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House Oversight panel asks Arreza to explain

[ Manila Bulletin Online ] June 9, 2008
By BEN R. ROSARIO


The House of Representatives Oversight Committee has directed Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza to explain complaints that he has favored a Korean group to take over a golf course business still being contested in the judiciary by a group of Taiwanese investors forcibly ejected from the former US naval facility.

A highly placed congressional source exposed a reported attempt by a ranking official of the chamber to stop the oversight panel from looking into the irregularities that attended the alleged illegal takeover of the Subic Bay Golf Club by SBMA authorities.

The source said the attempt to cover up alleged wrongdoings by the SBMA is one reason why the oversight panel has delayed the conduct of formal congressional hearings on the issue.

Arreza failed to show up in the first day of the House inquiry on the complaints aired by the Universal International Group (UIG) in connection with the alleged forcible take over of the golf course located at the Subic Bay Freeport.

Northern Samar Rep. Emil Ong instigated the House probe when he warned in a privilege speech that the legitimate complaints aired by UIG officials led by Susan Ho could seriously threaten trade relations between Philippines and Taiwan.

"I believe Administrator Arreza has a lot of explaining to do. We have invited him to show up in the next hearing," said Ong.

In last week’s hearing, lawmakers led by Ong and Makati City Rep. Teodoro L. Locsin Jr. were informed that Arreza had been negotiating to convey to a group of South Koreans the right to operate the golf course.

Zambales Rep. Ma. Milagros "Mitos" H. Magsaysay noted that the move to kick UIG from the golf course where it invested at least R1 billion was made by SBMA officials with unusual dispatch.

She disclosed that although UIG is having difficulties in paying rental arrears, the amount is dwarfed by the amount of unpaid rent of a number of locators.

Apparently stung by Magsaysay’s comment, SBMA Chairman Feliciano Salonga snapped at oversight panel members for airing accusations that are not backed by documentary evidence.

Salonga denied accusations that SBMA had initiated deportation proceedings against Ho and her son, Jack Hu, who filed court cases now pending before the Court of Appeals (CA) in an attempt to recover their business.

SBMA lawyer Ramon Agregado admitted that SBMA had indeed sent sent a notice to the Bureau of Immigration (BI) on the expiration of the Subic Special Working Visas issued to the Taiwanese investors. Agregardo’s admission earned Salonga and the SBMA a dressing down from Locsin and other solons who described the BID move as a "low blow."

"It is really a cheap shot to deport foreign investors just to take him away from the court in order not to meet them face to face. That is not the proper way to deal with the investors," Locsin said.

Magsaysay warned that the "unlawful and uncalled for" acts of SBMA officials towards Taiwanese investors may drive away potential investors in the future.

According to Ong, the SBMA officials showed arrogance, abuse, and violation of human rights when it did not allow the company to settle its unpaid obligations, and immediately took over the golf course.

Locsin then asked the SBMA to withdraw the deportation request against the Hu family because it is "unlawful and unfair."
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