Local government officials of Davao del Norte are rallying behind the Tagum Agricultural Development Company (TADECO) citing the banana company’s contribution to the economic development of the province.
TADECO, the largest banana producer and exporter in the country based in the province, is being hounded by House Speaker Napoleon Alvarez with cancellation of a land deal the company entered into with the Bureau of Corrections (BuCor).
Alvarez has instigated the House of Representatives to conduct an inquiry into the Joint Venture Agreement (JVA) between TADECO and BuCor covering more than 5,000 hectares of the Davao Penal Colony. He has also raised the issue to the Department of Justice.
In an apparent displeasure at Alvarez, local executives of Davao del Norte at the barangay and municipal levels have expressed their personal and official position against Alvarez and his attempt to have the House declare the JVA as illegal, and their support to the TADECO-BuCor deal.
TADECO is one of the biggest taxpayer and employer in the province and is credited for its contribution to its economic development.
Mayor Virginia Perandos of the municipality of Carmen pointed out that “TADECO has been playing a major role in the development of the entire province of Davao del Norte in general, and brought quality standard of living for the people with its employment opportunities, including many of the BuCor inmates.”
As part of a penal rehabilitation program for prisoners, TADECO hires inmates paid with minimu wage as workers in the area of the JVA that the company developed into a banana plantation.
Mayor Perandos’ support for TADECO was officially translated by members of the Sangguniang Bayan of Carmen on May 23 with approval of a resolution of support to the TADECO-BuCor JVA.
The resolution said that the “presence of banana companies including Tadeco boosted the economic activity not only of the Municipality of Carmen but throughout the Davao Region.”
The resolution also noted that TADECO and the other banana-producing farms in Davao helped transform Carmen into a first-class municipality in the province.
Massive unemployment in case Alvarez succeeds in having the JVA cancelled is the primary reason for the support for TADECO of the Sangguniang Bayan of Sto. Tomas.
In a resolution adopted on May 22, the local legislative body said that it is backing the BuCor-Tadeco accord “so as not to displace the thousand of workers and its contribution to the economic development of the communities and country.” Its resolution likewise stated that Tadeco “contributed to the development of the economy in Mindanao through its huge plantation of Cavendish banana that provided employment to thousands of workers, more particularly from the Municipality of Sto. Tomas and other adjacent municipalities and cities within the Province of Davao del Norte.”
Associations of barangays are not to be left out and have also passed resolutions supporting TADECO and expressing dismay at Alvarez’s move.
The Liga ng Mga Barangay of Sto. Tomas, unanimously adopted a resolution last May 18 expressing support for the JVA, which it said, “helped to rehabilitate the inmates inside the Davao Prison and Penal Farm (DPPF) and prepare them for their eventual reintegration to society by providing them with a decent means of livelihood while serving their sentences to become a productive citizen in the community.
The Liga ng Mga Barangay of the Island Garden City of Samal noted in its May 10 resolution that the JVA provides employment to hundreds of workers in all of the 46 barangays within the city.
“Tadeco, Inc. extends various services to the community in terms of providing health- and education-related programs that values health and wellness of its employees and their families and grants full scholarship to qualified dependents to strengthen its corporate social responsibility through its programs and activities that being implemented to its nearby communities within the Province of Davao del Norte,” the resolution read.
VALORIA BELIES TADECO HAND IN ‘COERCION’ YARN VS. HOUSE
Tagum Agricultural Development Company, Inc. (TADECO) will not resort to dirty tactics in seeking a favorable resolution to its questioned joint venture with the Bureau of Corrections (BuCor) covering over 5,000 hectares of government land in Davao del Norte.
A circulating claim says that TADECO has been suggesting that the leadership of the House of Representatives has coerced three government agencies to declare as illegal the Joint Venture Agreement (JVA) between TADECO and the BuCor.
TADECO denies it is behind the circulating claim that hits the House and Speaker Pantaleon Alvarez.
