What Arroyo failed to see at Port Irene
By Melvin Gascon
Philippine Daily Inquirer
First Posted 23:28:00 08/26/2008
SANTA ANA, Cagayan – When residents of Santa Ana town in Cagayan heard that President Macapagal-Arroyo was visiting the Cagayan Special Economic Zone and Freeport last month, they thought she would look into reports of vehicle smuggling at Port Irene or into their complaints against online casinos operating in their midst.
They were disappointed.
Ms Arroyo’s lightning visit on July 31 was actually meant to brief her on the development plans of the Cagayan Economic Zone Authority (Ceza) by its chair and chief executive officer, Jose Mari Ponce.
Ceza is a government-owned and -controlled corporation tasked with converting the 54,120-hectare CSEZF into “a self-sustaining industrial, commercial, financial, investment, tourism and recreational center and free port.”
But for fisherman Severino Sanchez, 64, the national government must also address the development of the CSEZF that, he says, has started to bring misery to the people of Santa Ana (pop: 21,000).
“Santa Ana is no longer the peaceful, clean and beautiful town that we grew up with. It is now fast becoming a community drowned by the evils of progress,” Sanchez says.
The residents share Sanchez’s fears that their town is starting to deteriorate despite the so-called progress that its proponents proclaim. The developments in Santa Ana, mainly the establishment of online casinos, have brought in thousands of foreigners, mostly Chinese that, the residents say, have upset the town’s social equilibrium.
Threatened
The pristine beaches, they say, are now threatened by the improper disposal of solid and liquid wastes from these casinos.
Basic food supplies, such as rice, vegetables and fish, which used to be abundant, have become scarce, and the cost of basic commodities has risen, pushed by the huge food demand from the online gaming establishments.
The people, however, feel helpless because of the enormous powers exercised by the Ceza and its officials in the past 11 years of its operations.
Republic Act No. 7922 or the Cagayan Economic Zone Act of 1995 converts the 54,000 hectares of Santa Ana, situated at the northeastern tip of the Luzon mainland, and three nearby islands under the town of Aparri – Fuga, Barit and Mabbag.
The residents said the Ceza law was conceived, passed and implemented without their having been told about what it actually meant to them, except for one promise: development.
Unhampered growth
The birth and growth of the CSEZF was virtually unhampered, more so because even when they were struggling to cope with the sudden change of the local physical, social and political landscapes, they opted to keep quiet.
Local officials say that while they try to harmonize their functions with policies being laid out by the Ceza management, conflicts still arise. And in case of conflict, the Ceza law is almost always consulted.
Section 11 of the Ceza charter says that “[in] case of any conflict between the (Ceza) and the municipalities of Santa Ana and Aparri on matters affecting the [CSEZF] other than in defense and security matters, the decision of Ceza shall prevail.”
Some officials, who spoke on condition of anonymity, view that this provision undermines the Local Government Code, which, they say, is fatal for a town like Santa Ana.
For instance, employees at the engineering office fear that their unit has been stripped of its authority to issue building permits as the Ceza management can invoke its role as the building regulatory agency within the zone.
A case in point is the ongoing expansion of Suncity Holiday and Leisure Resort, where about 320 villas are being constructed on a four-hectare property.
Approval by the municipal building official was not sought, said an official, who asked not be identified for fear that he might lose his job.
Suncity, jointly operated by the Chinese firm Cheuk Wah Technology Leamington Orient Ltd., is one of two casino complexes operating inside the CSEFZ and hosting 43 companies with online gambling licenses from First Cagayan Leisure and Resort Corp. (FCLRC).
FCLRC is the “master licensor” appointed by Ceza for Internet gaming operations. The online gaming industry in Santa Ana has attracted 500 tourists a month and has been earning around P120 million yearly, Ceza officials say.
Delineation
Ponce, however, dismisses the view that Ceza undermines the Local Government Code.
“[The establishment of Ceza] all the more reinforces the [town government of Santa Ana] because it has become the biggest beneficiary of the development that is brought into the zone. I don’t understand why the beneficiary will have these kinds of complaints,” he says.
Both Ceza and the local government have undertaken a clear delineation of powers and functions, Ponce says, to ensure that one entity does not encroach on the jurisdiction of the other.
“We are [part of the] national government and our task is to invite international investors. We look at the overall economic development not only of Cagayan but also of Northern Luzon. The LGU primarily looks after the welfare of the local community; that’s quite very clear,” he says.
But Ponce admits that the local government has to get permission from Ceza for whatever development project it plans for the town. He says the projects should conform with the zone’s long-term development plan.
Mayor Norberto Victor Rodriguez says the local government and Ceza management do not see any conflict in their affairs in relation to the Ceza law.
“There may be some issues that may have been construed as conflicts, but sometimes these are just due to the individual actions of some Ceza personnel. These are very minor and both parties are doing some efforts so that these issues are ironed out before they get out of proportion,” he says.
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