Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CONGRESS First Regular Session HOUSE RESOLUTION No.

481

Introduced by Reps. TEDDY A. CASIO and LUZVIMINDA C. ILAGAN

RESOLUTION URGING THE COMMITTEE ON NATIONAL CULTURAL COMMUNITIES TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, INTO THE ALLEGED IRREGULARITIES COMMITTED BY THE NATIONAL COMMISSION ON INDIGENOUS PEOPLES AND THE MINES AND GEOSCIENCES BUREAU IN THE ISSUANCE OF A CERTIFICATE OF COMPLIANCE AND AN EXPLORATION PERMIT TO THE AUSTRALIAN MINING FIRM ROYALCO PHILIPPINES INCORPORATED, DESPITE OPPOSITION OF TRIBAL RESIDENTS OF BARANGAY GAMBANG, BAKUN, BENGUET TO THE SAID COMPANYS ONGOING MINERAL EXPLORATION ACTIVITIES WHEREAS, the National Commission on Indigenous Peoples (NCIP) issued certificates of compliance to the free and prior informed consent (FPIC) process conducted by Royalco Philippines Incorporated, formerly Oxiana Philippines Inc., as embodied in NCIP en banc Resolution 107 series of 2008 dated February 21 and denominated as CCRCAR-08-02-121, NCIP en banc Resolution 077 series of 2009 dated July 24 and denominated as CCRCAR-09-07-39 and NCIP en banc Resolution 007 series of 2010 dated January 27 and denominated as CCCAR-10-01-07; WHEREAS, on May 21, 2008, the Cordillera regional office of the Mines and Geosciences Bureau (MGBCAR), an attached agency of the Department of Environment and Natural Resources (DENR), subsequently granted an exploration permit (EP-005A-2008 CAR) to Royalco Philippines Inc. after the mining company got its certificate of compliance to the FPIC from the community of the exploration site comprising 5,241.5134 hectares; WHEREAS, the said exploration permit, according to the MGB, authorizes Royalco to explore 986 hectares (Phase I) of potential mineralized lands in Barangay Gambang, Bakun, Benguet instead of the 5,000 hectares which the company had applied for. The permit is valid for two years until May 21, 2010. The MGB-CAR renewed the EP-005A-2008 CAR on 22 June 2010; WHEREAS, the MGB-CAR has issued EP-005B-2009 CAR on 6 October 2009 covering the retained applied open/clear are of 4,255.5134 hectares. This time, 90.35 hectares (Phase II) and 1,442 hectares (Phase III)are to be explored by Royalco; WHEREAS, local residents and officials however, including Barangay Gambang chair Alvaro Paquito, and the Bantay ken Kinabaknang ti Umili a Nagtaudan-Aywanan (BaKUN-Aywanan) and the Gambang

Indigenous Community and Peoples Organization (GIPACO), oppose the mining activities, claiming that the permit issued to a mining company for exploration in their area is flawed; WHEREAS, Barangay Gambang residents maintain that the NCIP certification is flawed. They are requesting for the conduct of another series of consultations so that they could air their views on the effects of mining to the community and the environment; WHEREAS, Royalco has arrogated unto itself the government duty to provide jobs, livelihood and social services to inveigle the local people to secure an endorsement from the council of Barangay Gambang and the Bakun municipal council both requirements for the FPIC of the affected communities; WHEREAS, although a memorandum of agreement (MOA) between the company and certain tribal elders was signed, the local residents and officials argue that the customary decision-making process adhered to by the community was not followed as evidenced by the fact that the referendum held in December 2007 in connection with the exploration project was a failure; WHEREAS, the said agreement between a few community elders and company officials was signed in Barangay Bangao, Buguias town, which is outside Bakun. This deceptive action totally deprived the local community of the opportunity to be informed of the contents and provisions of the said MOA; WHEREAS, BaKUN-Aywanan and GIPACO protested Royalco's exploration in their area as they said that the results of the referendum showed that a majority vote was not attained when the referendum was held since only 745 voters, or 26.69 percent of the 2,899 voters participated, clearly indicating that Royalco did not get the approval of the majority of residents; WHEREAS, the indigenous people asserted that they prefer the so-called "green gold" or vegetable farming as their source of livelihood rather than to give up their lands to multinational companies like Royalco; WHEREAS, Royalco has used the divide and rule tactic to gain entry and start exploration activities in Bakun. Royalco mining engineer Ruben Quitoriano Sr., said in local media reports that they have paid the first year occupational fees of P73,950 to the municipality of Bakun. and promised that the company would rehabilitate and maintain the road to the barangay, develop a potable water systems, pave the Gambang Elementary School basketball court and provide a monthly allowance for two teachers and three daycare workers; WHEREAS, two years into the area, Royalco bandies about of having spent P11,901,773.75 for community projects such as road maintenance, road opening, road clearing and construction of water systems; aside from millions of pesos more in MOA- and non-MOA commitments such as medical missions, providing salaries for teachers and nurses, assisting local athletes, and even contributing to an information campaign of the local Philippine National Police (PNP). This is tantamount to systematic bribery of the community that is euphemistically branded as corporate social responsibility; WHEREAS, this raises more doubt on credibility of the procedures in the FPIC process conducted by Royalco and the concerned government agencies. Apparently, the process was irregularly secured and allegedly tainted with bribery and fraud; WHEREAS, the FPIC is not a mere a process but a basic and inherent right of indigenous peoples that entails genuine participation and decision making of the IPs that is, the right to accept or deny their consent to any project in their territories;

WHEREAS, the regional office of the Commission on Human Rights (CHR-CAR) recommended on October 26, 2009 that the NCIP suspend the entire FPIC process being conducted on Royalcos exploration permit application since the division of the Bakun ancestral domain into different phases are without legal bases; WHEREAS, the alleged violations of the FPIC process by Royalco contributes to the long-term destruction of the cultural integrity of the indigenous peoples of Bakun, Benguet; NOW THEREFORE BE IT RESOLVED, that the Committee on National Cultural Communities immediately conduct an inquiry, in aid of legislation, into the alleged irregularities committed by the National Commission on Indigenous Peoples and the Mines and Geosciences Bureau of the Department of Environment and Natural Resources in the issuance of a certificate of compliance and an exploration permit to the Australian mining firm Royalco Philippines Incorporated, despite opposition of tribal residents of Barangay Gambang, Bakun, Benguet to the said companys ongoing mining exploration activities. Adopted,

TEDDY A. CASIO Bayan Muna Party List

LUZVIMINDA C. ILAGAN Gabriela Womens Party