13 OCTOBER 2003

Cover page
Table of contents
Inbox
Dear Reader
Losing out
Barbers’ Cut?
‘All Gainfully Employed’
The Scent of Money
The Marcoses Strike Back
Changing of the Guard
Inside Track

Barbers’ Cut?
By Gemma B. Bagayaua in Surigao del Norte
NEWSBREAK Staff writer

A HOUSE in a posh subdivision, a 14-room mansion in Surigao City, properties in Tagaytay, Baguio, and Palawan. What’s wrong with these?

Most of them were bought by a man with little known sources of income other than his salary as a government official.

The official in question is Robert Zabala Barbers, senator and native of Surigao del Norte province. Observers and critics, including his political rivals, ask how one who has been in government for practically his entire professional life could have acquired these properties worth millions of pesos.

The most controversial among the Barbers properties is his new mansion in Barangay Lipata, Surigao City. Completed in 1999, it is described by locals as the "mansion in the sky" because of its size and location. With a floor area of about 1,000 square meters, the house sits on rolling land on the slope of a hill. People who have seen it say it has 14 bedrooms.

When riding a tugboat along Surigao Strait, quite a distance from the city, one could see the elevated property. The house is not the only structure in the Barbers compound. Just below it, within the fenced property, is the Barbers family’s private chapel.

"Is there anything wrong if I have houses built with the help of my family and my children who are all professionals?" Barbers told Newsbreak in an interview. He said that he financed the building of the Lipata house through loans he obtained locally.

The senator said he bought the land cheap, at only 30 pesos or 40 pesos per square meter. "’Yung contractor ko local. May utang pa nga ako (My contractor is local [from Surigao]. I still owe him)."

It was Barbers’ father, Felix, a former judge, who applied for a permit to build the house in Lipata in 1999. But the senator admitted during the interview and in press statements that he owns the house and lot.

Nothing to Hide

The senator stressed that he is hiding nothing. Everything is declared in his statements of assets and liabilities (SAL), he said.

The property in Lipata was not specified in Barbers’ 1999 SAL. That year, however, he reported an increase of 10 million pesos in the fair market value of his Surigao properties and changed the year acquisition from "1989"—the year he reportedly acquired his first Surigao property—to "various" years.

Estimates of the combined cost of the Lipata structures vary widely, from a low of 14 million pesos to a high of 80 million pesos. According to the application filed by his father, the house has a floor area of 1,010 square meters and cost 8,142,847.30 pesos.

An examination of the SAL the senator submitted to Congress in 1992, the year he won the first of his two terms as congressman—up to the latest statements he filed as senator reveals disparities in income and cost of properties acquired. From the time he was congressman up to the present, Barbers accumulated properties with a total market value of at least 47,300,000 pesos. This despite the fact that the businesses he owns declared net losses and that since June 1992, his basic monthly salary has only been around 40,000 pesos.

In the 1999 SAL, Barbers reported spending only 1.2 million pesos for new acquisitions consisting of 200,000 pesos for land, building, etc. and one million pesos for improvements. In succeeding years (2000 to 2002), he reported spending a total of 2.6 million pesos on improvements on his Surigao properties. This brings to only 3.8 million pesos the total amount he reported spending for additional property and improvements in Surigao since 1999. His liabilities as of 2002 increased by only 2.63 million pesos from that of 1998.

Critics say Barbers did not have to shell out a single centavo to have the house built. They claim that the cost of putting up the structure was shouldered by the contractors who built it. In exchange for that, they say, Barbers was to award government contracts to these contractors.

Rooted in Politics?

The issues being raised against him are rooted in politics, the senator told Newsbreak. "These people have been harping on my house since 1999. Why is it that they have not filed any complaint?"

He added that his chief accusers are his political rivals who themselves are facing charges of corruption, including "overpricing" of government projects.

Most sources for this article gave information to Newsbreak on condition of anonymity. They include some present and former government officials and employees, political rivals, business practitioners, and ordinary residents of Surigao del Norte.

Not everyone who took part in building the mansion has received his due reward so far, some of the sources say. They claim that Barbers has driven a number of local contractors bankrupt. One was forced to relocate away from Surigao City because, sources in Surigao say, the senator demands a steep share (20 to 25 percent) of the proceeds of the contract even before the budget for a government project is made available.

