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Sierra Madre:Under Threat

A close look at illegal logging in one of the Philippines’

last remaining old growth forests

Greenpeace Southeast Asia, April 2006

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PART 1 Aerial Survey Results

November 2005

PREFACE

Considering the unique biological and ecological importance of the Northern Sierra Madre as the widest remaining tropical rainforest in the Island of Luzon; owing to its rich and diverse ecosystems spanning from coral reefs and seagrass beds to mangroves and beach forests, ultramafic forests, forests over limestone, lowland dipterocarps to montane forests; recognizing its status as home to a variety of endemic species of plants and animals such as the rare Philippine Eagle, cloud rat and jade vine, and threatened and endangered species like the pawikan and estuarine crocodile; and because of its aesthetic, historical, cultural and economic importance to the country, it is hereby declared the policy of the State to secure the protection, preservation and rehabilitation of the Northern Sierra Madre Mountain Range within the Province of Isabela, its communities, their culture and their way of life insofar as they are in harmony with nature and do not alter the ecological systems and the magnitude of biological diversity of the area. In so doing, the State shall ensure the protection and conservation of biodiversity of the NSMNP xxx. - Section 2. Declaration of Policy, Article I, Republic Act No. 9125 entitled “Northern Sierra Madre Natural Park (NSMNP) Act of 2001” In 1992,the Philippine Government proclaimed 287,861 hectares of land area and 76,625 hectares of coastline water area of the Northern Sierra Madre Mountain Range ("Sierra Madre") as part of a national integrated protected area system. Through the enactment of Republic Act 9125, the Sierra Madre was declared a natural park to further enhance its protected areas status. Republic Act 9125 also provided the Sierra Madre an extra layer of protection (called the “buffer zones” covering adjacent areas one (1) kilometer wide from the boundaries of the Sierra Madre) to which restrictions and sustainable resource management strategies involving local communities and the private sector are similarly applied in order to repel threats to the protected area. The law further declares that all primary (old growth) forests within the Sierra Madre including portions which have been previously declared as alienable and disposable, shall be classified as strict protection zones and shall be free from all forms of logging or exploitation, commercial or otherwise; except portions of primary forests which may be classified as sustainable use zones. Under the law, “sustainable use” is defined as— “the use of components of biological diversity in a way and at a rate that does not lead to the decline of the species used and not causing permanent or long-term diminishment or qualitative degradation of biological species, ecological functions or of other resources extracted or disturbed, thereby maintaining its potential to meet the needs and aspirations of the present and future Filipino generations”. The law also enumerates the illegal acts within the Sierra Madre and the buffer zones. The illegal acts relating specifically to forest protection are:

(i) Cutting, gathering, collecting or removal of timber or other forest products without prior permit from the Protected Area Management Board (“PAMB”); provided that any permit issued shall be valid for only one (1) year at a time and given only to – (a) tenured migrants in the Sierra Madre within sustainable, monitored and controlled quotas, and (b) for scientific purposes necessary for protected area management;

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INDICATIONS AND EVIDENCE OF

ILLEGAL LOGGING

(ii) Possession or use of chainsaws and band saws without prior permit from the PAMB; provided that permits may only be issued for multiple use and buffer zones;

(iii) Engaging in kaingin (slash and burn farming) or in any

manner causing a forest fire inside the Sierra Madre or its buffer zones.

Despite the proclamation of the Sierra Madre as a protected area, there have been persistent reports or information that illegal logging activities continue to be conducted within the area (see Appendices 1-3 for photo documentation on illegal logging activities in 2001-2004). On 08 November 2005, an aerial survey of the Northern Sierra Madre Natural Park and its buffer zones (the “Sierra Madre”) was conducted by a composite team of Greenpeace researchers/volunteers, and professional hires (“Greenpeace Team”). Using a 5-seater light aircraft flying at an altitude of five hundred (500) meters for a total flying time of two (2) hours, the Greenpeace team proceeded to conduct visual inspection, photo and video documentation of indications and/or evidences of illegal logging in the Sierra Madre. The aerial survey was conducted from around eleven o’clock in the morning to past one o’clock in the afternoon (11:00 a.m. – 1:00 p.m. Philippine time) over nine (9) selected sites under the following latitude/longitude coordinates:

Site no. Location/ Name Latitude Longitude 1 Abuan River 17o 06’24” 122o 09’38” 2 Ambabok/ Catallangan 17o 01’38.6” 122o 09’53.2” 3 Dunoy Lake 16o 59’ 55.7” 122o 09’ 29.3 4 Dungsog Lake 17o 00’ 59” 122o 11’ 38.8” 5 Kamalaklakan 16o 58’ 45.5” 122o 12’ 07” 6 Pagsungayan 16o 50’ 03.7” 122o 11’ 27.3” 7 Digud/ Disabungan 16o 50’ 03.4” 122o 09’ 51.3” 8 Diwagao 16o 45.337’ 122o 10.452’ 9 Diguse 16o 45.219’ 122o 10.609’

The sites listed above cover areas within the park and/or buffer zones which are classified as strict protection zones under Republic Act 9125. The selected sites encompass main river systems and tributaries which are known to be the major avenues for the transport of logs felled from the forests out into the logging roads. Most of the selected sites are also known habitat areas for endemic species of flora and fauna such as the Philippine crocodile (Crocodylus mindorensis) and the estuarine crocodile (Crocodylus porosus). Deforestation has continued to threaten the existence of such endemic species. Of the nine (9) sites surveyed, indications and evidences of illegal logging were secured from five (5) sites. The Greenpeace Team sighted and documented logged-out areas along river banks and mountain slopes, and logging roads in nearby areas. Logging camps, trucks, built-up areas with semi-permanent structures and cultivated agricultural land were also sighted and documented.

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Site 1: Abuan River

Photos 1 and 2 show the presence of logging camps (blue colored tents), and flitches along

the river banks and bends.

Photo 1

Photo 2

Following are the images captured and seen by the Greenpeace Team with interpretation and comments of the technical adviser for the aerial survey.

Abuan river is the main water tributary where logs felled from the forests are transported to Barangay Alinguigan, in Ilagan, Isabela. According to Greenpeace Sources, Barangay Alinguigan is the biggest producer and distributor of wood furniture, timber and timber products in the entire Province of Isabela.

