sususco, SA Pedro R. Diaz, Jr., SA Dominador D. Cimafranca and SI Teodoro M. Saavedra.

CONCLUSION OF FACTS AND LAW

The above findings, as supported by facts established by the evidence, show that subject JOSEPH K. LO, ET. AL violated the following laws:

FOR GRDI/LBRDI

a) GRDI thru its President HENRY O. LO for violation of Section 25, (1) in relation to Section 141 of B.P. BLG. 68, otherwise known as, “The corporation code of the Philippines” by holding two concurrent positions as President and a Treasurer of the GRDI and LBRDI and Section 96 in relation Section 141 of the same code; GRDI also for violation of Section 151(a) (2) of the National Internal Revenue Code; and the pertinent provision of the National Building Code for constructing a building without a corresponding building permit;

b) JOSEPH K. LO for violation of Section 2 in relation to Section 144 of B.P. BLG. 68 for creating another corporation, the LBRDI, with the same purpose as an alter ego of the GRDI being President of the LBRDI and at the same time Vice-President and General Manager of the GRDI and violation of Section 96 in relation to Section 141 of the same code; LBRDI thru its President JOSEPH K. LO for violation of Section 54 or R.A. 7942, “Philippine Mining Act” for removing the unspecified quantity of non-processed limestone materials without the necessary Ore Transport Permit (OTP) to be secured from the Mines and Geo-Sciences Bureau (MGB); violation of Section 151(a) (2) of the National Internal Revenue Code in relation to Sections 80 & 84 of R.A. 7942, “Philippine Mining Act”; and violation of Article 183 of the Revised Penal Code for declaring under oath in his application for foreshore lease agreement dated 17 January 1995 that the estimated cost of improvement of the GRDI wharf is P1,000,000.00;

c) ARIEL V. TAMBUYAT, Operation’s General Manager-GRDI in connivance with JOSEPH K. LO, President of the LBRDI and Vice-President of the GRDI for violation of Articles 312 and 313 of the Revised Penal Code when he and DEXTER YNOT, CELICIA BONGKAWEL and SATURNINA BONGKAWEL with the use of force, violence and intimidation, usurped the boundary property of the complainant as their access road down to the wharf of the LBRDI and forcibly removed the boundary mark lawfully placed on the property of the complainant sometime last 26 January 1998; SPO3 SABAS CUAMBOT EBALLENA, Chief of Police of Lazi when the incident was reported by CIELO LUMACAD, SPO3 EBALLENA despite the presence of the witnesses who saw the incident and knowledge and without participation of the incident, did not include the names of ARIEL V. TAMBUYAT and DEXTER YNOT in the blotter, thus SPO3 EBALLENA is liable as an accessory to the crimes.

FOR DEPARTMENT OF ENERGY AND NATURAL RESOURCES (DENR) OFFICIALS/EMPLOYEES

d) Former DENR Secretary VICTOR O. RAMOS and DELFIN J. GANAPIN, JR., Undersecretary-DENR for violation of Section 3(e), (g) & (j) of R.A. 3019 for causing any undue injury to the government, entering a contract of Mineral Production Sharing Agreement (MPSA), approval and issuance of Environmental Compliance Certificate (ECC) to GRDI that does not possess the legal qualifications to engage in the mining business, (which is) grossly disadvantageous to the government;

e) JEREMIAS L. DOLINO, DENR-Regional Executive Director, Region 7, for violation of Section 3 (e), (g) & (j) for causing any undue injury to the government by granting an award to the application for foreshore lease agreement (FLA) to the GRDI on 12 October 1995 under F.L.A. No. 076103-1 that does not possess the legal qualification to enter into the mining business (which is) grossly disadvantageous to the government, and subsequent order of transfer of lease right to the LBRDI on 14 May 1996 for F.L.A. No. 076103-1 and 06 October 1997 for F.L.A. 076103-1A; and the issuance of the authority to construct (A/C) for Air Pollution Source Equipment/Control Facilities on 15 April 1997 to LBRDI knowing that the latter had no corresponding ECC; and subsequently granted the Temporary Permit Air Pollution Source and Control and installations on 02 September 1998 only, when in fact the LBRDI had already operating and processing limestone materials without authority since October 1997;

f) ELIGIO Z. ARIATE, DENR-Regional Technical Director, Region 7, Engr. ALFREDO MODINA, JR., ANDOLFO DELOS REYES, Engr. RAUL A. LAPUT and three (3) JOHN DOES, certifying officials for intentionally issuing and certifying Ore Transport Permit (OTP) to LBRDI on 17 October 1997, 15 November 1997, 21 March 1998, 06 April 1998, 06 May 1998, 29 May 1998, 16 June 1998, 08 July 1998, 08 August 1998, 22 August 1998, 17 September 1998, 20 October 1998, 11 November 1998, 15 December 1998, 04 January 1999, 25 January 1999 only for processed limestone materials in gross violation Section 54 of R.A. 7942, “Philippine Mining Act” which requires that OTP must be issued for non-processed materials for their transport from the quarry site and not for processed materials to cover up the fraud of the LBRDI to be able to evade excise tax as share of the government under the MPSA; and the issuance of an Exploration Permit to GRDI on 11 June 1997 that does not possess the legal qualification to engage into mining activities, thus, also violating Section 3(e) & (j) of R.A. 3019;

