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Tuesday, October 25, 2005
Environment chief cancels Davao logging permits
By Antonio M. Ajero and Ben O. Tesiorna
DAVAO CITY -- Environment Secretary Michael T. Defensor cancelled last week virtually all logging and wood industry operations in the Davao Region.
In a memorandum dated October 20, Defensor directed all ranking personnel of the DENR in Region 11 to "cancel all existing Operation Plans, including Integrated Annual Operation Plan, Mid-Year Operation Plan, RUP, and similar permits."
The memorandum was particularly addressed to the regional executive director, regional technical division forestry, all Community Environment and Natural Resource Offices (Cenros) and Provincial Environment and Natural Resources Offices (Penros), and all Forest Guard Team Leaders in Region 11.
The above officials were also prohibited from issuing any form of timber harvesting and cutting permits.
Defensor's order, according to Louie Rabat of the wood industry cluster in Regional 11, would result in the wood industry losing P200 to P300 million.
He further said when interviewed Sunday that the stoppage of logging and other wood-related operations would affect other industries as well, especially the banana industry.
The environment secretary's order would put a stop to the operation of at least a dozen plywood plants, sawmills, and mini-sawmills that would run out of raw materials, such as falcatta and gimelina harvested from tree farms, said other sources.
Among those who would be affected are Mintrade, San Manuel, Alcantara and Sons, Fancy Panel, Forever Richsons and Omega in Davao City, PPMC-Tagum City, Davao del Norte, Smartply in Maco, Compostela Valley, Baganga Plywood in Davao Oriental, and Magdum Veneer also in Tagum City.
These companies, some of which are also into making of wood chips and pallet boards, employ a total of 5,800 workers, who will be affected by the logging ban.
"Counting their dependents and those of the secondary industries like tree farmers, reforestation contractors and those doing business with the processing plants like suppliers of fuel and oil, spare parts, glue, tens of thousands of mouths will go hungry," said a wood industry source who requested anonymity.
Defensor's memorandum was supposedly to counter illegal logging cases in Region 11 and in consideration of the various complaints and issues raised by some members of the Congress particularly during the budget hearing held on October 10.
Wood industry sources, however, suspect that the real reason Defensor issued the memo was because he was stung by criticisms on his controversial lifting of the suspension of the timber license agreement (TLA) of Matuguina Integrated Wood Products Inc.
Industry sources said if Defensor were really concerned about illegal logging, he wouldn’t have issued a sweeping memorandum that would adversely affect legal operations.
To further ensure compliance, Defensor's memo stated, "All concerned Cenros and Penros who fail to implement any of the foregoing orders shall be automatically relieved and shall be charged administratively."
The order also said that "any violation of the instructions shall be dealt with accordingly."
Matuguina's license was suspended for 19 years or since 1986.
The lifting of the license suspension came after Luzon loggers, particularly the so-called Isabela Group, reportedly bought shares of stocks of Matuguina owned by Davao logger Henry Wee and began efforts to revive the suspended concession covering some 65,000 hectares of timberland in the towns of Baganga, Manay, and Caraga.
Residents of the three towns led by their municipal officials reacted negatively to Defensor's order to lift the suspension, claiming it was done without consultations.
Aside from its license suspension being lifted, Matuguina also allegedly received assistance from a group of DENR experts in the preparation of its Operation Plan, which is required before the mothballed company could start actual logging operation.
DENR and industry sources said that Undersecretary Ramon Paje allegedly prepared the "angry" and "sweeping" memorandum.
Rabat said they will request DENR to exclude from the latest log ban planted species like gimelina and falcatta, as these compose 80 percent of the trees used by the wood industry in its operations.
He added that he hoped the department would implement the ban only in areas where illegal logging is rampant and not include the whole of the region.
A log ban was implemented late last year in the whole country after the massive landslide and flooding in Quezon province that resulted in the death of 939 persons and affected more than 3 million Filipinos.
In March of this year, the log ban was however lifted in Southern Mindanao and Caraga region after clamor from the wood industry.
Rabat said that for the three months of the previous log ban implementation, the region's wood industry lost P20 million. He said they do not know how long the latest log ban will be enforced.
What is certain, Rabat said, is that many industries will be affected by it and prospective investors might shy away due to the "constant changing of policy" of the government. (Sun.Star Davao/Sunnex)
(October 25, 2005 issue)
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