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Photos 3, 4 and 5 show logged-out mountain slopes, logging

camps, and logging roads. The foothills and mountains slopes

near river systems are most often the first to be targeted for

logging because the logs/ flitches can easily be pushed into

the river.

Photo 3

Photo 4

Photo 5

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Site 2: Ambabok /

Catallangan

Photo 6

Photo 7

Photo 6 shows areas along the river banks that have been cleared for farming and a network of huts. According to unconfirmed verbal information, illegal settlers from as far as 20 kilometers away settle inside the Sierra Madre and clear areas for planting corn and root crops. While waiting for their crops to bear fruit (4 months in the case of corn) the encroachers are said to be paid by middlemen to engage in illegal logging.

Photo 7 shows flitches floating along the river bend. The average measurement of these flitches are as follows: Length = 8 to 10 feet Width = 8 to 18 inches (the wider the higher the value) Thickness = 4 to 8 inches The sizes are such because flitches with sizes larger than these measurements are harder to transport via the river system. In the same photo, there is an elevated path across the river from where the flitches are located (upper right). This elevated path is where carabaos pull the logs or flitches up to the edge and to be dropped into the river and floated to the other side to be tied together. The flitches are later transported through the river system (using tire inner tubes for floatation) or up to locations were logging roads are present (transshipment points).

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Photos 8 and 9 show scarring of the mountain sides across the

Catallangan river. Scarring is most likely caused by logs or

flitches sliding down mountain sides into the river.

Photo 8 reveals a large volume of wood which appears to be in

large commercial quantity.

Photo 9 captures a logging camp with tents on the site. So

far, this site had the most number of tents and flitches for

the entire aerial survey.

Photo 10 shows another segment of the Catallangan river where flitches can be seen at the

river’s edge, along the river bend. Wood shavings can be

seen at the opposite edge (light brown color at the upper, middle

portion of the photo) .

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Photo 11 shows a large volume of wood as in Photo 8, which

appears to be in the tens of thousands of board feet, or in

large commercial quantity. Notice the wood shavings (light

brown color) at the bottom of the picture. Logs were probably

cut up into flitches in this area.

Photos 12 to 15 of this site show extensive clearing of forestland and conversion into agricultural land. Also shown are clusters of illegal settlements. Photos 12, 13 and 15 show flitches along the river banks. Photo 14 shows piles of flitches at the left side of the clearing (middle of photo). According to sources, this site is a transshipment point of logs/flitches from rivers to logging roads, that is why all photos of this site show logging roads.

Photos 12 and 13 (above), 14 and 15 (below)

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Photo 16 shows two trucks at the river’s edge. Where logging

roads are present, trucks are used to haul illegally cut logs and

timber.

Site 4: Dungsog Lake

Photos 17 and 18 (right) reveal clear images of extensive logging roads in a thickly forested area with dark green patches—indicating that the area could be old-growth or primary forest.

The clear view of the logging roads from the air suggests that the logging roads are fresh (clear cut less than a month from the time of the aerial survey) and in current use. Clear-cut portions of a dense forest area are often blocked from aerial view because the branches of trees on the edges of the clear cut portion stretch out and intertwine to form a canopy over such clear cut portion in just a month’s time.

Since the logging roads are fresh, there is basis to assume that logging in this old-growth or primary forest area is on-going or has been recently undertaken.

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Site 6: Pagsungayan

Photo 19

Photo 20

Site 7: Digud /

Disabungan

Photos 19 and 20 show extensive clearing of forests and human encroachment along the river banks. Photo 20 shows that the logging road stretches until the river’s edge. According to sources, this site is also known to be a transshipment point for flitches transported along rivers to logging roads.

Photos 21 and 24 show different views of the same area. All photos show extensive clearing of forests along the river banks, human encroachment and land conversion to agricultural land and logging roads that extend up to the river’s edge. Photo 21 shows that the river bank on the left side has a light brown color and a pile of flitches can be seen on the opposite site. This is probably an area where logs and flitches transported via river system are stock piled and processed then transported via logging roads to the furniture shops.

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In Between the sites

Photos 21 and 22 (above) and 23 and 24 (below)

During the transit between the selected sites, the Greenpeace team sighted and documented further indications and evidences of illegal logging in the Sierra Madre. (These areas are also within the Sierra Madre.)

Photos 25 and 26 (above) and 27 and 28 (below)

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Photo 31

Photos 25 to 28 (previous page) show clear cut forests and logging roads. Photo 26 shows a hut in the middle of the burnt area and another hut at the upper left side of the picture. The grass in such clearings are burned periodically by encroachers so that new shoots can grow. The new grass attracts deer and wild boar which are hunted by encroachers. Photos 29 to 31 show logged-over areas that are adjacent to rivers. Photo 29 Photo 30 Photo 31 shows a logging camp at the lower left edge of a clearing. Flitches can be seen along the bottom edge of the clearing.

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FOREST LAW ENFORCEMENT AND

GOVERNANCE

The Sierra Madre badly needs a sustainable and widespread law enforcement mechanism that will focus on the apprehension and prosecution of illegal loggers including violators of other environmental laws such as the Chain Saw Act. While there are obviously no official records, local sources believe that about a hundred to three hundred chainsaws operate in the Sierra Madre everyday. They also claim that river systems and coastal areas are rarely subjected to surveillance and patrolling activities. The aerial survey of Greenpeace in November 2005, though only of short duration, was able to document that these claims are substantiated. Logging camps, roads and also recent clear-cuts have been documented in areas which are strictly protected from logging—on paper. As a significant initial step, the government should physically demarcate the extent of the “buffer zones” as provided by Republic Act No. 9125 in order to create an effective deterrent to illegal loggers. The park administrators blame the weak forest law enforcement in the Sierra Madre on the lack of personnel and funding for operational and logistical requirements for effective surveillance and monitoring. Local sources, however, insist that one of the key drivers of rampant and persistent illegal logging in the Sierra Madre is corruption among the ranks of those who are mandated to enforce environmental laws. To verify this and other allegations, Greenpeace continued its revisit of the Sierra Madre by conducting interviews and undercover investigations on the ground. Part Two will present the results of interviews and undercover investigations, including conclusions and recommendations which, if adopted, could contribute to a genuine and lasting foundation for the reduction or elimination of illegal logging in the Sierra Madre.