TADECO does not muddle in propaganda, said Alex Valoria, TADECO president and chief executive officer.
The House is conducting an inquiry into the 25-year JVA involving idle lands of the Davao Penal Colony (Dapecol), a line agency of the BuCor.
The probe was instigated by Alvarez who claimed that the deal was illegal and disadvantageous to the government.
TADECO says the JVA is legal and approved by Congress and government agencies including the Office of the President.
The circulating claim of arm-twisting by the House leadership is an apparent dirty missile fired to destroy Alvarez’s credibility.
The House probe inspired by Alvarez followed a public quarrel between the Speaker’s girlfriend and the partner of Rep. Antonio Floirendo Jr. Alvarez is also hounding Floirendo, whose family owns TADECO, with a graft case at the Ombudsman and a request at the DOJ to cancel the JVA.
TADECO is the country’s biggest banana producer and exporter.
Alvarez and Floirendo, both of Davao del Norte, are former political allies and long-time friends.
TADECO is largely credited for helping the the economic progress of Davao del Norte.
“Our organization that is recognized for its best practices does not muddle in propaganda,” said Valoria. Dirty tactics is not TADECO’s business, he said.
“To malign and mislead or argue issues without legal basis, is contrary to our corporate values,” said Valoria.
“While we maintain the JVA with BuCor is a contract legally negotiated, we take care not to muddle the issues as we only want to present arguments that are accurate, rational, and valid,” said Valoria.
Valoria issued the statement as the banana growing company took exceptions to the claim that it has been suggesting that the House leadership has coerced the Commission on Audit (COA), the Department of Justice (DOJ) and the Office of the Solicitor General (OSG) into an unfavorable stand against the TADECO-BuCor land deal.
It is not the mission of our organization that is recognized for its best practices to muddle in propaganda issues because “it is contrary to our corporate values to malign and mislead, or argue issues without legal basis,” Valoria said.
Valoria also reacted to the comment of Alvarez that TADECO is the only one claiming that the JVA is above board.
“We base our arguments on the approvals of the government authorities at the time the JVA was executed and the applicable laws and jurisprudence of the Philippines, he said.
“The JVA is a consensual arrangement, which has stood the test of time. We involve ourselves only in honest business dealings, not in bogus claims,” said Valoria in a retort to Alvarez’s claim the TADECO-BuCor deal is not a JVA, illegal and disadvantageous to government.
Solicitor General Jose Calida, in an earlier statement, said the TADECO-BuCor deal is void “as it goes against the Constitution and the Public Land Act.”
TADECO said Calida’s statement was “premature and uninformed” coming as it did while the DOJ was reviewing the JVA and the House conducting an inquiry.
Calida is not involved in both the review and congressional inquiry, said TADECO, adding that there is no case filed before the courts on the cancellation of the JVA.
Only the courts of law can declare that a contract is void, the company said.
TADECO suspects that Calida has ill motives on the issue.
“This is a clear case of prejudging our JVA. Perhaps the intent is to condition the minds of the public and pre-empt the review by the DOJ as well as the House probe,” TADECO said.
The Commission on Audit (COA), on the other hand, found that Tadeco “far exceeded” the 1,000-hectare limit when it established the banana plantation in violation of RA 1199.
COA argued the TADECO-BuCor deal is not a JVA but a leasehold agreement.
TADECO said COA’s findings were “based on the erroneous application of laws and constitutional provisions.”
The provisions COA cited as bases for the supposed violations cannot be applied to the Tadeco-BuCor agreement,” Valoria said.
“The Davao Penal Colony is a government reservation, thus, it is an inalienable land and cannot be the subject of a lease agreement as stated under RA 1199,” Valoria pointed out.
He emphasized that the contract between BuCor and Tadeco is a joint venture agreement, with the primary purpose of helping the rehabilitation of inmates of Dapecol.