Sources say that contractors who want to stay in business have no choice but to agree to Barbers’ terms. The sources point out that since the nickel mining industry went moribund in the mid-’80s, there have been little other sources of business in Surigao del Norte apart from government contracts. And the senator reportedly makes sure that he has a say in practically all projects going to the province.

Barbers refused to discuss these "local issues" in the interview.

Property Acquisitions

Before he ran for Congress, Surigao City residents say, Barbers did not have a house of his own in Surigao. According to some locals, the address he listed on his certificate of candidacy was the old house in the Zabala compound along Borromeo and Narcisa streets, Surigao City, where most members of his mother’s family, the Zabalas, also lived.

The clan led modest lives, residents say. The senator’s parents are respected members of the community. Felix Barbers, his father, was municipal judge of Surigao City and later became an executive judge in the city of Manila. His mother, Regina Zabala Barbers, was division superintendent of schools for Surigao del Norte. Both are now retired.

Not a native of Surigao province -- he hails from Ilocos Norte—the senior Barbers had no other visible sources of income. The Zabalas, on the other hand, operated a small cockpit in the city and one of the four small stevedoring services in the port of Surigao.

Robert Zabala Barbers served as a police officer from 1965 to 1991, when he quit the police force to run for Congress. Any SAL he may have filed during those years are no longer available, according to officials of the National Police Commission (Napolcom) and the Civil Service Commission (CSC).

The SAL he submitted to the House of Representatives in 1992, however, showed that in 1982, while he was Police Officer II earning about 5,000 pesos a month, he was able to buy a house and lot for 6.5 million pesos at 9532 Taguig St., Makati, Metro Manila.

The same document showed that in 1989, while serving in Manila as chief of intelligence of the Western Police District (WPD), he purchased a piece of land for P500,000 in Surigao City and spent two million pesos for the construction of a building on it.

The Surigao City assessor’s office has no records of any property belonging to Barbers. What it does have are records of a Four Aces Sports Complex Building listed as property of the Four Aces Sports Complex Inc.; a cockpit listed under the names of "Robert Z," Emilia Zabala, Adriano Zabala Jr., and Felix Barbers; and a rest house. Adriano and Emilia are siblings of Barbers’ mother, Regina. The three structures—worth a total of 2.96 million pesos as of 1995 according to records at the assessor’s office—are situated near a church in Barangay Rizal, Surigao city.

In 1999, records at the Surigao assessor’s office indicate that the value of the cockpit in Barangay Rizal, now called New Zabala, increased in year 2002 to P2.6 million because of improvements. The cockpit, according to sources at the assessor’s office who have seen the facility, is now air-conditioned. A basketball court was also built within the compound.

Some residents say the structures were actually built after Barbers became congressman. Barbers used the rest house as his local residence and district office. After the Lipata mansion was built, the rest house became the district office of the senator’s son, Robert Ace Barbers.

Up to 2002, tax declarations on the land where the three structures are located remained under the name of the original owner, Pedro Sitoy. But Barbers admitted to Newsbreak that the buildings and the land on which they sit are his.

Barbers joined the Ramos Cabinet in 1996 as secretary of the Department of the Interior and Local Government (DILG). In the last SAL he submitted to the House of Representatives in 1996 before assuming the DILG post, Barbers declared the purchase of a P9.5 million property in Bel-Air, an upper-crust subdivision in Makati City in 1994, two years after he got elected as congressman. The Bel-Air property replaced the Taguig St. property in the 1996 SAL. Barbers said he sold his original Makati property to buy the house and lot in Bel-Air. The Bel-Air property, however, was not declared in his 1994 and 1995 SALs.

In a letter, the Malacañang records division informed Newsbreak that it had no copy of SALs that Barbers filed as a Cabinet member from 1996 to 1997.

Documents from the assessor’s office of Surigao City and the register of deeds of Surigao del Norte indicate that in 1997, he bought adjacent parcels of land in Lipata, Surigao City. This was not indicated in the first SAL he submitted to the Senate in 1998.

The 1998 SAL shows that Barbers spent on the following:

* A 1.75-million-peso house and lot in Tagaytay (declared later in his 1999 SAL to have a fair market value of 4.5 million pesos).

* Two-million-peso "lot and improvements" in Baguio City (declared in his 1999 SAL to have a fair market value of P3 million).
* A 150,000-peso lot in Palawan (declared in 1999 to have a fair market value of P300,000).

This was the same year Barbers reported spending 9.76 million pesos for his senatorial campaign, 750,000 pesos of which was paid "out of personal funds."