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PART 2

Results of interviews, and undercover

investigations February 2006

PREFACE

After conducting the aerial survey on the Northern Sierra Madre Natural Park and its buffer zones (“Sierra Madre”) in November 2005, Greenpeace took a closer focus into the illegal logging problem that continues to plague the Sierra Madre. Greenpeace researchers/volunteers conducted interviews of some members of the Agta tribe and local contacts; and undertook undercover investigations on the furniture industry in the provinces along the western side of the Sierra Madre (commonly called the Cagayan Valley), mainly in Isabela and Cagayan. The Agta tribe are the original inhabitants of the Sierra Madre. Practicing a basically nomadic lifestyle within the expansive mountain range and choosing to live inside the forests in isolation from other people, the Agtas are the primary eye-witnesses to everything that happens inside the Sierra Madre. The furniture industry in Cagayan Valley exists mainly on wood and is widely promoted by local leaders to have the potential to contribute greatly to the area’s economic growth. Although it is admitted that raw material (wood) has become more and more difficult to legally source, or have even become scarce, local trade and industry officials continue to project the furniture industry as one of the few industries which could propel Cagayan Valley’s trade and commerce to national and international markets.

Republic Act No. 9125, otherwise called the Northern Sierra Madre Natural Park (NSMNP) Act of 2001declares that all primary (old-growth) forests within the Sierra Madre including portions which have been previously declared as alienable and disposable, are classified as strict protection zones and protected from all forms of logging or exploitation, commercial or otherwise. Although Republic Act 9125 allows portions of the primary forests of the Sierra Madre to be classified as “sustainable use zones”, the current state of primary forest cover in the Sierra Madre and total forest cover in the entire country cannot justify “sustainable use” defined under the law, to wit— “the use of components of biological diversity in a way and at a rate that does not lead to the decline of the species used and not causing permanent or long-term diminishment or qualitative degradation of biological species, ecological functions or of other resources extracted or disturbed, thereby maintaining its potential to meet the needs and aspirations of the present and future Filipino generations”. Illegal acts relating specifically to forest protection under Republic Act 9125:

1. Cutting, gathering, collecting or removal of timber or other forest products without prior permit from the Protected Area Management Board (“PAMB”); provided that any permit issued shall be valid for only one (1) year at a time and given only to – (a) tenured migrants in the Sierra Madre within sustainable, monitored and controlled quotas, and (b) for scientific purposes necessary for protected area management.

2. Possession or use of chainsaws and band saws without prior permit from the PAMB; provided

that permits may only be issued for multiple use and buffer zones.

3. Engaging in kaingin (slash and burn farming) or in any manner causing a forest fire inside the Sierra Madre or its buffer zones.

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THE AGTA TRIBE OF THE SIERRA MADRE

Agta family

Loss of food, habitat and

way of life

At present, there are at least an estimated 1,400 families of the indigenous Agta tribe found in the Sierra Madre. Most of the remaining population of the Agta tribe are concentrated in the municipalities of Palanan, Divilacan and Dinapigue. Although a significant number among them have learned and adjusted to the ways of lowlanders, they still prefer to hunt, plant crops and gather forest products for food. Those among them who have moved out of the forests to live along the shorelines and riverbanks (commonly called Dumagat) engage in fishing for sustenance. The Agta daily diet consists of meat (boar, deer or monkey) and the root crop called buklog. Through the years, however, the Agtas saw the population of deer, wild boar and monkeys decline significantly. The Agtas lament that twenty years ago it would only take around an hour or even less time to catch prey. These animals have become very rare and the Agtas have even to compete with lowlanders and encroachers who also hunt for food in the Sierra Madre. When meat is unavailable, the Agtas live on the root crop buklog. But the Agtas also fear the disappearance of their traditional food buklog and other root crops and tubers because these cannot grow in areas where there is no forest canopy. With the Sierra Madre’s continued deforestation and encroachment by people from the lowlands, the Agtas believe there is cause for worry. For shelter, the Agtas traditionally cut branches and twigs to build their “lean-to” within the forests. However, because of the continued deforestation in the Sierra Madre, the Agta population is being pushed to the eastern coastlines of the mountain range, away from their natural habitat, the forests. It is not in the nature of the Agtas to cut down a tree completely for any reason. But they admit that due to the scarcity of food in the forest, some of the Agtas were lured into logging by commercial loggers and encroachers engaged in illegal logging activities in exchange for a little money or food. When they started to earn a little more money from logging, some of the Agtas acquired the habit of excessive gin drinking. Alcoholism and death due to liver problems have been on the rise within the tribe.

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Illegal logging and exploitation

While they earned money from felling the trees of the Sierra Madre, the Agtas eroded not only their habitat but also their cultural values. Although majority of the Agtas have come upon this realization and have decided to stop engaging in logging, the Agtas are divided and fighting among themselves on the issue of illegal logging.

