Mining money

In the paper today, GMA got mad and ordered an investigation on an alleged extortion to a foreign investor by local government executives. Investors claimed the local officials tried to extort money from them in exchange for the release of the permits. The local official denied the allegation and claimed also that the businessmen offered him contracts amounting to P400 Million so he would allow the company to operate without the necessary permits (“Furious GMA orders Hanjin extort probed”, Philippine Daily Inquirer, May 3, 2008).

Well, what do you know, it is actually happening in our Province (contracts of local official with mining company). One particular project that I know of personally is the Narra Nickel Mining.

Excavation, hauling and trucking services contracts were given to the Mayor. Of course, in the contract it was not the name of the mayor, it’s in the name of a dummy, a man identified with the husband of the Mayor (the husband is the former mayor; the dummy was his former Municipal Engineer). Well, maybe he, the Engineer, is the real owner/beneficiary of the contract? Could be. But explain this. People who want to share in the contract can enter to a sub-contract only upon approval of the mayor’s husband.

In my estimate, there are about 50 trucks and 10 excavation and loading equipment, only 6 trucks belong to the Mayor.

Hauling costs P2,000.00 per trip. If sub-contracted sub-contractors receives P1,800.00, that’s P200.00 per trip for Mayor. In a day, a truck’s average trip is 10. That’s P2,000.00 per day for mayor for a single truck. That makes P108,000.00 daily (for the 44 trucks and 10 heavy equipments), and P3.2 million in a month! Not bad.

Is it illegal? Yes, I think it is. Conflict of interest. Enriching selves using the office. With this condition, whose interest is the mayor going to protect, the people or the mining company? Your guess is as good as mine.

Now I know why people kill and invest millions just be elected in office. There, money can be mined.