TRANSCRIPT OF INTERVIEW OF SEN. SERGE OSMEÑA
Kapihan sa Senado

MRT/LRT issues and Water Rate hike

As vice chair of the Senate Committee on Public Services, are you going to hold hearings on both?

Serge: Wala pang resolution. As a matter of fact, hinihintay lang natin kung mapa-file 'yung resolution at mag-schedule po tayo ng hearing.

'Yun po sa MRT issue, inumpisahan na iyan ni Sen. Grace Poe last year. So dapat ituloy niya na po iyon sapagkat konektado po iyon. I think she was only able to conduct 1 or 2 hearings, and this thing needs to be resolved. Nakikita po natin na during the budget hearings, kinwestiyon ko at pina-cut successfully iyong P53 billion na hinihingi ng DOTC para bilhin yung economic rights, 'yung sa MRT3 bonds. We were successful in having the Committee on Finance cut the P53 billion sapagkat kalokohan iyong hinihingi nila.

Ngunit we have pointed out to them that the P53 billion, even if given to you, will not give you the equity rights. Basic sa lahat ng korporasyon na the one who owns the common stocks is the one who controls and owns the corporation. At sabi nila, 'hindi, kaya namin iyan." I said, 'Hindi niyo kaya iyan. Nandito nga ang may-ari at sinasabi nila na you have to negotioate with him. Kaya you have been in court in arbitration in Singapore since 2008 because you cannot resolve that issue. Ngayon, kung wala kayong pera at hindi niyo sila babayaran, hindi kayo magne-negotiate, it would take another 10 years before we will be even able to resolve this. At sa ngayon po, nakikita po natin na, well in-admit naman nila, inamin nila, that private sector manages better than the government. At least, that's one of those few admissions that we have heard. Ngunit they have been managing the MRT for 3 years, since 2011 yata, nung tinapon nila yung mga maintenance providers SUMITOMO and as a matter of fact, it got worse. They have just been proven that the private sector can manage things better. However, nandito na naman po sila where they insist on managing the MRT and raising rates.

Hindi namin maintindihan bakit ganun. At ikalawa po, sa budget ng 2015, inaprubahan ng Senate finance committee about P13 billion for both assistance to LRT and MRT. Nakalimutan ko kung ano division iyan, how much would go to LRT and how much is going to MRT. But hindi nila sinabi samin na magre-raise din sila ng fares. Magiging doble ang income nila. Kawawa naman ang mga customers. Pinagbigyan na nga namin na, 'okay if this is what you are going to need to bring back to a condition that is safe to the riding public, we will give it to you.' But the minute that we have approved it, wala pang 2 weeks, they announce that they are raising rates. So we will have to ask them. Sen. Grace Poe's hearing it. We will have to ask them, 'pakita mo naman 'yung finances mo. San mo i-a-apply itong extra funds?' Ang excuse po ngayon ng administration, gagamitin namin ito para matanggal na ang subsidy ng MRT, or at least ma-minimize na ang subsidy na ibinibigay ng gobyerno sa MRT para naman magamit nila ang pondo dun sa Bisayas at Mindanao. Okay naman po iyon, pero bakit hindi naman po sinabi samin nung nagkaroon kami ng hearing sa budget ng MRT? So, these are some of the issues that we feel have been quite deceiving or deceptive.

Talagang highly questionable iyong fare hike?

Serge: Para sa akin, opo, very questionable sapagkat hindi transparent po. Sana sinabi na nila in advance. Number 1, sana nag-conduct sila ng hearing. The Senate would have been willing to help the public in obtaining information in order that the DOTC would be able to justify the fare hike. Ito po ang sasabihin ko, talagang mababa ang fare ng MRT, it has hardly been raised I think in 12 or 13 or 14 years. Tama po iyan. Ngunit, sina-subsidize naman po iyan ng gobyerno. Kapag nakatanggap sila ng subsidy pagkatapos they will turn around and say that they are raising the fares, why did they ask for the subsidy in the first place? Iyan po ang sinasabi ko.

Number 2. Mali ang timing nila. Politically, it was a bad move. Economically, it was a good move for them, they are getting additional funds. But politically, napakasama po, because the service of the MRT is getting worse, instead of getting better. Nakikita ng mga tao, ano pa ang gagawin nila dito? The more they manage, the worse they get, the worse matters become. These are things that boggle the mind.

Kailangan magpaliwanag ni DOTC Sec. Abaya and justify the fare hike?

Serge: Talaga. Siyempre. Dapat i-explain niya sa publiko kung saan pupunta 'yung pera. At bakit ginawa niya ang ganun, na parang binola niya ang Kongreso na kailangan namin ng assistance, pagkatapos he turns around two weeks later and announce, 'we are raising our fares." Tapos Number 3, we want to know bakit may lack of transparency with the public? Hindi naman sila nagpatawag ng public hearing. Meron akong nabasa na they already conducted a hearing in 2012 or 2013... excuse me ?

May nagsasabi na kung niloko ang public or ill-advised ang pangulo, dapat may mag-resign or sibakin sa puesto?

