Lafayette declares bankruptcyBy MS Arguelles
Vox Bikol
17-23 December 2007
also in http://www.pia.gov.ph/?m=11&sec=archive&r=R05&sp=1&fi=p071221.htm&no=30
LEGAZPI CITY (21 December) – Albay Governor Joey Sarte Salceda has urged the Department of Environment and Natural Resources (DENR) in Bikol to suspend the mining operation of Lafayette Mining Corp. in Rapu-rapu following the firm’s move to go under voluntary administration.
Salceda said he is determined to push for the mining firm’s closure as a result of the firm’s declaration of bankcruptcy and the option to sell the mining operation to other interested investors.
“I implore the DENR to immediately suspend the permits to mine, mill and transport chemicals granted to Lafayette as it has declared bankcruptcy,” Salceda said as he aired his primary concerns that include among others “the firm’s financial distress is an absolute proof of bad management and could sacrifice or compromise environmental standards”.
Salceda said the environmental issues to be addressed are: who would maintain the mines tailing pond once the mining firm ceases to operate? Who will pay the people of Rapu-rapu the P16 million arrears in social development program?
Salceda urged the DENR to take the responsibility for the integrity of the mine’s facilities to prevent any mishap especially if some mining chemicals are misplaced.
He also warned environmental authorities that permits are not automatically restored to its creditors or eventual new interest while waiting for the court to appoint a receiver.
Given the poor track record of
Lafayette, Salceda asked the DENR Environmental Management Bureau (EMB) to conduct compliance audit on all environmental concerns.
As this developed, DENR Bikol regional executive director Reynulfo Juan said his agency would look into the request for the suspension of mining permits granted to Lafayette.
He said before any decision could be made he would first call for a technical conference with the mining firm and asked them to submit a mining rehabilitation plan.
Juan said closing the mining operation would give a bad signal to other probable investors, “Lafayette mining had been operational for a year and a half now,” he added.
Lafayette Mining Ltd. has sought court protection this week from creditors and declared it would undergo voluntary administration.
Carlos Dominguez, chairman and president of Lafayette Philippines, said the firm would file for a petition for rehabilitation to continue normal operations to protect its stakeholders.
The petition is expected to result in a court order instructing the present creditors and suppliers to continue their services and transactions with the local companies for as long as they are paid on cash basis.
Payment for existing debts will be suspended until the court has approved a rehabilitation plan that will fairly settle all outstanding debts to ensure the continued operations of the mining company.
1 comment:
Here we go again...
"Juan said closing the mining operation would give a bad signal to other probable investors, 'Lafayette mining had been operational for a year and a half now', he added."
What really is the job description of a DENR Regional Director, to protect the environment or to cuddle mining firms?
Inasmuch as "it is a hoax!" is a standard Lafayette reaction, it turns out, DENR has its own knee-jerk by-line: "it may send a bad signal to investors".
Mr. Rey Juan, here's the truth for you: It's statements like these, spouted by government officials, that sends jitters to potential investors who want to do honest business in this country.
Then again, if the likes of Lafayette are the kind of investors that our public officials want to attract to our country (for reasons that are not hard to fathom), then such statements are, perversely speaking, understandable.
More than any other factor, the shameless exhibition of corruption and gutlessness by government officials scares off investors, especially the ones who believe in sustainable development.
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