Interviews with male members of the Agta community in the municipality of Palanan, Isabela confirm that there are illegal logging activities going on in the Sierra Madre at present. The Agta-interviewees estimated that a single chainsaw operator takes down 4 to 5 trees per day. They also usually see a logging team of 7 people who stay inside the forest for a straight 2 weeks, which is usually the time the logging team’s food supply runs out. A logging team usually takes down about 40 trees during a 2-week stay in the forest. Based on the information provided by the interviewees, there are around 100 to 350 chainsaws operating on a regular day. It is not unreasonable to assume that an average minimum of around 400 trees to an average maximum of 1,400 trees are felled in the Sierra Madre on a regular day. An Agta recently witnessed the hauling of around 40,000 board feet (96 cubic meters) of lauan (or meranti) (Shore negrosensis or Shorea contorta, Shorea spp.) per day for 3 straight days from the forest into the Abuan river. Another hauling involved some 4,000 board feet of narra (or rosewood) (Pterocarpus vidalianus) per day. Narra or rosewood is a prime target species in the Sierra Madre. The Agtas maintain that loggers indiscriminately (regardless of age and size) log and process species of trees that have a high value in the local market such as tindalo (Pahudia rhomboida), narra, red lauan (Shorea negrosensis), white lauan (Shorea contorta), tanguile (Shorea polysperma), mayapis (Shorea squamata), guiho (Shorea guiso), yakal (Shorea astylosa), ipil (Instia bijuga, also called Merbau or Kwila), almaciga (Agathis philippinensis), and bagtikan (Parashorea plicata). According to the Agtas, the bulk of the illegally cut logs are intended for markets outside Isabela Province. On the eastern side of the Sierra Madre, most of the logs and flitches are smuggled out by boat to Quezon Province. On the western side of the Sierra Madre, the logs are smuggled out via the Abuan River into Barangay Alinguigan in Ilagan City (Isabela Province) to various points in the Philippines. The usual mode of transportation are closed container vans or delivery trucks of newspapers and dry goods. Initially, because the Agtas knew their way inside the forests and because they could tell the tree species by smell and color of the flowers in bloom, they were used as guides by commercial loggers and encroachers. They would point out the location and identify for the loggers the tree species to be felled. As payment for services rendered, a little money, or a little rice and a bottle of gin would be given to the Agta guides. When the Agtas became comfortable relating to the loggers and outsiders, they were taught how to operate the chainsaw. Convinced that cutting the trees themselves instead of just being mere guides will earn them more money, some of the Agtas agreed to cut trees for loggers and encroachers or illegal entrants.

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Modus Operandi for

transport of illegal logs

Law enforcement and political commitment

Agta children

Uncertain future

An Agta admits that, at present, in his barangay, which is composed of 30 families, there are 31 chainsaws entrusted to them by loggers/financiers. The usual arrangement is for the chainsaw operator to be paid Php1.00 per board foot, and an advanced amount for food costs for the duration of the logging to be deducted from total compensation.

The Agtas and local contacts have observed that on the eastern coastline of the Sierra Madre, illegal loggers coming from Quezon Province have adopted a modus operandi for transporting illegal logs. First, they dock a decoy boat in Palanan, Isabela and wait for a call from the loggers inside the forest which will signal that the volume of logs for a full load of the boat has been cut (around 11,000 board feet or 26.4 cubic meters for lauan, or 3,500 board feet or 8.4 cubic meters for narra). When the attention of the deputized law enforcers are drawn towards the decoy boat in Palanan, the illegal logs are hauled and loaded to a boat that is waiting in another area, far from the decoy boat. While the logs or flitches are being hauled and loaded, the persons at the decoy boat proceed to the nearby Philippine Department of Environment and Natural Resources (“PDENR”) field office to pay docking fees, as well as allegedly to deliver bribe money to PDENR personnel. When the docking time limit is used up by the decoy boat, the loading on the other boat shall have been finished and the boat shall have gone on its way to Mauban, Quezon.

Some Agta leaders are convinced that effective law enforcement is a key factor in stopping illegal logging inside the Sierra Madre which can only be achieved if the communities support it, and more importantly, benefit from it. Law enforcement presence alone will not work if there is no stakeholder support because illegal logging will simply resume after law enforcers have left the area. They also maintain that the process of shifting the values of the local communities in favor of protection and law enforcement has been slow. Of the 9 municipalities within the Sierra Madre natural park jurisdiction, only the municipality of Maconacon has demonstrated some political commitment on enforcing the law. The mayors of the other municipalities have not demonstrated a real direction towards fighting illegal logging. Politicians at the lower levels of governance such as the barangay officials do not even dare speak against illegal logging for fear of losing their positions in the next elections. An Agta claims that timely reports of illegal logging to the PDENR personnel were done in the past, however, the PDENR seem to have mastered the art of arriving late at the scene of the crime such that no arrests have been made on these reports.

The Agtas fear for the next generation of the tribe who may no longer have any forest to protect them. Without the forests of the Sierra Madre, there could be no real home for the Agtas. Although the PDENR publicly maintains its recognition of indigenous people’s rights and ancestral domain as mandated by law, the Agtas claim that in reality, the PDENR has shown very little regard for indigenous people and their role and responsibility in the management and protection of the Sierra Madre.

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THE WOOD FURNITURE INDUSTRY

OF CAGAYAN VALLEY

A gigantic butaka chair made of narra: a symbol of

Isabela province’s lucrative furniture industry

Wood Requirements and Illegal Sourcing /

Illegal Logging

In terms of the number of registered firms with the Department of Trade and Industry (“DTI”), the wood furniture industry of Cagayan Valley is considered the largest manufacturing sector in Cagayan Valley. This dominance of the wood furniture industry sector is attributed to the fact that Cagayan Valley still has a relatively large forest area where high value hardwood such as narra are being sourced. Despite current legal restrictions on logging activities (under the 2004 logging moratorium covering many provinces in the Philippines including the Cagayan Valley or in natural forests covered under a legally-protected area such as the Sierra Madre), the local leaders and the DTI continue to rely on the wood furniture industry for much needed industrial output and job generation in Cagayan Valley. This position is anchored on the belief that the wood furniture industry has a strong comparative advantage in terms of Cagayan Valley’s forest resource endowments. While DTI registration figures covering the period 1995-1999 reveal that there are only 961 wood furniture shops in Cagayan Valley (Industry Cluster Profile, Wood Furniture Industry Region 2, DTI Industry Cluster Program, 2000), DTI-registered wood furniture shopowners in Isabela and Cagayan assert that there is a total of around 20,000 wood furniture producers spread in the provinces of Cagayan Valley, the bulk of which could be found in Isabela and Cagayan. They lament that 80% of the actual existing wood furniture shops are unregulated and unmonitored by the government. Although most of the wood furniture shops are home-based and categorized at micro-scale level (less than Php500,000 capitalization), there are a number of them which have large manufacturing/wholesale operations, usually with capitalization above Php3,000,000.00. According to DTI and other officials, there are wood furniture firms in Cagayan Valley readily capable in terms of production facilities and financial resources to engage into direct exports; and a good number from the rest of the wood furniture firms whose orientation can be geared towards a wider market scope (i.e. Metro Manila) as shown by their willingness to expand on basic production facilities. For the DTI-registered wood furniture shops, the declared average monthly consumption per manufacturer for the hardwood narra or rosewood is 1,500 board feet (or 3.6 cubic meters) while that of other common hardwood is 622 board feet (1.49 cubic meters) (Figures are based on presentation/background paper relating to the request to the PDENR, among others, for an amnesty grant for illegally sourced wood materials.) Some shopowners disclosed that the declared figures are much lower than the actual average wood requirement per shop which is actually at around 3000 board feet (or 7.2 cubic meters) for narra and 1,200 board feet (or 2.88 cubic meters) for other common hardwood. Given as reason for the disclosure of lower figures for average monthly wood requirements is that PDENR officers in Cagayan Valley have asked them to downplay their statistics on wood requirements in order to avoid triggering a perception that PDENR is not upholding current legal restrictions on logging. For micro-level shops located in Isabela, shopowners and middlemen declared during undercover interviews that they are able to process/convey around a monthly maximum of 700 board feet (or 1.68 cubic meters) for narra and a monthly maximum of 1,500 board feet (or 3.6 cubic meters) for other hardwood such as almaciga (Agathis/Kauri Pine), and various Meranti (Lauan/Tanguile) species.

