Trade Secretary Peter Favila has come to the defense of Michael Defensor, whose companies had signed a deal with two state-owned Chinese firms to explore the possibility of putting up a $150-million nickel processing plant in Zambales province.
Favila decried the criticism being hurled at Defensor, who had served as environment secretary and President Gloria Macapagal-Arroyo’s former chief of staff. He said Defensor was no longer with the government and could enter into business deals. “Cannot a person as a private citizen even get to conduct his own business?” Favila said the other day.
Nihao Mineral Resources International Inc. and Geograce Philippines Inc. chaired by Defensor, and China’s Jiangxi Rare Earth and Rare Metals Tungsten Group Co. signed in Chengdu in Sichuan province a memorandum of understanding (MOU) for the mining project. Ms Arroyo witnessed the signing.
Some senators have questioned the deal and Ms Arroyo’s presence at the signing. The senators said it could go the way of other Philippine-China deals that were questioned for alleged irregularities. One senator said Ms Arroyo’s presence at a business deal of her former aide showed a lack of delicadeza (propriety).
Opposition senators are calling for a probe of the MOU. Under the MOU, the companies would collaborate on exploration activities in a 35,000-hectare area in Zambales owned by Nihao and Geograce. If the project proves successful, the companies would put up a nickel smelting plant to “upgrade” Philippine nickel products.
Favila, who accompanied Ms Arroyo on her four-day trip to China where she watched the opening of the 29th Olympic Games, also lamented that the Philippines seemed to be rejecting the offers of help coming from China.
He said the agreement between the Philippine-listed company was “substantial” and he himself had checked it before it was signed. “It seems we cannot do anything that is not criticized. I feel sad that a very substantive agreement ... which I thoroughly reviewed, had to be given a . . ., I don’t know what words to use,” he said.
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