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EDGEDAVAO Serving a seamless society
ARAW NG DAVAO SUPPLEMENT
DAVAO CITY:
80 years in the making (1937-2017) By Antonio V. Figueroa
Though the Ameri(Editor’s Note: As a fitting gift to Dabawenyos and others who care to know, Edge Davao presents this incisive and factual article by Antonio V. Figueroa, researcher, historian and author, on cans introduced secular the saga of Davao as Mindanao’s premier city.) education and Protestantism, the United States and EFORE Davao’s elevation to cityhood, it had 88 years (1848-1936) of ex- Spain’s perspective on the perience made complicated by two colonial periods with conflicting views Moro and tribal opposiof the region’s potentials. The Spaniards, focusing mainly on proselytiza- tion to foreign domination and Catholic catechism, left little in terms of developing administrative tion was similar. Without skills in running the pueblo. Piety, more than management ability, was prior- enough superior fireityzed. In education, memorization was more prepared than critical thinking. power, Spain failed to con-
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trol the Moros while the US was unable to contain the struggle for self-autonomy of the Moros, which resulted in genocide and mayhem. The same colonial perspectives were also introduced in Davao town, differing only in their approaches.
Under US rule, the city’s economy was under foreign control. This was so because the colonists adopted a capitalist policy that allowed any enterprise with money to invest. With the creation of the Com-
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monwealth preparatory to the granting of Philippines independence, power, transport, pier, and communication became tools of progress that hastened the city’s growth. What triggered the creation of Davao into a city was attributed to the increasing Japanese influence in the local economy. As the world demand for abaca grew, so were the profits of the Japanese who held lands through dummies. Conscious the trend would make Davao the milking cow of aliens, Davao Rep. Romualdo C. Quimpo, on March 16, 1936, filed House Bill No. 609, which sought the creation of Davao as a chartered city. It was later passed and signed into law by President Manuel L. Quezon as Commonwealth Act No. 51. Ruins and liberation (19371947) Though the first mining venture in Davao started as early as 1933, Mineral Exploration and Development, a pioneering firm, launched its initial exploration a year earlier. This was followed by Davao Gold Mine, with original claims of the Hijo area, which started gold production in 1940, a year before World War II broke out. The arrival of war negated the city’s improvements. Commercial areas were flattened, roads linking to interior regions were eviscerated by aerial bombs, power supply was totally wiped out, population centers devastated, and nearly every trace of a city on its way to becoming an economic leader in Mindanao disappeared. With the last smoke of conflict gone, Davao Light and Power Company, Inc., despite its flattened structures and damaged machinery and equipment, was revived in 1946. The Aboitiz family took over as new owner from its American investors. This was the first positive sign the city was slowly dusting off itself from the nightmare of war that literally destroyed its central business district as well as the population centers in the countryside. Rise from the ashes (19481957) In the next few years, the national government, in an effort to bring back normalcy to the lives of veterans and those who lost their loved ones in the conflict, opened Davao region, in particular, to migrants, and allowed logging, which was instrumental in opening jobs and increasing tax revenue for the local government. On the side, the distribution of alienable and disposable lands saw the influx of migrants and, by extension, the strengthening of the informal business sector
The consequence of insurgency in Davao City was devastating. Business, some of them victims of rebel extortions, transferred location, and entrepreneurs who feared for their lives resettled elsewhere. Even the usually vibrant and resilient nightclubs, had their share of deflation which, in some cases, translated into prostitution for the displaced women. Job placements were sparse, and the entry of new investors which catered to the manpower sector. Mining did not return until 1955 with the operation of Samar Mining Company, which harvested gold from its Masara mines. Later, North Davao Mining Corporation joined the Hijo exploration. More ventures later participated in the mining industry, capped by the future discovery of the Diwalwal gold rush. The rise of mining was significant on two points: first, the companies sourced for their industrial needs from suppliers in Davao City; and (ii) the gold rush that affected Compostela Valley encouraged the Bangko Sentral to open a branch in the city. During this period, the revival of the abaca plantation also took a positive turn. Demand for the hemp cord in the world market was on the rise, especially for maritime and naval uses. To consolidate his interests, Don Antonio Floirendo Sr. founded the Tagum Development Corp. on December 20, 1950. Two years earlier, on April 14, 1948, he established the Davao Motor Sales to address the automotive needs of the city. Also in 1948, the San Pedro Hospital was opened under the management of nuns. Five years later, Apo View Hotel, owned by the Pamintuans, became the first high-rise billeting facility in the city. Indonesia, on December 17, 1953, opened its consular mission in Davao City, focusing mainly on trade and economic engagements. The positive atmosphere that followed the city’s liberation also saw the rise of new Filipino entrepreneurs who invested in schools, radio broadcasting, and newspaper publication. It was from this period that the oldest media outlets (dxAW, Mindanao Times, and Mindanao Mirror) and post-war educational institutions (Mindanao Colleges, Rizal Memorial Colleges and San Pedro College) were founded. Other economic disciplines later joined the investment bandwagon. Rise of establishments (1958-1967) During this period people were introduced to names like Vergara Food Products (deal-
er of retail monosodium glutamate or vetsin, which also excelled in repacking sundry products for distribution to rural areas), NAMARCO (National Marketing Corporation), NARIC (National Rice and Corn Administration, the forerunner of National Grains Authority), and Luc Tian Restaurant (an iconic Chinese resto at Santa Ana street). Mall-type establishments also sprouted, which gave Davao residents stores like Me Hang Supermart (where Avon is at C. M. Recto Street), the four-story Magno’s Department Store Usa Department Store (with its iconic deer logo), Mahunit Department Store, Lima Department Store, Lila Department Store, Davao Superette, Gift Mart, Three Sisters, Tung Chong Grocery, and Farmacia Pascual, to name just a few. Gobbled in the 1964 conflagration that reduced blocks of San Pedro street and Magallanes street into ashes, the largest fire in local history, included movie theaters Lyric, Universal and Gems, Liberty Barber Shop, Vera Cruz Hotel, Brokenshire Hospital (where new Grand Men Seng Hotel now stands), and Loleng’s Refreshment Parlor. More significantly, the decade also saw the development of San Pedro, Claveria (now C.M. Recto), and Oyanguren (now Magsaysay) streets as an expanded central business district, including sections of Monteverde and Tomas Claudio (Quirino) streets. Adding positive impressions to the city’s growing economy were the rise of numerous hotels and new sectarian institutions managed by religious congregations. The decade will be re-
membered as the time when interest in banana appreciated following the collapse of abaca hemp in the world market after the invention of plastic-based cords. Investors scoured Compostela Valley to engage private landowners to enter into long-term contract with them, triggering a rise in the cultivation of once-abandoned lands into banana plantations. As population grew and the economy started to show positive indicators, public works and infrastructures provided an added boost to the city’s growing trade and commerce. Some of the local politicians, using their connections and clout, were also instrumental in bringing to the city a bigger share of the national budget. The first long-haul planes did not arrive in Davao City until May 6, 1966. Philippine Airlines introduced in Davao its twin-engine BAC 111, which were also used for inter-regional flights. This was the go-signal the city was now going international. Plantations and military rule (1968-1977) The rise of banana plantations in Davao region also became the backbone of insurgency in some places. Although the activists focused their ideology more on socio-economic issues that dated back to the early postwar years, especially agrarian reform concerns, the abuses committed during the Marcos regime became the wick that drove anti-government sentiments in the countryside. With the involvement of student leaders from state universities, the struggle to bring down the government became emotional.
