SBMA administrator aims to turn Subic Freeport around during his term

SUBIC BAY FREEPORT, Philippines-—Roberto Garcia’s dream of working for the government after a successful 34-year career in the private sector was scuttled in 2006.

It took the former president of Ramcar Inc. five years to get the opportunity to be a public servant when he assumed the chairmanship of the Subic Bay Metropolitan Authority (SBMA) in 2011.

Garcia, 65, who took his oath of office as concurrent SBMA administrator on February 20 before President Aquino, said serving these positions had taken him full circle, as he had always wanted to serve in government.

In the book “Taking Aim (Asian Management Breakthroughs),” in which Garcia contributed an essay on the rise of battery manufacturer Ramcar, he said his idealism as a 24-year-old in 1970 had fueled his obsession to make his mark on the world.

Garcia enrolled at the University of the Philippines to take up his master in public administration in preparation to looking for a job in government when Manolo Agustines, his former boss in Philippine Airlines, persuaded him instead to work at Ramcar, a business owned by Agustines’ family.

“[Manolo] said I was only going to get corrupted if I worked in government at that time. He said that when I’m 50, and when I have money, then I can [do good] in government. That’s what happened. It’s like a full circle. I had that plan in the 1970s, and now it’s true,” Garcia told the Inquirer.

In good shape

When he retired in 2003, Garcia left Ramcar in good shape.

“When I left, we were able to turn it around and it is now one of the most successful Filipino companies—one of the most competitive and integrated,” he said.

Garcia said Ramcar also had the distinction of being one of the few Filipino companies that successfully emerged from corporate rehabilitation when the Asian financial crisis hit the country.

He said this experience—how Ramcar was buried deep in debt and how the company managed to turn its fortune—would prove valuable in his new job as SBMA chairman and administrator.

But as opposed to how the private sector works, working in government presents its own set of challenges.

“My frustration is it takes too long to get things done,” he said, noting he had to deal with red tape and the bureaucracy.

Even so, Garcia said, “I am fortunate that I have a very good board [of directors], who are hardworking. They help me with ideas that will help SBMA.”

He said his main objective is to “make SBMA a model for government in the country. We will try to take out the bad practices here.”

Because of SBMA’s high visibility, Garcia wants to make a good example out of it.

“It is one of the country’s premier investment destinations; we need concrete examples, not just talk. Lip service is easy. We need to show a good example,” he said.

During a roundtable discussion with the Inquirer Northern and Central Luzon on March 3, Garcia shared his views on problems besetting the leadership of SBMA and development of the Subic Bay Freeport and his vision for the former American naval base. Excerpts:

On SBMA leadership row

When the supposed appointment [of businessman Michael Macapagal as administrator] came out, I thought it would have been resolved [by a press conference where I presented my] appointment papers with the bar code, hologram and signature of President Aquino. Apparently that did not satisfy the camp of Mike Macapagal. They came out with another statement, saying that I was only a board director.

On Friday morning (Feb. 24), I texted [Executive Secretary] Jojo Ochoa. I said it’s creating a lot of confusion with locators and SBMA. I was open at that time, in the sense that there could have been a mistake. A double appointment … It could have been that the President changed his mind. I served of course at the pleasure of the President. That was my stand.

Jojo said no, you are the chair and administrator … I got the thrill of my life when the President called me in the afternoon, [he told me], ‘I just want to reassure you that you are the chair and administrator.’ And that he has given instruction that morning to Ochoa to ask the NBI (National Bureau of Investigation) to investigate and file charges if necessary. So with that, at least, I was personally reassured.

As of now, I am still sitting on this chair. And as you know, possession is 90 percent of the law. As far as I am concerned, that is a closed issue.

On his appointment

The President doesn’t know me personally. The first time I met him was when I accompanied him to China. I signed a [memorandum of agreement there with an investor]. I went up to him and introduced myself. He said, ‘Ikaw pala iyon.’ Second time was when he called for a meeting of the investment agencies. He wanted us to present our plans and discuss certain areas in the free port and what would be the committed investments… The third time was during the oath-taking [in February], where I shook his hand.

Actually, this goes back to 2006. [Former SBMA] Chair [Francisco] Licuanan III, my first boss in PAL, asked me if I wanted to become administrator. But unfortunately, di natuloy iyon…. And then when, early [in 2011], the appointments were made to the board, Licuanan was nominated. He declined the nomination [because] he was involved with a big project. He asked me if I was interested, I said sure, why not…. And then, by around April, the directors nominated me as chair to the Office of the President, which was approved. Rafael Reyes was also appointed administrator, but [he] did not take the job for whatever reason. They looked for another administrator, and they finally decided to go back [to unifying the position of chair and administrator].

On debt to political families

My advantage is that I am not identified with any political group … the Gordons, the Magsaysays, the Payumos … all the political families in Zambales [and Bataan], the Romans, the Garcias … I am not identified with any of them. None of them had anything to do with my appointment, and therefore I don’t owe any favors. The first thing I did when I was appointed as chair was that I paid courtesy calls to everybody.

On SBMA debts

There are three big loans [weighing down the SBMA]. The container port terminal loan, the loan used to rehabilitate the airport, and the loan used to construct the Taiwan [locators’] park. These were paid for by SBMA. The SBMA has never made money. If it has made money, it has made little money.

Over 20 years, the accumulated losses amount to P7 billion. Can you imagine an agency like SBMA earning just P1.7 billion a year, and we have 3,400 workers?

On smuggling in Subic

Since [the illegal drugs case of] Anton Ang [in 2008], we have not come across any instances of that. Even on the oil [smuggling allegations]. And that’s the sad part. The history of Subic has always been portrayed as a [smuggling haven]. I’m not saying that there’s no smuggling. But based on what’s coming in, and what goes out, the record is there.

On peace and order

[About the incidents of theft in the free port], remember, many of the [owners of] houses in Kalayaan are absentee. They have caretakers. It becomes attractive to [thieves]. The big syndicate is the caretakers—they call it ‘nakaw me.’ We have information about that already, not only in the housing area but also at the gates [of the free port].

On turning Subic around

There are huge problems—people, finances, integrity, corruption, etc. What I’m saying is we need drastic action. [Like] we plan to convert the airport to a family-oriented, integrated, international, tourist destination. That’s thinking out of the box.

We have no more land here in Subic. How do we increase our revenue stream? The airport has become redundant because of Clark. We think that if we convert the airport, it will become an international tourist destination, something like Sentosa.