Sarmiento ‘unfit’ as Marina chief
Marina administrator Fabia tendered his resignation, effective upon the acceptance by the Office of the President
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Marina administrator Fabia tendered his resignation, effective upon the acceptance by the Office of the President
The new Maritime Industry Authority, or Marina, chief should be at least a seasoned seafarer or should come from the Philippine Navy and not from any other sectors.
This is the demand of some manning agency owners after the name of Department of Transportation, or DoTr, Undersecretary for Maritime Elmer Sarmiento was floated as the next Marina administrator.
Atty. Hernani Fabia's resignation from the top post at the agency was confirmed by a Marina official on Tuesday.
"Marina administrator Fabia tendered his resignation, effective upon the acceptance by the Office of the President," the Marina source said on Tuesday.
Captain Reynaldo Casareo, president of the manning agency Cargo Safeway Inc., criticized Sarmiento and even questioned his being chosen as he is also involved in the logistic firm Royal Cargo.
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"Why so? Sarmiento is a deputy at DoTr and a strong supporter of Fabia. Is he another lawyer? How can he run Marina? Does he have the technical capability like former Administrator Bob Empedrad who is a former FOIC (flag officer-in-command) at the Philippine Navy? Marina was doing fine when he was around. He must return to Marina," Casareo when sought for a reaction said.
Capt. Edgardo Flores of Eastern Mediterranean Manning Agency, a counterpart of Eastern Mediterranean Limited based in Greece, was also surprised when Sarmiento's name was floated as the next Marina chief.
"There are no expected reforms since he has several friends in the industry. Expect the worst," Flores told DAILY TRIBUNE.
Meanwhile, another source from the industry hit Sarmiento if he indeed will run Marina as OIC, a foul order as he is not entitled to it based on the rules.
"If the administrator resigns, the OIC should be the most senior deputy, not the undersecretary. That is what happened and was questioned when then "DoTr Undersecretary for Maritime Felipe Judan when assumed as Marina OIC. It was contradicted by then DoTr Secretary Art Tugade," the source from the industry said.
Logistics firm shareholder
The reliable source believed the information that Sarmiento had divested from Royal Cargo.
During the Senate committee on transportation inquiry last April 2023 about the logistics costs, Sarmiento confirmed that he continues as a shareholder of Royal Cargo, even after the law required him to divest.
The chairperson of the Senate Committee on Transportation chairperson Senator Grace Poe then asked Sarmiento if he divested, and he answered "There is no need to divest because it is so small. I cannot even vote myself as a member of the board."
Being the Undersecretary for Maritime, Sarmiento oversees the Marina, the Philippine Coast Guard, and the Philippine Ports Authority.
Despite this, a separate source said Malacañang would want to choose the next Marina chief who rose from the rank or was an insider.
Facing complaint
Meanwhile, Sarmiento was the subject of a complaint from concerned taxpayers who submitted to Transportation Secretary Jaime Bautista last 13 November 2023 a manifesto stating that Sarmiento violated Republic Act 6713, otherwise known as the "Code of Conduct and Ethical Standards for Public Officials and Employees" and RA 3019, or the "Anti-Graft and Corrupt Practices Act."
"For the information of this office, Undersecretary Sarmiento is currently one of the stockholders of Royal Cargo Inc., to the extent of 105 million shares of stock, with a total paid-up amount of P100 million. He is the third-highest individual stockholder and fourth overall highest stockholder of Royal Cargo Inc., based on the 2023 General Information Sheet or GIS of Royal Cargo Inc., submitted to the Securities and Exchange Commission," the letter noted.
Further, it said Royal Cargo Inc. is the 100 percent owner of Iris Lines, Inc. as stated in the 2023 GIS of Iris Lines Inc., submitted to the SEC.
Conflict of interest
"Both Royal Cargo Inc. and Iris Lines Inc., are engaged in the domestic and/or international cargo transportation business. Such business is ultimately under the jurisdiction of the DoTr. Under the law, a public official or employee shall always avoid conflicts of interest," the letter read.
When a conflict of interest arises, he shall resign from his position in any private business enterprise within 30 days from his assumption of office and/or divest himself of his shareholdings or interest within 60 days from such assumption, the letter stated.
"Conflict of interest arises when a public official or employee is a member of a board, an officer, or a substantial stockholder of a private corporation or owner or has a substantial interest in a business, and the interest of such corporation or business or his rights or duties therein may be opposed to or affected by the faithful performance of official duty," it stated.
"Sarmiento, being an official of the DoTr, and a substantial stockholder of Royal Cargo Inc., and Iris Lines Inc., evidently suffers conflict of interest in his dealings, which necessitates his divestment and/or resignation from office. Hence, Sarmiento is continuously violating RA 6713," according to the letter.
