In memory of Michael J. de Guzman

In memory of Michael J. de Guzman

All odds are against former Busang chief Michael J. de Guzman,
as the preliminary investigation results on the Busang scam focus
on the presumed "salting". Mike's subordinates during the cross-
examinations have focused on De Guzman's responsibilities. "A
dead man tells no tales," an old adage says.

De Guzman had a reputation of being a competent professional.
After working as a geologist for several years, in his early 30's
De Guzman became the youngest man in his field to reach such a
high level of professionalism at the Benguet Gold Mine in
Isabela, the Philippines. This could be accredited to his genius
in the field as well as his extraordinary performance. Being a
kingpin of what was said to be the largest gold firm in the
country, De Guzman had access to international entrepreneurs and
was issued a visa to the "foreign lands of gold". But De Guzman's
career climaxed when he faced the final curtain -- Busang.

The celebrated Busang scandal began in March 1994, when Bre-X
in Calgary, Canada made its first announcement of the vast
deposits of gold in Busang. The announcement was made following
an overseas call from John Fedelhof, fresh from Busang to his
partner David Walsh in Calgary confirming the gold deposits,
although convincing evidence was lacking.

By mid 1996, an analyst from the U.S. investment bank, J.P.
Morgan visited Busang and made a statement that deposits in
Busang could be at least three times larger than the 47 million
ounces Bre-X was touting. After the statement, J.P. Morgan became
Bre-X's financial adviser. On Feb. 17, 1997 Bre-X officially
announced that Busang's estimated deposits of gold would reach 71
million ounces.

At the beginning of March, 1993, John Fedelhof and Mike de
Guzman, both pioneering geologists for Bre-X, worked hand in hand
to find the gold. After Bre-X's first announcement in March, 1994
received a positive reaction from Canadian investors, John
Fedelhof stayed mostly in Calgary as he was promoted to vice
president of Bre-X. Since then, Busang's command was assumed by a
disappointed De Guzman who was assisted by Cesar M. Puspus,
another renowned geologist, until De Guzman died on March 19,
1997.

But did lab test results on rocks taken from Busang contribute
to Busang's first announcement? If so, then De Guzman's defense
as a subordinate would have also been a "command responsibility".
But if no lab tests were made on Busang rocks and Bre-X's first
announcement was based solely on paperwork, then De Guzman might
be out of the question.

Investigations into the Busang case will shed some light on
this. It is but righteous and humanitarian to spare fairness and
justice without prejudice for the soul of Michael J. de Guzman.

TUTTING R. RETULLA

Chairman, Philippine Community

For East Kalimantan

Balikpapan