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Above: boards lined up along the porch of a house and in the terrace of a house-cum-furniture shop in Barangay Alinguigan in

Ilagan City, Isabela

In Cagayan, at the time the undercover investigation was conducted in late 2005 until early 2006, the current selling price per board foot of narra or rosewood was around Php43.00-Php46.00, while other hardwood would sell at Php25.00-Php30.00 per board foot. In Isabela, at the time the undercover investigation was conducted in late 2005 until early 2006, the current selling price per board foot of narra or rosewood was around Php80.00 while other hardwood will sell at around Php24.00-Php35.00 per board foot. The reason for the lower price per board foot for narra in Cagayan could be attributed to the fact that narra is easier to access in Cagayan due to narra suppliers coming from nearby province Kalinga-Apayao who engage in logging activities in the forests of the Cordillera Region. The wood furniture shop owners source their wood raw material only locally, meaning, only from Cagayan Valley where there is currently no legal source for narra and other hardwood. They also do not import any wood and they operate on a 12-month cycle. While the logging moratorium has been lifted in a few parts of the country, these areas are located quite far from Cagayan Valley and it is most unlikely that wood furniture shopowners in Cagayan Valley are sourcing wood from them. It simply will not be economically viable for them to source wood from these far-away areas. Identified as major supply/distribution points for wood raw material in Isabela are Barangay Alinguigan in Ilagan City and the municipality of San Mariano.

Due to its proximity to the Abuan River (where logs from the western side of the Sierra Madre are transported through), Barangay Alinguigan is also where many furniture shops could be found.

Passing through Barangay Alinguigan along the National Highway, it is impossible to miss the common site of hardwood furniture display, as well as boards being sun-dried/air-dried in the porches or terraces of houses in the area.

The municipality of San Mariano in Isabela encompasses the Isabela Wilderness Area, a component of the National Integrated Protected Area System (“NIPAS”) established by law (NIPAS Act)(1). In Cagayan, the identified major supply/distribution points for wood raw material are the municipalities of Peñablanca and Baggao. A group of wood furniture shopowners from Cagayan admitted that they currently maintain a common log pond in Barangay Lagum in Peñablanca. Logs are smuggled out from Barangay Lagum via the river system into various destination points.

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Existing raw material inventory

Illustrative case

Photo 1 (left) Photo 2 (right)

The municipality of Peñablanca is known nationally as the home of the touristic destination Callao Caves Resort; but more significantly, it encompasses the Peñablanca Protected Landscape, also a component of the NIPAS. The Peñablanca Protected Landscape belongs to the so-called Sierra Madre conservation/biodiversity corridor. At present, wood furniture industry leaders and representatives are earnestly lobbying at the PDENR for the lifting of the logging moratorium in Cagayan Valley and for the grant of a 1 year amnesty period on the utilization of illegally-sourced wood raw materials found at their production sites. Existing raw material inventory is placed at a minimum of 1,500 board feet (or 3.6 cubic meters) per month per shop for 12 months. Wood furniture producers contend that they need the 1-year amnesty grant to utilize their illegally-sourced inventory to be able to meet increasing demands from local and foreign buyers. ! Name of establishment: Digna Abad Wood Products ! Products: narra furniture, parquet, lumber ! Business location: Barangay Alinguigan, Ilagan City, Isabela Province ! Business outlet: Sampaloc, Manila ! No. of years in business: more than 20 years ! Capitalization: above Php3 Million ! Markets/product destinations: domestic consumers in Metro Manila,

Bulacan, Pampanga, as well as Cavite furniture exporters ! Not registered with DTI According to its woodcarvers and office personnel, Digna Abad Wood Products is one of the biggest and oldest in the furniture business in Ilagan City, Isabela Province. Its current owner, Digna Abad, who is a registered nurse, inherited the business from her parents. An office assistant boasted that Digna Abad Wood Products does not have any problem meeting any amount of demand because it has its own stable sources of the hardwood narra. The office assistant also emphasized that they see no need to register with the DTI, participate in trade fairs or affiliate with furniture industry associations to generate markets because the owner has a reliable customer base.

Digna Abad Wood Products is located along the National Highway and appears like a wealthy upper class home with an associated sawmill and furniture production facility The fresh-cut rosewood boards are air-dried in

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Photo 3 (left) Photo 4 (right)

Photo 5 (left) Photo 6 (right)

furniture production facility. The fresh-cut rosewood boards are air-dried in the open area (Photo 2) and then used for the production of various kind of indoor furniture, which are displayed in a small showroom.

Narra lumber is sun-dried in the open area behind the residential house and display/storage area. The dark color of the wood and the sawdust scattered on the soil suggest that the lumber was recently processed here (Photos 3 and 4). When asked if they had apprehensions or problems sourcing the logs due to current legal restrictions or actual scarcity of supply from the forests, the office assistant replied that they have always managed to procure wood and they do not foresee any difficulties even in the light of legal restrictions. They are convinced the forests still have much to give.

