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