national secretariat - bbc report july 2011...bishops-businessmen’s conference for human...

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Unit 601, DMG Center, 52 Domingo M. Guevarra St. corner Calbayog Extension Mandaluyong City Tel Nos. 584-25-01; Tel/Fax 470-41-51 E-mail: [email protected] Website: bbc.org.ph BISHOPS-BUSINESSMEN’S CONFERENCE for Human Development ANNUAL REPORT JULY 2011 -JULY 2012

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Unit 601, DMG Center,52 Domingo M. Guevarra St.corner Calbayog Extension

Mandaluyong City

Tel Nos. 584-25-01; Tel/Fax 470-41-51E-mail: [email protected]

Website: bbc.org.ph

BISHOPS-BUSINESSMEN’S CONFERENCEfor Human Development ANNUAL REPORT

JULY 2011 -JULY 2012

BISHOPS-BUSINESSMEN’S CONFERENCEFOR HUMAN DEVELOPMENT

NATIONAL SECRETARIAT

Apolinar S. DichosoCoordinator/Lay-Out ArtistCAC-BBC-LAIKO Government

Procurement MonitoringProject

Mary Belle S. BeluanExecutive Director/Editor

78

TABLE OF CONTENTS

MESSAGE OF NATIONAL CO-CHAIRMEN.....................................................1-2

NATIONAL EXECUTIVE COMMITTEE ELECTION RESULTS............................ 3-4

STRATEGIC PLANNING OF THE EXCOM - OUTPUTS.....................................5-6

NATIONAL EXECUTIVE COMMITEE REPORT.................................................7-10

National Greening Program.................................................................8-10

Consultation Meeting with the CBCP Plenary Assembly........................10-13

CARDINAL SIN TRUST FUND FOR BUSINESS DISCIPLESHIP.......................23-24

CLUSTER/COMMITTEE REPORTS

Formation of BBC Chapters..........................................................................13

Cluster on Labor & Employment................................................................23-24

Committee on Social Justice & Agrarian Reform.....................................31-37

Coalition Against Corruption -BBC -LAIKO Government Procurement Monitoring Project.......................................................................................38-45

Replication of Government Procurement Monitoring............................46-52

Pastoral Management Committee...........................................................52

ISQ.................................................................................................................52

BBC Support for Archdiocese of Cagayan de Oro and Dumaguete.......53

Consultation Meetings with the Basic Sectors.......................................53-59

NATIONAL MEMBERS

a. Bishops...................................................................................................60-65b. Businessmen : Individual...................................................................64-68c. Businessmen : Corporate....................................................................68-70

Collaborating Organizations.....................................................................71

Steering Committee of the 36th General Assembly and Annual Meeting Meeting.......................................................................................................72

National Executive Committee.................................................................73-74

BBC Secretariat............................................................................................78

77

MISSION

Its mission is to bring about upliftment of the quality of theFilipino through the promotion of social justice and throughthe increase of the nation’s total wealth - that is equitably

distributed in total rejection of poverty in this country.

Towards the achievement of these goals, BBC will catalyzethe participation of various sectors of society - rich poor,

powerful and powerless - in solidarityfor total human development.

Based on a common faith in Jesus Christ, the BBC is a part-nership of bishops and businessmen, both on the national and

local levels, collaborating towards total human develop-ment; in cooperation with various sectors of Philippine

society.

BBC considers widespread poverty and social injustice in ourcountry today a contradiction to the Christian understanding

of the human person.

VISION

2:00 - 2:10 p.m. INVOCATIONHis ExcellencyMOST REV. LUIS ANTONIO G. TAGLE, D.D.Archbishop of Manila

NATIONAL ANTHEM

2:10 - 2:15 WELCOME REMARKS

His ExcellencyMOST REV. ANTONIO J. LEDESMA, SJ, D.D.BBC National Co-Chairman/Archbishop of Cagayan de Oro

215 - 2:30 CALL TO ORDER

MR. MENELEO J. CARLOS, JR.National Co-ChairmanBISHOPS-BUSINESSMEN’S CONFERENCE

APPROVAL OF THE MINUTES OF THE35TH GENERAL ASSEMBLY AND ANNUAL MEETING

ANNOUNCEMENT OF ELECTIONS OF THENATIONAL EXECUTIVE COMMITTEE

2:30 - 2:40 NATIONAL CO-CHAIRMAN’S REPORT

MR. MENELEO J. CARLOS, JR.National Co-ChairmanBISHOPS-BUSINESSMEN’S CONFERENCE

TREASURER’S REPORT (TO BE DISTRIBUTED)

2:40 - 2:45 OVERVIEW & ORIENTATION OF THEGENERAL ASSEMBLY & ANNUAL MEETING

MS. SABSY S. PALANCACo-Chairperson36th GENERAL ASSEMBLY & ANNUAL MEETING“ INCLUSIVE GROWTH: SOCIO-ECONOMIC

DEVELOPMENT FOR ALL”

2:45 - 3:35 PRESENTATION OF THE OUTPUTS OF The PRE-CONSULTATION MEETING WITH BASIC SECTORS

FarmersMr. Mamerto DumayanMr. Pura Rebiti

PROGRAM

36th General Assembly and Annual Meeting

FisherfolksMs. Caring BillonesMr. Jaime Evangelista

Indigenous PeoplesMr. Lito JugatanMr. Arman de la Cruz

Urban PoorMs. Loida SilloMr. Zacharias Asuncion

LaborMr. Gerry RiveraMs. Ellen Alejandro

INTRODUCTION OF GUEST SPEAKERS

GOVERNMENT PERSPECTIVE

3:35 -4: 05 HON. ARSENIO M. BALISACANSECRETARY OF SOCIO-ECONOMIC PLANNING

BUSINESS PERSPECTIVES

4:05 - 4:35 MR. RAMON R. DEL ROSARIO, JR.CHAIRMANMAKATI BUSINESS CLUB

4:35 - 5:05 CHURCH PERSPECTIVES

HIS EXCELLENCYMOST REV ORLANDO B. QUEVEDO, OMI, D.D.ARCHBISHOP OF COTABATO

5:05 - 6:00 Open Forum

PLENARY

MODERATOR

Deputy Director RUPERTO MAJUCASOCIO-ECONOMIC PLANNING

PROGRAM

BROTHERHOOD OF CHRISTIAN BUSINESSMEN & PROFESSIONALSCARDINAL SIN TRUST FUND FOR BUSINESS DISCIPLESHIP

COALITION AGAINST CORRUPTIONCATHOLIC BISHOPS’ CONFERENCE OF THE PHILIPPINES

CBCP-NATIONAL SECRETARIAT FOR SOCIAL ACTION, JUSTICE & PEACEDIOCESE OF BACOLOD

DIOCESE OF DUMAGUETEMAKATI BUSINESS CLUB

NATIONAL ECONOMIC DEVELOPMENT AUTHORITYNATIONAL MOVEMENT FOR FREE ELECTIONS

PARTNERSHIP FOR TRANSPARENCY FUNDPUNONGBAYAN AND ARAULLO

RESINS, INC.SANGGUNIANG LAIKO NG PILIPINAS

DR. MAGDALENO B. ALBARRACINMR. & MRS. MENELEO J. CARLOS, JR.

MS. SABSY S. PALANCAMR. CHRISTIAN S. MONSOD

MSGR. JOSELITO C. ASISFR. REY V. CULABA, CSsR

ARCHBISHOP ANTONIO J. LEDESMA, D.D.BISHOP DEOGRACIAS INIGUEZ, D.D.

ARCHBISHOP JOHN F. DU, D.D.BISHOP VICENTE M. NAVARRA, D.D.BISHOP BRODERICK S. PABILLO, D.D.

ARCHBISHOP JOSE S. PALMA,D.D.

NAMFREL SECRETARIAT (ERIC ALVIA, JOSEFA APORTADERA,EDGAR CAMENTING, HELEN SENARIO, EDWARD TORCUATO) LYDIA G. GARCIA

RODA N. BAUTISTA - RESINS, INCNORA T. BAUA- RFM FOUNDATION

JOSEPH JESALVA - LAIKOFARAH MAE CUEVAS - ARCHDIOCESE OF CAGAYAN DE ORO

REINA RANIGO - ORGANIZATIONAL DEVELOPMENT, INC

ACKNOWLDGEMENT

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6:00 -6:15 SYNTHESIS/ SUMMARY

6:15 - 6:20 ANNOUNCEMENTS OF ELECTION RESULTS

6:20 - 6:30 CLOSING REMARKS/ CLOSING PRAYER

HIS EXCELLENCYMOST REV. DEOGRACIAS S INIGUEZ, JR, D.D.BISHOP OF KALOOKAN/Co-Chairman36th General Assembly and Annual Meeting

6:30 DINNER

MS. SABSY S. PALANCACo-Chairperson36th General Assembly & Annual MeetingMaster of Ceremonies

PROGRAM

i thank You God for most this amazingday: for the leaping greenly spirits of trees

and a blue true dream of sky; and for everythingwhich is natural which is infinite which is yes

(i who have died am alive again today,and this is the sun’s birthday; this is the birthday of life and love and wings: and of the gay

great happening illimitably earth)

how should tasting touching hearing seeingbreathing any-lifted from the no

of all nothing-human merely beingdoubt unimaginable You?

(now the ears of my ears awake andnow the eyes of my eyes are opened)

As the poet, e.e. cummings, thanks Godin this lovely poem,

we thank you,

Dear BBC Members,Bishops and Businessmen,

Collaborating Organizations,Donors and Friends,

for being with us and for us,for being part of the Vision, Mission, and dreamsthe struggles, the doubts, the tears and the fears

but also the joys and thrills,the comfort and consolation of the

Bishops-Businessmen’s Conference for Human Developmentthis past year.

With you and because of you,we are who we are,we are where we are

and we shall be and dowhat God wants us to be and do.

For what has been, Thanks.For what will be, YES.

God bless you alwaysand in all ways.

ACKNOWLDGEMENT

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MESSAGE FROM THE NATIONAL CO-CHAIRMEN

MENELEO J. CARLOS, JR.National Co-Chairman

ARCHBISHOP ANTONIO J. LEDESMA, SJ, D.D.National Co-Chairman

(Turn to page...2)

As the country is gripped with social concerns such as poverty, inequalityand social justice, we are faced with the formidable challenge of adoptingmeasures to make poverty reduction a collaborative work and seriousnational policy priority.

It is in this light that the BBC National Executive Committee has adopted asthis year’s theme for the 36th General Assembly and Annual Meeting:

“INCLUSIVE GROWTH: SOCIO-ECONOMIC DEVELOPMENT FOR ALL”

In partnership with CBCP-NASSA and NEDA, consultation meetings withrepresentatives of the five basic sectors, (i.e. farmers, fisherfolk, indigenouspeople, urban poor and labor) were conducted prior to the 36th GeneralAssembly & Annual Meeting. These aimed to elicit the concerns of ourpoverty-stricken brothers from the abovementioned basic sectors of oursociety. Outputs of these consultation meetings now offer us ideas andsome basis to formulate the “what, why, where, and how” we, in the Church-Business and Government can effectively address the disconnect with thebasic sectors with the optimism of alleviating their plight.

It is timely that our businessmen and industry leaders are now preparingtheir agro-and-industry roadmaps in collaboration with the Departments ofAgriculture and Industry, Environment & Natural Resources, among others.We continuously remind them to connect to these poverty stricken areas.

We hope that they will try to extend their supply and value-added chains tothese basic sectors, to bring them into the social and economicmainstreams. By applying their technology, marketing skills and capital,businessmen can help our poorer sectors to harness their lands and seasmore productively to enable them to grow out of their poverty.

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MEMBERS

REGIONAL REPRESENTATION

Jos S. Concepcion, Jr.BBC Assistant Treasurer

President, RFM Foundation

Mario Antonio G. LopezProfessor, Asian Institute of

Management

Atty. Paterno D. MenzonSenior Partner

Paterno D. Menzon Law Office

Vitaliano N. Nanagas IIBBC Treasurer

President, Organizational Systems, Inc

Isabelita S. PalancaConvenor

BBC Spirituality in the Workplace

FR. Emmanuel SarezParish Priest

Our Lady of Mount Carmel Parish

Mediatrix V. VillanuevaExecutive Vice-President

Shelmed Cottage

BBC NATIONAL NATIONAL EXECUTIVE(2011-2012)

Thomas FordTrustee, BBC Jaro

Abp. Angel N. Lagdameo, D.D.Archbishop of Jaro

Roberto W. AnsaldoCo-Chairman, BBC Cagayan de Oro

President & ChairmanBREW Brothers

Abp. Antonio J. Ledesma, SJ, D.DAbp. Bishop of Cagayan de Oro

Archbishop Fernando R. Capalla, D.D.Auxiliary Archbishop of Davao

Mediatrix V. VillanuevaExecutive Vice-President

Shelmed Cottage

REPRESENTING BIKOL

REPRESENTING VISAYAS

REPRESENTING MINDANAO

74

MEMBERS

BBC NATIONAL NATIONAL EXECUTIVE(2011-2012)

Bp Jose Colin M. Bagaforo, D.D.Auxiliary Bishop of Cotabato

Bp. Arturo M. Bastes, SVD, D.D.Bishop of Sorsogon

Bp. Antonieto D. Cabajog, D.D.Bishop of Surigao

Bp Broderick S. Pabillo, D.D.Auxiliary Bishop of Manila

Abp. John F. Du, D.D.Archbishop of Palo

Bp. Crispin B. Varquez, D.D.Bishop of Borongan

Bp. Reynaldo G. Evangelista, D.D.Bishop of Boac

73

Abp. Antonio J. Ledesma, SJ, D.DArchbishop of Cagayan de Oro

Meneleo J. Carlos, Jr.President, Resins, Inc.

Christian S. MonsodConsultant, Meralco

Vicente R. JaymeHonorary Chairman

National Co-Chairmen

National Co Vice-Chairmen

Bp. Deogracias S. Iniguez, Jr. D.D.Bishop of Kalookan

Hopefully our work will also provide the basis for crafting the Industry andAgriculture Policies that focus on people-first while allowing for moregradual adjustments to the global market forces at play. This is in contrastto the current trickle-down concepts that advocate global-trade first whichhave resulted in so much suffering of peoples around the world today.

The challenge ahead of us is daunting. But let us keep the Faith.

Let us take into account that great love and great achievements involvegreat risks.

We urge our members, the Bishops and Businessmen, in partnership withvarious sectors of society to respond and meet the challenge and put thisinto motion by furthering our objectives in Strategic Doing and StrategicInvolvement.

“The ultimate measure of a man is not where he stands in moments of comfort andconvenience, but where he stands at times of challenge and controversy.”

Message...(From page...1)

2

Election of the National Executive Committee for the period July 2011 toJuly 2012 was held duringthe 35th General Assembly& Annual Meeting heldlast July 11, 2011 at thePope Pius XII CatholicCenter.

Archdiocesan Administratorof Palo Msgr. JaimeVillanueva and ArchitectLuis Ferrer of LM Ferrer, Inc.co-chaired the ElectionsCommittee assisted by theBBC National and theNAMFREL Secretariat.

The General Assembly, composed of all members of the Association, is thesupreme governing body. It elects its National Executive Committee whichis tasked to direct and conduct the affairs of the association and formulateexecutive policies and programs including those approved by the GeneralAssembly.

Elected to a one-year term of office were the following:

BUSINESSMEN

Meneleo J. Carlos, Jr.Jose S. Concepcion, Jr.Mario Antonio G. LopezPaterno D. MenzonChristian S. MonsodVitalian N. Nanagas IIIsabelita S. PalancaFr. Emmanuel SarezMediatrix V. Villanueva

BISHOPS

Archbishop Antonio J. LedesmaBishop Deogracias S. Iniguez, Jr.Bishop Jose Colin M. BagaforoBishop Arturo M. BastesBishop Antonieto D. CabajogBishop John F. DuBishop Reynaldo G. EvangelistaBishop Broderick S. PabilloBishop Crispin B. Varquez

Election of the National Executive Committee

(Turn to page...4)

The newly elected members of the EXCOM, in their organizational meetingheld at Ristorante delle Mitre last August 4, 2011, unanimously elected thefollowing officers representing the Business sector:

Meneleo J. Carlos, Jr. : National Co-ChairmanChristian S. Monsod : Co Vice-Chairman

Mr. Vitaliano B. Nanagas II was appointed Treasurer, with Jose S. Concepcion,Jr. as Assistant Treasurer.