was deterred by the unsettling peace and order. Still, Davao City’s economy survived as it remained the central warehouse for commodities needed by people coming from the provinces, especially canteens feeding the basic commodities of the laborers. Even the rebels used the city as center of procurement on top of being transformed into a hotbed of insurgency. The rise of retail stores was observable given its role in a consumerist’s society but it was only this sector that thrived mostly because they were spared from the ‘revolutionary taxes’ imposed on flourishing industrial firms. Of course, the establishments which made Davao City their permanent hosts continued with their usual activities. Within the city proper, their stability against threats was secured by the presence of law enforcement agencies. After all, the rise of insurgency affected mostly areas known for their informal settlers and in predominantly. Things, especially in business and investment, were not steady. Alsa Masa and gold rush (1978-1987) With the fall of despotism, there were significant political events that eventually resulted in the rise of popular advocacies against the Marcos administration. Aside from convening of the regular Batasang Pambansa in 1978, the government lifted martial law in 1981, and called for a snap election in November 1985. But there were three other important developments that
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impacted the social, economic, and political fortunes of the city. With the rise of Alsa Masa, an anti-communist movement, public trust on the government appreciated. Known safe houses of rebel communists were raided, and insurgent leaders involved in summary executions ended their careers fatally. In nearly every village within the city proper the rise of Alsa Masa communes became palpable. The opening of the Diwalwal gold rush in 1983 provided a spectacular window of opportunity for Davao City and the entire region. Though the discovery had only direct impact on host communities, the influx of migrants in mining areas provoked a stronger socio-economic influence. As an outcome, the city became the indisputable source of supplies, basic commodities, equipment, and a host of other exigencies that fueled the vibrancy of mining communities. The mining at Diwalwal also roused interest by discovering new potential gold rushes. As a result, more gold mines, developed mostly by small-scale miners, sprouted in many towns of Compostela Valley Province. This positive development, interestingly, provided the Bangko Sentral the idea to open a branch in Davao City for its gold-mining and banking initiatives. And with the rise of new lending institution outside banking, its arrival was well timed. *** An incisive look into the city’s eightdecade saga
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The collapse of the Marcos regime in 1986 opened the floodgates to democratic changes. High-profile Davao personalities who fought the dictatorship found themselves trashed to the limelight, appointed to national offices, providing an affirmative note to the political direction of the city. As a consequence, insurgency retreated to the mountains, giving the city a breathing room to regain what it lost in terms of peace and order. The fall of the dictatorship also resulted in other positive results. New investments were coming in, and residents who secured shelter elsewhere when insurgency was at the height threatening even in the urban center, had started coming back. Academic population and retail business were registering good results, and business enthusiasm was visible in the expansion introduced by local establishments. Even transport traffic was slowly gaining with the rise of car acquisition. In general, there was a dramatic improvement in way people see the city after the so-called People Power revolt. At night, there was the rise in the number of drinking pubs as there was growth in the opening of new accommodations. With optimism going up, new banks and other lending institutions made their presence felt. This was influenced in part by the gold rush affecting many towns north of the city and the strong demand for jewelry, appliances, and cars. Going international (1988-1997)
1988 is an important year in the city’s history. Rodrigo Duterte, a former city prosecutor, was elected mayor. His elevation to the mayoralty would rewrite Davao’s socio-political direction, and with it the attendant economic uplift borne by the impressive peace and order the city leadership had strongly pursued. As the crime index nosedived, the investments registered positively on the graphs. Davao City, in 1994, got its biggest boost when it became a central player of a geopolitical, borderless trading alliance, the BIMP-EAGA, which opened Mindanao to the world and made it the gateway to Southeast Asia. BIMP-EAGA stands for Brunei Darussalam Indonesia Malaysia and the Philippines East ASEAN (Association of Southeast Asian Nations) Growth Area. The economic triangle, first proposed in December 1989, links three regions with coherent aspiration to promote a trade arrangement. The idea is to establish economic linkages and create an agenda of coordinated public and private development efforts that would combine industrial expertise, technology, infrastructure and services It was President Fidel V. Ramos who proposed the idea to create an East ASEAN Growth Triangle to Brunei Sultan Hassanal Bolkiah during an official visit in January 1993. The concept proposed that the provinces in East Indonesia (east and south Kalimantan, entire Sulawesi, Manado City and Maluku), East Malaysia (states of Sabah and Sarawak), and southern Philippines (the island of Mindanao and the province of Palawan) would comprise the new economic deal. A month later, Davao City launched “Invest in Davao” in partnership with the financial backing of the Philippine Exporters Confederation of Region XI and the United States Agency for International Development (USAID). To add muscle to the initiative,
City Ordinance No. 2269, the “Davao City Investment Incentive Code,” was approved in 1994. That same year, the city hosted its first-ever international business gathering, the East ASEAN Business Conference and Exhibits (EABCE), at the Bangko Sentral building, with over 1,000 visitors in attendance. Two and a half years thereafter, through Executive Order No. 36, “Invest in Davao” became an investment promotion unit of the city, and in August 1999, it was renamed Investment Incentive Board. In September 2010, its jurisdiction was transferred to the city mayor. As an offshoot, the Davao Integrated Development Program was conceived in 1994 to enhance the EAGA concept. Its formal creation, though, did not happen until January 26, 1995 when a Manifesto for Unity and Development was signed by local chief executives from Davao City and the provinces of Davao del Norte, Davao del Sur and Davao Oriental. The first visible signs of BIMP-EAGA in Davao was the US$50-million resort investment of Samal Casino, the country’s first integrated resort development and the first blue-chip EAGA project to come out of the region. The idea was hatched in early 1993 during President Ramos’ state visit to Malaysia. As a complimentary gesture, on December 11, 1995, Malaysia became the second member of ASEAN to open a chancery in Davao City. Going sky high (1998-2007) Two significant events welcomed the decade. First, five-star Marco Polo Hotel inaugurated its 18-story structure in 1998, a year after the financial crisis hit Southeast Asia, making it the first skyscraper in Davao. That same year, Cebu Pacific Air, the country’s second flag carrier, made its maiden flight to Davao, which was later expanded in May 2005 with the introduction of an Airbus A320 to cater to the expanding Davao market. The building of the tallest edifice in Mindanao created excitement and positive reviews. This was the key that led to rise of new sky-hogging achievements that were unheard of, especially from a foreign investor. Later, locally funded hotels and mixed-used structures followed suit. As an offshoot of BIMP-EAGA, new players joined the positive eco-
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THE BIG FOUR