g) ESTANISLAO A. GALANO, DENR-Regional Technical Director, Region 7, for conspiring the request for transfer of the Deed of Assignment of the GRDI to LBRDI in his 1^st endorsement letter dated 19 February 1996 to the PENRO, Larena, Siquijor, both corporations do not possess the legal qualification to engage into mining business, thus, violating Section 3(e) & (j) of R.A. 3019;

h) OSCAR M. MAGALLONES, OIC-PENRO-DENR, Larena, Siquijor, for conniving with GALANO by declaring the he interpose no objection as to the request of the GRDI to transfer lease rights to LBRDI, thus, violating Section 3 (e) (j) of R.A. 3019;

i) CONRADO Y. QUIANSON, JR., Land Management Officer (LMO), DENR-PENRO, Larena, Siquijor, who conspired with JOSEPH K. LO and other PENRO officials, Larena, Siquijor for undervaluing the foreshore lease application of GRDI in his appraisal report for F.L.A. No. 076103-1 dated 25 September 1995 and F.L.A. No. 076103-95 dated 25 September 1995, and for conspiring with PEPITO B. DIMALIG, Engr. JESUS P. RODRIGUEZ that there were corrections on Lot Nos. 411 and 599, thus violating Section 3(e) (j) of R.A. 3019;

j) CALIXTO E. YAO, OIC-PENRO, for endorsing the application of GRDI for foreshore lease to be used for Mini-Private Loading Port of the GRDI to the DPWH-District Engineer, Siquijor for comment in his Request for Report of the Suitability of Land dated 05 September 1994, thus violating Section 3(e) & (j) of R.A. 3019;

k) TEODORICO F. BARRAL, OIC-PENRO, Larena, Siquijor in his memorandum to DENR, Regional Executive Director, Region 7, Attn: RTD ESTANISLAO Z. GALANO, Land Management Service, DENR, Region 7 that he cannot entertain the endorsement of the letter of CIELO LUMACAD RE: Application for Free-Patent of Lot No. 411 which was withdrawn by EUFEMIA SOLOMON CROUSE after she discovered that there (were) unauthorized alterations/corrections of their properties which according to him could not be processed but needed corrections as the lot encroached claimed to be a provincial road, instead, BARRAL contended that QUIANSON advised the complainant of the survey corrections and to submit her application. The questionable corrections are now the access road of the two mining firms; the GRDI and LBRDI, thus violating Section 3(e) of R.A. 3019;

l) Engr. JESUS P. RODRIGUEZ, DENR-PENRO, Larena, Siquijor, for patently conniving with CONRADO Y. QUIANSON, JR., TEODORICO F. BARRAL, PEPITO B. DIMALIG, by conducting a relocation survey at the suggestion of QUIANSON for three (3) consecutive times (July 12, 13 & 14, 1997). RODRIGUEZ came up with his computation showing the area of Lot No. 411 is 13,675 and not 15,558 based on the computation made from the LMS-DENR-Region 7 and the approved map dated 27 September 1978, thus violating Section 3 (e) & (f) of R.A. 3019 and Article 171 in relation to Article 172 of the Revised Penal Code;

m) PEPITO B. DIMALIG, DENR-PENRO, Land Inspector, Larena, Siquijor, for conniving with QUIANSON when he intentionally changed and the application form filled up by CROUSE for Free-Patent of Lot No. 411 and substituted by another application form filled up with his own handwriting where it appeared the lot area of Lot No. 411 was changed/altered to 13,675 square meters, thus violating Section 3 (e) & (f) of R.A. 3019 and Article 171 in relation to Article 172 of the Revised Penal Code;

n) JAMES M. FUENTES, DENR-Cartographer II, Region 7, for maliciously altering/changing the official record of Lot Data Computation of PLS-983, the lot area of Lot No. 411 surveyed by Engr. TEOPISTO L. GALLEGO on July 26, 1969 (Deceased) in the name of the original claimant MA. VDA DE ARCAMO twice on 16 February 1995 and 18 March 1996 where his initials appeared thereon wherein the area of Lot No. 411 was changed from 15,558 to 13,765. He verbally claimed that the alterations were based on the approved map dated 27 September 1978 and a written instruction from the DENR-PENRO in Larena, Siquijor but he could not present the said written instruction and the Field Notes of Engr. TEOPISTO L. GALLEGO which he also claimed verbally that the same was missing in their files, thus violating Section 3 (e) of R.A. 3019 and Article 171 in relation to Article 172 of the Revised Penal Code;

