Govt treads softly on garbage contract

‘Which JEC?’

By Ma. Stella F. Arnaldo

Government appears to have become more circumspect in awarding a controversial P10-billion garbage contract to a company with questionable ownership.

In a memorandum to Executive Secretary Alberto Romulo dated Aug. 27, 2001, Undersecretary for Regional Development Manuel Gaite recommended that the government make sure it is negotiating with the proper representatives of Jancom Environmental Corp. which has proposed a sanitary landfill project costing $32 per metric ton.

Lawyer Manuel Molina had been claiming to represent JEC as its chairman and legal counsel.
Australian-based Jancom International Development Projects Pty Ltd. disputed this and claims Molina no longer represents JEC, its local subsidiary.

“If Atty. Molina claims that he can speak for JEC, then the prudent thing to do is for government (the Metropolitan Manila Development Authority) to require Atty. Molina to present the latest board resolution authorizing him to represent JEC,” said Gaite.

A source in MMDA’s prequalification for bidding and awards committee told Manila Standard yesterday that Molina has yet to present such a board resolution.
Instead, he has submitted documents detailing the deed of assignment of shares of Jancom to JEC to enable the latter to undertake a $350-million incinerator project it had been awarded under the Ramos administration.

“Unfortunately,” the source said, “these changes were not reflected in the SEC (Securities and Exchange Commission).” Gaite’s memo cites the general information sheet of JEC which shows Molina only owning one share of stock “while the majority is owned by a certain Maria Linda Martinel (120,000 shares) and Jancom Australia (79,999,999 shares).”

No award to Pro-Environment either In light of the revelations surrounding the ownership
of JEC, Gaite also cautioned MMDA against also awarding Pro-Environment Consortium a garbage contract which it won last year. MMDA had been prevented then from awarding the contract to PEC, a partner of German-based Rethman Recycling, due to Jancom’s lawsuit against the government.

MMDA said it received the go-signal from JEC to award the garbage contract to Pro-Environment. “But which JEC are we talking about?” the PBAC source said.

Assuming that certain legal obstacles are hurdled, Gaite’s memo said the following should be considered in the negotiations with JEC:

• Negotiations must be for another kind of technology, not incineration as originally proposed by JEC, since it is no longer allowed under the Clean Air Act;

• That a suitable landfill site be identified as San Mateo is no longer operational;

• The tipping fee must be reasonable and justifiable and closer to the benchmark of $18.90 per mt which was established in the bidding won by Pro-Environment as the original JEC proposal was for $59 per mt.

• Ensure the availability of a budget to fund the tipping fee of JEC. Gaite said even the special
appropriations for the Pro-Environment contract of P1.9 billion is no longer programmed under this year’s reenacted budget.

• Secure the approval of the National Economic and Development Authority-Investment Coordinating Committee as the same was discontinued after revisions were made due to the first Neda-ICC approval.

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