Not seen this early but certain to raise the bar for Davao (Editor’s Note: Investors are so bullish about Davao City that big-ticket projects costing billions of pesos are popping up in just about any part of the city like mushrooms after a heavy downpour, to resurrect a tired idiom. The following article describes just four of the countless giant projects picked at random by Edge Davao editor Jimmy K. Laking and senior reporter Alexander D. Lopez. Here they are.) By Jimmy K. Laking & Alexander D. Lopez P2.5-B LANANG PREMIER DOCTORS HOSPITAL The incorporation of ‘green architecture’ by the P2.5-billion Lanang Premiere Doctors Hospital, Inc. is certain to create shockwaves for Davao City in the years ahead. Not only has it raised several notches higher the concept of medical facility, it has also announced itself ready to take on the ever expanding BIMP-EAGA market. It is a class act for it is rare to see how a ‘green hospital’ shapes up compared to the ‘traditionals.’ Chief architect Rafael O. Tayactac said going green will ensure that positioning of the hospital rooms will not be hit directly by sunlight. The windows will be set up in a way to enable natural ventilation. Solar panels will be used for power. Recycling sewage plans using restroom wastewaters will be installed. Topping these is a chilled water system to cool the whole facility. The architect said the ultra-modern hos-
pital will be built using resources that will equitably meet the developmental and environmental needs of the present and future generations. LPDHI chair and chief executive officer Lemuel Podador said the decision to use green architecture is for sustainability reasons. This is because while the equipment is costly initially, it is expected to redound to lower operational cost in the long run. More than this, future occupants of LPDHI will benefit from improved indoor environmental quality, resulting in higher productivity and better comfort. Among other things, the 12-story, 250-bed facility is aimed to make medical care affordable to the people. It will be a prize catch in the BIMP-EAGA in so far as medical tourism is concerned. MODERN SPORTS COMPLEX IN MINTAL Come 2019, the City of Davao will be more
than prepared to host the 2019 Palarong Pambansa. The reason for this optimism is an emerging sports complex within the University of the Philippines campus in barangay Mintal. The story began in 2015 when UP president Alfredo Pascual ceded off to Davao City part of the campus for the construction of a sports complex. Then Rep. Isidro Ungab managed to allocate P450 million from the general appropriations as initial funding to see the project realized. Eventually, the congressman also managed to allocate in the 2016 budget the amount needed to build an Olympic-size swimming pool. “It is a dream come true by the Grace of God,” said Congressman Ungab, adding that it has been a dream since 1996. The P50-million football stadium, also funded under the 2016 general appropriations act, will have a 30,000-seating capacity when completed, following Fifa rules. An Aquatics center has also been incorpo-
rated. William “Butch” Ramirez, chairman of the Philippine Sports Commission said that with the sports complex, Davao City will become a sports Mecca in Mindanao. INCREASING DAVAO’S POTABLE WATER SUPPLY Enough supply of potable water is among the considerations that investors examine before pouring in their resources. Davao City is among the top destinations nowadays in the country for trade, business and investments. Sourcing out of potable water for upcoming investments in the city is nearing fulfillment as Apo Agua Infrastructura, Inc. is going full swing in its preparatory operations that will include pre-construction works by the middle of this year. “Acquisitions of permits are almost complete and by the middle of this year Apo Agua will proceed with its precon-
struction operations,” said Cirilo C. Almario III, general manager of Apo Agua. The company will undertake most of the P12-billion Davao City Bulk Water Supply Project of the Davao City Water District (DCWD). The project will tap surface water of Tamugan River. The works will include the construction of weir and intake structure, raw water transmission lines, water treatment plant, hydroelectric power plant and treated water transmission lines. Apo Agua is investing P10 billion to complete the construction works while the DCWD is pouring some P2 billion for the laying of new giant pipes from its reservoirs down to its distribution lines in various areas of Davao City. Apo Agua is a joint venture of Aboitiz Equity Ventures (70 percent) and JV Angeles Construction Corporation (30 percent). The joint venture had already signed a Bulk
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Breathing new life to
DAVAO A UPLB campus in the ‘heart of agriculture’ sets the 88-hectare Agriya truly apart as one of a kind By Jimmy K. Laking
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HAT initially shaped up as the ‘odd man out’ in architect Jun Palafox’ master plan is not unintended: a 3-hectare extension campus of the University of the Philippines inside the 88-hectare Agriya in Panabo City. In fact, it was part of the plan all along, setting the Agriya truly apart from any flagship project this side of archipelago. “It’s being true to our
It’s being true to our roots
-- Ricardo “Cary” Lagdameo, the vice-president of Damosa Land
roots,” beams Ricardo “Cary” Lagdameo, the vice-president of Damosa Land with pride, and who represents the third generation of a family that pioneered--alongside with the Floirendos---the banana plantation industry in the Davao region. The emerging UPLB campus in Agriya serves to further cement this legacy and more. In a short while, students interested in taking up agricultural courses need no longer go to Los Banos. It is now located in the neighborhood so to speak, alongside with other development features that will include a convention center, a water park, intermodal transport hub, medical campus, commercial strip, businessman’s hotel high-end residential, demo farm, commercial district, business district and a spacious area for wakeboarding, boating, fishing, camping and viewing. The lung of this modern agripolis includes a park and a football field in addition. The community features a TADECO executive village, a low-density and high-end housing, and rows of TADECO residences. And considering that the whole complex will be developed outside of the major cities, it has the makings of a blockbuster tourist destination ‘alone but replete in its uniqueness.’ As a school, the UPLB campus will be a blessing indeed to an island where agriculture has long been the backbone of the economy. It also comes at a time when the banana industry is reeling from the depredations of that dreaded disease Fusarium wilt that has affected production. The decision to establish the UP Professional School for Agriculture and the Environment (UP PSAE) was decided upon by the UP Board of Regents in 2016 as one of its landmark changes for the years ahead. As agreed upon by the Board of Regents,
the UP PSAE seeks to provide a UP education within reach of students. It also endeavors “to help accelerate human capital formation and to serve as a catalyst for development in the Davao region.” It is anchored on the “UPLB’s proven capacities in agriculture and environmental science, which positions it to contribute immensely to development efforts in the Davao region and neighboring.” The UPLB has allocated P271 million for the school’s first 11 years of operation, with the Anflo Management and Investment Corporation donating about three hectares of land and capital outlay for infrastructure. The Anflocor’s counterpart is covered by a memorandum of agreement signed between UP and Anflocor on January 30, 2017. Right off the bat, the school itself will benefit directly from experts in the field in their capacities as professors or lecturers. With these experts at hand, students are assured of robust learning considering the experience and exposure of their professors in the various agricultural fields of interest. What the school is offering in essence is a wide laboratory for learning and training rarely encountered elsewhere. Couple this with the experience of the faculty and the combination is hard to match. The youthful Lagdameo revealed the campus has been requested to offer agri-preneurship as a course to cater to demand. Part of the curriculum will also dwell on high value crops, herbs and bananas. Taken altogether, what the school and Agriya will be able to show is that there is not only a future in agriculture but also fun to be derived from it. Take it from its vision: “Agriya cultivates inspiration and responsibility through exciting adventures. It enhances the way of life through top-class amenities and innovations. It ensures a vibrant environment for the next generations.” Hard to beat this DNA.
