Diño Questions Authority of Executive Secretary & Sr. Dep. Exec. Secretary

MONDAYS have become quite a spectacle here in the Subic Bay Freeport, thanks to the continuing tiff between Subic Bay Metropolitan Authority (SBMA) Chairman Martin B. Diño and Officer-in-Charge (OIC) Administrator Randy B. Escolango.

In this Monday’s flag-raising ceremony, Chairman Diño announced that President Rodrigo R. Duterte has “confirmed” his assumption of the position of Administrator, on top of his being Chairman of the Board of Directors.

“Pursuant to the instructions of President Rodrigo Roa Duterte to the undersigned during our meeting on December 8, 2016 in Legazpi City, Albay, I hereby inform you that with my appointment as SBMA Chairman, I have to assume as I have already assumed the functions and office of the Administrator pursuant to the provisions of RA 7227,” Diño said in a Memorandum read during the ceremony.

Diño also caused his consultant Atty. Victorio N. Casauay to read his Memorandum dated 05 December 2016 that outlines his “legal stand” on the designation of Atty. Escolango as OIC Administrator. “…the Office of the Executive Secretary, much less the Office of the SDES is completely bereft of authority to designate even an OIC of the Office of SBMA Administrator,” said Diño.

In another memo dated 12 December 2016 also read by Casauay, Diño said he “has caused the institution of criminal as well as administrative cases against Atty. Randy B. Escolango relative to his claim that he was designated by the Office of the President as OIC Administrator…”

But undeterred, Escolango quickly rebutted Diño and addressed the SBMA officers and employees present, noting that Diño has no proof of his claim that the President has approved his (Diño) assumption as Administrator.

“Iyan po ay statement na galing sa kanya (Diño). Until and unless we receive an official statement from Malacañang, we should continue our work, we should do our jobs, meron po tayong mga trabaho, mahal natin ang SBMA, hindi po pwedeng sirain at masira ang normal na trabaho ng SBMA,” Escolango said, drawing applause from the employees.

Diño left as Escolango was beginning to speak.

DIÑO AS CHAIRMAN, ESCOLANGO AS OIC ADMINISTRATOR

President Duterte appointed Diño as Chairman of the SBMA Board on Sept. 23, 2016 and assumed office on Oct. 3, 2016 with a turn-over ceremony where former Chairman & Administrator Roberto V. Garcia announced he will continue on as Administrator until a replacement has been appointed by the president.

In a press conference after the turn-over, Diño made it plain that he wants to be Administrator, too, citing a provision in Republic Act (RA) 7227 which created the SBMA and Subic Bay Freeport that says the Administrator is also the SBMA Chairman.

Diño proclaimed himself SBMA Administrator on October 10, prompting Garcia to file an irrevocable resignation.

Malacañang accepted Garcia’s resignation on Oct. 19, 2016 but, instead of amplifying Diño’s appointment to include the Administrators office, on the same day, the Office of the President thru Executive Secretary Salvador C. Medialdea designated Escolango, effective immediately, as SBMA OIC Administrator and Chief Executive Officer (CEO).

Diño has since been defiant of Escolango’s designation and on their very first Monday flag-raising ceremony together, Diño did not allow Escolango to speak and instead, lambasted him in front of everyone present, thus, the beginning of the so-called “SBMA Monday Kalye-Serye”.

MALACAÑANG AFFIRMS ESCOLANGO

In Nov. 21, Diño informed President Duterte in a letter that he has assumed the position of SBMA Administrator. The Office of the President responded on Nov. 28, 2016 thru Sr. Deputy Executive Secretary Menardo I. Guevarra that “the designation of Atty. Randy B. Escolango as Officer-in-Charge, Office of the Administrator, SBMA, has not been revoked by the Office of the President and thus remains in full force and effect.”

But Diño will have none of it. In his 5 December 2016 Memorandum, Diño said: “…to set the records straight, and to finally settle the issue that has sowed confusion and division in the SBMA, I am legally constrained to put forward my legal stand on the issue.”

“…I am legally compelled not to recognize the designation of Atty. Randy B. Escolango as OIC Administrator because his designation is invalid,” said Diño, “…with the official appointment of the undersigned (Diño) as SBMA Chairman by the appointing authority designated by law who is no less than the President, there is completely no basis for the appointment of an Administrator, much less designate an OIC Administrator.”

EXECUTIVE ORDER NO. 340

The designation of Escolango as OIC Administrator was based on Executive Order no. 340 dated August 4, 2004 by then President Gloria Macapagal-Arroyo which separated the Office of the Administrator and the Office of the Chairman.

Executive Secretary Medialdea has defended EO 340 in response to a suit to declare EO 340 as unconstitutional filed in a local court by a “taxpayer” from Zambales.

“The president has the legal authority to reorganize the Board of Directors of the SBMA… This is evident from Section 77 of General Appropriations Act for Fiscal Year 2003, which was reenacted by Congress in 2004, giving Pres. Arroyo the authority and power to effect organizational changes in key positions, like what she had done when she separated and allocated the powers, functions and duties of the Chairman of the SBMA Board and the Administrator as Chief Executive Officer of the SBMA,” Medialdea said.

“I feel sorry that Chairman Diño has been disrespecting the Office of the President, particularly Executive Secretary Medialdea and Sr. Deputy Executive Secretary Guevarra,” Escolango said, “they were merely acting to address the interest of SBMA and its stakeholders.”

SBMA has not had any new investments nor contracts since the stand-off began, with Diño voiding Escolango’s actions as OIC Administrator.

SBMA BOARD TO CONVENE

There has been no board meeting since the appointment of Diño as Chairman with only two Directors having been appointed by the President, to date.

With the opinion of the Office of the Government Corporate Counsel (OGCC) released on Dec. 8, 2016, however, recognizing the hold-over capacity of the old directors who have not been replaced or whose resignations have not been acted upon by the palace, Escolango said SBMA investors and employees are hopeful that the agency can get back on track.

The OGCC also opined that Escolango as OIC Administrator is also Ex-Officio Member and Vice Chairman, as well, of the SBMA Board of Directors.

The SBMA Board is expected to meet on Dec. 15 and 16, 2016, with the attendance of old Directors Cynthia C. Paulino, Benjamin Antonio III, Joven D. Reyes, Alfonso S.P. Siapno, Ramon Diez Sesdoyro, Raul F. Marcelo, Philip G. Camara and Gerald Sam O. Del Rosario joining Diño, Escolango and new directors Benny Antiporda and Stefani Saño.

GUEVARRA IS MALACAÑANG’S OBSERVER TO THE SBMA BOARD

Also expected to attend is Sr. Deputy Executive Secretary Guevarra, who wrote the Nov. 28, 2016 letter to Diño affirming that Escolango’s designation as OIC Administrator “remains in full force and effect.”

Guevarra has been the Office of the President’s designated observer to the SBMA Board of Directors as early as August 17, 2016, according to a letter to the SBMA Office of the Corporate Secretary by Atty. Maria Victoria S. Querol, undersecretary-Chief of Staff, Office of the Executive Secretary.

Guevarra, whose authority is being challenged by Diño, therefore, has actually been with SBMA already in a concurrent capacity, over a month even before he (Diño) was appointed Chairman of the SBMA board. 

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