A container truck enters the wide gate at the far end of the open area. The premises of Digna Abad Wood are situated on the side of the National Highway in Barangay Alinguigan which leads to the Abuan River (Photo 5). A view of the sawmill at the far end of the open area and a pile of flitches which were later loaded unto the waiting truck. The tail of the truck and a wooden plank could also be seen. (Photo 6). Based on a 2005 government listing of issued permits for wood processing plants (List of Existing Wood Processing Plants Permits As Of August 30,2005 obtained by wood furniture industry leaders from the PDENR which they provided to the investigators), the sawmill inside the premises of Digna Abad Wood Products does not have a regulatory permit, and therefore could be operating illegally.

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Photo 7 (left) Photo 8 (right)

Corrupt practices

The container truck opens and exposes the load of narra lumber/flitches. At the back and on the other side of the truck, some workers load more wood (Photo 7). Then the container truck proceeds towards the main gate into the National Highway. The load of wood is destined for a furniture exporter in Bulacan (Photo 8). Furniture producers stressed all they want is to pursue their business unhampered. They insisted they are willing to help in the protection of Cagayan Valley’s forests but they insist that the local PDENR and other concerned government agencies must first demonstrate the political will and the sincerity to uphold environmental laws and issuances. The furniture producers and the local community expressed doubt that the PDENR and the government, for that matter, are serious in its anti-illegal logging measures. Most furniture producers are of the belief that legal restrictions/technicalities on logging activities are just means or tools for the PDENR officials and other concerned government agents to reinforce the extraction of money from them. In fact, they insist that with enough financial resources and the right connections, it is easy to secure supporting legal documents for wood products. Following are some “trade practices” in the furniture industry, as pointed out by the wood furniture producers: (i) The payment of grease money (depending on the volume/value of

furniture being transported and destination but not lower than Php200.00) to every “checkpoint” (inspection post of a composite team of representatives of government agencies including PDENR relating to legal documentation on movement of wood products) along the National Highway. There are over 50 checkpoints along the National Highway from Cagayan (last province in Cagayan Valley when coming from Manila) to the final exit from Cagayan Valley to Manila or nearer destinations. In 2005, a micro-level furniture producer in Barangay Alinguigan, Ilagan City in Isabela transported a narra furniture set worth Php20,000.00 to a buyer in Baguio City (about 8 to 9 hours away from Isabela) and had to pay off 52 checkpoints at Php200.00 each to be allowed to bring out the narra furniture set from Cagayan Valley;

(ii) The development and maintainance of connections and good

relations within the PDENR bureacracy in order to secure a chance to ti i t i th biddi t f fi t d l d flit h Th

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CONCLUSIONS AND

RECOMMENDATIONS

participate in the bidding out of confiscated logs and flitches. The PDENR personnel are not in the habit of ensuring that proper notice on bidding schedules are disseminated to all potential bidders; and

(iii) The exchange deal of services rendered to PDENR (i.e. construction of

additional comfort rooms/toilets for PDENR office premises) and PDENR inventory of confiscated logs/flitches. Confiscated logs and flitches are used as payment for whatever PDENR owes an individual or entity. This exchange deal is usually under a Memorandum of Agreement between PDENR and the individual/entity rendering the services.

The legal basis for such aforementioned arrangements could be Malacañang Memorandum Order No.162 issued on August 19,1993 entitled “Providing guidelines for the disposition of confiscated logs, lumber and other forest products for public infrastructure projects and other purposes”. Usually the interest of bidders is not to secure the confiscated logs and flitches but to secure a legal document which could be used to “launder” or legitimize already existing illegally-sourced inventory. With only 3% old-growth forest cover remaining in the Philippines and with half of that in the Sierra Madre, the Filipinos and the Philippine government cannot afford to ignore the continued illegal logging of the Sierra Madre. Perhaps with a few exceptions such as the indigenous communities and some members of civil society in Cagayan Valley, a majority of the people do not see the urgency of action on saving what is left of the forests. Generally, the forests are valued not for the multitude of services they render (i.e. watershed functions, biodiversity benefits, soil stabilization as against soil erosion leading to landslides, and the like) but merely as a supplier of wood and other products. More significantly, there is also no notion of the Sierra Madre as a place that belongs to them; there is no pride or sense of being connected to it. The absence of a notion of the Sierra Madre as a patrimony that should be preserved and protected could be attributed to the fact that for many years, the rich forest resources of the Sierra Madre have been exploited and controlled by outsiders together with the political and social elite in the area; as a result, majority of the locals enjoyed very little access to and direct benefits from the Sierra Madre’s resources. The results of interviews and investigations confirm that illegal logging activities are going on in the Sierra Madre, thus indicating that forest law enforcement in the area remains weak inspite of the declaration of the Sierra Madre as a legally protected natural park and a biodiversity conservation priority area by the government. The public perception that the PDENR and the government are not committed to seriously curb illegal logging is reinforced by instances of corruption (whether real or perceived) within the ranks of PDENR and other government officials or agents relating to the enforcement of environmental laws and issuances. Along with many inconsistent policy directions and actions (i.e. the declaration of a logging moratorium due to dwindling forest cover and ecological disasters side by side with a policy direction towards a globally competitive wood industry), corrupt practices in the forestry sector severely compromise the effectiveness of PDENR and the government in enjoining

25

GREENPEACE RECOMMENDATIONS

compromise the effectiveness of PDENR and the government in enjoining the citizenry to be involved in the anti-illegal logging campaign. Furthermore, corruption negates the moral ascendancy of the government and the PDENR, and may even completely erode the credibility of both. When government’s credibility is eroded, it is difficult to elicit citizen support for initiatives such as the anti-illegal logging campaign. Based on the findings in this report, it can be inferred that the wood furniture industry contributes to the continuing illegal logging in the Sierra Madre. Even so, the government will surely hesitate deprioritizing the wood industry sector due to economic importance. This is understandable, however, it will help to bear in mind that the country’s state of deforestation and loss of biodiversity have reached crisis proportions and for that matter hard choices have to be made. Ecological disasters, like landslides killing thousands at a time, and the growing threat to water quality and supply attributable to deforestation are harsh realities that can no longer be ignored. Indeed, for the Philippines, saving what is left of its forest cover has become a matter of survival. In the light of the foregoing, Greenpeace recommends: ! That the Philippine government and the PDENR seriously confront

corruption involving its officials or personnel. Corruption is a key driver of illegal logging as it undermines all efforts to curb illegal logging and associated illegal trade. Therefore, eliminating or minimizing the space for corrupt practices is a vital first step towards halting illegal logging.

