Ex-Palawan guv Joel Reyes convicted of graft over mining permit

MANILA, Philippines — Former Palawan governor Joel Reyes was sentenced to an imprisonment of six to eight years after he was found guilty of graft by the Sandiganbayan over the renewal of the permit of a small-scale mining company found to have been over extracting mineral ore.

In a 34-page resolution dated August 29, released to the media Wednesday, the anti-graft court's Third Division said the prosecution was able to prove beyond reasonable doubt that Reyes gave unwarranted benefit and advantage to Olympic Mines and Development Corporation (OMDC) when he renewed the small scale mining permit (SSMP) of the company on April 6, 2006 despite a previous permit which was still valid and subsisting at that time.

The court said Reyes issued mining permit SSMP PLW No. 37.1 in favor of OMDC valid from April 6, 2006 to April 5, 2008 amid its existing SSMP PLW No. 37 which was valid until Nov. 3, 2006.

“Accused Reyes' approval of SSMP PLW No. 37.1 in favor of OMDC while a prior existing permit was still valid caused undue injury to the Government of Palawan,” the decision penned by Associate Justice Sarah Jane Fernandez read.

Division chairman and Sandiganbayan Presiding Justice Amparo Cabotaje-Tang and Associate Justice Bernelito Fernandez concurred with the ruling.

The court said that with the unlawful renewal of OMDC's permit, the company was able to extract additional ore, even after it had already exhausted and even exceeded the allowable limit under its existing permit.

The Office of the Ombudsman which filed the case in 2011 said the OMDC, which has operations in the towns of Narra and Española, was only allowed to mine a total of 10,000 dry metric tons (DMT) of ore for two-year period under its previous permit and in accordance with Presidential Decree 1899.

Based on the court's records OMDC, through its operations-arm, Platinum Group, extracted a total of 203,399.135 DMT from May 30, 2005 to Apr. 3, 2006 and an additional 79,330 DMT from June 2, 2006 to July 31, 2006 under the renewed permit.

“The evidence supports a conclusion that OMDC has exhausted the limits allowed by law, and that OMDC extracted nickel ore soon after SSMP PLW No. 37.1 was issued,” the court said.

The court gave no weight on Reyes' claim that he only relied on the recommendation of the Provincial Mining Regulatory Board (PMRB) when he approved the renewal of OMDC's permit.

“Accused Reyes cannot feign ignorance of the exhaustion of its privilege by OMDC…. As Governor of Palawan, his authority to approve small-scale mining permits calls for the dual role of allowing the exploration and exploitation of, and conserving and preserving the natural resources within the province’s territorial jurisdiction,” the court said.

“He chose to intentionally and willfully ignore his responsibilities and conveniently relied only on the recommendation of the PMRB,” it added.

Further, the court said it was also proven the OMDC's permit was renewed despite its use of heavy equipment in its operations in violation of Republic Act 7076 or the Small-Scale Mining Act.

The court gave weight on the testimony of then Barangay San Isidro, Narra chairperson Betty Ignacio who confirmed that from 2002 to 2013, OMDC has been using dump trucks, bulldozers, pay loaders and a back hoe in its mining activities in their barangay.

Aside from imprisonment, the court also ordered Reyes' perpetual disqualification from holding public office.

Meanwhile, the court acquitted Reyes' co-accused, former Provincial Mining Regulatory Board Technical Secretariat head Andronico Baguyo, due to insufficiency of evidence.

Reyes and his younger brother former Coron, Palawan Mayor Mario Reyes are currently detained at Puerto Princesa City Jail as suspects in the killing of journalist and environmentalist Gerry Ortega in January 2011.

Just early this year, the ombudsman also charged Reyes before the Sandiganbayan with 36 counts of graft in connection with P1.534-billion worth of alleged anomalous contracts that the provincial government entered into in 2008 using proceeds from the Malampaya gas project.

Reyes was also previously charged with graft over the alleged misuse of P3.25-million fertilizer funds in 2004 but the Sandiganbayan Fifth Division dismissed the case in May citing the “inordinate delay” in the ombudsman's investigation.