BIZ BUZZ: Foreign miners, local dummies?
The Department of Justice has filed criminal charges against members of the board of Mt. Labo Exploration and Development Corp. who served from 2011 to 2015, led by Justine Alexandria Magee, the CEO of associate company RTG Mining Inc., and director Matthew Gordon Syme for allegedly violating the Anti-Dummy Law, Biz Buzz learned.
RTG Mining Inc., which cites Mt. Labo’s Mabilo project as its next development, is a mining and exploration firm listed on the main board of the Toronto Stock Exchange, the Australian Securities Exchange and the OTC Pink Market.
Other former members of the Mt. Labo board indicted by the DOJ are Johannes Martinus Raadsma, Maximo Sara III, Martin Sara, Benedicto Bulatao and Crispiniano Acosta.
According to the DOJ, records show that the capital stock of Mt. Labo from 2011 to 2015 was simulated to make it appear that at least 60 percent of the firm was owned by Filipinos. But there seem to be many indications of foreign ownership and control over Mt. Labo that would merit the application of the so-called Grandfather Rule.
The DOJ found similarities in the corporate structure and the nominal shareholders of Mt. Labo and its mother company, St. Ignatius. SRM Gold Limited, a foreign corporation incorporated in the British Virgin Islands, also owns 40 percent of St. Ignatius aside from its 40-percent shareholdings in Mt. Labo.
It also appears that St. Ignatius did not pay for its shareholdings in Mt. Labo.
From 2011 to 2015, Mt. Labo may have been in violation of Filipino ownership limits as the total foreign ownership in the firm at that time was 64 percent.
The DOJ also indicted Michael Carrick, chair of RTG Mining Inc. and described as a person not qualified to exploit Philippine natural resources, for violating the Anti-Dummy Law when Mt. Labo allowed him to intervene in the control of the firm when he orchestrated the removal of the nominee directors of Galeo Equipment Corp. from the corporation.
The strange thing about this is that the Mining Act of 1995 actually allows 100-percent foreign ownership of mining firms under financial or technical assistance agreement. But this scheme entails paying more taxes.
More interestingly, Biz Buzz hears that RTG Mining has been busy raising funds to fund their operations. If so, it’s important that would-be investors know all the facts, right?
—Daxim L. Lucas
More flight interruptions?
Apart from the inclement weather, several aircraft have been grounded recently for maintenance.
Many jets, including those being operated by Philippine Airlines and Cebu Pacific, are not flying as engine manufacturer Pratt & Whitney could not service them immediately due to supply chain constraints.
While the local airlines have been making ends meet by reducing the number of flights and augmenting their fleet, it seems they couldn’t catch a break.
Some aircraft may have to be grounded (again) for inspections. Pratt & Whitney found there was a “rare condition in powdered metal used to manufacture certain engine parts” that power A320neo units.
This will “require accelerated removals and inspections within the next nine to 12 months, including approximately 200 accelerated removals by mid-September of this year,” the company said.
The engine manufacturer assured its clients, however, that this concern will not affect current production, vowing to deliver new engines and spare parts across all product lines.
Now, the question is: Will passengers need to watch out for more flight delays and cancellations? Let’s see.
