Solon seeks inquiry into acquisition of Batong Buhay Mines by formerowner

An administration congressman has asked the House good government committee to look into alleged irregularities in the acquisition of Batong Buhay Gold Mines Inc. by its former owner.

In Resolution 1404, Rep. Rolex Suplico (LAMP, Iloilo) said Antonio Tankiang has re-acquired control of Batong Buhay under highly-questionable circumstances.

During the Marcos regime, Suplico said Tankiang, then principal shareholder of Batong Buhay, defaulted on his loans with the Philippine National Bank and Development Bank of the Philippines.

The default prompted the government, through the National Development Co. (NDC), to take over the mining firm, he said.

He added that to escape charges here, Tankiang fled to the United States, where he allegedly befriended Filipino expatriates who later became prominent personalities in the Aquino administration.

The Batong Buhay owner returned to the country after the 1986 Edsa Revolution.

"He managed to regain control of Batong Buhay from the Presidential Commission on Good Government (PCGG) without the benefit of any contract," Suplico said.

In November 1988, he said Tankiang entered into a memorandum of agreement with the Asset Privatization Trust (APT) under which he agreed to pay P100 million and issue P1.5-billion worth of Batong Buhay bonds payable in 15 years in exchange for full management and control of the company.

"However, Mr. Tankiang has paid APT only P10 million out of his commitment of P100 million and P1.5 billion in bonds, while the APT continues to pay for the company's security guards, insurance premiums, back wages and other expenses which should have been paid by Mr. Tankiang," he said.

To add insult to injury, the Batong Buhay shareholder "continues to resist Batong Buhay's prospective buyers, depriving the government of much-needed revenues," Suplico added.