3

36th GAAM STEERING COMMITTEE

72

Mary Belle S. Beluan Apolinar S. Dichoso

Luvina M. Lapid

Isabelita S. PalancaCo-Chairperson

Bp. Deogracias S. Iniguez, Jr. D.D.Co-Chairman

Meneleo J. Carlos, Jr. Dr. Benjamin S. Austria

MEMBERS

Mary Belle S. Beluan Apolinar S. Dichoso

Luvina M. Lapid

Isabelita S. PalancaCo-Chairperson

Bp. Deogracias S. Iniguez, Jr. D.D.Co-Chairman

Meneleo J. Carlos, Jr. Dr. Benjamin S. Austria

Archdiocese of Cagayan de OroArchdiocese of DavaoArchdiocese of JaroArchdiocese of LipaArchdiocesan Financial Administrators of the PhilippinesAsian Social InstituteBishop -Priests- Businessmen’s Conference- Bacolod CityBrotherhood of Christian Businessmen and ProfessionalsCatholic Bishops’ Conference of the Philippines CBCP - Episcopal Commission for Pastoral Care for Migrants & Itinerant People CBCP - Episcopal Commission on Social Action, Justice and Peace CBCP Pension PlanClimate Change Congress of the PhilippinesCoalition Against CorruptionDiocese of BacolodDiocese of DumagueteDiocese of ImusDiocese of KalookanDiocese of SorsogonGovernment Procurement & Policy BoardIntegrity InitiativesMakati Business ClubMagis Deo CommunityManagement Association of the PhilippinesNational Citizens Movement for Free Elections (NAMFREL)National Economic Development AuthorityPartnership for Transparency FundPeople Power Volunteers for ReformPunongbayan & AraulloRESINS, IncSocial Weather StationsSangguniang LAIKO ng PilipinasSGVVicariate of MindoroVisayan Forum Foundation, Inc.

COLLABORATING ORGANIZATIONS

71

Election...(From page...3)

Mary Belle S. Beluan was re-appointed Executive Director.

Since there was no quorum of the newly elected members of the EXCOMfrom the Bishops sector atsaid meeting, it was decidedthat the BBC Secretariatconduct a Referendum asdone in previous years.

Referendum results saw theelection of ArchbishopAntonio Ledesma, Jr.,Archbishop of Cagayan de Oroas National Co-Chairman;and the re-election of BishopDeogracias Iniguez, Bishopof Kalookan as co-Vice-Chairman.

FUND MANAGERS FOR CARDINAL SIN TRUST FUND FOR BUSINESS DISCIPLESHIP

Re-appointed as Fund Managers were Meneleo Carlos, JR., Mahar K.Mangahas and Jose S. Concepcion, Jr.

REGIONAL REPRESENTATIVES IN THE EXCOM

The following were appointed / re-appointed Regional representatives:

a. BICOL : Fr. Jovic Lobrigo and Mrs. Mediatrix Villanueva

b. VISAYAS

Plans are underway for exploratory talks with Cebu Archbishop Jose Palmafor the possible revitalization of the BBC Cebu Chapter.

• Jaro : Abp. Angel Lagdameo and Mr. Thomas Ford

c. MINDANAO

• Cagayan de Oro : Abp. Antonio Ledesma and Roberto W. Ansaldo

• Davao : Abp. Fernando R. Capalla

4

DIRECTIONS FOR 2011-2012EXCOM STRATEGIC PLANNING

A common discernmentexpressed at the EXCOM’sorganizational meeting was acall for the EXCOM to go into anhonest evaluation of where theBBC is currently in.

The intensive process fordeveloping the strategic planinvolved a comprehensive revisitand review of BBC’s history andConsensus Statement vis a visthe evolving realities that BBCis faced with.

The National Executive Committee outlined the key recommendations fromits developed Strategic Plan crafted last September 11, 2011 focusing on thefollowing areas of strategic intent:

I. Current BBC Challenges

• BBC has to adopt a new paradigm and initiatives to make itselfmore relevant to the times.

• As an advocate for social reform and social justice, BBC has topersuade the business sector that social justice is a “good end byitself ”.

• BBC should continue to serve as a bridge for development betweenchurch, business, government and basic sectors.

• Intensify efforts to promote BBC’s advocacies to its members; tothe CBCP; CBCP-NASSA; clergy and various organizations.

• BBC through its working Committees should continue to adopt aprogram of advocacy, information and formation. There is a needto:

1) rebuild, re-energize BBC;2) revive interest of members, both of the Bishops and the

business persons;3) increase membership;

(Turn to page...6)5

PUNONGBAYAN & ARAULLO

MARIVIC ESPANOPartner & Chief Operating Officer

MAILENE S. BISNARPartner

SHELMED COTTAGE TREASURES

LOURDES V. VILLANUEVAExecutive Director for Operations

MESHELLE ARACELI V. VILLANUEVADirector for Marketing

SOCIAL WEATHER STATIONS

LINDA B. GUERREROVice-President &

Chief Operating Officer

GERARDO A. SANDOVALDirector

VEMA CORPORATION

JACINTO M. MANTARINGPresident

LUVINIA M. LAPIDVice-President

BUSINESS SECTOR - CORPORATE

NATIONAL MEMBERS

70

DIRECTORIES PHILIPPINES CORPORATION

RICARDO D. BAUTISTAPresident

MAGSAYSAY MARITIME CORPORATION

DORIS MAGSAYSAY-HOPresident & Chief Executive Officer

MANILA ELECTRIC COMPANY

MANUEL V. PANGILINANPresident

PHILIPPINE AMERICAN INSURANCE COMPANY

JOSE L. CUISIA, JR.Vice-Chairman

PHILIPPINE LONG DISTANCE TELEPHONE COMPANY

MANUEL V. PANGILINANPresident

PHILIPPINE SEVEN CORPORATION

JOSE VICTOR P. PATERNOPresident & Chief Executive Officer

THE PHINMA GROUP

ROBERTO M. LAVINAChief Operating Officer

TRANS-ASIA OIL & ENERGY DEVELOPMENT CORPORATION

DR. BENJAMIN S. AUSTRIAExecutive Vice-President

BUSINESS SECTOR - CORPORATE

NATIONAL MEMBERS

69

4) recruit new and young blood; and 5) increase it sources ofrevenues.

II. Priority Areas of Concern

1. Corruption2. Environment ( i.e. mining, logging, climate change)3. Urban Poverty (housing, urban land reform)4. Rural Poverty (agrarian reform, fisheries, ancestral domain)5. Social Justice

• Business needs to understand that without social justice, therecan be no real economic growth.

• Pursue and implement asset reform; land for both rural andurban poor; ancestral domain for the indigenous peoples;and rights of the farmers and fisher folks; and reforestation.

6. Peace Building

III. Relationship of Church and Business/Partnership of BBC with CBCP

• Strengthen the synergy between the Church and the business sector

• Request the CBCP Permanent Council for BBC EXCOM to address theCBCP Plenary Assemblyat its forthcomingmeeting in January 2012to provide the bishops,particularly the youngand newly appointedones, with a clearerperspective of what BBCis; and persuade theCBCP to be more activelyinvolved in BBC

• Organize moredialogues with theBishops; suggest to CBCP to possibly consider BBC’s representationin CBCP Episcopal Commissions.

The results of the Strategic Planning process served as a challenge to theNational Executive Committee to meet the objectives by putting the planinto action through Strategic Doing and Strategic Involvement.

Directions...(From page...5)

6

UPDATES

On the Environmental concerns, one of the 11 Guiding Principles of ExecutiveOrder 270 issued in 2004 entitled, the National Policy on Revitalizing theMining Agenda in the Philippines, states: “a continuous and meaningfulconsultation process with the industry and all other stakeholders shall beinstituted, to integrate concerns on minerals in resource management policyand planning.”

BBC continues to support the move to pursue dialogues on mining and theenvironment that promote total human development; and come up with aclear definition of what responsible mining is and its acceptance by variousstakeholders.

Concerns for primary focus: 1) environmental and social costs for the totalvaluation; 2) government capacity to implement and enforce, including themanagement with transparency, accountability, and provision of safeguardsin the light of extreme events; and 3) fair share for local and nationaldevelopment.

On April 18, 2012, BBC issued a Statement of Support for the Bishops of Bicolin their struggle against mining operations in the Bicol Region.

Consultation on Mining

National Greening Program

BBC is in active collaboration with the Department of Environment andNatural Resources (DENR) in the promotion of the National Greening Programof the government which would benefit our upland dwellers and conservethe environment.

The grant of tenurial rights to the upland dwellers is a significant assuranceof their permanent livelihood and a bright future. It creates permanentjobs in the uplands and provides wood for our industries below. Watershedswill be restored and climate change will be mitigated. Fortunately, we nowhave the technology to double the productivity of our tree farms whichtechnology will be made available to responsible organizations so thatthe disciplines of cloning trees will be maintained and the farmers will beassured of good yields when they plant.

Mr. Meneleo Carlos, Jr., BBC National co-Chairman has initiated coordinationwith private sector groups to determine their willingness to participate inthe National Greening Program of the government through their enterprises’Corporate Social Responsibility (CSR) programs.

(Turn to page...8)

CARLOS C. TORRES 39 Maginhawa St., U.P. Village, Q.C

EMMANUEL T. VELASCO Dean, Enrique T. Yuchengco School of Business Management

MEDIATRIX V. VILLANUEVA Executive Vice PresidentShelmed Cottage Treasures

FR. PETER WALPOLE, S.J Executive Director, Environmental Science for Social Change

ARSENIO YAP, JR. Vice-President & TreasurerAlyson’s Chemical Enterprises, Inc.

JAIME AUGUSTO ZOBEL DE AYALA President, Ayala Corporation

AMB. JAIME ZOBEL DE AYALA Chairman, Ayala Corporation

BUSINESS SECTOR - INDIVIDUAL

BUSINESS SECTOR - CORPORATE

ASIAN INSTITUTE OF MANAGEMENTR. V. DEL ROSARIO SR. CENTER FOR CORPORATE SOCIAL RESPONSIBILITY

PROF. FELIPE B. ALFONSOVice-Chairman

PROF. FRANCISCO ROMANExecutive Director

DE LA SALLE PROFESSIONAL SCHOOLSManagement & Organizational Department

DR. BENITO TEEHANKEEChairman

PIA MANALASTASCoordinator

NATIONAL MEMBERS

74

7 68

BBC has likewise established linkage with CBCP-NASSA to solicit its supportand endorsement to the Diocesan Social Action Centers for them to invitesocial development organizations in their arch/dioceses to take part in thesaid Program that would benefit the poor. This means working with theupland dwellers and supporting them to become tree planters and foreststewards, instead of being “kaingeros” who destroy our remaining forests.The economic returns make private financial support a viable proposition.

National Greening...(From page...7)

(Turn to page...9)

The National Greening Program is a program of the DENR caused by EO 26which requires the planting of 1.5 billion trees in 1.5 million hectareswithin 6 years starting in 2011. The program is designed to:

• Restore our forest cover, our environment and water supply andmitigate climate change

• Alleviate poverty in the upland areas and promote agriculture

• Provide a continuous supply of wood for the growth of our woodindustry, and for exports of raw and processed wood.

• The program is under the care of DENR Asst. Sec. Marlo Mendozawho has agreed to invite the private sector as the major partnerand implementor.

To ensure the viability of this programs and safeguard the planted trees,he has agreed:

• to provide tenurial rights to upland dwellers who wish to becometree farmers,

• in areas close to their present dwelling places, ranging from 500to 5000 hectares,

• to provide the initial seedlings needed, and

• to train them to become forest stewards in the process.

Meanwhile, EO 23 mandates the wood industry to negotiate its woodsource for the next five years; this provides a market for the tree farmers.However, there is a financing gap of five years from the time of planting tothe time of harvesting these trees 10 years hence that has to be bridged.

The National Greening Program

UPDATES

CHRISTIAN S. MONSOD Consultant, Meralco

VITALIANO N. NAÑAGAS, II President, Organizational Systems,Inc.

NAPOLEON L. NAZARENO President & Chief Executive OfficerPLDT & SMART Communications,Inc.

ANTONIO C. OPPEN President & Chief Executive OfficerWelding Industries of thePhil ippines

ISABELITA S. PALANCA Convenor , BBC Institutional Spirituality Quotient

RICARDO S. PASCUA Chairman, Caelum Developers, Inc

VICENTE T. PATERNO Chairman , Philippine Seven, Corp.

JOSE F. PERALTA President, Philippine School ofBusiness Administration

FR. PAULO PRIGOL, C.S Fort Chaplain & DirectorApostleship of the Sea, Manila

JUAN JOSE P. ROCHA President , C.F. Sharp Group ofCompanies

RICARDO J. ROMULO Senior Partner, Romulo, Mabanta,Sayoc & De los Angeles AttorneysAt-Law

ANTONIO V. DEL ROSARIO Chairman Emeritus, Trans-Asia Oil & Energy Development Corporation

FR. EMMANUEL O. SAREZ Parish Priest, Our Lady of MountCarmel Parish

FR. JOEL E. TABORA, S.J. President , Ateneo de DavaoUniversity

JOSE TAMBUNTING President, Tambunting pawnshop

BUSINESS SECTOR - INDIVIDUAL

NATIONAL MEMBERS

67 8

This is why we need to invite the financing institutions and the privateentities thru their CSR programs to participate in the early stages offinancing these tree farms. The DENR is also studying the possibility ofcreating a market for firewood which can be harvested in two to threeyears to provide an intermediate cash flow.

The average value of the industrial trees at 10 years is about P 2 millionper hectare which is more than enough to pay for all the inputs or advances.The average value of the trees for firewood at 3 years is about P100thousand per hectare. Every family may be awarded from 5 to 10 hectares,giving them the option to raise timber wood, firewood, as well as someland for subsistence farming.

This economic model is feasible because of the use of cloned seedlingswhich double the productivity of the tree farms beyond the presentpractice. The Claveria Tree Nursery Inc in Misamis Oriental, a subsidiaryof RI Chemical Corp, is willing to provide the technology to produce theseclonal seedlings of gmelina, acacia mangium, and bagras to qualifiedorganizations who can practice the discipline of monitoring the progeniesand the site location of the mother trees. A barangay- type nursery hasbeen developed that can continually provide seedlings for 500 hectaresof tree farms. It is important that nurseries be located proximate to thetree farms to enable the tree farmers to grow-out these seedlings intosaplings in their farms preparatory for the rainy-season out-planting.The trees require ring-weeding for the first three years after which littlefurther attention is needed; this keeps a farmer busy tending a 10-hectaresite when planting 2 hectares every year for the next five years.

A key player is the social development organization experienced inorganizing the farmers to work and live together cooperatively and whocan provide the certified seedlings after training by CTNI. It can alsoassist the group of farmers in the marketing of their firewood andtimberwood at the proper time. It is usually more economical for thewood buyers to buy in sufficient quantities to make the road repair andmaintenance expense worthwhile to the farm site; hence bulk buyingcan become the norm in tree farm marketing. In a plantation of 500hectares, typically only 50 to 100 hectares will be ready for harvest in anygiven year.