“Its goal of making profits is only secondary to the main goal of inmate rehabilitation,” Valoria said, adding that BuCor and Tadeco are prohibited under the Public Land Act (Commonwealth Act 141) from entering into a lease arrangement.
Further pushing his argument, Valoria also cited the 1987 Constitution.
There is now an express provision in the Constitution allowing joint venture arrangement involving exploration, development and utilization of natural resources. Natural resources include inalienable public lands like the Dapecol, Valoria said.
Secretary Vitaliano Aguirre, for his part also earlier, said the land deal was illegal, based on findings of the DOJ review committee.
At the House hearing, however, Aguirre told legislators that DOJ has no power to cancel the JVA.
Only the President can cancel the contract, he said.
Speaker Pantaleon Alvarez has joined the New People’s Army, El Nino and El Nina and the Department of Agrarian Reform (DAR) in inflicting damage to the banana industry for instigating an investigation into the Joint Venture Agreement between the Tagum Agricultural Development Company (TADECO) and the Bureau of Corrections (BuCor) covering lands of the Davao Penal Colony in Davao del Norte.
A TADECO official described Alvarez as an economic saboteur.
The Cavendish banana industry, one of the country’s biggest export earners, has been reeling from sporadic attacks by the communist New People’s Army, extreme weather patterns and inconsistent policies of the DAR.
Alvarez has created a fourth battle front for the beleaguered banana industry, according to an official of TADECO.
On top of contending with NPA atrocities, bad weather and unpredictable government policies, the banana industry also has to deal now with political concerns, said Alex Valoria, president and CEO of TADECO.
“Now, all of a sudden, the JVA is being branded as void and illegal based on some legal hocus-pocus meant to satisfy political whims,” Valoria said.
Alvarez said the Tadeco-Bucor deal, covering more than 5,000 hectares of Dapecol, is illegal and disadvantageous to government.
On the instance of the Speaker, the House of Representatives is now conducting a congressional inquiry into the deal. Alvarez also has asked the Department of Justice to declare the JVA as illegal and has filed a graft charge with the Ombudsman against Rep. Antonio Floirendo Jr. in connection with the deal.
Floirendo is the son of the late banana magnate Don Antonio Floirendo, founder of TADECO, the biggest banana producing and exporting company in the country.
Both from Davao del Norte, Alvarez and Floirendo are long time friends and political allies.
Their rift started when their respective girlfriends quarreled in public during a festival event in Bacolod City. Alvarez also suspected that Floirendo was behind a plot to oust him as Speaker, which Floirendo denied.
Valoria has likened Alvarez’s move to declare as illegal the Tadeco-Bucor deal, to economic sabotage that threatens the banana industry.
“We cannot accomplish our goal of maintaining the global competitiveness of our banana industry if the government itself is the one sabotaging us,” he said.
Alvarez, Valoria said, is shaking down the investment climate in the banana industry that could lead to the fatal scenario of investors pulling out their investments.
“Investors can just pack, leave and relocate elsewhere,” Valoria said, adding that the ultimate losers in the Alvarez-Floirendo conflict are the hundreds of Tadeco workers and their families, including inmates of Dapecol.
The Tadeco-BuCor JVA involves more than 5,000 hectares of Dapecol to be developed into a banana plantation by Tadeco without cost to the government.
Now a major component of BuCor’s rehabilitation program, Tadeco hires Dapecol prisoners as farm workers paid with minimum salary to help rehabilitate the inmates and prepare them for reintegration into society.
“Our joint venture agreement with BuCor is a successful model for rehabilitating inmates who get to earn decent incomes that help them provide for their families while serving their sentences. This is a legally binding agreement that has proven to be aboveboard by the Congress, the Executive Branch and the courts,” said Valoria.
“This arrangement would not have lasted this long if it has not been proven to be beneficial for all the parties concerned — the government, TADECO and the inmates being rehabilitated inside the Davao penal farm,” he said.
