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Friday, February 24, 2006
Gov't didn't tap P5M fund for oil spill cleanup: solon
SENATOR Pia S. Cayetano said Thursday the failure of the Department of Environment and Natural Resources (DENR) and the National Power Corporation (NPC) to tap the power firm's P5-million Environmental Guarantee Fund (EGF) may have impeded early efforts to minimize environmental damage caused by the oil spill off the coast of Semirara Island in December last year.
She said the immediate release of the EGF could have provided the funds necessary for emergency measures aimed at mitigating the oil spill's spread and hazardous effects to the marine ecosystem.
"More than two months have passed since the incident but the EGF-which is supposed to be an emergency standby fund-remains untapped," said Cayetano, who led a joint congressional panel inquiry over the weekend on the biggest oil spill in the country's history.
"What really concerns me is that neither the DENR nor NPC has bothered to take the necessary steps to make the EGF readily available after the oil spill was reported."
The EGF was established for firms whose operations are potentially hazardous to the environment under Presidential Decree 1586 or the Philippine Environmental Impact Statement System Act (EIS Law).
The EGF serves as a standby fund to cover the environmental liability of a grantee firm in case of violation of its Environmental Clearance Certificate (ECC), and should be deposited in a trust account with the DENR as custodian.
It was revealed at the joint congressional hearing, however, that NPC's EGF remained deposited with the power firm instead of being entrusted with the DENR.
"The DENR admitted during the hearing that it does not have control over the release of the EGF. This is an absurd situation because we have an EGF that cannot be accessed by DENR. Apparently, a lapse has occurred in the implementation of the law."
The Philippine Coast Guard also reported in the hearing that it has already spent P14 million for the cleanup, but the amount has yet to be reimbursed by NPC. The latter replied that the reimbursement would still have to go through standard accounting procedures and auditing standards.
Cayetano noted that while P5 million is a fairly small amount for a major oil spill cleanup, its immediate release could have spelled the difference in minimizing the hazardous effects of the oil spill.
She added that there may be a need to review the implementation of the EIS Law, since the P5-million required EGF may not be applicable anymore for major operations, while more specific guidelines may have to be laid down for its establishment and release.
Power barge
In addition, Cayetano said the NPC Barge 106, which was responsible for the massive oil spill off the coast of Semirara Island last year did not go through the routine safety inspection of the Maritime Industry Authority (Marina). This is because power barges operated by NPC are exempt from Marina's annual sea worthiness test.
Deputy Commander for Western Visayas Capt. Allen Toribio, who headed the Philippine Coast Guard contingent in the hearing, told the panel that a memorandum had been issued by Marina exempting all NPC power barges from standard inspection since the latter are not classified as sea vessels and are government-owned facilities.
A floating power generating set, Power Barge 106 was being towed by a NPC-owned tugboat operated by its contractor Centro Tech, Inc., en route to Mindoro from Masbate, when it ran aground off Sitio Bubog in Semirara Island due to strong winds and current on December 18.
Pressed for answers by Cayetano, NPC officials admitted that instead of Marina, it was the Department of Environment and Natural Resources (DENR), which is overseeing the operation of their power barges under their Environmental Compliance Certificate.
DENR Regional Executive Director Julian Amador admitted, however, that the agency does not have the technical capability to determine whether a barge is in fact sea worthy or not.
Cayetano said she found it very alarming that there was no competent government agency or even a self-regulatory group overseeing the sea worthiness of NPC power barges plying our seas.
"I cannot imagine that a huge vessel carrying a big volume of a highly toxic substance is allowed to ply our seas without anybody ensuring the vessel's good physical condition."
She also reacted to NPC's insistence that the incident was an 'Act of God' saying that the state-owned power firm is still civilly and morally liable for the spill, especially in the absence of determination of the seaworthiness of Power Barge 106.
"NPC should have exercised due diligence, like a good father of a family, over the safety of its power barges."
Cayetano has already sent a letter to Vincent Suazo, Marina administrator, requesting his office to submit a report explaining the basis for NPC's exemption and provide a list of all safety inspection exemptions given to maritime vessels, whether owned by the government or private firms.
Under Presidential Decree 474, or the Maritime Industry Decree, the Marina is responsible for conducting annual inspection on all sea vessels for the issuance of a clearance certificate.
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