Our plan is to invite and interest as many social developmentorganizations to participate in this National Greening Program, and

UPDATES

The National Greening...(From page...8)JESUS P. FRANCISCO President , Meralco Energy/Miescor

VICTORIA P. GARCHITORENA Consultant, AYALA Foundation

EDWARD S. GO Chairman of the BoardHyundai Asia Resources, Inc

VICENTE R. JAYME BBC Honorary Chairman

FRANCISCO E. JOSEF President, JC Consultants

LORNA P. LAUREL Member, Board of TrusteesLyceum of the Philippine University

LINO V. LEBRON President, Circle Transport, Corp.

BENJAMIN L. DE LEON ChairmanNational Life Insurance Company

PATRICIA B. LICUANAN Chairman, Commission on Higher Education

RAMON L. LIM First Senior Vice PresidentPhilippine National Bank

MARIO ANTONIO G. LOPEZ ProfessorAsian Institute of management

OSCAR M. LOPEZ, SR. Chairman & Chief Executive OfficerFirst Philippine Holdings Corporation

FR. FRANCIS B. LUCAS Executive Secretary, CBCP EpiscopalCommission on SocialCommunications and Mass Media

ARTURO R. MACAPAGAL President & Chief Executive OfficerToyota Pasong Tamo, Inc.

MAHAR K. MANGAHAS President, Social Weather Stations

PATERNO D. MENZON Senior Partner, Paterno D. MenzonLaw Firm

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UPDATES

present them as development partners to companies whose CSRprograms are aligned with the objectives of the National GreeningProgram. To further interest the business sector in this program, we willdiscuss the downstream industries than can result from these tree farms.It is interesting to note that individual tree farmers today account forover 60% of the total wood supply to our wood industry. Therefore, it isfeasible to make our upland dwellers into self-supporting tree farmers,with export capabilities to China, India, Korea and Japan where woodprices are considerably higher.

Sec. Ramon Paje and Asst Sec. Marlo Mendoza will be invited to presentthis project to the Church, Social Development Organizations, the FinancialInstitutions, and the Corporate Sector.

The National Greening...(From page...9)

BBC Meeting with the CBCP Plenary AssemblyThe greater prevalence of poverty makes Business-Church dialogue andcooperation for human development more important now than ever before.

BBC was privileged to have been granted an opportunity to renew andstrengthen the synergy between Church and Business that began as earlyas 1971 at the inception of BBC, through a dialogue with the CBCP PlenaryAssembly last January 29, 2012 at the Pope Pius Center.

While there has been a declining interest and participation of bishops inBBC activities, the meeting enabled BBC to provide the young and newBishops with a clearer perspective of what BBC is, present its Action Programand elicit the counsel of the Bishops on how BBC could move forward withthe continued support and participation of the CBCP.

The Presentation made by BBC National Co-Chairman Meneleo Carlos, Jr,included a call for the Bishops’ guidance and leadership in the formationor revitalization of local BBC chapters in the diocesan levels tapping thelocal businessmen, professionals and workers in addressing priority issues,action projects and other concerns of the diocese. Practical suggestionswhich will institutionalize Church-Business cooperation at the diocesanlevels are three principal activities: 1) extending management and marketingsupport to socio-economic projects of the diocese; 2) functioning as circlesof discernment and taking communal action on local issues of morality andsocial justice; and 3) promoting spiritual development of its lay members -businessmen and professionals.

Sharing of some of the Bishops’ experiences with BBC revealed that working

FRANCISCO R. BILLANO President & General ManagerInterphil Laboratories, Inc.

FELINA A. BRAVO President , Aldecoa Realty , Corp.

CESAR A. BUENAVENTURA Managing PartnerBuenaventura, Echauz & Partners

MENELEO J. CARLOS, JR. President, Resins, Inc.

JOVENCIO F. CINCO President , Penta Capital andInvestment Corporation

JOSE S. CONCEPCION, JR. President, RFM Foundation, Inc.

DAVID M. CONSUNJI, SR. Chairman, D M. Consunji, Inc.

FR. EDWIN C.S. CORROS Executive Secretary, CBCPEpiscopal Commission ForPastoral Care for Migrants &Itinerant People

REGINA COSETENG President, Go Soc & Sons, Inc & Sy Gui

AMB. HOWARD Q. DEE Chairman, Assisi DevelopmentFoundation

CARLOS G. DOMINGUEZ President, Philippine Tobacco Flue -Curing & Redying Corporation

SANTIAGO F. DUMLAO, JR. President, Santi Dumlao Consultant,Inc

ALEJANDRO TEVES ESCANO President, MERALCO Foundation, Inc.

CARMENCITA N. ESTEBAN President, Philippine Survey andResearch Center

LOLITA D. FANSLER Executive Director, Ala-Ala FoundationLUIS M. FERRER President, LM Roccio Ferrer

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with BBC provided them with a better perspective on the intricacies ofPhilippine business, the mindset of businessmen and an appreciation ofthe desire of business to work with the Church. There is much to be learned,according to one Bishop, from interacting with the business sector and thatBBC’s network helped facilitate Bishop’s liaison with the businesscommunity and other sectors, particularly on issues espoused by the Church.BBC Cagayan de Oro as expressed by Archbishop Antonio Ledesma, takespride in the business-church mutual interaction in addressing local concerns,i.e. establishment of local water district. He added that this kind of interfaceis worth replicating in other dioceses.

Some Bishops took cognizance of BBC’s initiatives through the Committeeon Social Justice and Agrarian Reform in its effort to facilitate dialogueswith the Sumilao and Hacienda Luisita farmers and residents of the provinceof Quezon affected by the Aurora Pacific Economic Zone and Freeport (APECO).The BBC Committee is co-chaired by Bishop Broderick Pabillo and Mr. ChristianMonsod.

However, on the other hand, others noted that nothing happened after aseries of dialogues and even heated debates on mining in one GeneralAssembly and Annual Meeting, Not much is much is heard either about BBCin the regions and the course of action taken on issues discussed at thenational level. The bias of some business groups on certain issues waslikewise ventilated.

Notable concerns and expectations raised by the Bishops, was the need forBBC to express support for the Bishops/CBCP, particularly on issues wherethe Catholic Church has already taken a stance; and for BBC to immerseitself with the grassroots to have a better perspective on how to addresspoverty with the aid of advanced technology. Bishops expect the BBC to takeaction in support of the advocacies and initiatives of the Church particularlyon poverty alleviation and social justice.

Recommendations put forth at said dialogue were as follows: 1) identifyfurther possible areas of Bishops-Businessmen cooperation andpartnership; 2) elicit participation and support of young Bishops in BBCaction programs; 3) encourage businessmen to undertake programs gearedtoward spiritual nourishment and upliftment; 4) strengthen partnershipwith bishops in networking with basic sectors, i.e. farmers, fisher folks,indigenous peoples, labor and urban poor, etc. ; and 5) publish /disseminatedata and information materials on mining shared during BBC meetings.

As an affirmation was expressed for BBC’s continued existence, BBC looksforward to a continued dialogue and valuable partnership between thebishop and businessmen and other sectors of society.

UPDATES

BBC Meeting ...(From page...10)

MOST REV. JOSE CORAZON T. TALAOC Bishop of Kalibo

MOST REV. ROLANDO J. TRIA TIRONA Bishop Prelate of Infanta

MOST REV. ANTONIO R. TOBIAS Bishop of Novaliches

MOST REV. JULIUS S. TONEL Bishop of Ipil

MOST REV. LEOPOLDO S. TUMULAK Military Ordinary

MOST REV. EMMANUEL C. TRANCE Bishop of Catarman

MOST REV. SERGIO L. UTLEG Archbishop of Tuguegarao

MOST REV. ROMULO G. VALLES Archbishop of Davao

MOST REV. CRISPIN B. VARQUEZ Bishop of Borongan

MOST REV. MYLO HUBERT C. VERGARA Bishop of Pasig

MOST REV. SOCRATES B. VILLEGAS Auxiliary Bishop of Lingayen-Dagupan

MOST REV. RAMON B. VILLENA Bishop of Bayombong

BISHOPS

JOSE S. ALEJANDRO President, AEGIS ExecutiveCenter

ROBERTO W. ANSALDO President and ChairmanBREW Brothers

JOSE G. ARAULLO Chairman, Real Bank

ISIDRO ANTONIO C. ASPER Assistant to the PresidentFederation of Free workers

CORAZON S. DELA PAZ- BERNARDO National ChairmanNational Movement for FreeElections

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Peace Process Briefing

The BBC EXCOM in the pursuance of its role to serve as convenor of dialogueswith various sectors, organized a briefing/orientation of the CBCP PlenaryAssembly on the initiatives of the Office of the Presidential Adviser on thePeace Process in managing and supervising the comprehensive peaceprocess in the country.

Held on January 24, 2012 at the Pope Pius XII Catholic Center, the Speakersincluded Sec. Teresita Quintos-Deles who gave a backgrounder on theinitiatives of the Office of the Presidentiall Peace Process; Dean MarvicLeonen, and Ms, Jurgette Honculada (representing Atty. Alexander Padilla)provided updates on the Peace Talks with the MILF; and CPP/NDF/CPP,respectively.

Published Date: February 1, 2012Tags: communists, Mindanao, Moro, muslim, Peace, Teresita Deles

PRESIDENTIAL Adviser on the Peace ProcessTeresita Quintos-Deles appealed torepresentatives of the religious andprivate sectors to join in the call for a justand lasting peace in the country.

“We need everyone’s help,” she toldbishops and business people during aforum on winning a just and lasting peaceheld on Tuesday at the Pope Pius XII Catholic Center, UN Avenue, Manila.Joining her were Marvic Leonen, government panel chair for talks with theMoro Islamic Liberation Front (MILF), and Jurgette Honculada, panel memberfor talks with National Democratic Front (NDFP).

Deles delivered a briefing for the Bishops-Businessmen?s Conference (BBC)for Human Development on developments in the peace process pursued bythe government.

In her message, she reiterated that the “prospect for peace is better than ithas been in a very long time.”

However, Deles stressed that the context of the peace process is indeed“complex and political” because it aims for political settlement of armedconflicts through negotiated peace agreements.

Winning peace needs everyone’shelp, says Deles

UPDATES

MOST REV. RENATO P. MAYUGBA Auxiliary Bishop of Lingayen-Dagupan

MOST REV. LEONARDO Y. MEDROSO Bishop of Tagbilaran

MOST REV. JESSE E. MERCADO Bishop of Paranaque

MOST REV. JOSEPH A. NACUA Bishop of Ilagan

MOST REV. VICENTE M. NAVARRA Bishop of Bacolod

MOST REV. CHRISTIAN V.F. NOEL Bishop of Talibon

MOST REV. NEREO P. ODCHIMAR Bishop of Tandag

MOST REV. JOSE F. OLIVEROS Bishop of Malolos

MOST REV. HONESTO F. ONGTIOCO Bishop of Cubao

MOST REV. BRODERICK S. PABILLO Auxiliary Bishop of Manila

MOST REV. ANTONIO P. PALANG Bishop of San Jose deMindoro

MOST REV. JOSE S. PALMA Archbishop of Cebu

MOST REV. MARLO M. PERALTA Bishop of Alaminos

MOST REV. JUAN DE DIOS M. PUEBLOS Bishop of Butuan

MOST REV. ORLANDO B. QUEVEDO Archbishop of Cotabato

MOST REV. GABRIEL V. REYES Bishop of Antipolo

MOST REV. GEORGE B. RIMANDO Auxiliary Bishop of Davao

MOST REV. JOSE R. ROJAS, JR Bishop of Libmanan

MOST REV. ERNESTO A. SALGADO Archbishop-of Nueva Segovia

MOST REV. RUPERTO C. SANTOS Bishop of Balanga

MOST REV. LUIS ANTONIO G. TAGLE Archbishop of Manila

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BBC CALAPAN

Upon the invitation of Bishop Warlito Cajandig, Vicar Apostolic of Calapanfor BBC to look into the possible formation of a BBC Chapter in hisecclesiastical jurisdiction, BBC National Co-Chairman Meneleo Carlos, Jr.and BBC Executive Director Belle Beluan made a special trip to Calapan tomeet with the prospective Chapter members.

The meeting held last March 29, 2011 at the Bishop’s residence was attendedby representatives from the Social Action Center, Brotherhod of ChristianBusinessmen (BCBP), NGOs and officials of the local government.

An overview of the BBC was presented by Mr. Carlos which included theMechanics for a BBC Chapter Formation. In the spirit of BBC’s Charter, hehighlighted the proposed three major activities for every Chapter:

1. Technical/Managerial Assistance - extended by lay members tosocio-economic projects of the diocesan Social Action Center andof selected NGOs

2. Circle of Discernment and Communal Action - to promote goodgovernance by LGUs, combat corruption and injustice, urgepreferential options for the poor in ordinances and localadministration

3. Spiritual Development - of members

Fr. Jim Ruga who served as Convenor of the meeting apprised the body thatthe core group meets regularly to address major concerns of the localchurch in partnership with the local government and the socio-civicorganizations.

It was agreed that another assembly will be convened to further discussthe formal establishment of the Chapter.

CHAPTER FORMATION

UPDATES

“Peace agreements require political will to implement them in a politicalclimate,” she pointed out. In this view, she conveyed hope for the peaceprocess because of the new political leadership that makes “winning a justand lasting peace for all Filipinos” a centerpiece.

Moreover, Deles underscored that ?We have to be conscious on how politicscan affect the peace process.?

Report from Zambo Times

Winning...(From page...12)

NATIONAL MEMBERS

MOST REV. ELENITO R. GALIDO Bishop of Iligan

MOST REV. GILBERT A. GARCERA Bishop of Daet

MOST REV. CAMILO D. GREGORIO Bishop Prelate of Batanes

MOST REV. DINUALDO D. GUTIERREZ Bishop of Marbel

MOST REV. DEOGRACIAS S. INIGUEZ JR. Bishop of Kalookan

MOST REV. LEOPOLDO C. JAUCIAN Bishop of Bangued

MOST REV. JACINTO A. JOSE Bishop of Urdaneta

MOST REV. EDGARDO S. JUANICH Vicar Apostolic of Taytay

MOST REV. MARTIN S. JUMOAD Bishop Prelate of Isabela deBas i lan

MOST REV. ANGEL N. LAGDAMEO Archbishop of Jaro

MOST REV. ANGELITO R. LAMPON Vicar Apostolic of Jolo

MOST REV. FLORENTINO G. LAVARIAS Bishop of Iba

MOST REV. JOSE ROMEO O. LAZO Bishop of Antique

MOST REV. ANTONIO J. LEDESMA Archbishop of Cagayan deOro

MOST REV. LEONARDO Z. LEGASPI Archbishop of Caceres

MOST REV. ROBERTO C. MALLARI Bishop of San Jose, NuevaEcija

MOST REV. JOSE R. MANGUIRAN Bishop of Dipolog

MOST REV. WILFREDO D. MANLAPAZ Bishop of Tagum

MOST REV. EMILIO Z. MARQUEZ Bishop of Lucena

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PRESENTATION - MINING CONFERENCEBy: Christian S. Monsod

(Delivered at the Conference on Mining sponsored by the Philippine Chamber of Commerceand Industry (PCCI); Financial Executives Insitute (FINEX) and Management Association ofthe Philippines (MAP) held on March 2, 2012 at the Hotel Intercontinental, Makati.)

The mineral wealth of our country, as the mining industry reminds us, is“staggering” - about $840 billion. Its potential to contribute to our country’sdevelopment cannot be discounted. While mining has never been a driverof our development, not even during the mining boom of the seventies, weare here to find out if there is a way to realize that potential. And I thankthe organizers of this Conference for taking this step toward that objective.

The real question before us today is: Should mining be allowed in thePhilippines?

I believe that we should be open to that proposition provided four minimumconditions are met: (1) the environmental, social and economic costs areaccounted for in evaluating mining projects; (2) the country gets a full andfair share of the value of the extracted resources, (3) and this is addressedto the government, the institutional capabilities of the government toevaluate and regulate mining activities are put in place; and (4) againaddressed to the government, since mining uses up non-renewable naturalcapital, the money from mining are specifically used to create new capitalsuch as more developed human resources and infrastructure, particularlyin the rural areas. In this regard, I refer you to the paper of Prof. RonaldMendoza of the AIM Policy Center and his proposal for a “middle ground”that involves the establishment of an “inclusive growth” trust fund.