AGUIRRE DUMPS SPEAKER’S REQUEST TO DECLARE TADECO-BUCOR-DAPECOL LAND DEAL AS ILLEGAL
SPEAKER Pantaleon Alvarez has lost his bid to have the Joint Venture Agreement (JVA) between the Bureau of Corrections (BuCor) and the Davao-based Tagum Agricultural Development Company Inc. (Tadeco) declared as illegal by the Department of Justice (DOJ).
DOJ Secretary Vitaliano Aguirre III has slammed the door on Alvarez’s personal request for DOJ to declare the JVA as illegal.
According to Aguirre, declaring the JVA as illegal is not within his powers. Only President Rodrigo Duterte can make such a declaration, said Aguirre.
In his request to DOJ, Alvarez claims that the JVA is disadvantageous to the government.
Tadeco, one of the country’s biggest banana producer and exporter owned by the family of Representative Antonio Floirendo Jr., says the deal was legal and reviewed and approved by Congress.
Rebuked by DOJ, Alvarez would now have to rest his case against Tadeco in the House of Representatives that he has asked to conduct a congressional inquiry.
VALID & LEGAL
Tadeco president and CEO Alex Valoria insists that despite Alvarez’s claim, the JVA is valid and legal and highly beneficial to the government.
At the joint committee hearing on May 9 of the House of Representatives’ Committee on Good Government and Public Accountability and the Committee on Justice, Valoria submitted a position paper and presented key points on the constitutionality and legality of the Tadeco-BuCor JVA to answer point by point the erroneous allegations made against the company.
At the hearing, Aguirre said it is only the President who can declare the JVA between BuCor and TADECO as illegal.
Aguirre also acknowledged employment by TADECO of thousands of workers, the huge tax it pays to government and its positive over-all impact on the community.
The JVA forged between BuCor and
Tadeco primarily aims to help rehabilitate inmates at the Davao Prison and Penal Farm (DPPF) and prepare them for their eventual reintegration to society by providing them with a decent means of livelihood while serving their sentences.
Tadeco has developed a banana plantation inside the DPPF Reservation to realize these goals.
“We respectfully would like to point out to our honorable lawmakers that the JVA is not only about money; the more important aspect to it is its core purpose of the rehabilitation of the inmates which has been a proven success,” Valoria said. “The benefits to thousands of ex-inmates, their spouses and children, and finally to the communities they eventually settled into are immeasurable.”
Rep. Antonio Floirendo Jr., whose family owns TADECO and a member of the House justice committee did not attend the hearing “to obviate any perception of personal interference or influence on the outcome.”
Alvarez who had filed a House resolution calling for an investigation into the BuCor-TADECO JVA after he figured in a personal quarrel with Floirendo, was present at the hearing.
Valoria said that aside from the benefiting inmates inside the Davao penal farm, the banana operations under the JVA “create 30,000 jobs in direct, indirect and ancillary roles,” which translates to the secure livelihood and future of at least 181,000 Filipinos.”
Valoria also said that Tadeco paid P438 Million in taxes and fees to the Philippine government in 2016 alone.
BuCor, on the other hand, gets more than P26,900 per hectare in profits and other payments from Tadeco, contrary to erroneous claims that BuCor was at the losing end of the deal, Valoria said.
“In 2016, Tadeco actually paid the BuCor a total of P142,719,662. This equates to P26,900 per hectare. We must emphasize that Tadeco paid to BuCor not only the Guaranteed Annual Production and Profit Share but also the Inmates Farm Training Support, Stipend and Support Program, and Training Subsidy. The financial benefits paid by Tadeco from 2004 to 2016 amounted P 1,620,549,230,” Valoria said.
JVA NOT LEASE
The Tadeco president also clarified before lawmakers that the contract between BuCor and the government is a JVA, and not a lease and tenancy agreement, which is the main basis for the erroneous arguments against the deal.
SAGIP Partylist Rep. Rodante Marcoleta said he also believes the contract between BuCor and TADECO is not a tenancy agreement, as erroneously pointed out by Justice Secretary Vitaliano Aguirre III at the hearing and the COA findings on the deal.