In this regard, the PDENR, in coordination with the Department of Justice and other relevant government agencies, must prosecute personnel and outside parties involved in graft and corruption arising from forestry transactions.

! That the Philippine government harmonizes the inconsistency

between economic/trade policy directions and environmental policy directions in favor of conservation-driven national goals (NOT exploitation-driven) with respect to the forestry sector. By continuing to espouse exploitation-driven goals and given the weak forest law enforcement system, the remaining forests in the Sierra Madre and a few other areas in the Philippines will always be under the scourge of illegal logging.

! That the PDENR, in line with the immediately preceding

recommendation, shifts its structure and focus from being “exploitation-oriented” to being “conservation and protection-oriented” in order to address present realities of the Philippine environment especially the forests.

Consequently, the Forest Management Bureau (“FMB”) must be elevated from a support bureau to a focal organization in order to prioritize and promote massive reforestation programs and sustainable forest management and governance, NOT sustainable logging.

! That the PDENR, in consultation with local government officials, indigenous communities, NGOs and other concerned groups, explores, develops and institutionalizes innovative forest law enforcement approaches in the Sierra Madre, especially approaches that will enhance the participation of local indigenous

26

communities in the management and protection of the Sierra Madre.

! That the PDENR ensures transparency and access to

data/information relating to all forestry transactions at all times, such as bidding out of confiscated logs and flitches, lifting of suspension of logging permits/instruments including justifications for lifting, issued permits for transport of wood products, and the like.

! That international NGOs extend a helping hand to local NGOs,

sympathetic local government officials of Cagayan Valley, and civil society in cultivating and sustaining a constituency for forest law enforcement and governance in the Sierra Madre (“FLEG for Sierra Madre”).

Although the Sierra Madre is a legally protected natural park and a priority area for biodiversity conservation, it does not have a sustainable and widespread law enforcement mechanism. Without a strong forest law enforcement system in the Sierra Madre, its protected area status will be meaningless, and biodiversity conservation cannot be sustained.

! That the PDENR, in line with the immediately preceding

recommendation, immediately undertake the physical demarcation of the extent of the “buffer zones” in the Sierra Madre as provided by law; and to immediately establish surveillance and patrolling activities in the river systems and coastal areas of the Sierra Madre.

! That sympathetic local government officials of Cagayan Valley and

civil society, in line with the FLEG for Sierra Madre, develop and nurture among the local populace, a sense of the Sierra Madre as a patrimony to be protected and conserved for the next generation of Filipinos.

! That the Philippine government, in consideration of the ecological

and geophysical conditions obtaining in the Philippines such that the tiny patches of forest cover in the Sierra Madre and in a few other areas of the country cannot continue to be placed at the risk of being logged-out, immediately calls for a nationwide total commercial logging ban.

End Note: (1)Republic Act No. 7586 (National Protected Areas System Act) was passed in 1992. It provides for the establishment of protected areas including the legal framework for the establishment and management of protected areas and ensures that they are included in the national development agenda. The NIPAS Act aims to achieve the following:

1. place remaining lowland dipterocarp forests such as those in the Sierra Madre under protection; 2. explore constructive, effective and compassionate ways of reducing human pressures on protected areas; and 3. eliminate all illegal activities in all ecosystems, and in particular logging and other destructive activities

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APPENDIX 1:

2004

2003

Photographs of illegal logging activies in the Sierra Madre, 2001-2004 Flitches and logging camps along river banks, Catallangan River

Log transport in Ilaguen River (which connects to Abuan River)

Flitches floating on the Catallagan River

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Logging camps along Abuan River

Flitches/logging camps along Abuan River Fresh logging roads inside the Park

29

2002

2001

Logged-over areas in the Sierra Madre Natural Park

Tire inner tubes fastened to flitches for flotation before transport, Catallangan River

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APPENDIX 2:

Globally threatened and near-threatened species of the Sierra Madre and their known habitats Source: Northern Sierra Madre Natural Park Management Plan

[Habitat codes: LDF = lowland evergreen dipterocarp forest; LMF = lower montane forest; UMF = upper montane forest; UBF = ultrabasic forest. Species marked + has only been recorded outside the current protected area, but within forests that continues into the protected without any marked barriers that are likely to exclude the species from the protected area.]

English name Scientific Name Conservation status Habitat Terrestrial Mammals Golden-crowned Flying Fox Acerodon jubatus Endangered LDF Luzon Shrew Crocidura grayi Vulnerable LDF, LMF, UMF Philippine Pygmy Fruit-bat Haplonycteris fisheri Vulnerable LDF, LMF, UMF, UBF Luzon Pygmy Fruit-bat Otopteropus

cartilagonodus Vulnerable LDF, LMF, UMF

White-winged Flying Fox Pteropus leucopterus Vulnerable (LDF), LMF, UBF Small Rufous Horseshoe Bat Rhinolopus subrufus Vulnerable LDF Long-nosed Luzon Forest Mouse

Apomys sacobianus Vulnerable LDF, (LMF)

Philippine Forest Roundleaf bat

Hipposideros abscurus Near-threatened LDF

Large Rufous Horseshoe Bat Rhinolopus rufus Near-threatened LDF Yellow-faced Horseshoe Bat Rhinolopus virgo Near-threatened LDF Long-tailed Macaque Macaca fascicularis Near-threatened LDF, UMF, Mangrove Philippine Warty pig Sus philippensis Near-threatened LDF, LMF, UMF, UBF Marine Mammals

Dugong Dugong dugon Vulnerable Sea-grass beds Sperm whale Physeter macrocephalus Vulnerable Ocean Humpback Whale Megaptera novaeangliae Vulnerable Ocean Birds