With respect to downstream plants and the total banning of ore exports, Idid not include these because the mining industry may have a point on thepracticality and long-term feasibility of these conditions - hence the needfor more consultations.

I submit that mining is a social justice issue. And we cannot discuss itexcept in the context of our country’s dismal performance in addressingmass poverty and the gross inequalities of income, wealth and politicalpower that persist more than 25 years after the glowing promise of EDSA ofa just society.

We are all familiar with the data.

Over 24 million Filipinos are poor, i.e. “poor” meaning per capita income ofless than P46/day and about 9.4 million of them are “food poor”, i.e thosewho live on P32/day, not even enough to meet the minimum 2,000 caloriesa day. Over 28 years, our real per capita income rose only 20% while percapita incomes of our neighbors increased - like Malaysia (400%), Thailand

(Turn to page...15)

MOST REV. PATRICIO A. BUZON Bishop of Kabankalan

MOST REV. EMMANUEL T. CABAJAR Bishop of Pagadian

MOST REV. EMMANUEL T. CABAJAR Bishop of Pagadian

MOST REV. ANTONIETO D. CABAJOG Bishop of Surigao

MOST REV. JOSE A. CABANTAN Bishop of Malaybalay

MOST REV. WARLITO I. CAJANDIG Vicar Apostolic of Calapan

MOST REV. PRECIOSO D. CANTILLAS Bishop of Maasin

MOST REV. CARLITO J. CENZON Bishop of Baguio

MOST REV. FLORENTINO F. CINENSE Bishop of Tarlac

MOST REV. JULITO B. CORTES Auxiliary Bishop of Cebu

MOST REV. BERNARDINO C. CORTEZ Auxiliary Bishop of Manila

MOST REV. PABLO VIRGILIO S. DAVID Auxiliary of San Fernando,Pampanga

MOST REV. ROMULO T. DELA CRUZ Bishop of Kidapawan

MOST REV. FRANCISCO M. DE LEON Auxiliary Bishop of Antipolo

MOST REV. EDWIN A. DE LA PEÑA Bishop Prelate of Marawi

MOST REV. MANOLO A. DE LOS SANTOS Bishop of Virac

MOST REV. JESUS A. DOSADO Archbishop of Ozamiz

MOST REV. LEO M. DRONA Bishop of San Pablo

MOST REV. JOHN F. DU Archbishop of Palo

MOST REV. REYNALDO G. EVANGELISTA Bishop of Boac

MOST REV. BUENAVENTURA M. FAMADICO Bishop of Gumaca

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(500%) and China (1100%) - in the process eradicating absolute poverty.Even more compelling - the inequality of income has not changed sinceEDSA. The top 1% of the families numbering 185,000 have an income equalto the income of the bottom 30% of the families numbering 5,500,000. Thereare many more such data but this is not the forum for them.I just wanted to make the point that history has not been very kind to ourpoor. And we know this must change.

The increasing inequality of income, wealth and political power is, of course,happening worldwide. In our particular case, the root of the problem is thedevelopment paradigm followed by every administration- that rising watersraise all boats - that sustained economic growth driven by investments willeliminate poverty. But conclusive empirical data tell us that sustained highgrowth is not possible unless we also address the problem of inequality.And that means not only income reform - quality education, universalhealth care and livelihood - but also asset reform, which is primarily aboutland and natural resources and a substantive redistribution of their benefitsand costs. As you know, the four asset reform programs are agrarian reform,urban land reform and housing, ancestral domain and fisheries.

That is why it is unfortunate that two major stakeholders on the issue ofmining were not invited to speak today - the National Commission onIndigenous Peoples and the Department of Agriculture

Environmental, Social and Economic Costs and Benefits

Mining activities are usually located in rural and mountainous areas andcan affect farmlands, rivers and shorelines, where the poorest of the poorare located namely, the farmers, indigenous peoples and municipalfishermen.

The fact is that mining cannot be conducted without affecting the land,water, and air surrounding the site, as well as the various natural resourcesfound in them. Mining involves the extraction of minerals, but may alsoinvolve the use or destruction of non-mineral resources, such as freshwater,timber, and wildlife. This may also result in health problems, displacementof people, social divisiveness, even the need to provide PNP and AFPprotection to mining companies. Then there are the disasters that canhappen from the cutting of trees, from siltation and erosion, and accidentsfrom mining structures. All these translate into public costs.

That is why mining is often cited as an example of what Paul Krugman callsactivities that privatize benefits and socialize costs. This is the social justiceissue on mining.

MOST REV. ISABELO C. ABARQUEZ Bishop of Calbayog

MOST REV. JOSE F. ADVINCULA, JR Archbishop of Capiz

MOST REV. GUILLERMO V. AFABLE Bishop of Digos

MOST REV. GERARDO A. ALMINAZA Auxiliary-Bishop of Jaro

MOST REV. PATRICIO H. ALO Bishop of Mati

MOST REV. PRUDENCIO P. ANDAYA Vicar Apostolic of Tabuk

MOST REV. PACIANO B. ANICETO Archbishop of SanFernando, Pampanga

MOST REV. DAVID WILLIAM V. ANTONIO Auxiliary Bishop of NuevaSegovia

MOST REV. RAMON C. ARGUELLES Archbishop of Lipa

MOST REV. PEDRO D. ARIGO Vicar Apostolic of PuertoPrincesa

MOST REV. RICARDO L. BACCAY Auxiliary Bishop ofTuguegarao

MOST REV. FILOMENO G. BACTOL Bishop of Naval

MOST REV. JOSE COLIN M. BAGAFORO Auxiliary Bishop of Cotabato

MOST REV. SOFRONIO A. BANCUD Bishop of Cabanatuan

MOST REV. JOSE B. BANTOLO Bishop of Masbate

MOST REV. ARTURO M. BASTES Bishop of Sorsogon

MOST REV. EMILIO L. BATACLAN Auxiliary Bishop of Cebu

MOST REV. JOEL Z. BAYLON Bishop of Legazpi

MOST REV. RODOLFO F. BELTRAN Vicar Apostolic of Bontoc -Lagawe

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• A peso change in the final demand for the mining/quarryinggenerates P1.70 pesos worth of additional output for the economy;

• On employment, every one million of additional investment inmining/quarrying generates additional employment of 2.2, not 5.

The average multiplier of 2.2 jobs includes SSM which requires virtually nocapital investment and capital-intensive LSM, like Tampacan, that willgenerate 10,000 temporary jobs and 2,000 permanent jobs with a $5.9 billioninvestment (about P120 million per permanent job). The mineral extractiveindustry is considered worldwide as a low job generating activity.

These data put in question the expansive claim by the Chamber that theprojected LSM $15 billion investments will generate 70,000 direct jobs thatwill result in 350,000 other jobs, leading to 2,050,000 jobs by 2018 with 10.25million Filipinos as “direct beneficiaries of mining”. A recalculation wouldlook more like = 576,000 Filipino beneficiaries

The Share of Government in Mining Revenues

The Chamber is objecting to the proposed royalty of 5% on mining revenueson the ground that it would drive investors to other countries with morefavorable financial regimes. The industry in Nov. 2011 appealed to thegovernment not to increase the royalties because the “current fiscal regime....may be the only thing that’s keeping the industry afloat.”

At the same time, the stock market is at new highs and the newspapersbanner unprecedented mining profits in some companies.

RA 7942, Sec. 80:

“The total government share in a mineral production sharing agreement shall bethe (2%) excise tax on mineral products as provided in Republic Act No. 7729,amending Section 151(a) of the National Internal Revenue Code, as amended.”

An excise tax is a tax on the use or consumption of certain products, or a taxon an activity. In the case of mining, no value is given to our minerals.

Some comparisons by the MGB of the fiscal regimes of selected countries(China, India, Indonesia, Mongolia, Myanmar, Papua New Guinea, Peru,Chile) show that the fiscal regime in the Philippines is quite competitivewith, if not more favorable than, those of other countries.

Moreover LSM are given generous tax incentives, to wit:

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Ang pag-unlad na maaaring makabilang ang mga maralitang taga-lungsoday nangangahulugan ng mga sumusunod:

• Pananatili nila sa kanilang mga tirahan;

• Pabahay na maykaakibat napangmatagalangpangkabuhayana tpagkakakitaan;

• W a l a n gn a s a s a g a s a a n ,n a t a t a m a a n ,napipinsala onaiiwan sapagpapatupad at implementasyon ng mga programa;

• Partisipasyon ng komunidad sa sectoral at sa bawat yugto ngproseso ng pagbubuo ng mga patakaran;

•• Wasto at striktong pagpapatupad ng mga plano sa lahat ng antas

ng gobyerno mula sa presidente hanggang sa pamahalaang lokal;

• Pagpapaunlad sa mga kanayunan na siyang pinagmumulan ngmga maralitang taga lungsod.

Urban Poor

OUTPUTS OF THE CONSULTATION MEETINGWITH THE BASIC SECTOR

59

(1) income tax holidays of 5 years (including excise taxes);

(2) deduction of 50 percent of labor expenditure from taxable income,

(3) tax and duty exemptions on imported capital equipment and spareparts,

(4) exemptions from wharfage fees, and additional incentives forenterprises that locate in less developed areas,

(5) the privilege to deduct 100 percent of expenditures on infrastructurefrom taxable income, over a period of 10 years,

(6) during the exploration period are not liable for income taxes. Whenthey begin commercial operations, they are entitled to registerwith the Board of Investments for a five-year income tax holiday,

(7) exemption of pollution control devices from real property and othertaxes41;

(8) income-tax carry forward of net-operating losses incurred in thefirst 10 years, which may be deducted from taxable income over afive-year period;

(9) accelerated depreciation of assets-at twice the normal rate

(10) option to deduct the cost of all exploration and developmentexpenditures from taxable income over a four-year period fromcommencement of commercial operations;

In the case of FTAA (financial and technical assistance agreements)

(11) they are allowed to recover all their tax and operating expensesbefore they begin to pay either the basic or the additional sharesof government, such as:

(12) “(a) contractor’s income tax; (b) customs duties and fees on importedcapital equipment; (c) value-added tax on imported goods andservices; (d) withholding tax from interest payments on foreignloans; (e) withholding tax on dividends to foreign stockholders; (f)documentary stamp taxes; (g) capital gains tax; (h) excise tax onminerals; (i) royalties for mineral reservations and to indigenouspeoples , if applicable; (j) local business tax; (k) real property tax;(l) community tax; (m) occupation fees; (n) registration and permitfees; and (o) all other national and local taxes, royalties and feesas of effective date of the FTAA.”

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• Pagkilala sa kasarinlan ng mga katutubo at karapatan na magingbahagi ng anumang konsultasyon hinggil sa pagbabalangkas ngmga programang may pagsasaalang-alang sa kanilang kultura attradisyon;

• Pagpapalakas samga kinatawan ngkatutubo sapamahalaan;

• Pagbibigay ngpondo sa AncestralD o m a i nS u s t a i n a b l eDevelopment andProtection Plan (ADSDPP) partikular sa mga lupain ng mga katutubosa Pinatubo;

• Pagbibigay ng gobyerno ng sapat na “support services” para saikauunlad ng pinagkukunan ng kabuhayan upang maiangat angestado ng buhay at “mabawasan ang kahirapan ng katutubongPilipino.”

Ang “ inclusive growth” sa paningin ng mga manggagawa aynangangahulugan ng mga sumusunod:.

• Kung umaangat ang ekonomiya, dapat ay walang “jobless growth”.

• Kakambal ang “dignity of work” at seguridad sa trabaho(halimbawa, secured ba ang rights at human development?)

• Mataas na sweldo na kayang magtustos sa pangangailangan ngmanggagawa (living wage).

• Kalayaan bilang isang “social being” na makapagtayo ngorganisasyon at kumilos ng sama-sama.

• Isinasaalang-alang ang “safety” o kaligtasan ng mga manggagawa.May pagpapahalaga sa buhay ng tao kasya “capital” o puhunan.

Labor

OUTPUTS OF THE CONSULTATION MEETINGWITH THE BASIC SECTORs

58

Indigenous People (From page...57)

As for the argument that minerals are meant to serve humanity and are theraw materials for the modern conveniences we use everyday, the point isthat, in cases where mining is allowed, the minerals should be priced atfull cost, including environmental, social and economic costs. Otherwise,our poor who mainly bear these costs would be subsidizing the consumerismof the rich, both domestic and foreign.

We cannot find the answers to the plight of the poor unless we listen tothe poor. In this regard, you might want to read 3 public documents - theNational Rural Congress II of the CBCP in 2007, the Climate Change NationalConsultations of 2009 and the Summit on Poverty, Inequality and SocialReform conducted last October to December 2011.

Why Climate Change? Because the new normal arising from climate changerequires a watershed approach to mitigation, adaptat,ion and disastermanagement and watersheds are where the forests and minerals are mostlylocated. In these conferences, one of the deepest concerns of the poor arethe environmental, social and economic costs of mining..

The Benefits and Costs of Mining - What we want to know are the realcontributions of mining to GDP, exports, employment, government revenues,investments, industrialization, poverty alleviation, etc..Here are some statistics:

:Ave. contribution to GDP: 2000-2009 = .91%2010 = 1.30%

:Ave share to total employment: 2000-2009 = 0.376%2010 = 0.5% = 197,000

:Ave. contribution of metallic mining to total exports:2000-2009 = 2.96%2010 = 3.7%

:Ave. share of mining investments to total investments: = 2.5%:Total government taxes, fees and royalties:

1997-2010 = P64.2 B= 7.6% of:Total production value of mining companies:

1997-2010 = P842 BOn industrialization: Per former NEDA Sec. Cielito Habito: Based on nationalI-O tables: Backward linkages of mining = .46 (less than half of otherindustries); Forward Linkages is a low .82. These mean that mining is notconsidered enough of a value-adding activity.

On poverty alleviation: Mining has the highest poverty incidence of any sectorin the country 48.7%.. The only sector where poverty incidence increasedbetween 1988-2009. High poverty incidence in many mining areas i.e. CARAGA(47.5%), Zamboanga Peninsula (42.75%), Bicol region (44.92%) , the national

(Turn to page...19)

Presentation...(From page...17)

18

• Paglalapat ng mga angkop na mga solusyon sa pangangailangan nglugar lalo ng mga mangingisda (hal. polusyon na dulot ng mga industrialfactories sa paligid ng katubigan).

• May kakayahang pinansyal na makipagsabayan sa paggamit ngmakabagong teknolohiya hinggil sa pangisdaan. Hindi pagpapaunladat pagpapayaman lamang sa mga negosyanteng nagbebenta ng mgafish cages at feeds.

• Pagpapaubaya sa mga maliliit na mangingisda na pangasiwaan angmga lawa na may kaakibat na proteksyon sa kanilang mga karapatan.

• Magaganap ang sama-samang pag-unlad kung maisasakatuparan ang“Delineation of Municipal Waters”.

• Ang pag-unlad ng ekonomiya ay hindi lamang nakabatay sapagkakaroon ng mga malls, gusali at iba pa kundi sa paglalapat ngmga pangmatagalang (hindi dole-out) solusyon at pag-aalis ng bantangpanganib sa kabuhayan ng mga mangingisda.

Indigenous People

Ang “inclusive growth” sa pananaw ng mga katutubo ay kinapapaloobanng mga sumusunod:

• Paggalang sa mgalupain ng mgan i n u n o ,pinagkukunan ngkabuhayan atpagkain ng mgakatutubo;

• Paggalang sapaniniwala na angkapaligiran ay maymga espiritu nadapat isaalang-alang at huwag isantabi;

OUTPUTS OF THE CONSULTATION MEETINGWITH THE BASIC SECTORs

Fisherfolks...(From page...56)

57 (Turn to page...58)

average being 26%. At the municipality of Bataraza in Palawan where RioTuba has been operating for 30 years, the poverty incidence (53%) is doublethe national rate. The mining industry is correct in pointing out that thestatistics do not establish causality. But the data at least shows anassociation between mining and poverty that raises questions on theclaim that mining improves the quality of life in its communities.