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Water Purchase Agreement with the DCWD to provide 300 million liters per day (300 MLD) of potable water in a period of 30 years to DCWD consumers in Davao City. DCWD is currently dependent on ground water sources tapped through electric-powered pumps – a system that Almario described as expensive and can be affected during power interruptions. Reports said that DCWD spends close to P400 million in electric bills annually in pumping out water from the Dumoy aquifers, an amount that can be saved once the bulk water project starts. Davao City is growing fast as investments are pouring in since last year and the demands for potable water also increase. Apo Agua offers more sustainable option to source out potable water for Davao City as its main source, the Tamugan River, regularly registers a 12 cu.m./sec water flow, a volume enough to supply the number of liters of water stipulated in the agreement. The project, Almario said will start from the construction of a weir in Barangay Tawantawan. A weir is a low dam that will be built across Tamugan River to raise the level of water for its
diversion towards an intake facility and the water treatment plant. Strong flows of waters from the weir down to the intake facility will also be utilized to operate a 2MW hydroelectric power plant that will energize the water treatment plant. “The project will have its own source of power via a hydroelectric plant that will be utilized in the process of treating the sourced out water before releasing it towards the reservoirs of DCWD,” Almario said. A total of eight reservoirs of DCWD will be served by Apo Agua – to include the reservoirs in Calinan, Tugbok, Talandang, Mandug, Panorama, Panacan, Indangan and Cabantian. Full project construction will commence by the last quarter of this year until its target completion by 2019. “Only a few documents are permits are being processed right now. Upon completion of these permits by June or July, we will immediately proceed with the pre-construction works and full construction work of the project,” Almario pointed out. The project Environmental Compliance Certificate from the Department of Environment and Natural Resources was already approved last week. This March, it is expected that the Sangguniang Panlungsod of Davao City will compete its two public hearings while the City Planning and Development Office has already endorsed the application of Apo Agua to the Davao City Local Zoning Board. Permits and certifications from the Department of Agriculture and the Department of Agrarian Reform are also being processed and expected to be completed by June of this year. “We are optimistic that all the requirements will be completed by mid 2017. This project is very important as this will solve the problems of DCWD,” Almario said. The project, he added, will allow service coverage of DCWD to expand to address the non-covered demands and provide the consumers with high-quality treated water. TIRE FACTORY SOON The Department of Ag-
riculture recently inked a memorandum of understanding with the Philippine Rubber Farmers Association and the Phoenix Petroleum Philippines Inc. for an ambitious local tire manufacturing venture. Davao City is among the areas being considered where the proposed P1-billion tire factory will be established. Under the MOU, the signatories agreed to invest and set-up the Philippine Agila Tire Manufacturing. Agriculture secretary Manny Piñol said the proposed factory will be a big boost to the rubber farmers in the country. Piñol added that the agriculture department will provide support to the preparatory activities that will be conducted in line with the establishment of PATM. President Duterte and Secretary Ramon Lopez of the Department of Trade and Industry witnessed the signing of the MOU.
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nomic landscape enveloping the city. Air Philippines, a subsidiary of PAL, and Asian Spirit (renamed Zest Airways, Inc.) took to the skies as budget players, followed by SeaAir and later by Mid-Sea Express. In July 2002, Darwin, Australia-based Air Frontier announced its plan to launch passenger and cargo flights between Davao City and Darwin. On November 29, 2006, Jakarta-based Sriwijaya Air used Boeing 737-200 in opening its Davao-Manado route, then served by Merpati Airlines. Royal Brunei Airlines and Eva Air of Taiwan also made exploratory flights to Davao, but never opened regular routes. Singapore Airlines, through its Silk Air, and Malaysian Airlines also made weekly flights to and from Davao, but the returns were below expectation. On November 17, 2001, the city got first huge mall. SM City Davao, built on 13.2 hectares of land situated at Matina area, was inaugurated.
