Would you risk your reputation and your credibility for a greater gain?

This was something that I first thought of as I read the news article written by Myrna

M. Velaso with the headline “Semirara suspended, fined over coal trading violation. “

Generally talking, is it always a given that anyone would put their reputation and reliability

on the line for whatever greater benefit there is? And why do we people, still give

reconsideration to such actions? Do you ask yourself these questions?

Semirara Mining and Power Corporation (SMPC) started as Semirara Coal

Corporation and has existed since February of 1980. It later changed its name to the present

one on the year 2014. It had exclusive rights to explore, extract and develop the coal resources

in Semirara Island in the Province of Antique—a right that the company retains up to this

day. It has been the dominant source of country’s coal requirements and for the past years it

has provided affordable and reliable power to its costumers and the whole country of the

Philippines. It produces about 8 million metric tons of coal a year.

Semirara Mining and Power Corporation (SMPC) continues to provide Semirara

Island’s communities with an affordable and stable supply of electricity. The power

distribution lines established by the company in 1999, in cooperation with the Antique

Electric Cooperative (ANTECO) remain in place and continue to serve the communities

beyond the mine site and employees’ village. Nearly 3,000 households are now able to utilize

electronic gadgets and household appliances, as well as benefit from improved economic

activities as a result of the increase in business opportunities.

Taking advantage of its strategic location and market position as the largest coal

producer in the Philippines, SMPC’s coal is sold domestically to power plants, cement plants,

paper mills, and textile dying plants, canneries, food factories, a sugar mill, and a fertilizer
plant. In 2007, SMPC successfully forayed into the export market with its maiden shipment

to China. Since then, it has expanded its market base to include India, Hong Kong, Japan,

Taiwan and Thailand.

SMPC operates two units of 300MW coal-fired power plants in Calaca, Batangas,

through its wholly-owned subsidiary Sem-Calaca Power Corporation. The Calaca units were

acquired from the Philippine government in 2009, and underwent rehabilitation and

retrofitting to arrest their deterioration and improve their operational efficiency. The

Company is committed to expanding its generating capacity to deliver additional, much-

needed power to the Luzon and Visayas markets.

For almost 40 years, SMPC had built its image, credibility and reputation through the

services it provides. But I often believe that when you are known for the good, there will be

a circumstance when you’ll be regarded as unpleasant. SMPC has been involved with

controversies such as mining mishaps due to its failed safety programs, mudflow incidents

that caused suspension of its operations, Environmental Compliance Certificate (ECC)

suspension in 2015 and other known occurrences.

And just last month, SMPC had yet faced another unfortunate affair. According to the

news article that was aforementioned, SMPC has been “slapped” with one-month suspension

and was similarly fined by the Department of Energy (DoE) due to a coal-trading violation.

It was said to be associated with Goal Anchorage which is an unaccredited coal trader in the

Philippines. This means that SMPC had violated the Department Circular 2012-05-0006 or

the Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users. The

transaction have been said to have taken place on the 23rd of May of this year with 4,768.73

metric tons (MT) of Semirara Coal as a trial shipment.

 This being given, I pondered on the thought that this activity might have been done

deliberately. I mean, how can the company not know that its customer is unacknowledged

and any business done between them could be considered illegal and punishable? Like,

wouldn’t that be putting what you have on the line? It was mentioned that the buyer-firm

had given its assurance that “it has accordingly submitted and applied for a coal

accreditation” but then again, why did they not double-checked? Why did they not

coordinated with the DoE for confirmation? Was it an honest mistake? Because it was

initially said that Gold Anchorage is “known” as an unaccredited cola trader. How many

transactions did it took for the SMPC to “discontinue its supply and trading with the said

buyer”?

Also, the situation for me heightened to the point that I became suspicious. Just to

make myself clear, I am not against the SMPC. I read in the article that SMPC continued its

operations even after it is suspended that is why its firm was imposed with an almost Php

2M penalty. I mean, are they that confident that they can get through by just passing a

motion for reconsideration? Although they are yet to be judged since the resolution is not yet

final and executory, they should have just thought of stopping the operations for the

meantime so that their consequences could have been altered, it wouldn’t have had been

added with monetary penalty. But I guess I understand the point that they have to continue

their operations for their other existing customers, beneficiaries and clients. I just can’t help

to think that maybe they just grabbed an extraordinary opportunity that could give them a

fine remuneration. I also seem to muse the idea that they may have been a victim and an

accused at the same time. It’s so hard to judge since I am not aware with the legal justice

regarding this matter.

 The energy department has first served SMPC with a cease and desist order or CDO

last June. As to provide a better understanding, CDO is an enforceable order given by the

court or the government directing an individual or a company to stop engaging or practicing

a particular activity. Simply put, DoE wants SMPC to stop and shut down and just think!

Think of the great effect of that possible closure to its consumers and to the power industry

of the country. If they wanted that shut down or closure, they could’ve had done it a long long

time ago. Not now, when there could be a lot of people that could be greatly affected. Not now,

when SMPC had been part of the growth and progress of the country. Plus I just can’t help

to notice the inconsistency with the decisions made regarding the matter.

I can’t help myself to think that there is politics involved in here. I mean I have no

proofs or basis and evidences but I know it can be observed that all the government and

decisions can do is to let them pay, suspend them or give them temporary punishments but

never the concrete decisions because what? They are of great help to the country. No matter

how much damage mining could do, they’d be reconsidered because it is needed not just by a

sole individual but of the majority. That is why I am no longer surprised when things like

this happen. All we can do is observe and let them all the involved do what they have to do.

We are merely spectators of almost everything around us. We can prattle and talk all we

want, but most of the time, our opinions will be considered irrelevant. Like with what I am

doing at this very moment. I am putting heart into writing this yet, I can’t seem to grasp the

idea and understanding.

In the end, SMPC had the upper hand. They were permitted and allowed to

continually trade and sell to costumers it had been serving and to those whom it has been in

contract with. See why? I am going to repeat myself. A lot of things will be put in peril when
the authority would give SMPC up. I think it means that the SMP will face their

consequences while also providing service. I think that it’s a fine thing to do, after all.

As for my question on whether you are going to risk your reputation and credibility

for greater gain, I guess I have the answer to that. I’ve come to think that SMPC doesn’t have

to worry about reputation or credibility because for as long as they are standing, they’ll have

those who’d remain unaltered about SMPC. No matter what misfortunes will come their way,

no matter how many times their name and image will be tainted, SMPC will not be moved.

It will not be crumple because if they’d got through their cases in the past, what could be

stopping them now? And why are things like these are being reconsidered? Because we all

have to. And after all, we are merely spectators, sometimes most of us aren’t even concerned

with issues like this.