Businesses

Aside from real properties, sources told Newsbreak that the senator owns two pump boats named Parak I and Parak II and a number of luxury cars.

From 1992 to 1993, Barbers listed in his SAL a few businesses, mainly the consultancy firms Sherlock Security and Promotions Inc., both of which he supposedly acquired in 1988.

In 1994 and 1995, he omitted the two and declared one firm, Earth Security and Protective Services Inc., under "business interests and financial connections." It is his son, Robert Dean, and not the senator, who is listed as one of the major stockholders of Earth Security, which, according to documents from the Securities and Exchange Commission (SEC), was incorporated in September 1993. The 32-year-old Robert Dean graduated from Miriam College in summer of that same year.

Sources working at the Security Agencies and Guards Supervision Division (SAGSD), the agency under the Philippine National Police that supervises security agencies, told Newsbreak that Earth Security had a valid license up to March 2003. Listed as licensee in the SAGSD records is Annabelle Cendaña, one of the stockholders.

The senator, SEC records show, was an incorporator of the Four Aces Sports Complex Inc. (established in 1995) and Surigao Sports Inc. (established 1999). But he only declared Four Aces. During his stint in the House of Representatives, Four Aces appeared in the last SAL he filed, in 1996. The spaces under "business interests and financial connections" were left blank in subsequent SALs Barbers filed as senator (1998 to 2002). Surigao Sports Inc. operates the cockpit now known as New Zabala.

Some residents of Surigao del Norte say the senator has two other companies, although not listed under his name: Bilang-bilang Arrastre Services Inc. and Glad Security and Protective Agency.

Barbers admitted to Newsbreak that he owns Bilang-bilang, which was incorporated on June 2, 1992, a month after he won his first term as congressman. The arrastre firm was never listed in yearly SALs he filed with the House of Representatives and the Senate. Listed as company incorporators and stockholders are his sons Robert Ace Barbers and Robert Dean Barbers. Ace also failed to report the company in his yearly SALs.

Bilang-bilang bagged the exclusive contract to provide stevedoring services in the port of Surigao in January 1993, months after Barbers won his first congressional term.

Losing Money

Glad Security, which according to SEC records was only incorporated on Feb.19, 2002, has been bagging a number of security service contracts in Surigao del Norte, Surigao City residents say. Among its current clients, sources say, are the Pacific Cement Corp. (Pacemco), the Philippine Nickel Corp., and a number of local banks and business establishments.

Pacemco used to be serviced by the security agency of Cruz Yuipco Jr., the former vice governor of Surigao del Norte.

SAGSD officials confirmed that quite a number of Glad security guards are deployed in the Surigao provinces. The word Glad, according to the sources, stands for the names of the senators’ children: Grace, Lyndon, Ace and Dean.

To be fair, none of the Barbers family members is listed as stockholders of Glad Security. Glad agents, however, have been seen standing guard at the senator’s Bel-Air residence and the rest house in barangay Rizal, Surigao City. One of the agency’s stockholders, Ponciano Pontiveros, contributed 30,000 pesos to Ace’s congressional campaign in 1998, according to the statement of campaign contributions and expenses he submitted to the Commission on Elections in 1998.

Barbers’ critics and even some of his allies say that these businesses could not have earned enough to finance the senator’s recent acquisitions.

One Barbers ally, Surigao City Mayor Ponciano Cassura, said the arrastre service does not earn much because the port of Surigao is just a small port. Neither does the cockpit, other residents say. "Malakas din kasi silang [referring to Barbers and his relatives] magsugal. Minsan natatalo (They [referring to Barbers and his relatives] also bet heavily on cockfights. Sometimes they lose)," a source not involved in local politics told Newsbreak. Both Four Aces and Surigao Sports never filed financial statements before the SEC.

The sports complex Four Aces, according to locals, has not been doing well. It used to have a bowling alley and a restaurant. Nowadays, the family merely rents it out as a venue for special occasions.

In its financial statement submitted to the SEC Dec. 31, 1997, Bilang-bilang reported a net loss of P1.3 million that year. That was the last financial statement the company filed.

Earth Security reported a net loss of P1.5 million in year 2001 and a net loss P1.837 million in its latest financial statement (dated December 2002).

It looks like the senator has a lot of explaining to do.

—With research assistance from Maricar Veluz, Monica Krishnan, and Francis Capistrano.

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