Dizzying investments (2008-2017) With the seed of investment safely ensconced, BIMP-EAGA earned for the city the sobriquet “the gateway to Southeast Asia.” With international accolades coming in from global publications, ratings houses, economic observers, and tourists, Davao became “one of Asia’s most livable cities,” in large part due to its impressive peace and order condition. Homegrown New City Commercial Corp. was among the pioneers to test the waters by building its first supermall at Matina. Although the Cebu-based Gaisano firms had been in the city since the 1970’s, their contributions during this time diversified into real estate and hotel. Another Cebu outfit, Felcris, opened the first
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chain of convenience stores, followed by HB1 (Health and Body in 1), an NCCC subsidiary. SM (Shoemart) and Robinson’s, with no prior investments, eventually joined the economic euphoria. Later, modern billeting edifices such as Royal Mandaya, Seda, Ritz Hotel, El Bajada, Pinnacle, Tune, Felcris Centrale, and Grand Men Seng, to name a few, would forever change the landscape and skyline of burgeoning city. But these inroads were only part of the surge of bigger investments that would flood the region. On May 12, 2011, Ayala Corp. and Davaobased Anflo Management and Investment Corp. inaugurated Abreeza Ayala Mall, a P5-billion three-story ultra-modern shopping mall sprawled on a four-hectare area within a 10-hectare commercial complex along Bajada district. In the complex, the Gokongwei-owned Robinsons Mall, costing P800 million to construct, sits on a separate four-story commercial edifice. That same year, SM Investments Corp. announced the construction of a new 204-room hotel in Lanang, a new business district south of the city. The project, Park Inn by Radisson Hotel, a first in the Asia-Pacific region, operated by SM Hotels and Conventions Corporation; it was built within the mixed-use complex, beside SM Premier, the second SM mall in Davao, and the SMX convention center. The mall opened on September 27, 2012. Even Sta. Lucia Realty, one of the premier and prestigious developers in the country, was not one to be left behind. Over a short period, it built middle-class and high-end subdivisions, among them the Davao Riverfront, South Pacific Golf and Leisure, Las Palmas Verdes, Valle Verde, South
Grove Davao, and Ponte Verde. The rush to join the investment mania in Davao City further escalated. On May 30, 2013, the 34-story Aeon Towers, a P3.1 billion mixeduse facility owned by FTC Group of Companies, broke grounds at Bajada. The following month, the Philippine Economic Zone Authority granted accreditation to Matina IT Park, costing P100 million for use in call center operations. It is the sixth PEZA-recognized outfit in the city after Lanang Business Park, Felcris IT Park, Pink Walters IT Building, Ambiente Teleservices, and HAI Global Services. To address the growing demand for power supply, the Aboitiz conglomerate, a leader in energy development, jumped in to fill the vacuum. From plant-based generation, it diversified to hydroelectric projects. In 2014, it announced that Therma South Inc., a subsidiary of Aboitiz Power Corp., was building a P24-billion coal-fired power facility in Davao. On the other hand, Vista Land & Lifescapes, Inc., an investment company, unveiled a P40-billion investment in Davao which included a low-cost housing initiatives and a Star Mall shopping complex in its 50-hectare Cerritos project in Mintal district. Not wanting to be left behind in the investment race, Megaworld, a pioneering builder of urban towns and the country’s largest office developer, announced in 2014 the building of its P15-billion Davao Park District in partnership with the Dakudao family. The undertaking, its tenth township, is now rising on an 11-hectare property at Dakudao Loop, erstwhile known as Lanang Golf and Country Club. Torre Lorenzo Development Corp. was also bullish with the Davao’s property scene as it unveiled
its multi-billion peso investment plan to invest P4 billion for three high-end projects in partnership with Thai hotel chain Dusit International, by developing the provincial Dusit Thani Residences, dusitD2 Hotel and Lubi Plantation Resort as luxury accommodations. More airlines were also coming. Aside from the revived Bouraq Indonesia Airlines, which was already serving the Davao-Manado route, on June 7, 2012 Wings Air, a subsidiary of Lion Air, a Jakarta-based airline made its maiden flight to Davao from Manado. The following year, MASwings, a regional airline firm, made it s maiden flight to Davao via Kota Kinabalu. Tiger Airways, a Singapore Airlines subsidiary, made an attempt to compete with the domestic low-budget players but its Philippine operation was eventually sold to Cebu Pacific. In 2012, the Filipino-Malaysian consortium Air Asia Philippines joined the expanding domestic airline industry from its base at Clark in Pampanga. With this development came the throng of banking institutions establishing branches in the city, among them old players and newcomers that include Maybank, EastWest Bank, and Asian United Bank. This was made more evident when its former mayor, Rodrigo Duterte, became the country’s 16th president in the 2016 national elections. In the field of foreign affairs, other friendly countries also opened their diplomatic missions, managed by honorary consuls from Davao, among them the Czech Republic, Republic of Palau, Spain, Mexico, Denmark, Kazakhstan, and the Republic of Serbia. Today, Davao City is the heart of business process outsourcing (BPO) in Mindanao, next to Metro Manila and Cebu City.
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SMX CC makes Davao top MICE destination By Jecia Anne Opiana
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FAST-GROWING company, SMX Convention Center is managing six exhibition and convention venues in key cities across the Philippines; namely SMX Convention Center Manila, SMX Convention Center Aura, SMX Convention Center Bacolod, Megatrade Hall, Cebu Trade Hall and SMX Convention Center Davao. It is positioning to be the premier venue for local and international meetings, incentives, conventions, exhibitions (MICE) and social and corporate events all over the country. Among the six convention centers, SMX Convention Center Davao is the largest and first privately-owned and –managed convention and exhibition center in southern Philippines. Beginnings The idea of building an SMX convention center in Davao City dawned as a result of a long-time clamor of professional organizations, civic clubs, and even government agencies and their event organizers for venues large enough to hold as many as 5,000 delegates or bigger in a convention. Absence of this large space has resulted in failure of the city to host national and international events for years. And so, on September 28, 2012, as the SM Lanang Premier opened, SMX Convention Center Davao was born—the first SMX CC built outside Manila. Micro view SMX Davao, located at the 3rd level of SM Lanang Premier, measures a total of 4,745 square meters. Its carpeted function space is divisible into three function rooms that can accommodate approximately 5,500 guests in a theater set-up and five meeting rooms that could cater to 10-12 guests per room. It is linked to Park Inn and Radison Hotel by a footbridge, which makes it more convenient to visitors. Happenings at SMX Since its establishment in 2012, SMX has been the site of various big and small events in Davao city. According to Daphne Alojado, SMX Davao manager, the center
is the venue of 250 to 300 events a year. Important international meetings were held in the convention center like recent ASEAN Summit and the 2017 Miss Universe pageant fashion show last January. SMX Davao had also gained patrons who hold their exhibitions annually. Their most notable fairs are the Davao Trade Expo, by the Davao City Chamber of Commerce which happens every September, Phil Construct Mindanao, also every September and World Food Expo Mindanao every June—all of which are high revenue generating accounts. Concerts have also been a frequent event in SMX, particularly from Ovation Productions. In 2013 alone, there were 10 concerts held in the convention center. SMX also cater to events held by corporate companies like sales rallies, call center fairs and Christmas parties. Also, they host graduation exercises of different schools like the monolithic Davao City National High School, Davao Doctors College, University of Mindanao, Davao Merchant and Marine Academy and San Pedro College. SMX expansion in 2018 To address the need for a bigger and more convenient venue, SMX Davao will be expanded, starting on the first quarter of year 2018. Alojado said that a new building will be constructed be-
side SM Lanang Premiere. The new structure will be connected to the Mall’s Third Level. Alojado said that aside from having the usual function rooms and meeting rooms, the new building will have trade halls big enough to cater to car shows and other huge exhibitions. Davao as top MICE destination “Even before the establishment of the convention center, Davao city has been the top go-to venues for functions and events. With the existence of the SMX Convention center, all the more people expressed their interest in holding functions in Davao to visit the city itself,” said Ms Alojado. Indeed, the role of the SMX Convention Center in enabling Davao to achieve the status of a MICE destination cannot be gainsaid. According to Ms Baby Montemayor, topnotch Davaobased restaurateur, chef and tourism pillar, “SMX Convention Center-Davao plays a major role in certifying Davao as a vibrant, thriving MICE destination in Southern Philippines by providing the much needed world-class facility and service.” “As SMX-accredited caterer since its inception, I am witness to how it has fulfilled all our dreams and aspirations of
“SMX Convention Center-Davao plays a major role in certifying Davao as a vibrant, thriving MICE destination in Southern Philippines by providing the much needed world-class facility and service.” -- Ms Baby Montemayor, topnotch Davao-based restaurateur, chef and
tourism pillar.
