(The author could have
conveniently avoided getting involved with this issue because he was JGSPC’s
Community Relations staff from Sept. 1998 to July 2000. But a conscientious
citizen cannot just abrogate his duties to country and community just because
he was a former employee. Notwithstanding the fact that JGSPC has never paid
his earned/pro-rated 13th month pay for Jan-July 2000 plus last pay
until now, despite the fact that he had
no liabilities or unsettled obligations with the company when he resigned).
How can you trust mega billionaire Gokongwei to do business in our community?
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| Facebook Photo |
When I joined JG Summit
Petrochemical Corp. (JGSPC) Simlong Plant in 1998 (same year it started
commercial operations) until I left in mid-2000, I can say that I had no
remorse because my work with them at the time and the company’s efforts to
reach out to the communities was fairly a good practice of Corporate Social
Responsibility (CSR). Back then, there was no law mandating it to undertake
community development, but it did just the same, providing Barangay Simlong
with infrastructure and social services (barangay hall, ambulance, medical
missions, livelihood projects, etc.) Some of these assistance extended to the
barangays along the road from the last concrete part then (near Shell
Tabangao) leading to Simlong, including
the Pinamucans (Ibaba and Proper).
At the time, consulting with
local leaders was a regular activity with my immediate superior, Rene Casas
(something that is missing now, so I heard).
Among the major contributions it did was paving for the electrification
of Simlong and the coming of telephone landlines (Digetel). Our participation to City events was
something the LGU looked forward to. On
Christmas holidays, I would deliver boxes of Universal Robina Corp. products
(Jack & Jill, Nova, etc) and wines to public officials. As much as we
could, we avoided giving money as gifts (except for certain situations, which
is a highly management prerogative).
Unfortunately, however, the
good practices seemed to have dwindled, if not vanished slowly over the next
years to the point that JGSPC seemed to have become oblivious of the growing
negative sentiments of its communities. Broken promises such as compensating
for damaged tress and crops in the course of its clearing operations were just
simply forgotten or ignored. The company officers have gone confident of their
stable standing in the community, neglecting the very core of community
relations.
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| JG Summit Complex includes the beach (google photo) |
According
to its website, JG Summit Petrochemical Corporation (JGSPC) is the pre-eminent
world-class manufacturer and supplier of polyolefin products in the
Philippines. It is the first and only integrated Polyethylene and Polypropylene
resin manufacturer in the country, producing the Evaleneâ brand of High Density Polyethylene (HDPE), Linear Low
Density Polyethylene (LLDPE) and Polypropylene (PP).
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| Kristine Balmes FB photo |
The Company is a core subsidiary of JG Summit Holdings,
Inc. (JGSHI),
one of the largest business conglomerates listed in the Philippine Stock
Exchange. JGSHI has substantial interests in property development, hotel
management, textiles, banking and financial services, telecommunications,
petrochemicals, air transportation and power generation. In addition, JGSHI has
significant interests in other sectors, including printing, and packaging.
Clear
and imminent danger
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| Flaring by day |
Coal accounts for 40% of the
world’s electricity supply, but the trend is now veering away from coal and
towards more environmentally-sound technologies such as biomass, natural gas,
solar, wind and other forms of energy.
The reason: JG Summit Olefins, a JGSPC sister
company owns the country’s first naphtha cracker facility in the same JGSPC
complex in Simlong and needs power, and by building a coal-fired power plant
worth $800 million, it will be able to sustain the operations of its naphtha
cracker plant to primarily produce polymer grade ethylene and propylene, which
will be feedstock for the polyolefins plant.
Economically
speaking, this will concentrate the entire process in one complex, with less
importation expenses and greatly boost the Gowkongwei plastics business. They
will no longer need to import their feedstock or rely to suppliers in Bataan,
This explains why,
that among the many businesses of John Gokongwei, the Batangas-based business is
slowly becoming a flagship. Gokongwei is listed as the world’s 254th
richest man, and 2nd in the Philippines this year by the Forbes Magazine. His net worth is US $5.5-B or
roughly 254 Billion Pesos.
Business track record
However, a series
of reputation damaging incidents occurred, including being cited by the
DENR-Environment Management Bureau for violating environmental
standards, leading to the release of foul odor and black smoke that affected
nearby villages. (Rappler.com)
A Notice of
Violation was issued and EMB is supposed to conduct an in-depth investigation
that would include requiring the explanation of JGSPC.
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| Facebook Meme |
Black smoke and
noisy glaring flare was seen from its stack and EMB admitted that “when the smoke is black, it's bad because
anything black is unburnt. The combustion process was not completed. This means
a release of hazardous compounds that may have a long-term impact on people.”
This can be seen as far as the communities in Verde Island, just
opposite the mainland.
Aside from noise, nauseating odor caused people to experience dizziness
and stomach pains. Some complain of lingering cough.
But
the woes of the Gokongwei business is not limited to Batangas. In Negros
Oriental, environment
authorities suspended the operations of an ethanol plant of Universal Robina
Sugar Milling Corp. (URSMC) after finding that its untreated wastewater caused
fishkill that economically dislocated 200 fishing families in Bais City and
Manjuyod. As a matter of fact, it was fined P350,000.00for violating its environment compliance certificate (ECC).
A minimum of P 50,000.00 is usually imposed by
MGB for each ECC violation, but people would ask, if that is enough for the trouble
these plants create. Although, alternatively, because social acceptability is
now a mandatory pre-requisite, affected communities can petition to either shut
down or relocate the plant operations.
