Advocates for Filipino seafarers are up in arms against the Maritime Industry Authority and its officials and board members for the alleged dubious approval of a memorandum circular that violated certain provisions of an executive order issued by then President Gloria Macapagal Arroyo in a bid to encourage investments in the domestic shipping industry by providing investors with incentives.
The United Filipino Seafarers through its president Nelson Ramirez denounced Marina and its officials for alleged grave abuse of authority and violation of the law against graft and corruption for their “questionable approval” of Marina Circular 2015-04 or the rules and regulations to implement EO 909 issued by Arroyo.
The EO states that ship owners and operators shall be encouraged to introduce International Association of Classification Societies (IACS) classed brand new or newly constructed vessels that are appropriate and suitable to the weather and sea conditions of the archipelago for the purpose of transport and improved quality of services; grant of Pioneer Status wherein public interest and public convenience shall be served by granting all existing and new ship owners and operators in the domestic trade; incentives; priority in Issuance of Certificate of Public Convenience (CPC); route protection; provision for special ramp/berth facility; and exemption from Value-Added-Tax and other Import Duties and Taxes pursuant to R.A. 9295 and Memorandum Order No. 299.
UFS said that the EO was premised on the Investment Priorities Plan (IPP) of the Government for 2009 which identifies the water transport sector as preferred area of investment and an efficient and modernized water transport industry as key to the growth of the national economy on a sustained basis.
Ramirez furthered in his complaint that the respondents have granted MC 2015-04 to three applicant domestic ship owners.
He said that ship owners operating brand new vessels but IACS classed and those operating second hand vessels have been relegated to the sidelines and treated like “second class citizens.”
He added that in approving MC 2015-04, respondents clearly committed Grave Misconduct, Grave Abuse of Authority and Conduct Prejudicial to the Best Interest of Service and violation of Section 3 E of the Republic Act 3019 or Anti-Graft and Corrupt Practices Act, when they disregarded some provisions of Arroyo’s EO, and granted the “Pioneer Status” to the three domestic shipping companies, which is not their duty anymore.
“Perhaps respondents overlooked that the duty to prepare the annual Investment Priority Plan [IPP] belongs to the Board of Investments, the same government agency tasked to accept and evaluate applications for registration to avail incentives under EO 226 in relation to Section 1 of 909, and the same agency to grant “Pioneer Status” with the corresponding incentives and tax holidays to registered business entities and enterprises,” Ramirez said.
Based on the complaint’s Arrogation of Authority, it said that “MC 2015-04 authorized MARINA to grant “Pioneer Status” to brand new IACS classed vessels notwithstanding the absence of such authority under EO 909.