pushing for Davao as a recognized global MICE destination,” said she, adding “we aspire to bring more events our way in partnership with various industry players, through active collaboration and common vision.. and this is being achieved with pride and joy!”
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‘LITTLE TOKYO’ Reclaiming Davao City’s prewar history By Antonio V. Figueroa
‘The future conservation efforts will include a visit to the famous Ohta obelisk, the decommissioned water catchment system known to locals as poso, the graveyard stele inside the Japanese cemetery, the badly damaged concrete pyramid, the hospital ruins, and the Okinawan base where migrant workers in abaca plantations built a small community.’
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HE initiative to reclaim the prewar ‘Little Tokyo’, referring to the 600-hectare agricultural land known as Mintal, a district southwest of Davao City, was first broached in 2009 by Ramon Bargamento II, the elected village chief of the huge barangay, and his barangay council. The village declared the old settlement as “Japanese Heritage Area” that same year. To put on track the ‘Little Tokyo’ revival, the Davao City Council, this city’s lawmaking body, through its Committee on International Relations, approved also in 2009, a resolution supporting the move of barangay Mintal to declare a heritage site in the village, notably the central area where the heart of Japanese investment was flourishing prior to the outbreak of World War II. The initial concept was to build a Japanese-theme park and reconstruct the relic sites in time for that year’s influx of Japanese tourist, normally during the Kadayawan Festival. To fast-track the project, the city enlisted the support of Philippine Nikkei Jin Kai Inc., Davao City Investment Promotion Center and the Davao Historical Society Foundation, Inc., to name a few. Time constraint and lack of funding stalled the early move. It was only in 2014 when the City Tourism Office (CTO) under Lisette Marques put in earnest the push to really restore “the remnants and ruins of the once Japanese colony in barangay Mintal.” To expedite the move, a blueprint was submitted to Tourism Infrastructure and Enterprise Zone Authority (TIEZA), a subsidiary of the Department of Tourism.
Relics from the past To authentically restore the former Japanese enclave, city officials were one in mind in addressing the issue of informal settlers in the area where a Japanese hospital once stood. As part of the broader plan to reclaim the historical significance, CTO also planned the integration of a heritage tour as a later adjunct to the restoration. The future conservation efforts will include a visit to the famous Ohta obelisk, the decommissioned water catchment system known to locals as poso, the graveyard stele inside the Japanese cemetery, the badly damaged concrete pyramid, the hospital ruins, and the Okinawan base where migrant workers in abaca plantations built a small community. Mintal’s significance, moreover, can be found in oral history. Old timers say the name of the barangay was adopted in remembrance of a certain Datu Intal, a Bagobo leader, while other researches argue it’s a combination of the Japanese Mintaro and the chieftain’s name. Moreover, Mintal, host to the largest prewar Japanese population in the country at the time, was the site of the city’s first Japanese abaca plantation and arguably the most progressive settlement outside the central business district in the town proper. Overall, around 20,000 Japanese, a fifth of the entire Davao City population then lived in the city before the conflict broke out. Interested players By 2016, the reconstruction of the old Mintal took off. TIEZA, to its credit, invited consultants to join the project
which, by January that year, already had nine submissions. A shortlist of the P10-million tourism consultancy was later drawn up by TIEZA, and trimmed down to three after the conduct of stringent evaluations. Electoral events would temporarily stall the project until a new mayor had assumed. Following the takeover of Sara Duterte-Carpio as new city chief executive on June 30, 2016, and the appointment of a new city tourism officer, the ‘Little Tokyo’ project went full blast. Months later, TIEZA awarded the making of the master plan to Berkman International, Inc., a consulting and management firm. The conservation plan will feature, among others, a hospital, cemetery, market, stele, markers, and obelisk that bring back the glory of ‘Little Tokyo.’ Primarily, this development hopes to draw more Japanese tourists to the city, which annually reaches 13,000. Even more significant is the opening of public awareness to the agricultural legacy the Japanese left behind as a result of the abaca boom, and as a tribute to the contributions they made in the development of the city. To ensure the project will really push through, TIEZA had set aside a P120-million appropriation for the restoration, conservation, and reconstruction of a place the urban planners dub as the forerunner of development that ignited the growth of the old town into a city. Icing on the cake Davao’s ‘Little Tokyo’ project took a dramatic turn last January 2017 with the visit of Japanese Prime Minister Shinzo Abe in Davao City. It was not only the first visit of a Japanese head of state to the city, it was also a reminder that in prewar times, before the country was drawn into a bloody conflict, Davao was the world’s largest source of abaca hemp. As part of the sentimental journey, Abe’s wife, Akie, visited the marker at the Japanese cemetery in Mintal. It was, so to speak, the icing on the cake for a politically correct effort at reclaiming Davao’s history, and the influence it has contributed to the city’s growth and development. One must not forget also that ties with Japan date back to the second decade of American rule. The Japanese consular office in Davao was opened in March 1920 and was an annex of the Manila Consulate, which later became a full-blown embassy (on February 6, 1932), in response to the growing Japanese population. This development added more impetus to the elevation of Davao as an attractive Japanese investment area. As a result of World War II, the Japanese consulate, an important diplomatic landmark, was closed but later reopened as links between Japan and the Philippines returned to normal.