Investment and Export Proceeds

The mining industry’s absolute figures on gross investment inflows andexport proceeds are impressive, but they are only one-half the picture.

Mining companies are allowed to recover and repatriate all pre-operatingand development costs up to 4-5 years after start of operations. Thus, theinflows and outflows on investment may even out during that period.

On export proceeds, mining operations usually front load production duringthe first five years, arguably to exploit market opportunities, but this alsohappens to coincide with their tax holidays. Profit remittances can, thus,be considerable.

Government Revenues

The DENR says that there is a discrepancy between potential excise taxesfrom mining and actual collections (P7.8 billion from 2000-2009). The LSMsector claims that their payments in 2008-2009 equaled the collectibleamount and that the uncollected excise taxes are attributable solely tosmall-scale miners and quarrying. That may be true. But it is interestingthat if one takes a longer view, from 1997-2007, there is no such correlation.Actual collections for 6 of the 11 years are lower than the collectibles fromLSM ranging from 4%-36%.

It is unfortunate, that the small-scale mining sector was not invited tospeak at this conference so it can defend itself and justify its role in thedevelopment of the mining industry. After all, the production value of SSMfrom 1997-2010 was the same as that of LSM at about P300 billion.

Employment

The mining industry claims that 1 direct job in mining creates 5 more jobsin the rest of the economy - a multiple of 5. NEDA denies that it has anysuch data. However, a study by Madeleine B. Dumaua based on the 2000Input-Output tables of the economy shows that :

Presentation...(From page...18)

19(Turn to page...57)

Inclusive Growth: Basic Sectors’ Perspective

• Pagpapalakas sa sektor ng magsasaka sa pamamagitan ng subsidiyaat pamamahagi ng lupa na nararapat para sa kanila upang magingganap ang paghuhubog sa kanilasa pagiging mangangalakal(Entrepreneur).

• Pagsusuri sa mga batas atalituntunin na nauukol sareporma sa lupa

• Pagtatayo ng mga infrastrukturana tumutugon sapangangailangan ng mgamagsasaka.

• Pagpapatupad ng mga konkretong programa na magpapayabong sateknikal na kaalaman ng mga magsasaka.

• Pagpapayabong/pagpapalaganap ng organikong paraan ng pagsasaka.

• Pagkakaloob ng tirahan kaakibat ang pangkabuhayan sa mgamagsasakang pinaalis sa kanilang lupang sinasaka upang matiyakang magandang kinabukasan ng kanilang mga pamilya.

• Pagkakaroon ng pagkakapantay-pantay na oportunidad ng sektor nawalang napag-iiwanan.

Farmers

Fisherfolks

• Sama-samang paglikha ngmakabuluhang buhay,pamumuhay at likas-yaman.Likas-kayang pag-unlad saisang komunidad (“Co-creating sustainable Bio-community”).

OUTPUTS OF THE CONSULTATION MEETINGWITH THE BASIC SECTORS

56(Turn to page...20)

To summarize the issue on the revenue sharing: Not only are our mineralsnot given any value, our government pays the contractors to extract themthrough fiscal incentives. What do we get in return?

(a) Very little by way of taxes, fees and royalties, and practically noneat all during the tax holiday period;

(b) Very little by way of job generation;(c) Probably little net foreign exchange inflows;(d) Very little contribution to GDP;(e) Very little industrialization linkages;(f) Questionable poverty alleviation results

Of course, there is always the potential. But there may be another side tothe relatively low benefits from mining - there is not much to lose shouldthe government refuse to give in to the demands of mining that wouldcompromise the environment. Timely alternative development strategiesmay, in fact, result in a net gain.

Institutional Capacity of Government to Evaluate and Regulate MiningOne cannot blame the mining industry for always trying to get the best dealfor its shareholders. But it is the responsibility of government to protect theinterests of the country.

However, the government admits in the Philippine Development Plan 2011-2016, that it does not have the capability to make that kind of assessment:

(a) Page 310 of the PDP: “...currently, there is no standard resource andenvironment valuation. There is a need to have a cost-benefitanalysis and standard parameters that will consider all relevantvalues (including non-market values)”;

(b) “government capacity for resource management is wanting”;

(c) “enforcement of environmental laws and policies isinadequate.....Relevant environmental laws, specifically thoseregulating the utilization of natural resources, i.e. NIPAS, etc. arepoorly implemented.”

The question begs to be asked - how can the government approve anymining application or allow any mining operation in the absence of theseinstitutional safeguards?

The proposal is to adopt TEV (Total Economic Valuation) and WAVES (WealthAccounting and Valuation of Ecosystem Services) which is an integration ofTEV and natural capital accounting. WAVES is an initiative of the World Bank

Presentation...(From page...19)

(The numbers in the parenthesis refer to the paragraph number of the encyclicalletter of Pope Benedict XVI: Caritas in Veritate)

• It is wrong to hold that the market economy has an inbuilt need for aquota of poverty and underdevelopment in order to function as its best.The poor are not to be considered a “burden”, but a resource, even fromthe purely economic point of view. {35}

• Economic activity cannot solve all social problems through the simpleapplication of commercial logic. This needs to be directed towards thepursuit of the common good, for which the political community inparticular must also take responsibility.{36}

• Grave imbalances are produced when economic action, conceivedmerely as an engine for wealth creation, is detached from politicalaction, conceived as a means for pursuing justice throughredistribution.{36}

• There is a need of a model of market economy capable of includingwithin its range all peoples and not just the better off. A more humanworld: All will be able to give and receive, without one group makingprogress at the expense of the other. { 39}

• Business management cannot concern itself only with the interests ofthe proprietors, but must also assume responsibility for all the otherstakeholders who contribute to the life of the business: the workers,the clients, the suppliers, the community of reference. {40}

• In development programs, the principle of the centrality of the humanperson as the subject primarily responsible for development, must bepreserved. The peoples themselves have the prime responsibility towork for their own development. {47}

• Projects for integral human development cannot ignore cominggenerations, but need to be marked by solidarity and inter-generationaljustice. {48}

• Development of individuals and peoples depends partly on theresolution of problems of a spiritual nature. Development must includenot just material growth but also spiritual growth, since the humanperson is a unity of body and soul, born of God’s creative love anddestined for eternal life. {76}

Inclusive Growth: Church Perspective

UPDATES

55 20(Turn to page...21)

which is supportive of “responsible mining”. It complements the ExtractiveIndustry Transparency Initiative (EITI) - a priority advocacy of the Chamberof Mines.

The exercise is not “catatonic” because “significant advances have beenmade in defining and conceptualizing protected areas valuation “. Thereare at least 60 instances, at least 3 in the Philippines, where TEV has beendone. There are enough research work and examples to arrive at a lessthan perfect, but nonetheless usable, formula.

WAVES is a comprehensive wealth management approach to long-termsustainable development that includes all assets - manufactured capital,natural capital, human and social capital. The methodological frameworkis the UN’s System of Environmental and Economic Accounting (SEEA)developed over the past 20 years.

This is a good time to adopt these analytical tools since the Philippines isone of 6-10 countries where WAVES is being piloted by the World Bank. Whythe Chamber of Mines seems to object to their explicit application to miningprojects in the new policies is frankly hard to understand.

We need these tools. For example, there is an apparent oversight in theMining Law or its IRR - because the so-called final rehabilitation fund forphased out mines applies only to the capital costs of rehabilitation - likeland restoration and reforestation. There is no perpetual accountability ortrust funds for the maintenance of structures like tailings dams or thedisasters that could happen years later from dam breakages. These risksshould be borne by the mining companies and not by our taxpayers, whichseems to be the case today. This is not responsible mining. If myunderstanding of the rules is wrong, I will be happy to be corrected.

Until the new policies are fully in place, the government should strictlyapply the precautionary principle to pending issues. The principle is publicpolicy under RA 9729 (Climate Change Act of 2009), and was enunciated bythe Supreme Court in issuing the Writ of Kalikasan:

Part V. Rule 20, “Sec. 1 When there is a lack of full scientific certainty in establishinga causal link between human activity and environmental effect, the court shallapply the precautionary principle in resolving the case before it. Theconstitutional right of the people to a balanced and healthful ecology shall begiven the benefit of the doubt.”

This safeguard is needed. The present mining system is simply no longerworkable because it is onerous to the country and is open to corruptionand to decisions that are vulnerable to future questionings, and we needa little more time to put things right.

presentation...(From page...)

It is hoped that these consultations can be replicated in dioceses wherethe Bishops deem it fit and necessary. Archbishop Ledesma has expressedwillingness to host the first diocesan consultation in the Archdiocese ofCagayan de Oro, shortly after the BBC General Assembly.

Keynote speakers include newlyappointed Socio-EconomicPlanning Secretary ArsenioBalisacan who has identifiedand espoused industrial policyand “ inclusive growth” as thegovernment’s thrust to povertyalleviation; Mr. Ramon R. DelRosario, Jr., Chairman of theMakati Business Club willprovide the Businessperspectives on how businesscan effectively address thedisconnect between the poor and the business sector; while ArchbishopOrlando B. Quevedo, Archbishop of Cotabato will present the Church’sviews on how to achieve Inclusive Growth to benefit the poor.

UPDATES

Consultations....(From page...53)

5421(Turn to page...22)

BBC STATEMENT ON MINING IN BICOLApril 18, 2012

In closing, may I say that the mining industry is correct that our fragmentedviews on mining heightens the uncertainty of mining investors, althoughthis may have the reverse effect on other investors, as in tourism. Themining industry should thus welcome the initiative of the government toput in place a new set of rules that can promote solidarity with consultations.If the rules turn out to be too tough on mining, at least the decision toinvest will have less uncertainties and its parameters will be clear. On theother hand, the government and other stakeholders should be fully awareof their consequences on mining investments and the need for a fair andproper disengagement process, if necessary, as well as the urgency ofimplementing alternatives to mining.

In times like this, it is good to remember the words of Albert Camus whenhe received the Nobel Peace Prize - we should put ourselves at the servicenot of those who make history but of those who suffer it.

Thank you.

Presentation...(From page...21)

UPDATES

The Bishops-Businessmen Conference for Human Development fullysupports the position of Bishop Arturo Bastes of the Diocese of Sorsogonon behalf of the Bicol Bishops that the environmental destruction,economic dislocation and health impacts wrought by mining operationsin the Bicol Region are a great injustice to the people of the region,especially its poor who bear the heaviest burden of mining activities.

We are informed that the Aquino Administration has set aside and is nolonger implementing the Mining Revitalization Program of the ArroyoAdministration and that there is no more system of Priority Mining Projectsincluding those previously identified in the Bicol Region. We are furtherinformed that the Aquino administration will be issuing new MiningPolicy Guidelines to address the concerns of the people about mining.

We welcome this initiative of the administration on mining issues. Butin the meantime the adverse impacts of mining in the existing operationsand in the prospect of more of the same, given the approved explorationactivities, must be immediately addressed.

While there are yet no FTAA areas approved in the Bicol Region and only27,000 hectares are covered by all the MPSAs in the region of which about900 hectares are presently subjected to mining operations, continuing

UPDATES

In response to the unfortunate fate that befell the Arcdiocese of Cagayande Oro and Diocese of Dumaguete due to the wrath brought by typhoonsand floods, some business members shared their kindness and generosityto help ease the pain and suffering of the people.

Special thanks and appreciation goes to Mr. Jose Concepcion, Jr.; RFMCorporation; Meneleo J. Carlos, Jr; RESINS, Inc. and its employees; Edward S.Go; Roberto M. Lavina and the PHINMA Foundation; Vicente T. Paterno andthe Philippine Seven Corporation; and Atty. Ricardo J. Romulo.

The BBC National Executive Committee in pursuance of the ideals of itsConsensus Statement believes that the development of our country is notsimply a process of economic growth but rather a total human developmentto be realized by all sectors of society working together, Church-Business-Government and Basic Sectors.

Last June 4-6, 2012, BBC, in partnership with NEDA and CBCP-NASSA, conductedconsultation meetings with representatives of the basic sectors, namely,the farmers, fisherfolks, indigenous peoples, urban poor and labor to elicittheir views and expectations on how business, Church and government canhelp them effectively address their concerns. Outputs of these consultations,will be presented at the General Assembly.

BBC EXCOM and Secretariat are ready to assist interested Bishops to formlocal BBC Chapters.

BBC Chapters pursue their own advocacies or selectively pursue any of BBCNational advocacies.

Needless to say of course, that the pursuance of the establishment of a BBCChapter greatly depends on the Bishop’s expression of approval and support.

The BBC Secretariat will help in the formation of the Chapter, respond to theChapter’s need for information and contacts with organizations andgovernment agencies based in Metro Manila.

RELATIONSHIP OF CHAPTERS WITH BBC NATIONAL

ASSISTANCE TO THE ARCHDIOCESE OF CAGAYAN DE OROAND DIOCESE OF DUMAGUETE

CONSULTATIONS WITH THE BASIC SECTORSON “INCLUSIVE GROWTH”

2253(Turn to page...23)

The Cardinal Sin Fund for Business Discipleship was established on January30, 1997 at a dinner in Villa San Miguel hosted by the late Jaime CardinalSin in response to the challenges of the Catholic Church to prepare for theTertio Millennio Adveniente (Third Millenium) urging us to “strengthen ourfaith, to strengthen our witnessing for Christ and to reach out to the poor”

Trusteeship of the Cardinal Sin Trust Fund (custody and possession,management, investment and disposal of the Trust Fund) is handled by theBBC EXCOM who has ruled that the corpus of the Fund could be utilized topursue BBC’s Program of Action, which includes Chapter formation, amongothers, in accordance with the Deed of Trust.

The Investment Management Committee is currently composed of:1) Meneleo Carlos, Jr; 2) Jose S. Concepcion, Jr.; and 2)Mahar Mangahas.

CARDINAL SIN TRUST FUND FOR BUSINESS DISCIPLESHIP

exploration activities involving much larger areas are still allowed.Moreover, the so-called “small mining footprints” belies the fact thatthe damage and disasters wrought by mining goes far beyond and affectsmany more people than those in the immediate area of miningoperations.

BBC believes that because the region is especially vulnerable to heavyrains and to the spilling of acid mine drainage, as shown by past miningoperations, the Total Economic Valuation that should form part of thenew Mining Policy Guidelines will likely validate the call by the peopleof Bicol that mining should no longer be allowed in their region. Hence,an immediate moratorium on mining is, at the least, called for in themeantime, if the irreversible damages that mining brings are to beavoided.

There are proven alternatives to mining in the region, such as thedevelopment of eco-tourism as well as the rehabilitation of primeagricultural lands and municipal fisheries that will better serve theinterests and future of the region on government revenues, livelihoodand employment opportunities, food security and environmentalprotection.

President Aquino has promised that he will not allow mining where thelocal peoples and communities directly affected by it object to itsoperations. It is time for him to incorporate this promise in the newMining Policy Guidelines and to apply it specifically to the situation inthe Bicol Region.

UPDATES

BBC Statement...(From page...22)(AGOGO), Perpetual Help Community Cooperatives and Dumaguete CityConfederation of Cooperatives, Girl Scouts of the Philippines and retirees.Some members of the BBC Dumaguete Chapter representing the PhilippineInstitute of Civil Engineers and Negros Oriental Business DevelopmentFoundation were also present during the interface. A total of 37 volunteerswere trained came from the same groups which supposedly to be deployedimmediately in different agencies.

