Jamby Madrigal, the dragon slayer, goes after Enrique Razon Jr.

After dealing a crippling blow to Senator Manny Villar, Senator Jamby Madrigal is now going after another huge dragon of corruption and the new target is Enrique Razon Jr., the Chairman and President of ICTSI.

Razon's name has frequently cropped up in a number of scams involving President Gloria Macapagal Arroyo, which include the NBN ZTE debacle.

We applaud Senator Jamby for this move, for if anyone can teach these bully billionaires a lesson, it is you. Pretty soon, these corruptors and grafters will all go down!

Razon on Senate probe: No comment

August 20, 2009 03:20:00

Gil C. Cabacungan Jr. TJ Burgonio

Philippine Daily Inquirer

MANILA, Philippines—Businessman Enrique Razon JR. Wednesday declined to comment on calls in the Senate for a probe of the contract awarded to his company, Monte Oro Resources & Energy Inc., for coal mining exploration in Catanduanes province and on allegations made by Sen. Jamby Madrigal.

“I’m not going to make a statement on that,” Razon, a close ally of President Gloria Macapagal-Arroyo, said in a text message to the Philippine Daily Inquirer Wednesday.

Madrigal on Tuesday said that the awarding of the coal contract to Monte Oro was “lutong macaw” (predetermined) and a display of crony capitalism.

Monte Oro is owned by Razon through Sureste Properties.

Monte Oro’s wholly owned subsidiary is a member of a consortium that won a 25-year franchise in 2007 to operate the national grid system of National Transmission Corp. (Transco) with a bid of $3.95 billion.

Probe to push through

The sale of Transco assets has been described as the biggest privatization in Philippine history.

Madrigal Wednesday said the Senate inquiry into how Monte Oro was able to bag a controversial coal mining contract in Catanduanes would push ahead even if the owner of the “crony corporation” said he had abandoned the project.

“The bare denial by Monte Oro Resources Inc. and its subsequent insistence that it has abandoned the project site is immaterial,” the senator said, noting that the issue was how Monte Oro got the contract.

“Did it use its influence with Malacañang to get the contract? This issue only proves that Arroyo cronies are alive and kicking,” said Madrigal, who sought an inquiry into the issue by the Senate environment and blue ribbon committees.

Madrigal, who chairs the Senate environment committee, was reacting to Razon’s statement that his company had abandoned its search for coal in Catanduanes as early as last year.

The Catholic Church and various groups are opposing the awarding of 7,000 hectares of land in the province to Monte Oro, saying that no public consultation was made.

Palaca: Shed light, not hit

Malacañang Wednesday grudgingly supported Madrigal’s resolution seeking an inquiry into the awarding of a coal operating contract without public consultation to Monte Oro.

Gary Olivar, economic presidential spokesperson, said he hoped that the move would help shed light on the issue.

“This is an independent move of a member of an independent branch of government. We have to assume that the senator planned her investigation with only the best of motives in mind,” he told reporters in a briefing.

Olivar said that so far oversight over such matter was being “adequately handled” by the Department of Energy.

“If the senator feels differently about that for good reason, and she wants to launch her investigation, she’s certainly fit to go ahead,” he added.

“This is what we can say to the senator: ‘We hope you’re on this to shed light, not hit.’”

Olivar said the contract awarded to Monte Oro had become a big issue “because of allegations that one of the principals has political connections. But as far as I can see, that aside, these are the things we encounter every day every time there’s a mining proposal.”

Illegal

In a statement, Madrigal insisted that the awarding of the contract to Monte Oro was “illegal” because no public hearing and no environmental impact assessment were undertaken.

The contract also violated the Renewable Energy Act, which seeks the sustainable development of alternative energy resources, according to Madrigal.

“This has got to stop,” she said. “The cronies of Ms Arroyo should be investigated and if proven guilty, they should be prosecuted by the law.”

For her part, Sen. Loren Legarda said there was a need to find out the real score behind the controversy as she stressed that coal was “one of the biggest polluters.”

“Does this project have an environmental impact assessment before exploration was done? Are they now mining coal or not?” Legarda told reporters. With a report from Christine O. Avendaño