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Hiding heads in the sand |
Non-disclosure of information important to local people by
those in the know is the best formula to make them become continuing victims of
manipulation and exploitation. A case in point is what's now being branded as
a ‘myth built on hope’ – the matter concerning the escrow fund purportedly left
behind by Placer Dome in 2001 to effect a clean-up of the Boac River after the Marcopper
mine spill in 1996. For twelve years now the people of Marinduque were made to
believe of its existence but a large number of the population chose to hide their
heads in the sand on the question ‘ where did that money go?’.
Catherine Coumans is Research Coordinator responsible for
the Asia-Pacific Program at MiningWatch Canada who has worked with many
communities affected by mining in many Asian countries including the
Philippines, and has extensive knowledge of issues related to the Marcopper mine-spill
problem in Marinduque. She has provided expert testimony on mining in two
congressional inquiries in the Philippines (1999, 2001). In a study, Placer Dome Case Study: Marcopper Mines, April 2002, she wrote:
“There is a long history in this case of information that
was of critical importance to local people, local and national government in
the Philippines and to shareholders being kept confidential. In fact, most
important information that has become available has come out as a result of
legal action, Congressional Inquiries and leaks.
"For example, information on Placer Dome's Cayman Island
holding company, MR Holdings, came out through legal action, information on the
low level of insurance held by Marcopper came out through a Congressional
Inquiry, as did information on the agreements Placer Dome originally entered
into with Marcopper after the spill. Information about the Klohn Crippen report
(June 14, 2001) was leaked before a Congressional Inquiry in 2001, as was the
information that Placer Dome has provided $13 million dollars to Marcopper to
continue the clean up of the Boac River."
Coumans also wrote that the contents of an agreement between
Marcopper and Placer Dome before the latter left the Philippines was not
disclosed. “A "redacted" copy of this agreement was finally provided
through a Congressional Inquiry in 2002 but this has had all relevant
information removed including the signatories to the agreement”, she stated in the study.
One may assume that the process of spending the escrow fund
would be included in that agreement. But where else could we find reference to
those funds? What was stated and who said what?
"PDTS (Placer Dome Technical Services), re-applied for a
deep-sea disposal permit during the final days of the Estrada government to
clean up the remaining mine wastes, which then environment secretary Antonio
Cerilles approved. Weeks later, the permit was cancelled under the new
administration of President Gloria Macapagal-Arroyo.
"In November 2001, PDTS left the Philippines but it set aside
$13 million in an escrow account for the completion of the clean-up and further
compensation. An international fund management firm was hired to oversee the
account and the completion of the clean-up work was passed on to Marcopper."
By 2004 we find the Inquirer with a story asking about the escrow
money:
"THE $12 million earmarked for the cleanup of a Marinduque
river - which has been polluted with mine tailings - appears to be missing,
according to officials of the Mines and Geosciences Bureau.
"Environment Secretary Michael Defensor has directed the
bureau to look for the $12 million the Canadian company Placer Dome Inc.
released for the cleanup of the river…
"(The fund) is supposed to be held in escrow in a
bank," said Horace Ramos, Mines and Geosciences Bureau director. "But
as to which bank and to who's account (the fund is deposited), we still need to
verify with Placer Dome and Marcopper."
By February 2005 Defensor appears to have additional
information about the ‘missing’ fund: (MARCOPPER: Firm told to release funds for mine structures
repair, Posted: 2:29 AM | Feb. 07, 2005,
Christine A. Gaylican)
"DENR Secretary Michael Defensor on Saturday said that the
structures, particularly four vital dams, should be repaired immediately to
avert another disaster.
"Based on the independent evaluation of the United
States Geological Survey (USGS), repairs must be done and we will issue a
demand letter for strict compliance of Marcopper to repair and extend the
remediation funds," Defensor said.
"Defensor said the $12-million rehabilitation fund had been
in escrow with an international bank before Marcopper's mother firm, Placer
Dome, decided to transfer the fund to F. Holdings of businessman Teodoro
Bernardino--the current majority shareholder in Marcopper.
"Some P62 million had been released to the local government
units in Marinduque to compensate the affected residents."
An Oxfam International report highlights continuing problems in Marinduque, April 14, 2005. With Keith Ferguson, vice president for safety and sustainability of Placer Dome a few things were established:
"In all, it spent about $80 million US, although Ferguson
says some of that money also went to pay off Marcopper's debts. The company
also paid $1.8 million US in compensation to victims of the spill.