As the implementation of theproject activities were inprogress, the province of NegrosOriental was hit by a series ofdisasters resulting to damage tomajor governmentinfrastructures, properties anddisruption of economic activitiesof the people. Theseunfortunate occurrencesprevented the BBC DumagueteChapter from implementing

succeeding activities and deployment of observers in different regionaloffices of the national government agencies and local government units.Efforts of the members of the BBC chapter including the volunteers werediverted into relief operations and other activities related to rehabilitation.

The project was ably supported and encouraged by Bishop John Du whosepresence in several meetings was notable. He designated a Project team toserve as Convenors for the BBC Chapter and this special monitoring project.The team was composed of Msgr. Julius Heruela, Dr. Profetiza Lim and Engr.Wilfredo Magallano.

CLUSTER/COMMITTEE REPORTS

The Pastoral Management Committee seeks to : 1) develop , design andpropose a better social security system for diocesan priests; and 2)devise and test modalities for parish administration and financialmanagement.It will likewise look into the possibility of responding to a psycho-social need for a “tomb of the unborn babies”.

Institutional Spirituality Quotient is a measure of the fidelity to espousedvalues of organizations, i.e. profit, non-profit and faith organizations.

Replication...(From page...51)

5223

JAIME ZOBEL DE AYALAAYALA CORPORATION

MANUEL VILLARCAMELLA HOMES

DAVID M. CONSUNJID. M. CONSUNJI, INC.

AMB. RAMON V. DEL ROSARIO, SR. (+)PHINMA GROUP OF COMPANIES

ALFREDO B. RAMOSALAKOR CORPORATION/NATIONAL BOOKSTORE

EUGENIO LOPEZ, SR. (+)LOPEZ, INC. / MERALCO

CARLOS ALINDADASGV & CO.

JOSE A. CONCEPCION IIIRFM CORPORATION

RICARDO S. PASCUAREADY FOODS CORPORATION / CAELUM DEVELOPERS

DONORSCARDINAL SIN TRUST FUND FOR BUSINESS DISCIPLESHIP

UPDATES

However, the local partners and their members/volunteer observers hadlikewise many other local concerns, i.e. pastoral, business, professional,notwithstanding the Replication Project.

These fundamental issues were out forth to the Project Proponent for theirconsideration.

Consulting members andorganizing chapter meetings forthe initial activity were morecomplicated than expectedsince most of them are leadersand officers of their respectiveorganizational affiliations(business and professionalgroups) other than the BBCChapter.

The Bishop-Businessmen’sC o n f e r e n c e - D u m a g u e t eChapter has organized a team and appointed a coordinator not only for thereplication of the project but also for the chapter’s affairs. A GovernmentProcurement Monitoring System was crafted, adopted by the BBC DumagueteChapter and being implemented as such.

The Project Committee opted toinitiate networking andconduct an interface andestablish partnerships andcoordinative mechanisms withother CSOs and academicinstitutions prior to thedeployment of observers.

The Project Committee opted toinitiate networking andconduct an interface andestablish partnerships andcoordinative mechanisms with other CSOs and academic institutions priorto the deployment of observers. Interface session was conducted participatedin by 41 senior of students (Engineering and Business Administration) andfaculties from 4 schools and universities, Alliance for Good Governance

CLUSTER/COMMITTEE REPORTS

Replication...(From page...50)

2451(Turn to page...52)

CLUSTER/COMMITTEE REPORTS

CLUSTER ON LABOR AND EMPLOYMENT (BBC-CoLE)July 2011-July 2012

A. QUEZON CITY - PUBLIC EMPLOYMENT SERVICE OFFICE(QC PESO)

The Quezon City PESO has remained steadfast in their objective of providingemployment opportunities to the constituents of Quezon City, as well asneighboring cities and municipalities. The following programs are ongoing:Regular Employment Facilitation Service, Jobs Fairs, Pre-EmploymentOrientation Seminar (PEOS) under the Anti-Illegal Recruitment (AIR) Programand Workers Hiring for Infrastructure Program (WHIP). Along with theseprograms, QC PESO’s Tripartite Industrial Peace Council (TIPC) holds monthlymeetings in cooperation with the DOLE-NCR and the Occupational Safetyand Health Center (OSHC). Labor Management Seminars are also beingheld in partnership with DOLE-NCR and NLRC-DOLE. Call Center screeningsare also being held in partnership with the Call Center Academy of thePhilippines (CCAP).

The 1st General Assembly of the Overseas Filipino Workers (OFW) QC washeld on June 24, 2011 at the Quezon City Hall Covered Walk. This was donein cooperation with the Overseas Workers Welfare Association (OWWA),Philippine Overseas Employment Association (POEA), DOLE and TESDA, theScholarship & Youth Development Program, the Social Services DevelopmentDepartment who offered livelihood training and the City Health Office whogave basic services.

The students of Quezon City are also being benefited by the efforts of QCPESO. 700 students were given summer jobs in the following establishments:McDonald’s, Chowking, Max’s Restaurant and some SM branches. Publicschools are being given educational tours under the Program Labor Educationfor Graduating Students (LEGS).

Meanwhile, DOLE NCR has chosen Quezon City to carry out their projectcalled child-labor free barangay. Day Care Centers are also being establishedin Quezon City, the importance of which is recognized by Mr. Carlos which hehopes can be highlighted in the BBC website.

B. PSHAI - PAYATAS SCAVENGERS HOMEOWNERS ASSOCIATION,INC.

PSHAI has 180 members and around 60 members are now living with theirfamilies in Montalban. There are now five (5) row houses and 11 single

• Limited access of the observers to the bid documents particularlyon the technical specifications, instructions to bidders, terms ofreference and annual procurement plan.

• Selective compliance of most BACs with regard to observers’attendance/participation in the bidding activities. Of the 428 biddingactivities attended bythe observers in 13agencies and localgovernment units, 101(24%) were in the pre-bid conference and 290(68%) in the bidopenings.

• Persistence ofseemingly deliberateattempt of some BACs tocircumvent the provisions of R.A. 9184 and its IRR by allowing/accepting selective bids or partial bids and eventually resort toshopping or negotiated method of procurement for the remainingitems with substantial amount.

• Sustainability and capacity to respond to the continuing demandfor observers.

• Lack of public awareness and support on the monitoring ofprocurement reform being implemented.

The success of the Project would not have been made possible without theblessing and support of Bishop Vicente Navarra and the tireless efforts ofthe BAC observers and the Social Action Center Secretariat under theleadership of Fr. Aniceto Buenafe and Fr. Felimon Duaban.

B. Negros Oriental (Dumaguete)

The project implementation in Negros Oriental formally started (we alreadyused commenced in the Negros Occidental report) in April 2011. BBCDumaguete Chapter has put forth its best efforts to help ensure theachievement of the project objectives and meet the project’s timetable.

CLUSTER/COMMITTEE REPORTS

Replication...(From page...49)

5025 (Turn to page...26) (Turn to page...51)

...(From page...)Procurement Reform Act and its Implementing Rules and Regulations.The results of the activities and engagement undertaken during theproject implementation period are opportunities that the BPBC couldharness and further develop, to wit:

• Track record being earned by the BPBC-Bacolod thru the Social ActionCenter in constructive engagement with the government onp r o c u r e m e n tmonitoring.

• Emerging trust andconfidence of the BACsto the Social ActionCenter and its volunteerobservers broughtabout by thepartnerships andcooperation with thegovernment agencies.

• Interfaces/dialogues with the BACs as a mechanism for discussingand resolving issues and concerns arising from the observationsof the volunteer observers.

• Bidding activities are learning processes and avenues forenhancing knowledge and skills of the observers in constructiveengagement with the government.

2. Challenges

In general, the technical competencies of the volunteer observers in thearea of analyzing the bid documents containing technical specificationsand terms of reference and in determining the correctness and validity ofthe bid documents submitted by the suppliers, contractors and consultantsneed to be enhanced.

The BPBC thru the Social Action Center-Good Governance Desk acting as theimplementing arm and coordinating mechanism for the GovernmentProcurement Monitoring Project need to address the following challenges:

CLUSTER/COMMITTEE REPORTS

detached houses. A loan of P130,000.00 was availed by the homeowners.P100,000.00 of which goes to material costs and the rest is allotted for labor.

Livelihood is still the major problem of the members. They have attemptedto venture into the following projects but none has been proven successfulso far: Interlocking hollow blocks made of sludge products (Thailandtechnology); Mushroom growing using rice straw (CSLU technology), Piggerylivelihood and the most recent LPG powered jeepneys (David Motors). PSHAIneeds help on the business aspects of their plans. Ms. Elo Lopez of BusinessEnterprise and Cooperative Mentors (BECMI) has agreed to help in reviewingPSHAI’s funding and the viability of their projects.

Road rights for easy access to and from the main street were already givento PSHAI by the IPM Group of Companies. To address the water supply problemof PSHAI, 30 units of rain catchments have been built so far. However, theartesian well in the area has not been rehabilitated yet. MWSS, meanwhile,has assessed the area and pipe laying will start in June which will passthrough Mayor Cecilio Hernandez’ property.

PSHAI is currently experiencing high electricity consumption which may bedue to wiring problems. MERALCO is reportedly charging 2 Million Pesos forthe transfer of Meralco meters and wires. They are now looking at thepossibility of riding with the application of IPM Group of Companies’subdivisions for power.

C. TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY(TESDA)

TESDA is active in training the trainers of the Domestic Workers. A study onthe work cycle of domestic workers is important as it will help promote theinitiative of the employers in providing them education. TESDAaccommodates the detailed approaches to learning based on competencies.These methods should be measurable which will serve as guides to assessthe level of competencies which in turn should be reviewed periodically.Improvements should be inserted as needed. Meanwhile, TESDA shouldbegin looking at the best practices worldwide which can be used asbenchmarks. Human development should still be the goal of all thesetrainings.

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D. PHILIPPINE EMPLOYER-LABOR SOCIAL PARTNERSHIP INC.(PELSPI)

PELSPI is pushing for social dialogue as the new mode for obtaining decentwork and productivity for competitiveness. This proposed dialogue is beingevaluated by the Danish International Development Agency (DANIDA).Messrs. Luna Go and Arsenio Tanco, both Federation of Philippine Industriesdirectors have agreed to be Technical members of PELSPI. They will helpdevelop the industry policy plan.

PELSPI is also involved in BAYANIJUAN, a project of ABS CBN Foundation thataims to strengthen the country, one community at a time. It is currentlyhelping the victims of Storm Ondoy.

The Church has not called on a meeting with PELSPI yet regarding their socialjustice concern on the issue of contractualization. Breakfast forum with BBCis being requested to discuss decent work, productivity and competitiveness.The proposed topics are 1. Situationer and suggested reforms, 2. Socialprotection global trend - how it relates to local situations and 3. SocialTeaching of the Church on contractualization by Bishop Palma or BishopPabillo. The proposed Speakers are Mr. Tony Asper of TESDA/FFW,Commissioner Teresita Castillon-Lora of the National Labor RelationsCommission (NLRC) and Mr. Ernie Cecilia of the Joint Foreign Chambers. Mr.Rene Ofreneo will synthesize the discussions and Mr. Pat Menzon will bethe facilitator. Mr. Meneleo Carlos hopes that the breakfast forum willresult in progress and not just arguments. He said that it would be advisableto find a company with good business practices and cite it as an example.Backgrounder will be handled by Mr. Tony Asper. The Church believes thatalternative work arrangement should still be humane. The reasons why thechurch is against contractualization are:

• There is no job security. This will result in the instability of families.

• It shows a lack of concern on the continuous education of theperson.

E. DEVELOPMENT BANK OF THE PHILIPPINES

In line with DBP’s OFW Reintegration Program, an entrepreneurial seminarfor returning OFWs was conducted for those who have decided to stay in thePhilippines and have opted to start a business. A minimum loan ofP300,000.00 and a maximum of P2 Million is being offered with 20% equity

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Replication...(From page...26)

As of March 2012, a total of 428 bidding activities were attendedinvolving 420 projects with an aggregate approved budget for contractof PhP 1,648,595, 095.86.

The competencies of theobservers in terms ofdetermining thecorrectness of technicalspecifications of the itemsto be bid cannot bemeasured, however, theirassertiveness andpersistence in urging theBACs to comply with theimportant provisions ofthe law and its IRR resulted in some encouraging trends in most bidproceedings. Among the areas where the observers have consistentlyand successfully compelled the BACs to observed and complied withare as follows:

• Mandatory presence of the BAC Chair or the BAC vice-chairin the absence of the former during the BAC meetingsparticularly during the opening of bids.

• Application of non-discretionary pass/fail criteria indeclaring bidders’ compliance/non-compliance with thebid requirements.

• Prohibition of bid modification during the opening of bids.

• Furthermore, there are BACs that ensure the presence ofthe confirmed observers, at least during the pre-bidconference and opening of bids, before proceeding withthe activities. On some important matters requiringdeliberations of the BAC members, the same sought theopinion of the observers before making any decisions.

Opportunities and Challenges

1. Opportunities

The BPBC-Bacolod Government Procurement Monitoring System that has beenput in place can be an effective mechanism that can help procuring entities

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Businessmen’s Conference, Bacolod Chapter, during the January21, 2011 Project Orientation, designated the Bacolod Social ActionCenter-Good Governance Desk as the unit responsible for theimplementation of the replication project in the province. LocalProcurement MonitoringSystem and Targets havebeen formulated andoperationalized.

The Bacolod Social ActionCenter - Good GovernanceDesk has mobilized, re-trained and trained a totalof thirty three (33) old andnew BAC volunteerobservers and eight (8)SAC Staff and volunteers underwent trainers training. Thesevolunteers are being deployed in twelve (12) offices of the nationalgovernment agencies and local government units.

As the project implementation was in progress, the concernedagencies gradually recognized that the Social Action Center couldalso serve as a coordinative entity for facilitating the interactionbetween the Bids and Awards Committees and volunteer observerson matters relative to procurement. The BACs of the agencies beingmonitored, evenrecommended to theBacolod Social ActionCenter that the BACs-Observers Interface beinstitutionalized andserve as a feedbackmechanism.

The volunteer observershave likewise gainedand enhanced theirskills in constructiveengagement with the BACs as demonstrated by the outcome oftheir active participation in the deliberations during biddingactivities.

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Replication....(From page...47)

Bids and Awards Committees and BAC Observers Interface in Bacolod

participation. DBP has launched the Tree Plantation Program and can assistin buying lands. However, these lands should not be in calamity proneareas to prevent the newly planted seeds from being washed away. Forcalamity prone areas, a different project will be implemented wherein theywill be planting faster growing trees. DBP’s Forest Team is still finalizingthe Lending Guidelines of the Tree Plantation Program.

F. VISAYAN FORUM FOUNDATION INC.

Visayan Forum is still active in their program on Decent Work for DomesticWorkers. ILO Convention 189 is still awaiting its ratification by PresidentAquino with the concurrence of the Senate. It has not been ratified yet byany country and the Philippines is aspiring to be the first country to do so. ANational Domestic Workers Summit was held in November 2011 whereinthe 12-point agenda on how to implement ILO 189 was discussed. BatasKasambahay is yet to be endorsed for Plenary Voting.

Visayan Forum is pushing for the Anti Human Trafficking Law. In October2011, a seminar was conducted to train airport stakeholders on how todetect a human trafficking victim. Primers on human trafficking are availablefor specific audiences such as Barangay Officials and the Private Sector. Theproblem on human trafficking is slowly improving with the conviction ofsome traffickers and the victims being given shelter and training.

G. BUSINESS ENTERPRISE AND COOPERATIVE MENTORS, INC.(BECMI)

BECMI offers various courses that help build a harmonious relationshipbetween the employer and the employees. Some of which are: 1. Discoveringfulfillment in work and in life; 2. Non-violent communication and effectiveconflict resolution in the workplace; 3. Labor relations management; 4.Effective group problem solving skills and decision making; and 5.Understanding the cooperative as an effective component of an employeerelations program.

