The SPCMA [Sugar Producers’ Cooperative Marketing Association, Inc.] proposal to buy the Esfac [Esso Standard Fertilizer and Agricultural Chemical Co., Inc.] for $29 million may end up in a scandal if we do not take precaution. Ex-Sec. Alfredo Montelibano came to see me this morning. I told him I would have to order a hearing.
Official Gazette for November 15, 1970: President Marcos ordered a study of the feasibility of merging the People’s Homesite and Housing Corporation with the National Housing Corporation, while inviting at the same time the labor sector to make proposals on policies and programs for government housing agencies. He also issued policy guidelines for the Government Service Insurance System, the Social Security System, and the Development Bank of the Philippines on the processing of applications for housing loans.
Implementing the President’s directives, Executive Secretary Alejandro Melchor, Jr. conveyed the orders to the officials concerned, as follows:
1. Undersecretary of Labor Raoul Inocentes, who is also a member of the PHHC board of directors, to consult representative labor groups on working out a system of guidelines and priorities on housing “to benefit the working class.” The President sought labor’s views in appreciation of the fact that housing is a critical need of workers—a need which he had previously pointed out will become mere acute as the country moves towards industrial development. He said his administration is committed to pursuing an intensive low-cost housing program, as embodied in the Four-Year Development Plan.
He asked Undersecretary Inocentes to submit his recommendations within 30 days.
2. The chairmen of the PHHC and the NHC to create each a panel of three, to include the General Manager in the case of the PHHC, to study the feasibility of merging the two corporations. The principal objective of this move is to avoid duplication of activities and to integrate resources. The President further, instructed these officials to avail of the assistance and/or opinion of the Secretary of Justice in establishing the legal basis of the merger. He also directed that the report and recommendations of both panels, duly indorsed by the Secretary of justice, should be submitted to him within 30 days.
3. For the GSIS, SSS and DBP, the following guidelines were prescribed in executing housing projects, and in approving individual housing loans: a) Priority should be given to mass housing projects, utilizing PHHC and other government-owned lands, rather than acquiring private subdivisions. Dwelling units should be-acquired from the NHC, especially where the project requires the construction of detached housing units. b) Multi-storey apartments suitable for metropolitan areas should be planned in such a way as to maximize the utilizazation of NHC products. The GSIS, SSS and the DBP, respectively, should consider the feasibility of entering into a joint venture with the PHHC, and the NHC for this purpose. c) Approval of individual housing loans should be subject to to the condition that the dwelling unit shall be provided by the NHC, so as to channel housing funds to low and moderate-income families. d) Priority should be given in all instances to the construction of new housing over applications for remodelling or expanding existing houses.
The President at the same time directed the National Science Development Board to prepare a study on the use of tobacco dust for pesticide, and the production of milk from coconut. The conversion of these two principal produce of the country into substitute products would mean not only their full utilization but also the conservation of foreign exchange. The President also created a Social Defense Planning Committee, which will evolve and adopt long-range and short-term programs and policies on social defense planning. These programs will include a review of the country’s penal system and criminal statutes as a whole, as an integral and essential part of planning for national development. Former Supreme Court Justice Conrado V. Sanchez was named chairman of the committee, with Sen. Salvador H. Laurel and Rep. Teodulo Natividad, as members.
And if the only year Esfac made a profit was 1969 and it made only P2 million how are they going to pay the P190 million in five years?
So the sugar planters have to waive the right to import fertilizers (as a cooperative), must pledge to buy their fertilizer requirements from Esfac, increase the equity and assume the obligations of SPCMA. Prices of fertilizers must be stabilized and since the other areas in agriculture buy most of Esfac’s production through its 600 outlets, a study must be made of such sales (as to volume and value).
I meet Esso’s Philippine Manager, Mr. Potts, tomorrow so he can give SPCMA more time to finalize the purchase. I have asked SPCMA for a complete memo and feasibility study.
Lest our people feel the Americans have succeeded in coercing me with the Dovie Boehms [Beams] alleged revelations of “intimate relations” with me (which are patently false). I have ordered a reorganization of the Military Bases Agreement with the U.S.
And tomorrow, I will reiterate the demand for the return of Sangley Pt. by the U.S.
Have been working on the 15th year schedule of reparations and the reorganization of the national government.
I am also presently studying the proposed constitutional amendments, the proposed administrative code, revised penal code and labor code.