"We came forward in 1996 to deal with the river spill
and then we stayed from 1996 to 2001 through (the subsidiary) and we left money
aside to effect a cleanup and to pay for compensation,'' Ferguson says. Placer
Dome Technical Services left those funds in an escrow account for the mine and
its new owner, registered as F Holdings."
In that year, 2005, this blogger, as a concerned Marinduque citizen was privileged to have some e-mail exchanges with Dr. Coumans of MiningWatch Canada on prevailing issues then. The escrow fund was one such topic among others. Am now sharing excerpts of some email to somehow shed some light on this matter:
"After leaving the Philippines in 2001 Placer Dome did make
pre statements about leaving money behind in escrow to cover clean up and
compensation (the company has never divulged the amounts as keeping this secret
was probably part of the agreement). As Congressman Reyes was coming to Canada
with GMA in March of 2002, I visited government departments here involved in
the visit to "warn" that she may raise the issue of Placer's sudden
departure without fulfilling its post spill promises…
"To make a long story short, one bureaucrat came to Placer's
defense using a briefing note Placer has provided government ahead of the GMA
visit. The briefing note clearly set out the amounts 12 million for clean up
and 1 million for compensation in it… I can assure you - the amounts being
quoted come from that briefing note and from no other source.
"I also raised it at
the AGM in 2003 and Keith Ferguson explained that the money was in escrow - he
did not deny it existed…"
xxxxxxxx
On the mysterious escrow fund which this blogger also inquired about as mentioned, information available here being scant, the following forwarded message was received:
-----Original Message-----From: Keith_Ferguson@placerdome.com
Sent: Sat 12/03/2005 10:18 AMTo:
“XXXXXX, you asked me about the process to release funds
from the escrow account for the remaining river clean-up at Marcopper. Following is the process.
“Placer Dome deposited sufficient funds in the bank account
of an escrowholder to remediate the remaining tailing in levee banks,
spillovers andpatches along the Boac River. The escrow holder is a large institutionalBank in New York, New York.
The international engineering consulting firmURS must certify that F Holdings (a major shareholder in
Marcopper at thetime Placer entered into the clean-up arrangements), has
completed theremediation work at specified milestones. Once the Bank receives certaindocumentation, including a copy of the certification
statement from URS, itreleases a portion of the escrowed funds from the bank
account to F Holdings.
RegardsKeith”
xxxxxxxx
By April 2006 The Sangguniang Panlalawigan of Marinduque was holding a special session jointly with the six municipal councils of the province
to come up with “urgent alternative solutions to the imminent and present
danger” posed by the Upper and Lower Makulapnit Dams in the abandoned mine
site.
“… The Joint Session also adopted a resolution requesting
President Gloria Macapagal-Arroyo to allocate funds for the immediate
remediation works in Marinduque, assign technical teams from concerned national
government agencies which will come up with comprehensive remediation plan in
accordance with the recommendations contained in the Khlon Crippen and the
United States Geological Survey (USGS) reports.
"The officials also called on Marinduque Representative
Edmundo O. Reyes, Jr. to help them trace the paper trail of the funds deposited
by Placer Dome, Inc. through an escrow holder bank in New York. They also
unanimously agreed that it is important to know the whereabouts and status of
these funds in order to finance the remediation works in Marinduque."
"… the entire provincial board and the vice governor of this
province met with (Secretary) Reyes and other DENR officials on Nov. 7 (2006),
to discuss the integrity of the Marcopper dams and their immediate repair to
prevent a repeat of the mine spill tragedy of 1996 in Boac River. Nepomuceno
said they agreed that the repair of the dams would be funded by the $12 million
escrow deposited by the mining company in a bank in Hong Kong known only to
select government and Marcopper officials.
"The escrow was initially intended for the cleanup of the
Boac River. Nepomuceno said Reyes told them that the amount was still intact as
assured by a former Placer Dome executive who is now working for an
international non-government organization that is willing to undertake repairs
of the Legacy Mines in the Philippines, including the Marcopper dams.
"…Government authorities, meanwhile, have to work double time
because DENR engineer Mike Cabalda said during the meeting that the escrow fund
is about to expire next year. "We have to find ways to have it released as
soon as possible," Nepomuceno added."
