SBMA board crippled by EO2

The Subic Bay Metropolitan Authority (SBMA) is now facing a new dilemma, the authority has virtually no board of directors which freezes policy making, renewal of contracts and approval of new investors in the Freeport.

Last week Malacañang issued Executive Order No. 2 sacking all midnight appointees of former President Gloria Macapagal Arroyo, affecting twelve (12) out of the fifteen (15) SBMA board of directors.

Among the affected Board of Directors of SBMA are Alvin Capino, Ariel Castro, Ricardo Concolluela, Aneglita Cruz, Jorge Estanislao, Francis Garcia, Mario Garcia, Jesus Vicente Magsaysay II Ma. Victoria Pineda, Stefani Sano, Eddie Tamondong and Jennifer Khonghun-Ting.

(SBMA’s empty board room. Photo by David Bayarong)

The three remaining Board of Director are SBMA Administrator Armand Arreza, Teodoro Del Rosario and SBMA Chairman Feliciano Salonga. According to Arreza, Del Rosario’s appointment was signed by former president Arroy last January, 2009 while Chairman Salonga and his appointments were issued in 2005.

Arreza promised to ‘comply with EO 2.

The problem, he said, is that for the time being, “the board does not exist.”

“We are a government corporation and our stakeholder is the people of the Philippines, which in this case is represented by the President.” Arreza said.

“If the stakeholder wants to replace you, for good governance, you should give way,” he added.

The board of directors are in charge of approving new investment, renewal, policies, financial matter of the agency and matters with regards to appointments of key officials.

He added that they have suspended all board meetings pending the clarification with Executive Secretary Pacquito “Jojo” Ochoa Jr.

“Wala naman pending new project, but we have a lot of routinary approvals na kailangan gawin.” Arreza said.

The usual practice according to Arreza was that if they (Malacanang) declare a vacancy in the board “may kapalit agad” but in this case he noted that there was none.

He added that as of the moment it has minimal impact on SBMA, but come September new investors and renewing investors will start to complain.

In a statement, SBMA Chairman Feliciano Salonga clarified that the SBMA board has no plans of challenging EO2.

SBMA director Ricardo Coscolluela said that after president Aquino was sworn in he had already submitted his resignation dated July 1.

“I think that it is important that we clarify that the action against EO2 is not by the SBMA board as a whole, but only some board members in their personal capacities,” Coscolluella said in a statement.

Meanwhile, Danny Piano, president of the Subic Bay Chamber of Commerce said that they will be waiting for the court to decide regarding the EO 2.

“While everybody already has their own opinion on the validity of EO 2, it is already being legally challenged and, therefore, already a matter for the court to decide. However, since the court has not issued a TRO yet, EO 2 therefore stands. As it is, the remaining members of the SBMA Board no longer constitute a quorum and, therefore, can no longer conduct valid business.” Piano said.

Piano added that he had already talked to Arreza that while the SBMA Board is crippled at the moment, the administration of the Subic Bay Freeport continues as usual.

Presently, according to Paino, the SBFCC has not observed undue effects on businesses inside the Freeport that we can attribute to the EO 2 issue.