Apart from offering career discovery and learning programs, corporatemanagement consultancy and cooperative development and managementconsultancy, BECMI has also set their efforts on social housing. They nowhave ties with PAGIBIG.

BECMI is also active in its Super Tipid cooperative that promotes and sellsalternative products in contrast to normally store-bought commercialproducts. (Roda N. Bautista)

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A MESSAGE FROM THE BISHOPS- BUSINESSMEN’S CONFERENCEfor HUMAN DEVELOPMENT

MENELEO J. CARLOS, JR.National Co-Chairman

ARCHBISHOP ANTONIO J. LEDESMA, SJ, D.D. National Co-Chairman

To The Domestic Workers Summit of 2011:

The BBC is pleased to extend our warm congratulations to our DomesticWorkers and the Visayan Forum Foundation Inc. as we celebrate the historicadoption of International Convention #189 on Decent Work for DomesticWorkers. We are advocates for social justice in all its manifestations becauseit is essential to Total Human Development which is our principal objective.In this regard, we

a ) urge our leaders to ratify this new Convention at the soonest time; weshould be the first among all nations to do so, in recognition andsupport for the millions of Filipinos who work as domestic workershere and abroad, and

b) urge our legislators to harmonize their respective versions of theirKasambahay Bills for the earliest passage of the proposed MagnaCarta for Domestic Workers in consonance with the spirit andapplication of International Convention #189 to the greatest extentpracticable, and

c) urge all employers to apply the prescriptions of the Magna Carta in thespirit of providing Decent Work and an opportunity for Total HumanDevelopment of their Domestic Workers. In so doing, employers willact as coaches and tutors to their workers just as they do for theirfactory employees, lifting their value and their dignity, through improvedknowledge and skills, and open the door to new opportunities for theirprofessional development and growth.

We wish you much success in the conduct of this Summit.

I. Brief Description

This undertaking in the two provinces of Negros Occidental and NegrosOriental with funding support from the Procurement Transparency Fund isan expansion of the existing project of CAC-BBC-LAIKO GovernmentProcurement Monitoring Project..The Partnership for Transparency Fund (PTF) is an international non-government organization based in Washington, D.C. dedicated to helpingcivil society plan an effective role in the design, implementation andmonitoring of national anti-corruption programs.

The Project aims primarily to enable the Bishops-Businessmen’s Conferencefor Human Development Local Chapters/Social Action Centers to mobilizevarious stakeholders, establish/install and operationalize Local CSOGovernment Procurement Monitoring Systems that will assist/helpgovernment ensure and enhance transparent and accountable publicprocurement as indicated by the BACs compliance with the provisions ofR.A. 9184 otherwise known as Government Procurement Reform Act and itsIRR.

It implemented activities that would provide local BBC Chapters/Social ActionCenters with (a) framework and processes in developing GovernmentProcurement Monitoring Systems; (b) broaden knowledge and enhanceskills of Bids and Awards Committee Observers in monitoring governmentprocurement/bidding activities; and (c) framework for establishingpartnership with BACs and other groups and institutions monitoringgovernment procurement.

II. Project Accomplishments

The project officially commenced on January 2011 and ended on December2011 with a three months extension period from January to March 2012.

A. Negros Occidental (Bacolod)

The Project Management Team for the replication project wasestablished in the province of Negros Occidental. The Bishop-Priests-in ensuring BAC implementation and compliance with the Government

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Replication of BBC Government ProcurementMonitoring Project in the Provinces

of Negros Occidental and Negros Oriental

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The Conciliation Resources, a UK-based NGO working for internationalconflict prevention and resolution and Sulong CARHRIHL, Philippine networkof individuals, institutions, and programs upholding internationalhumanitarian laws and lasting peace established linkage through adialogue with the National Executive Committee of the Bishops-Businessmen’s Conference. They believed that BBC’s members, bishops andbusinesspersons alike, have helped victims of poverty and/or armed conflict.

Held on October 24, 2011 at the residence of Ms. Sabsy Palnaca, the exchange,with the theme “Women, Peace and Development” aimed to facilitatedialogues and sharing of best practices on how to work for a better future.It was envisioned that a joint policy message could be drawn up andpresented to decision-makers in both countries and even internationally.Also invited in that dialogue were representatives of the League of CorporateFoundations, the Women’s Business Council and advocates of empowermentof the marginalized and displaced due to poverty or armed conflict.

Last year, Conciliation Resources and Sulong CARHRIHL organized an exchangebetween Columbian and Philippine peace advocates from varied sectors,i.e business, religious, media, IP, Moro, NGO, military, etc. Best practices insustainable peace and development, as well as, the critical roles of businessand women in same, were identified.

A ten women Filipino delegation visited Colombia July 31 to August 9 2011.Dr. Isabelita Palanca (Sabsy), Charter President of the Women’s BusinessCouncil of the Philippines, was invited to represent business and industry.The Colombian itinerary consisted of briefings, dialogues, workshops, and,visits to far flung local communities.

Colombia and the Philippines have similar challenges in terms of peaceand development, the former being a pre-requisite to the latter. Both haveundergone and learned from peace processes. Also, both are formaldemocracies facing challenges in governance.

DIALOGUE ON “WOMEN, PEACE AND DEVELOPMENT”

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3. BAC Observers Meetings/Sharing Sessions. At least three sessionsshall be conducted for the year 2012 to discuss and tackle thefollowing:

a ) First Session. Presentation, discussion and adoption of BACObservers’ Procurement Monitoring Guide and the RevisedMonitoring Format among others.

b) Second Session. Presentation, discussion and initialassessment of the consolidated monitoring reports andupdates on the recent GPPB policies and resolutions.

c) Third Session. Presentation, discussion and adoption of theannual draft procurement monitoring report findings,evaluation and recommendations to be submitted to theconcerned agencies.

4. Review, Consolidation and Validation of Procurement MonitoringReports. A quarterly consolidated procurement monitoring reportfor each agency and summary of findings shall be prepared by theProgram Coordinator to be circulated to the observers for theirvalidation. The reports shall be adopted by the Project Committeeand observers during the BAC Observers Meeting prior tosubmission to MBC/CAC Steering Committee and concerned agenciesfor their information and feedback.

5. Project Committee Meetings. A monthly project committee meetingshall be conducted to monitor and assess the progress of theimplementation of activities. As agreed upon during the May 11,2012 Project Committee Meeting, additional members shall berecruited from among the current volunteer observers/projectpartners.

6. Presentation of the Final Reports and Recommendations to CAC.The draft final report and recommendations shall be presented tothe CAC Steering Committee for review, comments and adoptionduring its meeting.

The Project Committee is under the able leadership of Bishop Jose ColinBagaforo; Dr. Magdaleneo B. Albarracin; Atty. Paterno D. Menzon and Mr.Edgardo Tria Tirona.

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CAC...(From page...44)

3045

The BBC Social Justice Committee engaged in the following activities in2011-2012.

(1) National Summit on Poverty, Inequality and Social Reform.

The Summit held in September-December 2011 was convened by the ClimateChange Congress of the Philippines , CBCP-NASSA and the National Anti-Poverty Commissio, together with the following government agencies, namelythe DA, DAR, DENR, DILG, DWSD and DepEd as co-convenors.

The purpose of the Summit was to listen to the poor at a time of highexpectations about the new Aquino presidency with the political capital tomake the big decisions necessary to address the continuing problem ofmass-poverty and gross inequalities in income, wealth and political power.Twenty-five years after EDSA, its promise of social change remained largelyunfulfil led.

Two previous church-based national consultations, namely the CBCP SecondNational Rural Conference (2007) and The Government-CSO NationalInterface on Climate Change in the aftermath of typhoon Ondoy had alreadyhighlighted the vicious cycle of dependence and hopelessness of the poor,complicated by the effects of climate change and the worldwide problemsof food security and the international financial turmoil.

Clearly there was a need to re-examine the failed development paradigmsof trickle-down economic development based on a growth-before-equityapproach because “rising waters raise all boats.” It was timely to examinethe “inclusive growth” objective of the Aquino Administration in the light ofits policy pronouncements, development plan (2011-2016) and key programs(such as CCT and Public-Private Partnerships) as well as its initialperformance on its campaign promises.

The Summit consisted of 4 Island-Level Consultations attended by some160 sectoral leaders and 40 government officials and guests) and culminatedin a national conference in Manila in end November of about 70 sectoral

SOCIAL JUSTICE COMMITTEEJuly 2011-July 2012

Co-Chairmen: Bishop Broderick S. Pabillo : Mr. Christian S. Monsod

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CAC...(From page...43)

• Main Office

• Philippine Army

b) Department of Interior and Local Government (DILG)

• Central Office

• Philippine National Police

• Bureau of Fire Protection

c) Department of Transportation and Communication (DOTC)

• Central Office

• Light Rail Transit Authority

• Land Transportation Office

d) Department of Foreign Affairs

e) Department of Tourism

f) Department of Agriculture

• Central Office

• National Irrigation Administration

g) Department of Agrarian Reform

h) Department of Budget and Management

• Central Office

• Procurement Service

i) Philippine International Trading Corporation

• BAC I and II

j) Office of the President

31 44(Turn to page...32) (Turn to page...45)

leaders and representatives of government agencies. The conference cameup with new findings and renewed concerns as well as recommendationsin addressing poverty and inequality. Direct dialogues were held betweenthe basic sectors and cabinet secretaries but the scheduled face-to-facedialogue with the President. on Dec. 2, 2011, was postponed at the lastminute and is now being re-scheduled to take place after the 2012 SONA.

Nonetheless, the meetings with the cabinet secretaries were productiveand produced agreements on specific policies and programs as well as onlocal and sectoral concerns.

(2) Climate Change Congress of the Philippines (CCCP)

In the past year, CCCP engaged in the following activities and advocacies:

(a) Co-convenor of the National Summit on Poverty, Inequality and SocialReform (discussed in another section of this Report);

(b) Developed predictive Climate Change maps at the national andlocal levels (e.g. Cagayan de Oro watershed, Marikina watershed,Negros watershed; Tampakan Mining project in Mindanao, etc.).The Marikina Watershed climate change map, funded by the DENR,identified the impacts of climate change on the various cities andmunicipalities down to the barangay level. Climate change mapsare CCCP’s scientific resource for continuing climate changeeducation and information work with the sectors, dioceses,religious congregations and CBCP, and engagements withgovernment agencies on national and local community climatechange readiness programs and mobilization.

(c) CDO Riverbasin Management Council - Subject of a continuingengagement with the DENR and other agencies resulting in theformation of the CDO Riverbasin Management Council; approval toimmediately undertake the National Greening Program anddredging programs in the CDO watershed; and continuingdevelopment of projects and programs to protect the watershedand its communities. The CCCP In partnership with the DENR alsoorganized the petition and eventual issuance of a presidentialproclamation declaring the Marikina watershed a protected area.

Background. CCCP, convened in 2009 by Archbishop Antonio J. Ledesma and

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...(From page...)

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IV. Plan of Action

In view of the above and in line with the recommendation of CAC SteeringCommittee that the Project Committee thru the BBC initiate a discussion toreview and identify possible policy changes for the consideration of theconcerned agencies it is proposed that the activities be focused on theattainment of the following:

A. Objectives

1. To observe and monitor at least ten (10) strategic nationalgovernment agencies and analyze/establish the extent of theircompliance/non-compliance with the rules and regulations of R.A.9184 and its revised IRR particularly on the transparency provisionsof the same.

2. Establish, validate and analyze trends and patterns in the ten (10)national government agencies the reasons for bidders’disqualif ications.

3. Develop and publish CAC-BBC-LAIKO BAC Observers’ ProcurementMonitoring Guide

4. Update and enhance the procurement monitoring capacity of theBAC Observers

5. Organize teams (with a minimum of 3 members and maximum of 5)of observers per agency in the target ten agencies.

B. Major Components/Activities

1. Recruitment, Training and Re-Training of Current and NewVolunteers. At least two training of new volunteers (with aminimum of 10 participants/training) and one retraining for thecurrent observers shall be conducted for the year 2012.

2. Deployment of Teams of Volunteer Observers. Deployment in thepresent agencies shall continue however, priority attendance inthe bidding activities shall be focused in the following (proposed)target national government agencies/bids and awards committees:

a) Department of National Defense (DND)

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Atty. Christian S. Monsod, is a multi-sectoral, multi-disciplinary andcommunity-based coalition of organizations and individuals from all walksof life and communities in the coastal, low and highland areas, pursuingthe struggle against catastrophic climate change within the context of assetreform and social justice.In 2009, CCCP, in partnership with DAR, DA, DENRand the Climate Change Commission (CCC) conducted Island-wide ClimateChange Consultations which provided inputs to the National FrameworkStrategy for Climate Change of the government that was approved by theAquino Government in November 2011. In 2010, CCCP was also co-convenorof (i) a Government-CSO La Nina Summit to call for national preparation tothe La Nina phenomenon, (ii) the Marikina Watershed Conference to presentthe climate change impacts to the various stakeholders and draft theframework strategy for the Marikina watershed.

(3) Kilusan99%

Kilusang 99%, headed by Bhp. Broderick Pabillo, is a multi-sectoral andnon-partisan movement in the Philippines composed of people’sorganizations, sectoral groups, church institutions, the academe andindividuals who push for social and political system changes and for anincorruptible justice system. It aims to present a social agenda to replacethe existing economic paradigms that are bereft of social justice and havespawned social inequalities and much suffering.

Kilusang 99% takes inspiration from movements around the world that callattention to the great inequality of income, wealth and political powerbetween the masses and the 1% who wield undue influence on the politicaldevelopment and economic policies of nations.” (Kilusang 99% Manifesto)

Kilusang 99% was conceived early October of 2011 to bring together variousgroups from various sectors of society to call for equitable growth in ourPhilippine society by calling for social justice. In order that their call shouldbe heard the sectors should come together and support each other’s issuefor they all stem from the same skewed paradigm of development thatfavour the powerful and the rich, thus maintaining the same status quo ofinequality that stem even from the time of the EDSA revolution.

The movement has come out with a manifesto - the kilusang 99" Manifesto- that spells up its rationale and the specific calls it makes. The manifestois presently adhered to by more than 80 organizations.

Social Justice...(From page...32)

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CAC...(From page...41)

2. Sustaining the Volunteers. Due to some other professional andpersonal commitments of the observers as well as the volume andfrequency of the bidding activities of the agencies they monitor,some of them limit their attendance and participation in thegovernment procurement activities. Hence, there is no assurancethat the entire procurement processes- from pre-procurementconference to post-qualification are in compliance with the rulesand regulations of the procurement law.

To address these challenges the committee adopted and implemented thefollowing:

1. Formation of Recruitment and Resource Mobilization Committees.

• Recruitment Committee - Mr. Art dela Cruz of BCBP and Mr. RickyXavier of Movement for Good Governance

• Resource Mobilization - Dr. Magdaleno Albarracin, Jr, Co-Chairof the Project Committee

2. Series of Orientation and Trainings. Series of presentations, orientationand meetings were initiated by the Project Committee thru theRecruitment Committee with the Hands on Manila, Brotherhood ofChristian Businessmen and Professionals, Philippine Institute ofCertified Public Accountants, People Power Volunteers for Reforms,Magis Deo Community, Movement for Good Governance and PNoy-PNay, President of the University of the Philippines, Student Affairsfor Social Concerns-Ateneo de Manila University. The said activitiesculminated in the conduct of two separate trainings sponsored bythe Coalitions Against Corruption Government ProcurementMonitoring Project Committee and the People Power Volunteers forReforms (PPVR).

A total of 33 new additional volunteers from the following organizationscommitted to be deployed as observers in different national governmentagencies:

• Brotherhood of Christian Businessmen and Professionals(BCBP)

• People Power Volunteers for Reforms (PPVR)

• Ligaya ng Panginoon

• Magis Deo Community4233

(Turn to page...34) (Turn to page...43)

Last March 2012 it organized out an academic conference which tackled the4 asset reform laws of the government. It was attended by representativesfrom all the many sectors - the farmers, the urban poor, labor, women, youth,fisherfolks, indigenous peoples, religious people and the academe.This coming July another academic conference or talakayang bayan will beheld to help the sectors of society better understand the problemsaddressed by the manifesto. This time the topics will be on oil increases,power price increases, privatization and corporate abuse of the environment.The movement has an e-group that becomes the venue of sharing of resourcesand developments or mis-developments that affect the 99%.

