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    DENR leads the way

    When it comes to fighting corruption and upholding transparency and accountability, it’s the Department of Environment and Natural Resources (DENR) that’s way ahead of other government agencies.

    That’s the verdict from the World Bank, which conducted early this year a review of the DENR’s National Program Support for Environment and Natural Resources to ascertain how the agency has complied with procurement reforms initiated by the Government Policy Procurement Board.

    The World Bank review team found the DENR to have the highest rating of compliance among six agencies. It cited the agency in five areas: adoption of anticorruption and transparency measures, creation of an internal audit service, creation of a procurement unit, inclusion of civil-society representatives in bids and awards committees and posting of procurement opportunities and contract awards on the government online site.

    The World Bank specifically cited the DENR for the quality of notices and related documents published, registration of all suppliers or bidders, online downloading of bid documents, identification of participating bidders, contract awards posted and average period of posting awards notices from closing date.

    Understandably, Environment Secretary Lito Atienza is glad that his department has been cited by the World Bank as the most transparent and accountable government agency in the procurement of goods and services.

    But the Environment secretary says that while internal reforms at the central level are a good start, he wants the reforms to filter down to the bureaus and field offices.

    To demonstrate his resolve to stop corruption in his department, Atienza recently canceled a scheduled bidding for the development of a prime real-estate government property in Fort Bonifacio. In stopping the bidding administered by the National Mapping and Resource Information Authority, an agency attached to the DENR, Atienza said the property was grossly underpriced and the proposed land use was questionable.

    Recall that environmentalists registered their strong opposition to the appointment of Atienza as DENR secretary early on. But it looks like he is proving his critics wrong by taking firm steps to curb corruption. We can only hope he succeeds in his job, because the environment is too important to be left in the hands of incompetent and crooked bureaucrats.

    Bitter family feud

    When a family-owned corporation succeeds in the business but the family parts ways later on, expect the legal dispute to be prolonged and bitter; as what’s happening in the case of Gonzalo Laboratories, makers of Green Cross rubbing alcohol and Zonrox bleach.

    The company was started in 1952 by Co Ay Tian, an immigrant from China, with a starting capital of only P17,000. He named the firm for his eldest son, Gonzalo, according to Chinese custom, emphasizing that it was family-owned and not his alone. Business picked up in the 1960s and 1970s, and Gonzalo was joined by his siblings in running the company. In 1971 Gonzalo Laboratories was incorporated, using the assets of Gonzalo Laboratories as the principal source of funding for the new company. In December 1986 Gonzalo Co sold his 17.5-percent shares of the family corporation stocks to his siblings. The sale was worth P87,400 covered by a deed of absolute sale signed on December 19, 1986, in Parañaque, Metro Manila. That same month, the company reported to the Securities and Exchange Commission the shareholdings as follows: Anthony Co, 18.2 percent; Ang Si, 18.2 percent; Joseph Co, 21.2 percent; Mary Co, 6 percent; Peter Co, 21.2 percent; and Co Ay Tian, 15.2 percent. In 1989 Gonzalo Laboratories was renamed “Green Cross Inc.”

    In August 2006, however, Gonzalo Co claimed he owned the company 100 percent and merely entrusted the shares to his siblings under the principle of “implied trust.” In December that same year he filed a sworn affidavit with the Department of Justice (DOJ) against Green Cross Inc. for allegedly defrauding him of his shares of stock. Justice Secretary Raul Gonzales directed the National Bureau of Investigation to conduct an investigation. In January this year the DOJ issued a resolution charging the owners of Green Cross with estafa and recommending further investigation of the allegations. The DOJ, however, sided with Green Cross Inc., saying Gonzalo Co effectively sold his shares to the family corporation and there was neither deceit nor moral duress involved.

    Talk is rife that the DOJ might probe possible money laundering by the Co family following the filing of estafa charges against them. But the lawyers of the family claim the DOJ cannot start a probe of money laundering charges unless estafa has been proved. This, it is feared, would only leave the Co family open to harassment.

    But the main issue here is whether Gonzalo Co really owns Green Cross Inc. as he claims. Without any proof of ownership, such as stock certificates, his legal battle would be something worth watching.  

    E-mail: ernhil@yahoo.com

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