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The Davao Experience: Discipline in Governance By Antonio V. Figueroa
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PUBLIC office is a public trust. But how much trust must the citizenry impose on those who hold the reins of power, given the expanse of their authority? In the decades before the Tanodbayan, the power to discipline local officials fell on the hands of the President. This authority was exercised by using the investigative power of the justice department and the interior department. Through their recommendations, the Chief Executive suspended, reinstated or dismissed any subordinate official found to have committed offenses while in public office. Dr. Jose P. Rizal, the national hero, once said: “I can concede that the government has no knowledge of the people, but I believe the people know less of the government. There are useless officials, evil, if you like, but there are also good ones, and these are not able to accomplish anything because they encounter an inert mass, the population that takes little part in matters that concern them.”
Ugly marks In the pre-Commonwealth period, two Davao mayors had the misfortune of being dragged in cases that affected their political fortunes. Mayor Vicente Masecampo was dismissed “for using his office as an instrument to wreak vengeance upon his enemies, having abused his authority with the issuance of building permits, having tried by means of threats to extort P200 from a Japanese, and willfully neglecting to pay his just debts.” On the other hand, Alberto Zamora, the last American-era mayor of Davao, was suspended “for alleged defamatory statements” against Senate President Manuel L. Quezon. On February 26, 1936, on the recommendation of the Department of the Interior, Quezon, now the Commonwealth president, reinstated him. On April 15, 1940, Quezon, by virtue of Administrative Order No. 124, dismissed “for the good of the service” Davao City councilor Donato C. Endriga on three grounds: (i) for engaging or tolerating prostitution with his alleged paramour; (ii) for confederating with his alleged paramour in the use of his house at Tomas Claudio (now Quirino) Street as gambling joint; and (iii) for receiving P300 monthly bribe from a Chinese gambling club. But the worst hit by claims of inapt conduct was three-time Davao governor Sebastian T. Generoso. Despite his contributions to Davao’s growth, his watch was affected by unsavory events. On December 19, 1930, American Governor-General Dwight F. Davis dismissed him from office “for the good of the service” after he was charged in “certain land transactions.” He was also “actively involved in amassing lands for the Japanese [and] was known [as] a petty tyrant who used his official position for personal ends.” Five years later, on April 12, 1935, the American governor-general reprimanded and suspended Generoso from office for a month “for various irregularities.” A year later, on June 25, 1936, Commonwealth president Manuel L. Quezon issued Administrative Order No. 14, suspending him for two months “for acts of misconduct in office.” Quezon, in issuing Administrative Order No. 120 on February 10, 1940, suspended provincial treasurer
Lorenzo Palileo “for having indirectly granted himself several loans from the funds of the Philippine National Bank [PNB] while he was Provincial Treasurer of Cotabato and Agent of the Cotabato Agency” of the same bank. Post-war cases From the Liberation period up to Martial Law, there were also suspensions and removals, a good number of them happening outside Davao region. Two of President Diosdado Macapagal’s disciplinary actions involved the removal of two Davao justices of the peace. On April 3, 1962, as an offshoot of an anonymous complaint for his failure to act on time in a case, the Chief Executive issued Administrative Order No. 11, which considered Manuel I. Rivera, the justice of the peace of Caraga and Manay towns, in Davao Oriented “resigned and separated.” The President considered the delay in resolving an estafa case, which led to its dismissal, as inefficiency on the part of the official. Two years later, Macapagal issued Administrative Order No. 82 on January 29, 1964, separating from office Orlando S. Rimando as justice of the peace of the town of Governor Generoso, Davao Oriental. The presidential fiat came about due to an administrative case filed by Catalino Sagulla, municipal mayor of Governor Generoso, against the judge “for various irregularities.” An investigation conducted by the district judge found Rimando guilty of “taking advantage of his official position, made immoral advances to [a female inmate] detained in the municipal jail,” for failure to keep a proper record of a certain case, and for violating “the Civil Service rules and regulations by failing to file formally an application for leave of absence.” The Tanodbayan To highloight the constitutional right of the people to petition the government for redress of grievances and to promote higher standards of integrity and efficiency in the public service, President Ferdinand E. Marcos, on June 11, 1978, issued Presidential Decree Nos. 1486 and 1487 creating the Sandiganbayan and Tanodbayan, respectively, the forerunner of the Permanent Commission created under Article 21 of a decree issued by the Revolutionary Government of the Philippines on June 23, 1898. There were anti-graft institutions in operation in post-war administrations. President Elpidio Quirino created an Integrity Board in 1950 followed by the Presidential Complaints and Action Commission, which President Ramon Magsaysay established in 1957. On the other hand, President Carlos Garcia formed the Presidential Committee on Administration Performance Efficiency in 1958 and Macapagal created a Presidential Anti-Graft Committee in 1962. Marcos, meanwhile, created the Presidential Agency on Reforms and Government Operations in 1966. Congress also had its share of fighting corruption in public office. In 1969 it passed Republic Act 6028, which created the Office of the Citizen’s Counselor, mainly as a fact-finding body. To complement this, Marcos, a year later, formed the Complaints and
Investigation Office, followed by the Presidential Administrative Assistance Committee in 1971. After the collapse of Marcos leadership, the Office of the Ombudsman was created under the 1973 Constitution alongside with the Sandiganbayan, a special court. The Ombudsman is imbued with the task to “receive and investigate complaints relative to public office, including those in government-owned or controlled corporations.” In relation to this mandate, there were other issuances that came out. On July 24, 1987, President Corazon C. Aquino issued Executive Order No. 243 declaring the creation of the Office of the Ombudsman. Two years later, on November 17, 1989, Congress enacted RA 6770, the Ombudsman Act of 1989. Duterte and others Since the Ombudsman Act took effect, the issue of graft and corruption has not spared a handful of local leaders, mostly mayors and lawmakers, for violating RA 3019, the Anti-Graft and Corrupt Practices Act, which charges a public official who persuades, induces or influences another public officer to perform an illegal act, requests or receives any gift or similar benefit in connection with any contract or transaction the state is involved, or requests or receives pecuniary or material benefit, for himself or for another, in any manner or capacity. Some of these celebrated cases include now President Rodrigo Duterte. On April 27, 1998, the Supreme Court (SC) dismissed the case filed against Duterte and Benjamin C. de Guzman, then mayor and city administrator of