MARITIME WATCHKEEPER

“But what has happened to this country while its citizens were not looking is that public officials no longer deem themselves required to be the best and brightest who deserve to be emulated by their constituents, they deem themselves licensed to be the worst and dumbest who may cling to office until they are proven to be criminals” Conrado de Quiros, PDI, 04/30/07

PDI business news headlines dated April 23, 2007:

WB urges liberalization of 5 sectors
Seen crucial to investment flows, economic growth

This sounds like a mother telling a child that unless he takes his medicine, there won’t be any candy.

But we have known for some time now that the PPA charter has to be revised – to discontinue the anomalous situation where it is regulator and landlord with monopolistic tendencies with a stranglehold over the port system.  To show able stewardship, all it has done is to jack up rates using questionable procedures.

Congress has been unable to act on this recommended piece of legislation since most members are beneficiaries of the political patronage dividends that the PPA can easily distribute to “worthy” backers or supporters.

The World Bank recommendation on the privatization of the North Harbor with emphasis on the provision for competition has been blowing hot and cold at the PPA burners.  Why it has taken all of twenty years deciding on how best to modernize it, the PPA only emphasizes the fact that what is more important is to satisfy the power brokers, rather than to implement what is best for the whole economy.

Early on her first term the President promised the farmers of Mindanao drastic improvements in the manner of shipping services which would make them globally competitive.  Five years later, the promises have become illusive dreams to these farmers.

Hearing discussions about what to do with the PPA has become a boring, repetitious and seemingly useless and endless exercise, not withstanding orders from the President to initiate some improvements.  Is the WB prescription perhaps addressed to the President this time?

Perhaps it is, and in the light of Mr. de Quiros’ observation above, the ”culture of impunity” shown in the acts of public officials has been characteristic of this administration 

Why do we have to wait for others to tell us what is best for our own people?

The House of Representatives conducted An Inquiry In Aid of Legislation On the Philippine Ports Authority and submitted its report to the Office of the President on March 17, 2007.  The recommendations contained in the said report are:
Recommendations
The Constitution itself recognizes the detrimental effects of monopolies and the indispensable role of the private sector in the development of the national economy. Fiscal constraints and the existing monopoly in the provision of port services have contributed to the dismal state of the country’s port infrastructure facilities.
Cognizant of such limitations, the Government has adopted a policy of de­monopolization and greater private sector investments in port facilities and equipment – to minimize unnecessary capital expenditure by Government as well as to encourage competition and increased efficiency in port operations and the provision of port services.
The actuations of PPA, therefore are in violation of the existing policies on open competition and have undermined the country’s global competitiveness. To correct this malady, the Committee therefore recommends the following actions:

1. Amend the charter of the PPA by
   •   Separating its development and regulatory functions
   •   Deleting the provision that allows PPA to share from cargo handing revenues
2. Pass a House Resolution requesting the President to
   •   Order the PPA to institutionalize and allow competition in port operations — foreign and international cargo which will redound to greater efficiency in the shipping industry and economic gains for the country.
   •    Disapprove/revoke the PPA recommendation to extend for another 25 years the contract of ICTSI which is due to expire on 2013
   •   Order the OGCC to look into the violations on the existing contract between PPA and ICTSI
   

To read the complete report, click here.
Also, letter of transmittal to the President, click here.

Annexes:

•    Privilege speech of Rep, Eduardo C. Zialcita on November 8, 2004 entitled “Where there is smoke, there is fire“.
•    Supplemental Contract to the PPA-ATI Contract for Cargo Handling Services dated 13 March 1992
•    PPA-ICTSI Contract for Cargo Handling Services dated January 1998 OGCC (Office of the Government Corporate Counsel) Opinion No: 207 s.2003
•    PPA Memorandum Circular No. 41-2002 Guidelines for Adopting a Universal Government Share of 10% for domestic cargoes and 20% for foreign cargoes from the revenue of cargo handling operators nationwide (November 5, 2002)