Speaker files graft raps vs friend and ally Floirendo
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Speaker Pantaleon Alvarez has filed graft charges against Davao del Norte Rep. Antonio “Tonyboy” R. Floirendo Jr. – formerly considered among the House leader’s closest personal friends and political allies – over the alleged failure of the latter to divest his shares of stocks in a banana company which has an existing contract with the Bureau of Corrections (BuCor).
In a criminal complaint filed with the Office of the Ombudsman (OMB), Alvarez said Floirendo is prohibited by law and the Constitution to enter into any business transaction with the government.
Alvarez said the respondent and his family has been the owner of Tagum Agricultural Development Corporation (TADECO) when it entered into a joint venture agreement (JVA) with BuCoR in 1969.
The JVA allowed the lease of a wide area of the Davao Penal Colony land for banana planting for export with BuCor getting a share from earnings.
Alvarez said his complaint specifically centered on when the JVA was renewed in 2003 while the respondent was serving his second term as representative of the 2nd District of Davao del Norte.
“There was absolutely no evidence that when the consolidated JVA was renewed in 2003, he (Floirendo) divested himself of his ownership of his shares of stocks in TADECO and Anflo Management and Investment Corporation (ANFLOCOR),” Alvarez said.
Floirendo allegedly also owned shares of stocks in ANFLOCOR, the mother company of TADECO.
Alvarez said the renewal of the JVA allowed TADECO to continue using the more than 5,300 hectares of the penal colony land for the continued banana production and export operations.
The complainant said the constitutional ban applies squarely to the respondent, as BuCor is a government office which signed the lease contract.
Quoting Article VI of the Constitution, Alvarez said “no senator or member of the House of Representatives... shall, directly or indirectly, be interested financially in any contract with, or in any franchise or special privilege granted by the government, or any subdivision, agency, or instrumentality thereof, including any government-owned or controlled corporation, or its subsidiary during his term of office.”
He added that Florendo also violated Section 3(h) of the Anti-Graft and Corrupt Practices Act which prohibits government official from doing business deal with the government.
TADECO disputes accusations TADECO, the operator of the world’s largest contiguous banana plantation, has denied every single issue that Alvarez has recently thrown at the company with regards to its 25-year lease contract with the BuCor.
“The arrangement between TADECO and BuCor is not a lease arrangement but a Joint Venture that is primarily aimed at the rehabilitation of the inmates in Davao Penal Colony (DAPECOL),” the company said in a statement yesterday.
“TADECO is befuddled as to the real reasons why Speaker Alvarez has initiated this inquiry,” it added.
TADECO is owned by the family of Floirendo, who is said to be the biggest campaign financier of President Duterte.
The company proceeded to say that the rehabilitation program it launched has been found to be “very successful” by BuCor up to the extent that the latter has even requested TADECO to replicate the JVA program with its penal colony in Iwahig, Palawan.
“Furthermore, the JVA has been reviewed and found to be advantageous to the government numerous times by the executive and the legislative departments in past administrations,” TADECO said.
The banana firm also said there is no truth to the allegation of ill-treatment of its workers in the plantation.
“Such allegation is completely baseless,” the company said. “TADECO takes good care of its workers. This is evident in the high production yield of TADECO, indicating that the workers are well motivated and very productive.”
The company also clarified that when its JVA with BuCor was renewed in 2004, the rates jointly agreed therein were the most competitive rates prevailing at that time.
“As can be understood, the changes in economic conditions over the past 13 years have affected the competitiveness of such rates. TADECO understands this and stated back in 2011 its willingness to discuss and adjust the rates as it had done in the past. This effort to adjust the rates did not gain any momentum because of the continuous change of leadership in the BuCor,” the company said.
“TADECO continues to perform its obligations and responsibilities under the JVA confident in its contributions to the government and socio-economic development,” it added.
In February, TADECO has welcomed the call for government to review the aforementioned JVA for the sake of transparency, denying the allegation that it’s been shortchanging the government on its profit-sharing deal with the latter.
This was after Floirendo was linked to the issue that his banana exporting firm, TADECO, is not paying the government properly on its profit-sharing scheme.
Friendship turned sour They were “BFFs” (best friends forever) but the friendship of Alvarez and Floirendo has gone sour after the congressional inquiry and charges slapped by the House leader against his friend – the son of the late “banana king” Antonio Floirendo Sr. who created the vast agricultural empire that is one of the most profitable agricultural production in Asia.
Complainant and respondent were former members of the 12th Congress and considered best buddies all throughout their incumbency. Alvarez represents 1st District of Davao del Norte while Floirendo is the incumbent congressman of the second district of the same province.
Since their stints in the 12th Congress, the two Mindanao leaders cultivated a friendship that was glaringly noticeable. They were inseparable in various projects and even co-hosted events for the House media.
Their last joint endeavor as close buddies came during the recent Presidential elections when they campaigned for the eventual winner, Duterte.
Early December last year, speculations swirled in the Lower House that Alvarez will be appointed by Duterte as the country’s traffic czar and will be replaced as speaker by former President and now Pampanga Rep. Gloria Macapagal Arroyo.
The rumors died down but resurfaced early this month after Alvarez caused the removal of Arroyo as deputy speaker after she voted against the death penalty bill.
Requesting anonymity, a Mindanao lawmaker disclosed that the rumors were traced from the Floirendo camp.
The case against Floirendo carries a maximum 10 year prison sentence and perpetual disqualification from holding any public office. If found guilty, the lawmaker also stands to lose in favor of the government “any prohibited interest and unexplained wealth.”
Country over friendship But Alvarez has maintained that the congressional inquiry he is seeking against Floirendo is all about protecting the country’s interests.
“Our friendship ends where the interest of our country begins,” Alvarez said yesterday.
So, never mind if Alvarez and Floirendo are both members of the ruling party, Partido Demokratiko Pilipino-Lakas ng Bayan (PDP-Laban) or that Floirendo is said to have contributed financially to Alvarez’s political comeback in the May 2016 elections.
“I’m just doing this for the country,” the speaker said.
Alvarez even had a message to those who are allegedly turning the wheels of his ouster as leader of the House.
“I have no problem with that kasi in the first place, wala akong ambition (I have no ambition). I can always risk the speakership anytime.”
Incidentally, grapevine sources said that Floirendo is among those planning to unseat Alvarez, who may or may not have rubbed his fellow legislators the wrong way giving his “rough” leadership style.
Asked if he filed HR No. 867 – a congressional inquiry into TADECO – as a response to the rumors regarding Floirendo, Alvarez said: “Binibigyan nila ng slant ‘yan na ‘di maganda (They’re giving it a bad slant). But we have to be objective about it.”