“I don’t think TADECO is cultivating and tilling the land as tenant,” Marcoleta said. “I don’t think the appreciation of the Commission on Audit is accurate,” he added.
Joining the discussion, Alvarez, insisted that the agreement between BuCor and TADECO involves a “rental” and not a JVA, despite repeated explanations from Valoria.
COOP NATCCO Partylist Rep. Anthony Bravo, on his part, pointed out that TADECO provides jobs not only for the inmates but also for other workers.
Valoria pointed out that Tadeco workers enjoy the “highest salaries and benefits in the agricultural sector,” belying erroneous reports that they are supposedly ill treated and exploited.
“Tadeco has about 12,000 employees inclusive of a rolling average of 800 inmates that are enrolled in the DPPF’s rehabilitation program. Last year 2016, Tadeco paid out to its workers Php 2.8 Billion in wages, benefits and incentives,” Valoria said.
CORPORATE SOCIAL RESPONSIBILITY
Tadeco workers, besides receiving above-industry standard wages, also enjoy medical coverage for them and their families, and have free access to elementary and secondary schools, chapels, a hospital, and recreation center and facilities, Valoria said.
Valoria invited the chairpersons and members of the two committees to visit the banana plantation and facilities set up by Tadeco in Tagum City so that they can “see for themselves the successes that the JVA between BuCor and Tadeco have obtained in the field of rehabilitation of prisoners.”
“We likewise would like you to see the productive, healthy and happy communities of Tadeco. It is a glimpse of what the Philippine rural communities should be,” Valoria said.
As for the legality and constitutionality of the contracts forged between BuCor and Tadeco, Valoria noted that as early as the 1970s, the Senate blue ribbon committee have already found such deals to be valid and aboveboard, with even then Senator Benigno “Ninoy” Aquino Jr. saying that the rates benefiting the government at that time were “extremely good and beyond competitive.”
Valoria noted that besides the Senate, the various agreements between Tadeco and BuCor from 1969 up to the present passed through 14 Secretaries of the Department of Justice who all upheld their validity and was also examined in 2012 by the House Committee on Agrarian Reform, which found the JVA “beneficial to the government and to the community.”
“In fact, the Department of Agrarian Reform uses Tadeco as the showcase of success of its Agrarian Reform Program. The Agrarian Reform Cooperatives in Tadeco have today assets in the hundreds of millions of pesos; whereas we understand the Agrarian Reform Cooperatives in other banana farms have quite the opposite – debt levels going into the billions of pesos,” Valoria said.
Valoria also disputed the other flawed claims against the BuCor-Tadeco JVA, by pointing out the following:
On the claim that the JVA is illegal because the land involved is “an inalienable land of the public domain,” the Senate Blue Ribbon Committee in 1970 already resolved this issue and upheld the validity of the agreement. The Senate panel pointed out then that the BuCor is prohibited under the law, from entering into a lease deal, and thus “we would not have approved the Bureau of Prisons-Tadeco contract if it did not clearly create a joint venture relationship between the parties.”
Under both the 1935 and 1973 Constitutions, no prohibition exists barring the government from entering into joint venture arrangements involving inalienable lands like the DPPF.
In the 1987 Philippine Constitution, “there is now an express provision allowing joint venture arrangement involving exploration, development, and utilization of natural resources” and there is no limitation as to the area to be developed.
The agreement between the two parties is not a lease but a joint venture and the 25-year term is allowed under Section 2, Article XII of the Constitution. “There is no such thing as a prevailing practice in land leases of ‘just 10 years’. There are leases that go up to 75 years.”
Valoria said that besides receiving multiple awards here and abroad for its good agricultural and labor management practices, Tadeco’s model in rehabilitating inmates has also been recognized as a successful one that the BuCor even asked Tadeco to replicate the same program in the Iwahig Penal Colony in Palawan.