House Speaker and Davao del Norte Rep. Pantaleon Alvarez (davaotoday.com file photo)
DAVAO CITY – A rift is heating up between close allies of President Rodrigo Duterte as House Speaker Pantaleon Alvarez filed graft charges against Davao del Norte 2nd district rep. Antonio R. Floirendo, Jr.
The case for violation of section 3 (h) of Republic Act 3019, otherwise known as the Anti-Graft and Corrupt Practices Act was filed at the Office of the Ombudsman last March 13, 2017.
In his affidavit-complaint, Alvarez alleged a conflict of interest on the part of Floirendo, saying that the solon was serving his second term as representative of Davao del Norte 2nd district when the Tagum Agricultural Development Company (TADECO) and the Bureau of Correction (BUCOR) renewed its Joint Venture Agreement (JVA) in 2003.
TADECO and BUCOR first entered into a JVA in 1969 for the lease of 3,000 hectares of land located at the Davao Penal Colony (DAPECOL) to be utilized and developed into a banana plantation.
The JVA expired last September 26, 1979.
TADECO and BUCOR executed a consolidated JVA that extended the lease to 25 years. The consolidated JVA was again renewed last May 21, 2003 for another 25 years.
In the renewal of the JVA in 2003, Alvarez alleged that BUCOR shall receive from TADECO a guaranteed annual production share of P26,541,809 which shall automatically increase by 10 percent every five years for the 5,308.36 hectares of leased land.
BUCOR shall also receive profit shares with respect to the leased land, the amount of which shall also automatically increase by 10 percent every five years, he added.
The speaker further alleged that Floirendo’s family wholly owned TADECO and in 1977, organized the Anflo Management and Investment Corporation (ANFLOCOR) to answer the need of TADECO to manage its vast business.
The complaint was anchored on the allegation that Floirendo, during the renewal of the JVA in 2003, was a public official serving as representative of Davao del Norte 2nddistrict and at the same time among the owners of TADECO.
Documents that showed shares of Floirendo in TADECO and AFLOCOR were also attached by Alvarez in his affidavit-complaint.
The elements of the offense punishable under sec. 3 (h) of RA 3019 include: (1) The accused is a public officer; (2) He has a direct or indirect financial or pecuniary interest in any business, contract or transaction; and (3) He either (a) intervenes or takes part in his official capacity in connection with such interest, or (b) is prohibited from having such interest by the Constitution or by law.
Aside from violating sec. 3 (h) of RA 3019, Alvarez also claimed that Floirendo infringed the provision of Article VI, Sec. 14, alleging further that such Constitutional prohibition squarely applies to Floirendo.
JVA ‘above board’
TADECO on Tuesday issued a press statement taking exception to the statement of Alvarez in relation to House Resolution No. 867 he filed in the lower house on the JVA with BUCOR.
Alvarez, in said resolution, claimed that the JVA was grossly disadvantageous to the government.
TADECO said the argument of Alvarez was false.
“The arrangement between TADECO and BUCOR is not a lease arrangement but a Joint Venture that is primarily aimed at the rehabilitation of the inmates in Davao Penal Colony (DAPECOL),” TADECO said in the statement.
TADECO added: “The rehabilitation program has been found to be very successful by BUCOR up to the extent that the latter has even requested TADECO to replicate the JVA program to its penal colony in Iwahig, Palawan.”
The JVA was also reviewed by the executive and legislative departments of the past administrations and found out to be advantageous to the government, the firm added.
“In fact, the most recent review in the 15th Congress in 2012 once again arrived at the same positive conclusion regarding the JVA and its benefits to the government. The Department of Justice, through its representative Atty. Teresita Domingo, during said congressional review stated that the JVA is actually above board,” TADECO said.
The firm also denied allegations of ill-treatment of its workers, dismissing the same as baseless.
“TADECO takes good care of its workers. This is evident in the high production yield of TADECO, indicating that the workers are well motivated and very productive,” TADECO said.
It added that when the JVA was renewed in 2004, the rates jointly agreed therein were the most competitive rates prevailing at that time.
“As can be understood, the changes in economic conditions over the past 13 years have affected the competitiveness of such rates. TADECO understands this and stated back in 2011 its willingness to discuss and adjust the rates as it had done in the past. This effort to adjust the rates did not gain any momentum because of the continuous change of leadership in the BUCOR,” TADECO added.
Given their answer to the resolution of the House speaker, TADECO said it “is befuddled as to the real reasons why Speaker Alvarez has initiated this inquiry.”
No plot to unseat Alvarez
Floirendo on Wednesday said in a statement there is not truth into rumors of a plot to unseat Alvarez as speaker of the House.
He also denied that he was behind to such plot.
“I never attempted to talk to Arroyo (former President and Pampanga representative Gloria Macapagal-Arroyo) nor would I ever support any plot to oust Speaker Alvarez who, in the first place, is a good friend of mine and whom I fully supported during the last election and in his bid for the speakership,” the Davao del Norte representative said.
The rumors said Alvarez will be replaced by Arroyo who was removed as the deputy speaker of the House after she voted against the death penalty bill.
“If ever there is an iota of truth to the ouster plot, I am 100 percent not a part of it,” Floirendo pointed out.
The solon added that he still consider Alvarez as a good friend and described the current rift between them as a “brotherly misunderstanding”.
Such misunderstanding, Floirendo added, could be quickly resolved.
He, however, admitted that he was hurt by the steps now being undertaken by Alvarez.
“Admittedly I am hurt with the action of Speaker Alvarez against me,” Floirendo said, adding that the moves also affected his family and the people of Davao del Norte.
“But that’s politics. What is important is that I know deep down my conscience that I have not done anything wrong nor have I committed any criminal act,” he added.
He also welcomed the graft charges, saying he is ready to face the same with clear conscience. (davaotoday.com)
