Thursday, March 27, 2014

Why $20-M with only $13-M (P520-M) going to Marinduque after deducting legal fees is so pathetic; Estimated amount of damages; Tax debts

One of the items in the Statement of Stipulated Facts in the proposed Marinduque-Barrick Gold settlement is the following:   

(xvii) For all legal purposes, the consideration provided to the Province of Marinduque by PDI and Barrick Gold Corporation under the terms of this Settlement Agreement is adequate and reasonable.

"The amount proposed to be conveyed to the province is far too little and abusive of the Province’s goodwill in entering into the mediation process in comparison to the original prayers of the Province" (specified a the bottom of this post). This was contained in the 44-page Resolution No. 2014-028 conveyed by the SB Boac to the provincial government of Marinduque. 

Moreover, the amount offered by Barrick Gold Corporation, the SB stated, is unfair and unacceptable in comparison to the estimated amount of damage claims of the people of Marinduque as culled from the prayers in various administrative, criminal and civil cases lodges in local venues. 

Based on a study entitled: “Marinduque Mining: Elusive Justice, Elusive Development,” by Miguel R. Magalang, Executive Director, MaCEC, 2006, are the following:

NATURE OF DAMAGE CLAIMS
ESTIMATED AMOUNT


a) Claims of the municipal government of Boac integrated in the criminal cases vs. John Loney et al. of Boac integrated in the criminal cases vs. John Loney et al., 1996 filed by the DENR in the Municipal Trial Court of Boac:
Php 1, 234,177,630.00
b) Claims of the municipal government of Boac integrated in the criminal cases vs. John Loney et al. of Boac integrated in the criminal cases vs. John Loney et al., 1996 filed by the DENR in the Municipal Trial Court of Boac:
Php 500,000,000.00
c) Claims of the people of Mogpog in Civil Case, Rita Natal, et al. vs. Marcopper Mining Corporation at the Regional Trial Court of Marinduque:
Php 37,448,425.00


d) Claims of the people of Calancan Bay area in Civil Case, Calancan Bay Fisherfolks’ Association vs. Marcopper Mining Corporation lodged at the Regional Trial Court of Marinduque:
Php 44,720,000,000.00



e) Actual damage compensations received by 5,318 claimants for the year 1996 in an administrative claim lodged at the Boac Environmental Guarantee Fund Committee:
Php 38,452,929.61
f) Actual damage compensations earmarked for 4,225 claimants from Boac for the years 1997-1998 in an administrative claim lodged at the Boac Environmental Guarantee Fund Committee:
Php 50,548,001.00
g) Actual damage compensations earmarked for 1,017 claimants from Mogpog for the years 1997-1998 in an administrative claim lodged at the Mogpog Environmental Guarantee Fund Committee:
Php 13,183,155.00
h) Estimate of damage claims for the years 1999-2001 of the claimants from Boac and Mogpog lodged at the Boac & Mogpog Environmental Guarantee Fund Committee, respectively:
Php 37,500,000.00
TOTAL:  Php 46,631,310,140.61


“Another important concern that MACEC strongly pursues is to find ways and means to compel Marcopper Mining Corporation and Placer Dome, Inc to pay their unpaid real property taxes to the province of Marinduque and the municipalities of Boac, Mogpog, Sta. Cruz and Torrijos which totalled Php 1,048,624,496.80 ($21,773,764.46 at an exchange rate of $1=P48.16) as of the second quarter of 2006.



“This is an extreme insensitivity of a company which amassed billions of dollars in profits and which claims to be a good corporate citizen of the country but neglecting its primary duty to pay legitimate taxes to the government. This is a period when poor Filipinos are trooping the local treasury offices in the country to pay their basic real property taxes. But the mining company which caused destruction to the people’s health and the island’s environment preferred to go to Court to sue the provincial government of Marinduque to question the tax assessment schedule imposed by the local government,” explained Magalang.

According to the records of the Provincial Treasurer of Marinduque officially furnished to MACEC, Marcopper has standing tax debts of PhP1,013,101,529.51 ($21,036,161.32) in the municipality of Sta. Cruz for the period 1980 to 2006Q2; PhP11,164,686.80 ($231,824.89) in the municipality of Torrijos for the period 1983-1996); PhP1,194,977.89 ($24,812.66) in the municipality of Mogpog for the period 1999 to 2006); and, PhP23,163,602.60 ($480,971.81) in the municipality of Boac for the period 1985 to 2006). TOTAL OUTSTANDING TAX DEBTS: PhP 1,048,624,496.80
* * *
Prayers in the case filed by the Marinduque provincial government in the Nevada court: Award of damages for economic, public health injuries and environmental remediation, etc:  
“a. An order of the Court awarding damages for injuries to the natural, ecological, and wildlife resources within the Province and to compensate for the restoration and/or replacement of the natural, ecological, and wildlife resources within the Province, including, without limitations, the rivers, streams, soils, fish, marine life, biota, and related environs within the Province;
“b. An order of the Court awarding damages for the economic and public health injuries sustained by the Province;
“c. An order of the Court directing Placer and Barrick Gold to undertake and complete (and/or pay for the undertaking and completion of) the remediation, environmental cleanup, and balancing of the ecology of the affected areas, including but not limited to, the Tapian Pit, the San Antonio Pit, Calancan Bay, the Mogpog River system, the Boac River System, downstream coastal areas, and the surrounding areas. This environmental cleanup must include, among other things, ensuring potable water in the region and healthy hunting and fishing grounds, the repair of deteriorating mine structures and the Maguila-Guila Dam, and the renovation and rehabilitation of the Tapian Pit, the San Antonio Pit, and other structures;
“d. An order of the Court directing Placer Dome and Barrick Gold to fund all costs needed to adequately conduct environmental monitoring within the Province;
“e. An order of the Court directing Placer Dome and Barrick to fund all costs needed to adequately conduct medical monitoring within the Province;
“f. An award against Placer Dome and Barrick of pre-judgment and post-judgment interest at the maximum rate permitted by contract, law or equity;
“g. An award against Placer Dome and Barrick of the Province’s costs and reasonable attorney fees; and
“h. Such Other and further relief, either equitable or legal, that the Court deems appropria te.”
Source: Plaintiff’s Third Amended Complaint filed on June 29, 2006, was docketed as Provincial Government of Marinduque versus Placer Dome Inc, and Barick Gold Corporation in Case No. CV-S-05-1299-BES-RJJ (removed from District Court, Clark County, Nevada Case No. A511078).
 * * *

The accidental discharge at Padcal mine in Benguet:

The amount proposed by Barrick is far too little in comparison to the administrative fines imposed on Philex Mining in the Philippines by DENR even if the accidental discharge of sediments of the mine’s dam was due to typhoons, viz:

“The DENR affirmed on Thursday (November 2012), the P1 billion fine imposed against the Philex Mining Corp for the alleged tailings pond breach at the Padcal mine in Benguet.
“This was announced today by Environment Secretary Ramon Paje. The firm was given 45 days to pay its obligations. The issue stemmed from the August 1 accidental discharge of sediments due to heavy rains from typhoons Ferdie and Gener.”
Source: DENR affirms P1-B penalty vs Philex Mining by Ira Pedrasa, ABS-CBNnews