Tuesday, February 14, 2006

Siocon Gets Millions In Taxes From Mining Firm

ZAMBOANGA DEL NORTE (Rock Dima / 14 Feb) Following amicable and productive discussions with Siocon Municipal Mayor Ceasar Soriano, TVI Resource Development Phils. Inc. (TVIRD) has recently advanced a total of P4.2 million in disputed taxes to the municipality that hosts the Canatuan Project -- despite referral of the dispute to the courts -- so that Siocon can better share in the economic and social benefits already flowing from the project to stakeholder communities, especially indigenous people (IP), in the Zamboanga Peninsula.

Of the total P4.2 million that TVIRD has advanced “under protest”, P1.3 million was paid last Feb 7; P1 million just before Christmas; and P1.85 million on September 20, 2005. These payments are supplementary to the P418,759.82 paid by the company in escrow to the Regional Trial Court (RTC), which is hearing the tax dispute between the two institutions.

TVIRD lawyers advise that the amount held by the RTC is the company’s correct tax liability, and not the P4.2 the municipality has assessed for the years 2003, 2004 and 2005.

In addition, TVIRD paid Siocon, also under protest, the sum of P569,265.18 representing the company’s payment for business tax for 2006. TVIRD’s gesture of goodwill has not gone unnoticed by Siocon’s top official.

“People here are starting to feel, thus, and to recognize the significant contribution TVI can offer to Siocon’s economic vision,” said Mayor Soriano.

"TVI has silently been providing employment and have without demur assisted in the maintenance of the road connecting Siocon and Roselller T. Lim town (across the Peninsula).

Undoubtedly, that road is also more secure with TVI’s security arrangements. This recent tax payment arrangement is another milestone.”

Mayor Soriano was referring to the employment by TVIRD of over 650 workers at the Canatuan Project, more than half of whom are Subanon IPs, mostly from Siocon. Apart from earning salaries and wages higher than those prescribed in the region, Subanons have also received a total of P6.5 million in royalties since TVIRD began operations in mid-2004.

This amount is expected to grow as the company pursues its expansion program. The company has been assisting the local governments of Zamboanga del Norte and Zamboanga Sibugay -- by lending heavy equipment and manpower for free -- in paving the gravel road from the project site to Siocon to the west, and to R. T. Lim to the east.

Under the same arrangement, TVIRD likewise participated in the construction of three steel bridges along this road, drastically cutting travel time and reducing costs of living with transportation and opening of markets.

The same road is now being used daily by a bus company plying the return trip between Zamboanga City at the southern tip of the Peninsula and Siocon, a previously almost inaccessible route.

The deployment by the Armed Forces of the Philippines of Special CAFGU Active Auxillary personnel -- also mostly Subanons -- in Canatuan at the request of both TVIRD and the IP ancestral domain holders, has provided a solid sense of security among residents within and around the area, long considered a conflict zone.

“Of course, we will continue to be vigilant in protecting the environment and the safety and the rights of our people," Mayor Soriano added.

“We agree with the Mayor Soriano in his concern for the welfare of the people of Siocon and for the protection of the environment,” Eugene Mateo, TVIRD President, said.

“We understand the concerns raised by our various stakeholders vis-à-vis the impact of our operations on the environment. That is why we strive to be an industry leader by taking a ‘best practices’ approach to environmental management.

"For 2004 and 2005, we have spent a total of P130 million in our environmental management and protection initiatives, and we are allocating P80 million, with a possibility of increasing to P200 million, for 2006," he said.

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