The idea behind PMDC was that it would manage the mineral resources in the Mount Diwalwal gold rush area in Mindanao and then offer shares of the company to the public to generate funds for the operation.

Around P50 billion worth of gold may lie in just a part of the 7,000-hectare Diwalwal reservation. Copper and other mineral resources are probably also discoverable in the area.

According to the plans, the government-owned Development Bank of the Philippines and Land Bank of the Philippines would act as financial advisers to PMDC. While the government has no business going into gold mining itself, there is probably no better way of putting some discipline and sense in the tapping of Diwalwal’s ore deposits.

In the 1980s, about 30,000 people engaged in illegal small-scale mining in Diwalwal. Large mining companies were also reported to have claims on parts of Diwalwal. This caused a lot of conflict between the large mining firms and the small-scale illegal miners.

The Supreme Court later ruled that mining in the Diwalwal Mineral Reservation Area was within full control of the executive branch of government. An estimate of the Diwalwal property is that its ore is good for some 20 years of very profitable gold mining,

But what has the PMDC done? Not much; in fact, the main activity of the PNDC seems to be engaging in internal and petty squabbles.

President Gloria Macapagal-Arroyo probably chose the wrong person for the job when she appointed former Senator and former DENR Secretary Heherson Alvarez as her "minerals czar" and as chairman of PMDC.

Although, Heherson was her first DENR secretary (from 2001 to 2002) and Alvarez was also Agrarian Reform secretary when marching peasants were gunned down on Mendiola Bridge during the Cory Aquino presidency, he has always come across as someone with a personal agenda beyond public service.

In fact, when he was dismissed as Gloria’s DENR secretary, she did this at a business conference where her totally unawares DENR secretary was seated right in front of her in the audience

Lately, Alvarez caused the President more troubles. The President made him chair of the Philippine Mining Development Corp. (PMDC) in July last year to promote mining in the Philippines as a result of a Supreme Court decision upholding the Mining Act.

But Alvarez has spent his time consolidating his powers rather than promoting PMDC.

Alvarez earned the ire of his colleagues and fellow workers at the PMDC after an underling misled Mrs. Arroyo into believing that the PMDC had designated Alvarez as the PMDC chairman also as its chief executive officer (CEO) in a concurrent capacity.

As a result of this, PMDC’s loan application with the Development Bank of the Philippines (DBP) for the Mount Diwalwal project was turned down by the DBP. Current correct corporate practice forbids a chairman from also being CEO. The reasoning behind this is based on the belief that an effectively independent board is a shareholder’s best protection. Separating the roles allows the chair to check up on the CEO, and in turn the company’s overall performance, on behalf of the stockholders. Separating the roles also allows the CEO and chairman to focus on different, equally vital aspects of the firm’s performance.

Now, because of Alvarez’s power grabbing, the main point for setting up the company may have been stymied.

PMDC used to be with the DENR. The President transferred this to her office with the idea of overseeing the operations of this important GOCC herself. After the DBP’s refusal to grant the PMDC a loan because of Alvarez, Gloria transferred PMDC back to the DENR.

With the President transferring PMDC back to the DENR, perhaps there is no longer any need for an independent chairman. Let DENR Secretary Lito Atienza take this and give the CEO post back to the President who should have been the proper CEO, in the first place.

Eleuterio Tuazon, GO labor president, said Mrs. Arroyo should put Alvarez on top of the Palace’s list of 20 or so presidential appointees to be sacked for various reasons, ranging from irrelevance to incompetence to dishonesty.

Tuazon noted that Alvarez has become a great liability to the President since his appointment as environment secretary that she had to fire him. A few months back, he added, Alvarez, then a director of a private bank, tried to draw salary and per diem from the bank, despite his appointment to the PMDC board and the prohibition against simultaneous appointments both in government and private corporations.

Tuazon says that he is on the lookout for what Alvarez will do next to further embarrass the President.

***

We have a letter in reaction to my column citing the impossibility of the "Hello. Garci" incident being investigated by the Comelec because no one has filed a formal complaint with the Comelec:

"Last year when Rex Borra was interviewed on TV saying Comelec cannot act on the Hello Garci controversy since no complaint was filed with the Comelec, I immediately filed a Complaint-Affidavit dated March 6, 2007 wherein I raised the sole issue of whether the Comelec, on the bases of Exhibits "A" to "J", should investigate the respondents (Garcillano and GMA) for election frauds, offenses and malpractices in accordance with its duty under Section 2, Article IX-C of the 1987 Philippine Constitution. Since the time of filing on March 6, 2007, Comelec has done nothing in response to my complaint, or a period of 11 months of OFFICIAL INACTION. My complaint is under oath, duly supported by evidence within public knowledge and duly filed with the Comelec’s Law Division. Therefore, it is not correct to say that no one has brought the matter to the official attention of the Comelec.

With best regards from among your avid readers and fans," – Alan Paguia

"PS. Here is the List of EXHIBITS I submitted in support of my Complaint:

"A. Rep. Francis Escudero’s privilege speech, dated June 8, 2005

"B. GMA’s "I am sorry" speech, dated June 27, 2005

"C. Atty. Lozano’s Complaint, dated June 27, 2005

"D. Supplemental Complaint, dated June 28, 2005

"E. Resolution of Endorsement, undated

"F. Verification of Endorsement, dated June 29, 2005

"G. "Hello Garci" CD, 36-minute recording

"H. Subpoena duces tecum, dated June 30, 2005

"I. Letter of Invitation, dated July 4, 2005

"J. GMA’s answer ex abundante ad cautelam, dated July 18, 2005

***

Okay. So now we know that there was at least one complaint, which the Comelec never acknowledged or acted on.