Came 2007. Some twists and turns. (Marinduque dad unhappy over pace of
suit vs mining firm. By Gerald Gene R. Querubin, posted 03/25/2007 Inquirer.net). Philippine Daily Inquirer reported that former provincial board
member Melecio Go was concerned about the expenses already incurred by US
lawyer Scott in the Nevada case and that among other concerns, Scott was able
to persuade the provincial government to attach to his contract with the government
the “escrow fund deposited in 2001 by Placer Dome in a financial institution
intended for the rehabilitation of the Boac River.”
Excepts from the rather lengthy news report:
"(US lawyer) Scott had already incurred as of December 2004
the amount of $3.4 million (roughly P170 million) in expenses and attorney’s
fees -- and counting -- since he was hired to represent the province in the
Nevada courts.
"Scott’s billing statement to the province said the total
expenses they had incurred was $3,429,317.93, representing expenses paid of
$225,010 and attorney’s fees of $3,204,307.93. The statement also said there
were 38 individuals working on the case who had served a total of 10,517.9
hours.
"…In the Special Outside Appointment and Engagement Agreement
that Scott signed with the representatives of the province in July 2005, the
lawyer will be paid 10 percent of the first $15 million recovered, with
reimbursement of expenses from the first $15 million not to exceed $500,000 or
40 percent of the next $35 million of recovery or 33 percent of any recovery
above $50 million.
"Further, the agreement provides that the counsel may
withdraw any time, either for cause (such as nonpayment of fees or expenses and
costs upon recovery, or a settlement made without the counsel’s knowledge).
"If the counsel withdraws for cause, he will be entitled to
reimbursement of expenses and costs he advanced from any recovery and payment
of the contingent fees from any recovery attributed to counsel’s efforts prior
to withdrawal and 20 percent of any other and further recovery thereafter.
"If the counsel withdraws without cause, he will be entitled
to reimbursement of expenses and costs he advanced from any recovery and the
fair value of his services in connection with any efforts that have not yet
resulted in any recovery, payable solely out of recovery ultimately obtained
and the payment of contingent fees from any recovery attributable to his
efforts prior to withdrawal.
"The stipulated compensation package, Go said, was
detrimental to the province because Scott was able to persuade the provincial
government to attach to the contract the $15 million escrow fund deposited in
2001 by Placer Dome in a financial institution intended for the rehabilitation
of the Boac River.
“With the compensation provisions of the contract, Scott is
already assured of getting 10 percent from the $15 million escrow fund which is
already in place at the time that he signed the agreement to represent the
province. That fund is intended for the rehabilitation of the river and should
not be included in the contract at all,” Go said."
Until recently, that was probably the last time something about the escrow fund was mentioned in mainstream media. Then last Wednesday, Sept. 11, 2013, PDI ran the story wherein the
Mines and Geociences Bureau of the Department of Environment and Natural
Resources denied the existence of the escrow fund. In the same report, Walter Scott, the lead
counsel of the Provincial Government of Marinduque in the Nevada case branded
the escrow fund as a “myth built on hope but no less a myth”.
The said story adds:
“A 2006 Inquirer report also quoted another board member,
Alan Nepomuceno, as saying that the money was deposited in a bank in Hong Kong
with details “known only to selected government and Marcopper officials.”
“Lawyer Miguel Ongsiako, counsel of former Marinduque
Representative Edmund Reyes, said in an earlier phone interview that the escrow
deal was entered into by the DENR and Barrick.
“But Jasareno (MGB Director), said the DENR had no knowledge
of any such fund."
How is it possible then that numerous government agencies, non-government
organizations, even scientific communities and local communities have spent
hundreds of days, thousands of hours, altogether incurred millions of pesos in
the process of finding solutions to a poor, defeated people’s pleadings – from numerous
health issues related to mining to remediation and rehabilitation of bays,
rivers, shores and earth dams that are ticking time-bombs – could be had and continue
to be fooled?
The Senate’s turn?
Relevant Congressional inquiries appear to have failed to produce
tangible results except the leaking of information that merely raised more
questions than answers.
Maybe it’s the turn of the Philippine Senate to conduct an
investigation into this important issue - to include related concerns of
today in this continuing saga on corruption where the people of Marinduque are systematically kept in the dark on matters directly affecting many aspects of their lives? Our lives?