o) LUVISMINDA A. ARTES, Chief, Records Section, LMS, DENR, Region 7, for conniving with FUENTES and Engr. RAFAELA A. BELLEZA, Chief, Technical Services, LMS, DENR and Regional Technical Director ESTANISLAO Z. GALANO claiming that the Field Notes were destroyed by termites from their files but she could not present any record of inventory that the Field Notes was one of the records destroyed by termites; and also, by certifying the corrections/alterations of Lot Data Computation, PLS-938 of Lot No. 411 on 24 November 1998, thus violating Section 3 (e) or R.A. 3019; Article 171 in relation to Article 172 and Article 226 of the Revised Penal Code for infidelity in the custody of public records and obstruction of justice;

p) Eng. RAFAELA A. BELLEZA, Chief, Technical Services, DENR-LMS, Region 7, also for conniving with RTD ESTANISLAO Z. GALANO, ARTES and FUENTES for failure and refusal to present and submit the blueprint map of Lazi and Field Notes, concealing records and cover up of the irregularities, thus violating Section 3 (e) of R.A. 3019, Article 171 in relation to Article 172 and 226 of the Revised Penal Code and obstruction of justice;

q) MARLITO L. CARDENAS, Director, Environmental Management Bureau (EMB)-DENR, for gross negligence and failure to impose appropriate fines/penalties against the management of GRDI/LBRDI for various violations of the Environmental Compliance Certificate (ECC), thus violating Section 3 (e) of R.A. 3019;

r) NOLAN B. FRANCISCO, Infrastructure Group-EIA and NOELINA MERAN, Technical Assistant-UEPD-DENR for conniving with DENR-Undersecretary DELFIN J. GANAPIN, JR. and former DENR Secretary VICTOR O. RAMOS, by undue recommendation of waiver of the conduct of public hearing for the proposed limestone project of the GRDI in Brgy. Simacolong, Lazi, Siquijor. Based on which an ECC was issued to GRDI signed by Secretary RAMOS with the recommending approval of Undersecretary GANAPIN, JR. despite of the fact that GRDI, by statutory prohibition of the Corporation Code, cannot engage into the mining activity, being a close corporation, is therefore disqualified, thus violating Section 3(e) & (j) of R.A. 3019;

s) DIOSCORO M. MELANA, Regional Technical Director, DENR, Region 7, for malfeasance by acting on the complaint of CROUSE and LUMACAD  for environmental pollution and violations of the ECC as contained in the report prepared by ANECITA Q. DINOY-EMS II and noted by JUN ERASMO F. VILLAFANTE, OIC, Office of the Regional Technical Director, EMPAS-DENR 7, failed to impose stiff fines/penalties against GRDI/LBRDI, thus violating Section 3(e) of R. A. 3019;

t) AMELIA DULCE D. SUPETRAN, former OIC-Environmental Management Bureau (EMB) and now Chief of the Environmental Education and Information Division (EMB) in connivance with JULIAN D. AMADOR for giving undue advantage to the request of the GRDI for thirty (30) day extension, instead of imposing penalty of P50,000.00 pesos for each violation of the ECC, granted the request of the GRDI, thus violating Section 3 (e) of R.A. 3019;

FOR OFFICIALS AND EMPLOYEES OF DPWH-LARENA, SIQUIJOR

u) EDILBERTO S. FABILA, District Engineer, DPWH, Larena, Siquijor, for officially giving his favorable comment to the endorsement of CALIXTO E. YAO, OIC-PENRO of the non-suitability of the land applied by the GRDI and without which, the application for foreshore lease of the GRDI that does not possess legal qualification to engage in mining would not have been approved; and also the UNDATED MAP with a scale of 1:40,000 submitted by his office, showing the provincial road, the Minalolan-Simacolong road appeared to be inconsistent with the scale map of 1:30,000 of the Province of Siquijor as certified by the National Mapping and Resource Information Authority (NAMRIA), thus violating Section 3 (e) of R.A. 3019 and Article 171 in relation to Article 172 of the Revised Penal Code;

v) CLINIE A. OCAO, Engineer II and ANIOLITO M. SAMSON, Engineer III of the DPWH, Larena, Siquijor for conniving with District Engineer FABILA in coming up with the draft of the UNDATED MAP but could not explain the basis of the design/draft, thus violating Section 3 (e) of R.A. 3019 and Article 171 in relation to Article 172 of the Revised Penal Code;