Philippine Eagle Pithecophaga jefferyi Critical LMF Isabela Oriole Oriolus isabellae Critical LDF Oriental White Stork Ciconia boyciana Endangered Wetlands Nordmann's Greenshank Tringa gutifera Endangered Coastal reefflats Green Raquet-tail Prioniturus luconensis Endangered LDF Blue-naped Parrot Tanygnathus lucionensis Endangered LDF Philippine Eagle-Owl Bubo philippensis Endangered LDF Luzon Water Redstart Rhyacornis bicolor Endangered LMF White-browed Jungle-Flycatcher

Rhinomyias insignis Endangered LMF

Ashy-breasted Flycatcher Muscicapa randi Endangered LDF Furtive Flycatcher Ficedula disposita Endangered LDF Celestial Monarch Hypothymis coelestis Endangered LDF Green-faced Parrotfinch Erythrura viridifacies Endangered (LDF), LMF Baer's Pochard Athya baeri Vulnerable Coastal Philippine Hawk-Eagle Spizaetus philippensis Vulnerable LDF Spoon-billed Sandpiper Eurynorhynchus pygmeus Vulnerable Coastal reefflats Flame-breasted Fruit-Dove Ptilinopus marchei Vulnerable (LDF), LMF Spotted Imperial Pigeon + Ducula carola Vulnerable LDF, LMF Montane Racquet-tail Prioniturus montanus Vulnerable LMF Luzon Scops-Owl Otus longicornis Vulnerable (LDF), LMF Philippine Dwarf-Kingfisher Ceyx melanurus Vulnerable LDF Whiskered Pitta Pitta kochi Vulnerable (LDF), LMF Rabor’s Wren-babbler Napothera rabori Vulnerable LDF, UBF Luzon Striped-Babbler Stactyris striata Vulnerable LDF

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English name Scientific Name Conservation status Habitat Ashy Ground-Thrush Zoothera cinerea Vulnerable LDF Great-billed Heron Ardea sumatrana Near-threatened Mangrove Philippine Duck Anas luzonica Near-threatened Marshes, inland waters, rice-

fields Grey-Headed Fishing Eagle Ichthyophaga ichthyaetus Near-threatened lakes, rivers Tabon Scrubfowl Megapodius cumingii Near-threatened Coastal, beach, riverine forest Spotted Buttonquail Turnix ocellata Near-threatened Grasslands Malaysian Plover Charadrius peronii Near-threatened Coastal reefflats Asian Dowitcher Limnodromus

semipalmatus Near-threatened Coastal reefflats

Cream-Bellied Fruit-Dove Ptilinopus merrilli Near-threatened LDF, UBF Luzon Bleeding-heart Gallicplumba luzonica Near-threatened LDF, LMF, UBF Rufous Coucal Centropus unifurus Near-threatened LDF, Beach forest Indigo-Banded Kingfisher Alcedo cyanopectus Near-threatened Creeks, rivers Spotted Wood Kingfisher Actenoides lindsayi Near-threatened LDF, UBF Tarictic Hornbill Penolopides panini Near-threatened LDF, UBF Rufous Hornbill Buceros hydrocorax Near-threatened LDF, LMF, UBF Blackish Cuckoo-Shrike Coracina coerulescens Near-threatened LDF, LMF, UMF White-Fronted Tit Parus semilarvatus Near-threatened LDF, LMF Long-Billed Rhabdornis Rhabdornis grandis Near-threatened LDF, LMF, UBF Golden-Crowned Babbler Stachyris dennistouni Near-threatened LDF, LMF Chestnut-faced Babbler Stachyris whiteheadi Near-threatened LMF, UMF Long-Tailed Bush-Warbler Bradypterus caudatus Near-threatened LMF, UMF Blue-Breasted Flycatcher Cyornis herioti Near-threatened LDF, LMF Short-Crested Monarch Hypothymis helenae Near-threatened LDF, UBF Rufous Paradise Flycatcher Tersiphone cinnamomea Near-threatened LDF, UBF Mountain Shrike Lanius vilidirostris Near-threatened UMF Flame-Crowned Flowerpecker

Dicaeum anthonyi Near-threatened LMF

White-Cheeked Bullfinch Pyrrhula leucogenis Near-threatened UMF Marine/Coastal Reptiles

Hawksbill Turtle Erethmochelys imbricata Critical Marine, beaches Green Sea Turtle Chelonia mydas Endangered Marine, beaches Loggerhead Turtle Caretta caretta Vulnerable Marine, beaches Estuarine Crocodile Crocodylus porosus Vulnerable Coastal waters, Mangrove Terrestrial Reptiles Philippine Crocodile Crocodylus mindorensis Critical Inland freshwater Asian Giant Softshell Turtle Pelochelys bibroni Vulnerable Inland Freshwater Philippine Sail-fin Water Lizard Hyrosaurus pustulatus Vulnerable Mountain streams, LDF Gray’s Monitor Lizard Varanus olivaceus Vulnerable LDF Malaysian Freshwater Turtle Cuora amboinensis Near-threatened Inland Freshwater Amphibians Forest Frog Platymantis mimulus Rare LDF Woodworth's Frog Rana woodworthi Rare Creeks, LDF Rough-armed Tree Frog Rhacophorus

apendiculatus Rare Creeks, LDF

Everett's Frog Rana everetti Uncommon Creeks, LDF, LMF Corrugated Ground Frog Platymantis corrugatus Uncommon LDF, LMF, UMF Gastropodes (Giant Clam) Hippopus hippopus Threatened Marine rocks, coral reef (Giant Clam) Tridacna crocea Threatened Coral reef (Giant Clam) Tridacna maxima Threatened Coral reef (Giant Clam) Tridacna squamosa Threatened Coral reef

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Photo Credits:

Cover: Jan van Der Ploeg, 2003Pages 5-13: Greenpeace/Ninfa Z. Bito, 2005

Pages 16-23: Greenpeace, 2005-2006Page 27: Jan van Der Ploeg, 2004, 2003

Page 28: Robert Araño, Ph.D., 2003Page 29: Jan van Der Ploeg, 2002, 2001

Technical Adviser for the Aerial Survey:Robert Araño, Ph.D.