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VOL. LIII No. 72
City of Tagbilaran, Bohol, Philippines
Sunday, January 21, 2007

ADVERTISERS
FRONT PAGE STORIES
Arrastre takeover set
* Portmen seek TRO
Residents call DENR to
 stop environ destructions
FCB men's hold-upper
 shot dead
DILG yet to execute
 suspension
OPINION
Obiter Dictum
Juan L. Mercado
Sundry
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Arrastre takeover set
* Portmen seek TRO

By KIT BAGAIPO

  
 

The Philippine Ports Authority (PPA) has directed Tagbilaran port manager Raul Oblenda to implement the turnover of the port services back to the Tagbilaran Maritime Services, Inc. (TMSI) on Friday.

The order came as an offshoot of the denial of a motion for intervention and opposition by the Court of Appeals.

The motion was earlier filed by the Tagbilaran Port Workers Association (TPWA) against the compromise agreement between PPA and TMSI granting a 2-year probationary negotiated contract to the latter.

Members of the port workers group have threatened to go on strike once the takeover bid of TMSI is implemented this Friday, January 26.

The port workers' group filed at the CA an urgent motion for the issuance of a temporary restraining order and writ of preliminary injunction last January 10 on the contract of operations being entered into by TMSI and the PPA last December 15, 2006.

   

In its motion, port workers argued that the contract for operations of cargo handling services given to TMSI is "highly questionable" since the PPA, through its Assistant General Manager for Operations Benjamin Cecilio, proceeded to forge the contract with TMSI despite a pending motion for reconsideration being filed by the workers' group (TPWA) on the CA's denial of their motion for intervention last September 7, 2006.

The said motion for reconsideration has yet to be resolved by the appellate court up to this time.

Moreover, TPWA disputed that PPA's lawyer (Atty. Oscar Sevilla) "has no legal capacity to represent [the] PPA in the said contract [with TMSI]" since he (Sevilla) was already more than 66-years old on December 15, 2006 (the time of execution of the contract).

Under RA 8291, the Government Service Insurance Act and the pertinent provisions of the Civil Service Law, the PPA's counsel (Sevilla), who turned 65-years old sometime in November 2005, "was already compulsorily retired" upon execution of the contract.

The port workers claimed that the PPA should have facilitated for a public bidding as mandated in PPA Administrative Order 03-90, the Implementing Guidelines on the Cargo Handling Contract System.

TPWA, being a duly registered legitimate workers' association and a cooperative with the Department of Labor and Employment (DOLE) and the Cooperative Development Authority (CDA), have previously manifested interest to participate in the bidding as required by law and have the chance to secure for themselves said contract.

In an interview with the Chronicle, one of the port workers' spokesman Joel Rocha, said TPWA members are still hoping that the contract be rescinded and their pending motion at the CA will be decided on their favor.

Although sentiments of some TPWA members are leading to organize another strike once TMSI takes over the port cargo handling and stevedoring services, Rocha stressed they will exhaust all legal remedies in order to block the re-entry of TMSI and that their group be given the opportunity to participate in a bidding for the port services contract.

According to Rocha, their group was surprised by the recent turnaround of Gov. Erico Aumentado's stand who previously promised to stand by the port workers.

The governor announced during his weekly radio program, "The Governor Reports," last Friday that TMSI's re-entry in managing the port cargo handling services at the Tagbilaran wharf should be given a chance since the company (TMSI) has been reorganized under the leadership of businessman John Yap.

With Yap at the helm, port services would be improved and well-managed, according to the governor.

BACKGROUND

It may be recalled that PPA, through its Special Takeover Unit (STU), took over the operation of arrastre and stevedoring services from TMSI on October 2003 after the latter's temporary permit to operate was not renewed by the PPA.

TMSI filed a case against PPA for the automatic renewal of their contract, which expired on September 1998, and barring the PPA to re-bid the port services.

Under the management of TMSI, the cargo handling services at the port of Tagbilaran was besieged with complaints from port users.

The Bohol Chamber of Commerce and Industry (BCCI) even passed several strongly worded resolutions denouncing the poor services and stiff tariff rates imposed by TMSI.

They warned that the continued operation of cargo handling and port services by a single service contractor will breed inefficiency.

The business group urged the PPA to open the port services for competitive bidding.

Reacting to these mounting complaints, Gov. Aumentado, in his capacity as then Chairman of the Regional Development Council (RDC) passed a resolution strongly urging the PPA to allow other arrastre firms to provide cargo handling and other port services in Tagbilaran.

The PPA legal department issued an order to bid on August 7, 2003 but failed to push through with the bidding due to legal actions filed by TMSI.

In June last year, TMSI proposed a deal with PPA Manila to resume its management of the port services without passing a public bidding and pledged to withdraw its case against PPA with the assurance of an efficient handling of port services and guarantees the protection of employees and laborers.

Both PPA and TMSI agreed that the compromise is desirable instead of a protracted litigation. The deal also required TMSI to formulate a "business plan" including the insurance of wages and other employee benefits.

TPWA filed a motion opposing the CA's approval of the compromise agreement. TMSI and PPA Manila had both answered the opposition and had asked the CA to junk the workers' intervention which is now the subject of the pending motion for reconsideration at the CA.

TPWA READY TO BID

According to the workers' group (TPWA), they are prepared to participate if ever there is a re-bidding of the port cargo handling services. The port workers' cooperative was already assured by some local banks to support the bidding requirements, such as cash bond, while they have the capability to rent forklifts from a Cebu-based heavy equipment company.

  

 
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