FOR OFFICIALS OF THE LOCAL GOVERNMENT UNIT OF LAZI AND PROVINCIAL OFFICIALS OF SIQUIJOR WHETHER ELECTED OR APPOINTED, SEPARATED FROM SERVICE/RESIGNED OR TERMS OF OFFICE ENDED

w) NATALIO B. JUMAWAN, JR., Municipal Engineer of Lazi, for failure or negligence of his office to enforce the National Building Code when GRDI constructed their building/office on a leased property (Lot No. 598) in Brgy. Simacolong, Lazi, Siquijor without the necessary building permit and despite notice from his office, no appropriate action had been taken by him, thus violating Section 3 (e) of R.A. 3019;

x) LILIA F. YUAG, Municipal Assessor of Lazi, whose name and signature appeared on the Appraisal Report of CONRADO Y. QUIANSON, JR., of the DENR-PENRO confirming the latter’s appraisal report (which is) disadvantageous to the government, thus violating Section 3 (e) & (j) of R.A. 3019;

y) GRACIANO M. BONGKAWEL (Deceased), former Barangay Captain of Simacolong, for having falsely stated under oath in his endorsement from the Local Government Unit and noted by former Lazi Mayor CESAR P. MARCHAN that he consulted his respective constituents of the proposed limestone project of GRDI and they interposed no objection to the MPSA application of the GRDI which is not equivalent to social acceptability as defined under DAO 96-37. Unfortunately, “Dead man tells no tale”. His criminal liability is extinguished.

z) CESAR P. MARCHAN, former Municipal Mayor of Lazi, for declaring under oath deliberately and knowingly submitted an endorsement dated 05 May 1994 in connivance with the former Siquijor Governor BEN P. AQUINO and former Congressman and Chairman of the Natural Resources ORLANDO B. FUA, SR., alyas “ORLAN” although, noted by him, is not equivalent to social acceptability. The subsequent discovery of the endorsement which came later and after he gave another statement before the NBI on 01 March 1999, contradicts its material points that “there was only meeting but not a public hearing”, is a crime of Perjury and therefore (a) violation of the provision of Article 183 of the Revised Penal Code. His undue approval to the application for Small Scale Quarry/Mining of JOSEPH K. LO as represented by his authorized person ARIEL V. TAMBUYAT by issuing a CBBF Certificate of Authority on 14 July 1994 to start quarry of limestone in Brgy. Simacolong, a place that has never been converted from residential/agricultural to commercial/industrial by any municipal ordinance with the affirmation and connivance of CLEOFE C. LUCERO (Retired), former Municipal Treasurer of Lazi, violated Section 3 (e) & (j) of R.A. 3019;

aa) ORLANDO B. FUA, SR. alyas “ORLAN”, former Congressman of the lone district of Siquijor and Chairman of the Natural Resources for in the unlawful endorsement and interposing no objection of his office to the MPSA of GRDI that does not possess legal qualification to engage in mining business, thus violating Section 3 (e) & (j) of R.A. 3019;

bb) BEN P. AQUINO, former Governor of Siquijor, likewise, using his office in the unlawful endorsement and interposing no objection to the MPSA of GRDI that does not possess legal qualification to engage in mining business, thus violating Section 3 (e) & (j) of R.A. 3019;

cc) Engr. EULOGIO P. MALANOG, Provincial Government Dept. Head, Siquijor, for conspiring and confederating with the DPWH, Larena, that the Minalolan-Simacolong is a provincial road but he could not present any document to support his alibi thus violating Section 3 (e) of R.A. 3019;

dd) ANDRESITO E. CORTEZ, Provincial Government Asst. Dept. Head, Siquijor for conspiring and corroborating the alibi of Engr. EULOGIO P. MALANOG, thus violating Section 3 (e) of R.A. 3019; and

ee) Atty. ELISEO N. ROCAMORA, Provincial Legal Consultant, Siquijor, for claiming and corroborating that the properties of the complainant where the alleged provincial road pass through which is now being used as an access road of the GRDI/LBRDI for their mining operations is belied by the fact that his office, the Provincial Government of Siquijor cannot produce any record of donation to or expropriation affecting Lot Nos. 411 and 599, thus violating Section 3 (e) of R.A. 3019;

OTHER PERSON INVOLVED

ff) Engr. LEOPOLDO C. TUASTUMBAN, Geodetic Engineer, hired and paid by JOSEPH K. LO for his services to conduct relocation survey of Lot No. 598 and 599 appeared to have connived with the latter as basis for the expulsion from the legitimate property of the complainant and forcible removal of the boundary mark between Lot Nos. 599 & 598 thru force, violence and intimidation by LO’s Operation’s General Manager ARIEL V. TAMBUYAT, et al, thus he may also be held administratively liable in an appropriate proceedings for violation of professional ethics and standards before the Professional Regulations Commission (PRC), Manila and possible criminal prosecution for deliberately and knowingly disturbed the peaceful possession of the property as a result of the survey he conducted to the damage and prejudice of the complainant.

to be continued......