Serge: Well, matagal na akong nagko-complain diyan sa liderato ng DOTC. And not only because of the MRT, although the MRT is one of the bigger example because it affects about 550,000 to 600,000 riders everyday. That's a lot of riders, that's a lot of Filipino citizens na naapektuhan diyan. But I also complained about Terminal 1 sa airport... 5 years na po at hindi pa inaayos iyong Terminal 1. Sinasabi ko nga po, kung banyo lang, siguro hindi naman tatagal ng 6 months. Parati silang may dahilan, may excuse kung bakit hindi nila naituloy, but every year, when the list comes out, NAIA comes out in the list. Akala ko one of the flagship programs of the administration is to make our tourism sector one of the most vibrant, if not in the world, then at least in Asia. Paano ito mangyayari when every year, we're always the champion worst terminal, or at least in the top 10. There has been many other instances, like LTO, LTFRB, bus problems, napakarami po. Mukhang hindi nila kaya eh. Sabi ko, kung hindi mo naman kaya, mag-step down na kayo. Ngunit, alam niyo, ang ating President, kapag KKK ay ayaw tanggalin. We've had several instances, like this morning na-headline si Secretary Alcala, I think one year ago I already asked for Alcala's resignation, and they still maintained him in place. So, what else is new?

ON SECRETARY ALCALA

There are allegations of corruption against him. May blessing daw niya ang pagbayad ng P200M sa Bureau of Plants Industry in exchange for import permits?

Serge: Alam niyo, matagal na iyang kalokohan ng import permits kaya ayaw na ayaw ko na magkakaroon ng mga ganya. Iyang import permits, that was not sanctioned by law. And when we passed the Tarification Act [Tarification refers to the replacement of quantitative restrictions on imports with their estimated tariff equivalent - Source Publication: The OECD Economic Outlook: Sources and Methods] in 1997, in consonance with our commitment the World Treaty Organization (WTO), okay hindi na tayo magkakaroon ng quantitative restrictions kasi before that po, Congress passed into, in the 1950s and the 1960s, absolute ban on importation of garlic, onions, and others, about 7-8 agricultural products. Under the new WTO Treaty, the Uruguay round, we promised hindi na tayo magkakaroon ng quantitative restrictions, magta-tariff na lang tayo. So, we threw out all those bills, and sinabi namin na, 'okay, nasa tariff na iyan.' Magkakaroon tayo ng import tax or whatever, depende sa goods that would be imported. Ngayon, nakita ko na by 1999 na may bayaran na dun, na hindi makakapasok ang onions dito kung walang import permit. Sabi ko, why do we need an import permit. Eh kasi may phytosanitary measures, iyon ang dahilan, iyon ang ginagamit nila, 'we have to check the onions, the garlic.' So that was there. And that was where the kalokohan started.

That's been going on for 15 years, ever since that started.

Do you believe na may blessing ni Sec. Alcala?

Serge: Ah, oo. Lahat iyan may blessing ng secretary, iyan ang nagpapatakbo eh. Magsumbong ka lang sa secretary mahuhuli agad iyong nag-i-issue ng import permit, particularly the Bureau of Plants Industry. So, yes.

This is not the 1st time na nadawit ang name ni Sec. Alcala. Sa tingin ninyo ano ang dapat na gawin ng executive?

Serge: I think he should be suspended, at least while investigations are going on. But that's up to the Ombudsman siguro.

ON WATER RATE HIKE

Water rate hike as part of FCDU dahil tumaas ang dollar vs the peso, pero meron din daw dapat na bayaran sa atin?

Serge: Hindi ko alam ang specifics... pero na-decide na ito ng International Chamber of Commerce, the arbitration group that is tasked under the contract, may kontrata iyan na in case na magkaroon ng dipersensya, we will go into arbitration instead of going to court. But going to arbitration is almost like going to court anyway. Naka-decide na ang ICC na panalo ang Maynilad so we have to obey, under the terms of the contract.

Certified iyong rate hike na in-approve ng MWSS?

Serge: The International Chamber says its justified, and so if they say it's justified, wala tayong magagawa diyan.

May pin-file si Sen. Trillanes na resolution calling for a Senate inquiry into the rate hike?

Serge: Tinatambakan niya kami ng hearings ? Certainly, we have to obey, if the resolution is approved, we have to check into the rate hike. Although I think the Senate can do anything to reverse that kasi kontrata iyan eh. Being familiar with such long-term PPP contracts or BOT contracts, we have to think of our reputation also as a nation na hindi lang puwede palitan na because we disagree with certain provisions that we agreed to 10-15 years ago. The stability of our investment policy rests if we are able to obey the terms of the contracts that we agreed to when that contract was signed.

Sen. Trillanes is claiming na nagkaroon ng ruling ang MWSS na dapat pa nga ay i-rollback ang singil ng tubig so bakit ngayon ganito?

Serge: Again, I am not familiar with the specifics. Ang sinasabi ko lang po ay I know that, under the terms of the contract, there's an arbitration clause, the arbitration says that we will go to International Chamber of Commerce, and I think that this is the one in Singapore, which was also the same venue that PIATCO, the builder of Terminal 3, went to, ran to, when it sued the Philippine government for about $600Million. At natalo po sila dun. What the ICC of Singapore decides, becomes law in our country, parang Korte Suprema din po iyon. Dahil nag-agree po tayo. Kung hindi po tayo nag-agree, siyempre hindi natin papansinin ang sasabihin ng ibang korte sa labas ng Pilipinas but since we agreed that the ICC and the ICSID, the International Committee for the Settlement of Investment Disputes, if they say that that is their finding, we have to abide by that.