(4) Task Force Mapalad Farmers March -

TFM is a national federation of farmers, farm workers and individualsworking for agrarian reform and rural development. TFM’s mission is toimprove the quality of life of farmers and farm workers by supporting theirinitiatives for access to land resources and productivity development.Cultivating their own lands in a sustainable way enables farmers to answertheir families’ food, education, health and shelter needs. Farmers are alsoable to contribute to development efforts as they increase their income.Atty. Monsod is chief legal counsel of TFM.

TFM members belong to the “poorest of the poor” agricultural workers inprivate agricultural lands still owned and controlled by elite families. Theydo not have access to land and basic social services and work underexploitative conditions in the farms. Government has failed to effectivelyimplement the agrarian reform program in these lands as the means todeliver social justice and equality to farmers.

From 500 farm workers in 16 hacienda (sugar estates) in Negros Occidentalin September 2001, TFM now has 25,000 members in nine (9) provinces -Cagayan Valley , Nueva Ecija, Eastern Batangas , and Oriental Mindoro inLuzon ; Negros Occidental, Negros Oriental, and Iloilo in the Visayas; andBukidnon and Davao Oriental in Mindanao.

TFM covers about 40 percent of Negros Occidental, considered as the finalfrontier in agrarian reform due to strong landlord opposition. TFM membersare in 287 haciendas found in 7 municipalities and 6 cities with about40,000 hectares and 8,000 farmers. Expansion is going on in another 6,444hectares with 1,400 farmers.

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CAC...(From page...40)

to influence the outcome of the bidding. If indeed there was a winningbidder in a particular procurement, wherein financial bids beyond ABC weresubmitted, it is difficult to conclude that there was really a genuinecompetition between and among bidders.

The primary purpose of the pre-bid conference stage is to discuss the detailsand clarify bidders’ queries on the eligibility requirements, technical andfinancial components of the contract to be bid.

The bidders’ repetitive failure to comply with the eligibility requirementsand defying the ABC create an impression that the pre-bid conference is notreally effective in terms of compelling them to fully observe the procurementrules, regulations and policies. Thus, the integrity of bidding process isbeing compromised.

II. Impact of the presence and participation of BAC volunteer observers in theprocurement process.

The BAC Observers are acknowledged and consulted on some matterspertaining to bidding procedures and application of pass/fail criteria. Thereare BACs that sought their opinion on the technical specifications to beprocured. This recognition is heavily dependent on the stature, knowledge,skills and will power of the observers to express their observations,comments and even objections to a particular decision of the BAC.

However, it is difficult to establish the impact of the presence or contributionsof the observers in the overall implementation and attainment of theobjectives of R.A. 9184. It should be noted that the role of the observers is toascertain whether the BACs’ conduct of bidding activities are in accordanceor not with the provisions of R.A. 9184 and its revised IRR.

III. Addressing the Challenges

Anti-corruption and transparency thrust of the present administrationprovided an enabling environment and space as well as challenges to civilsociety/private sector participation in the procurement process. TheCommittee has to deal with the following challenges:

1. Demand for civil society participation/BAC Volunteer Observers.For the year 2011, the demand for the private sector participationin the public bidding has dramatically increased.

41 34(Turn to page...42) (Turn to page...35)

On June 1, 2012, TFM farmers from Davao City, Davao Oriental, Davao del Sur,Bukidnon, Negros Occidental and Batangas launched “Farmers’ March toMalacanang for CARPER Completion”, since the DAR was way behind itstargets. They were welcomed and supported by church organizations inevery diocese they passed along the way. The farmers arrived in Manila onJune 6. They were hosted by Caritas. The farmers were urging PhilippinePresident Aquino to complete the acquisition and distribution of theremaining lands totaling some 1.1 million hectares until June 2014 and toprovide the legally mandated support services to farmer beneficiaries whichwere being inadequately funded.

Supported by the letter of fifty two bishops and the AMRSP, the farmers wereable to secure a meeting with the President on June 14 together with anumber of cabinet members among them Sec. de los Reyes of DAR, Sec.Alcala of DA, Sec. Abad of DBM. The President assured the farmers that theywill get their land, that support services would be accelerated, erring DARofficials would be disciplined or discharged and that the delays andinjustices of their specific cases would be resolved. The farmers were happywith the results of the meeting and with the promises of the President.Subsequent to the Malacanang meeting follow-up meetings were heldwith officials of the DAR which resulted in specific actions and deadlines.The President instructed the formation of a multi-stakeholders oversightgroup that will directly report to him developments with respect to theimplementation of his commitments.

The farmers were most grateful to the bishops, AMRSP, Caritas, church-based organizations and other farmers groups and individuals for theirsupport and assistance.

The bishops and AMRSP signatories of the letter to the President were:MOST REV. JOSE S. PALMA, D.D., MOST REV. LUIS ANTONIO TAGLE, D.D., MOSTREV. SOCRATES B. VILLEGAS, D.D., MOST REV. ORLANDO B. QUEVEDO, OMI, D.D.,MOST REV. ANGEL N. LAGDAMEO, D.D., MOST REV. JOSE F. ADVINCULA, Jr., D.D.,MOST REV. RAMON C. ARGUELLES, D.D. , MOST REV. ANTONIO J. LEDESMA, SJ,D.D., MOST REV. AFABLE, D.D., MOST REV. ISABELO ABARQUEZ, D.D., MOST REV.GERARDO A. ALMINAZA D.D., MOST REV. BENJAMIN J. ALMONEDA, D.D., MOSTREV. PEDRO D. ARIGO, D.D., MOST REV. RICARDO BACCAY, D.D., MOST REV.SOFRONIO A. BANCUD, SSS, D.D., MOST REV. JOSE S. BANTOLO, D.D., MOST REV.ARTURO M. BASTES, SVD, D.D., MOST REV. EMILIO L. BATACLAN, D.D., MOST REV.JOEL Z. BAYLON, D.D., MOST REV. RODOLFO F. BELTRAN, D.D., MOST REV.EMMANUEL T. CABAJAR, D.D., MOST REV. ANTONIETO D. CABAJOG, D.D., MOSTREV. JOSE A. CABANTAN, D.D., MOST REV. WARLITO I. CAJANDIG, D.D., MOST REV.

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CAC...(From page...39)

2. Lack of screening of the submitted bid documents (i.e. acceptingsurety bond issued by a particular surety or insurance companywithout certification from the Insurance Commission authorizingto issue such security).

Within the same period based on the submitted monitoring reports, therewere some patterns of grounds for declaring bidders’ non-compliant thatare taking shape. These have been observed during the early years of theimplementation of R.A. 9184 and its IRR. Most of these were brought to theattention of some BACs, however, these practices of bidders still exist todate as follows:

1. Failure to include in the submission of requirements the statementof on-going and similar completed government and private contracts

2. Absence of required initials in the documents submitted3. Non-submission of Authority for the signatory.4. Financial bid submitted beyond ABC5. Misplaced required documents6. Documents are not properly sealed7. No computation of Net Financial Contracting Capacity8. ailure to submit audited financial statement stamped by BIR.

The failures and incomplete submission of eligibility requirements wouldappear that the bidders were negligent and careless in the preparation oftheir bids if not conspiring with each other to ensure the positive outcome/results that they expect. Such failures or practices usually resulted to:

1. Failure of bidding;2. Only one (most of the time) or two bidders would be declared as

compliant.

In some instances, a number of suppliers attended the pre-bid conferencebut none submitted bid, a ground for re-bid that causes the delay ofprocurement. Further delays happened when the bidding for a particularitem was declared failure resulting to:

1. A new round of pre-procurement conferences to review and modify/revise the technical specifications, terms of reference and ABC; or

2. Negotiated procurement;

On the other hand, the submission of financial bids beyond the approvedbudget for contract was really a deliberate attempt on the part of the bidders

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CARLITO J. CENZON, CICM, D.D., MOST REV. BERNARDINO C. CORTEZ, D.D.,MOST REV. ROMULO T. DELA CRUZ, D.D., MOST REV. FRANCISCO M. DE LEON,D.D., MOST REV. LEO M. DRONA, SDB, D.D., MOST REV. REYNALDO G.EVANGELISTA, D.D., MOST REV. BUENAVENTURA M. FAMADICO, D.D., MOSTREV. DINUALDO D. GUTIERREZ, D.D., MOST REV. DEOGRACIAS S. I¥IGUEZ, JR.,D.D., MOST REV. ZACHARIAS C. JIMENEZ, D.D., MOST REV. LEOPOLDO C. JAUCIAN,SVD, D.D., MOST REV. EDGARDO S. JUANICH, D.D., MOST REV. MARTIN JUMOAD,D.D., MOST REV. ROBERTO C. MALLARI, D.D., MOST REV. WILFREDO D.MANLAPAZ, D.D., MOST REV. LEONARDO Y. MEDROSO, D.D., MOST REV. JOSEPHA. NACUA, D.D., MOST REV. VICENTE M. NAVARRA, D.D., MOST REV. NERIOODCHIMAR, D.D., MOST REV. JOSE F. OLIVEROS, D.D., MOST REV. HONESTO F.ONGTIOCO, D.D., MOST REV. BRODERICK S. PABILLO, D.D., MOST REV. ANTONIOP. PALANG, SVD, D.D., MOST REV. MARLO M. PERALTA, D.D., MOST REV. JUAN DEDIOS M. PUEBLOS, D.D., MOST REV. ROLANDO J. TRIA TIRONA, OCD, D.D., MOSTREV. EMMANUEL C. TRANCE, D.D., MOST REV. CRISPIN B. VARQUEZ, D.D., MOSTREV. RAMON B. VILLENA, D.D.

For the AMRSP: SR. MA. CECILIA BAYONA, AMP (AMRSP Chair for Women) FR.MARLON LACAL, O.CARM (AMRSP Executive Secretary), BR. RICKY LAGUDA,FSC, FR. HERMAN ABCEDE, RJC, FR. JOSE CECILIO MAGADIA, SJ FR. LEO DALMAO,CMF, FR. PATRICK O’DONOGHUE, MSSC FR. CRUZITO MANDING, CSsR-Cebu BR.NOLIN ROY, FICP; SR. GERMELINE REAL, ICM; SR. MARIA MATEU, RCM; SR.ISABELLE MURPHY, MNDA, FR. CHRISTIAN BUENAFE, O.CARM SR. JULIESAGUIBO, SFIC.

(5) Mining

(a) Last April, the BBC expressed full support for the position takenby Bishop Arturo Bastes of Sorsogon on the environmentaldestruction, economic dislocation and health impacts wroughtby mining operations in Bicol region.

BBC said that mining in the area brought “great injustice to thepeople of the region, especially its poor who bear the heaviestburden of mining activities.”

The BBC said they welcomed the initiative of the government onresolving mining issues, including accounting for environmentaland social costs, “but in the meantime the adverse impacts ofmining in the existing operations and in the prospect of more of

CLUSTER/COMMITTEE REPORTS

Social Justice...(From page...35)

CLUSTER/COMMITTEE REPORTS

CAC...(From page...38)

A. Overall Conduct of BAC Meetings

1. Late start of the meetings

2. Postponement or cancellation of bidding activities too late orwithout prior notice.

3. Late invitations to the observers.

B. On the Pre-Procurement Conference

1. Capacity of the end-users and the TWG in the preparation oftechnical specifications of the items to be procured. Oftentimes,specifications are either incomplete, unclear or too general thatcreated confusion among BAC members during the pre-procurementconference as to what is really needed by the end-user.

2. Capacity of the end-user to establish the budget contract. Most ofthe time the ABCs were established without prior price monitoring/survey.

3. Verification whether the manufacturers of the items to be procuredare still existing or in operation.

C. Pre-Bid Conference

1. Presentation and discussion of the technical specifications. Toogeneral presentation, thus creating confusion among theprospective bidders.

2. Incomplete information on the technical specifications in the BidDocuments (instructions to bidders etc).

D. Submission and Opening of Bids

1. Entertaining comments and imposing additional requirementswhich are not included in the original bid requirements leading tothe disqualification of a particular bidder. This also results in thefiling of motion for reconsideration on the part of the disqualifiedbidder and deliberations on the part of the BAC.

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CLUSTER/COMMITTEE REPORTS

The Bishops-Businessmen’s Conference for Human Development (BBC) incollaboration with the Sangguniang LAIKO ng Pilipinas and funded by theCoalition Against Corruption (Makati Business Club) continues to pursueits Government Procurement Monitoring initiatives.

These partners are engaged in organizing a pool of private sector volunteers,providing them training on the Government Procurement Reform Act,otherwise known as RA 9184 and the eventual deployment in Bids andAwards Committees of various government agencies.

I. Status of Government Procurement Monitoring

A total of 30 observers (combined CAC-BBC-LAIKO) were deployed in 43 Bidsand Awards Committees of 30 national government agencies.

During the period under review, there were no reported irregularities in theconduct of bidding activities of the bids and awards committees of theagencies being monitored or major deviation from the provisions of R.A.9184 and its revised IRR requiring immediate attention of the committee.

In the course of attending bidding activities, the following are the areasthat were noted that need improvement by some of the Bids and AwardsCommittees:

CLUSTER/COMMITTEE REPORTS

CAC-BBC-LAIKO Government ProcurementMonitoring ProjectJuly 2011-June 2012

the same, given the approved exploration activities, must beimmediately addressed.” BBC called for an “immediate moratoriumon mining... if the irreversible damages that mining brings are tobe avoided.”

(b) Atty. Monsod delivered a paper in the Mining Conference on March2, 2012 in which he cited four minimum conditions for allowingmining outside of the no-go areas, namely, :

(1) the environmental, social and economic costs are accountedfor in evaluating mining projects;

(2) the country gets a full and fair share of the value of theextracted resources,

(3) the institutional capabilities of the government to evaluateand regulate mining activities are put in place, which, byadmission of the government, is not the case at this time; and

(4) since mining uses up non-renewable natural capital, themoney from mining are specifically utilized to create newcapital such as more developed human resources andinfrastructure, particularly in the rural areas.

He has been active in presentations to and discussions with the specialtask force formed by the President to review existing mining policies andpractices and to make recommendations on new policies to be issued inthe near future. It is proposed that in addition to the areas specificallydefined as no-go areas under Sec. 19 of RA 7942, additional no-go areasshould include prime agricultural lands and fishing grounds (determinedas “ impact areas” by climate change mapping technology), fragile islandeco-systems particularly Palawan, and eco-tourism areas.

(6) The Coco Levy Issue

Atty. Monsod was invited in June as one of the convenors of a grouping thatis engaged in protecting the rights of the coconut farmers, particularly intaking measures to correct the injustice arising from Supreme Court decisionsthat would result in a wrongful distribution of the SMC shares bought withcoconut levy funds originally paid for by coconut farmers.In the decision with regard to 20% ownership of SMC (worth about P58billion), the SC awarded the shares to Eduardo Cojuangco Jr. holding, among

other reasons, that Mr. Conjuangco was not proven to be a crony of PresidentMarcos. In another decision with regard to some 24% ownership of SMC, theSC ruled that the shares belong to the government to be used only for thebenefit of the farmers. However, the SC recognized the right of SMC to redeemthe (converted) preferred shares at the issuing price (P75/share) while themarket price is presently about P115/share. The difference of about P33billion would therefore accrue to SMC/Mr. Cojuangco and not to the benefitof the farmers. With two other Conjuangco-controlled corporations claimingreimbursement from the fund, the benefit to the farmers could be reducedto about P44 billion out of a total value of the shares of about P150 billion.

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