Davao City, respectively, in line with the 1990 city automation project. The high tribunal discovered that the computerization contract was rescinded on May 6, 1991, before the release of the special allotment receipt and the filing of an anti-graft case on November 12, 1991, which made the lower court’s order ineffective. That same year, the Ombudsman cleared Davao City mayor De Guzman and two other city officials of graft cases due to the demolition of several houses. The anti-graft body sided with the accused, citing the act as legal because it was covered by a court order. In fact, conciliation proceedings were made before the demolition was done. In 2011, the Ombudsman filed charges before the Sandigan against city vice mayor Duterte for alleged misuse of public funds in 2006 when he was still mayor. The money was intended for the city’s Special Education Program, but was diverted to a gift-giving Christmas plan. Ten other city officials were sued for technical malversation, illegal use of public funds, and graft and corruption. In the absence of negative COA findings, the case was dismissed. That same year, the Sandiganbayan dismissed the graft case filed by House Speaker Prospero Nograles against Duterte and five public officers for demolishing a canal cover project. The project, costing P2 million, was built to prevent flooding caused by clogged garbage. The anti-graft court “saw no reason to hold the accused for trial and expose them to public accusation of the crime when no probable cause exists.” Town mayors
On March 12, 2000, the SC dismissed the petition of then Malita, Davao Occicental, mayor Franklin P. Bautista seeking to set aside the March 13, 1998 Sandiganbayan resolution denying his motion to quash a criminal case and the same court’s October 9, 1998 denying his motion for reconsideration. The case stemmed from an anonymous letter-complaint dated November 20, 1996, charging the petitioner for causing the hiring of 192 casual employees using the peace and order fund despite the town’s meager savings. In 2009, the Sandiganbayan found Jose Abad Santos, Davao Occidental mayor Jose Reyes Lachica guilty for purchasing a useless generator and was perpetually disqualified from holding public office. He was meted a maximum of 10 imprisonment. The case arose from the finding the mayor made the purchase without technical engineering study to determine if its features were compatible with the building’s existing electrical wirings. Two years later, the Sandiganbayan convicted Salvador Jauod Sr., former mayor of Montevista, Compostela Valley, for buying overpriced medicines that were expired or about to expire and purchased them without bid. He was meted a penalty of 6-10 years in prison for each count of graft committed in 2003 and 2004. Under the COA rules, medicines bought should be at least two years away from their expiration dates. In 2014, the court ordered former Baganga town mayor Gerry Morales and three department heads to indemnify the State damages and sentenced them to a 10-year jail term for ghost deliveries of auto spare parts. The COA discovered the abstract of canvass did not pass the bids and awards committee and the purchase order was not signed as to the availability of funds. In 2015, former Caraga mayor William Duma-an was indicted by the anti-graft court for supposedly requesting and receiving monetary benefit in exchange for entering into a consultancy deal with a public market, terminal and commercial complex project. In exchange for the undertaking, he obtained a personal loan from the company, which was deposited in his bank account despite presenting a notarized contract with loan confirmation and promissory note. That same year, mayor Ramie Rosit of Boston, Davao Oriental, and other local officials were sued for purchasing construction equipment without bid. COA said the town took a loan from PNB to purchase of a motor grader and wheel loader but did not make a bid. Instead, it resorted to direct contract without finding out first if there were sub-dealers selling the same equipment at lower prices or that suitable substitutes could be obtained at more advantageous terms. Banner year 2016 will go down in Davao history as the year when many public officials were indicted, charged, and convicted for culpable violations by the anti-graft courts. As a result of the SC ruling declaring the Presidential Development Assistance Fund (PDAF) as unconstitutional, high-profile politicos saw their involvement in the pork barrel scam getting undesired results. Former Davao del Sur congressman Douglas Marc IV Cagas was
charged for using his P6 million PDAF to fund ghost projects in 2008. Two counts of violation of RA 3019, one count of malversation and another count for malversation through falsification of public documents were filed against him. Meanwhile, former Mayor Juan Cipriano Celso Sarenas of Pantukan, Compostela Valley was found guilty of simple misconduct for failing to divest of his business interest in a mining company and was ordered to pay a fine equivalent to two months’ salary. Former Davao del Sur governor Benjamin Bautista, Jr. and five others were convicted for the illegal procurement of high-end vehicles in 2003. The Sandiganbayan said “the procurement… was not covered in the annual procurement program” and there was “haste in the procurement which ultimately benefited the dealers of the brands.” The Ombudsman affirmed the indictment of former congressman Arrel Olaño of Davao del Norte for malversation of public funds and direct bribery for misappropriating his 2007 PDAF. He was also found to have received commissions and kickbacks. Arfran Quiñones, former mayor of Lupon, Davao Oriental was charged with 10 counts of malversation of public property and a violation of RA 3019 before the Sandiganbayan. He was found to have misappropriated government properties that remained unaccounted for even after his term ended in 2007. On top of these are 44 counts of malversation of public funds through falsification of public documents that were also filed against him. James Joyce, mayor of Jose Abad Santos, Davao Occidental was indicted before the Sandiganbayan for grave threats and slight physical injuries. The case arose from a road altercation in October 2014 in Barangay Caburan Small, Jose Abad Santos , when he inflicted bodily harm and threatened to kill a certain Brown Tan Camacho, Sr. Former Jose Abad Santos, Davao Occidental, mayor Alex Wangkay was ordered indicted in the Sandiganbayan for violation of RA 3019 in connection with procurement irregularities in the bidding of its small water impounding project (SWIP) in 2009. The Ombudsman said he gave unwarranted benefits and advantage to the contractor without the benefit of a public bidding. Former Baganga, Davao Oriental, mayor Gerry Morales was meted six years to 10 years imprisonment after the Sandiganbayan found him guilty of violating RA 3019. He was also perpetually disqualified from holding public office. Early in January 2017, the Ombudsman ordered a six-month suspension without pay of former Bansalan, Davao del Sur, mayor Edwin Reyes for simple neglect of duty due to his unjustified refusal to pay the monetary claims of a former utility worker of the municipality who died in 2014 despite a Civil Service Commission ruling. On March 7, 2017, in a statement issued by the anti-graft court, former House Speaker Nograles was facing graft and malversation charges for the alleged misuse of another lawmaker’s PDAF. The indictment involved three counts of graft, a single count of malversation, and two counts of malversation through falsification of documents.
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