'Furious' Arroyo orders Hanjin extort probed
Saying President Gloria Macapagal-Arroyo was "furious," Interior Secretary Ronaldo Puno on Friday ordered the police to investigate accusations of extortion, bribery and intimidation that led a major South Korean investor to suspend the construction of a $2-billion shipyard in Mindanao.
Puno said it was Ms Arroyo herself who had ordered an immediate investigation after Hanjin Heavy Industries Inc. complained of alleged extortion by the mayors of Tagoloan and Villanueva towns in Misamis Oriental in exchange for approvals of environmental and business permits for the project.
Tagoloan Mayor Paulino Emano has denied the accusation and said it was Hanjin which offered him a bribe amounting to P400 million. Villanueva Mayor Juliette Uy could not be reached for comment.
Emano said that on Wednesday, Ms Arroyo met with him, along with Mayor Uy, to ask them to accommodate Hanjin.
Emano said in a statement--and later on local television--that he mentioned the P400-million contract offer to him during the meeting with Ms Arroyo.
But he said Ms Arroyo ignored him.
Emano claimed that instead of listening to him, Ms Arroyo scolded him for issuing the work stoppage order.
"President Arroyo will never violate any existing law just to accommodate persons, individuals or companies who want to invest in the country," Press Secretary Ignacio Bunye said Thursday, reacting to the allegations.
Spare no one
"The President was furious about the alleged extortion...galit na galit (she was very angry)," Puno said at a press conference. "The President has directed us to be very serious in the handling of this case and to spare no one who is at fault."
Puno said he had ordered the Philippine National Police (PNP) to get down to the bottom of the matter.
The Misamis Oriental shipyard was the latest of a number of government projects with foreign investors that have become centers of controversy.
Earlier, environmentalists denounced the construction of two condominium buildings being built by Hanjin for its staff in the Subic Bay Freeport rainforest. Hanjin is also constructing a $1.68-billion shipyard at Subic.
Late last year, Ms Arroyo was forced to scrap a $329-million National Broadband Network deal with China's ZTE Corp. following allegations that some officials, led by then Commission on Elections Chair Benjamin Abalos Sr., had received kickbacks and that Ms Arroyo's husband, Jose Miguel "Mike" Arroyo, had intervened to get the project approved. Both Abalos and Mike Arroyo denied involvement.
Puno said he had also ordered a PNP task force to investigate the reported assault of a company driver of Hanjin allegedly by men connected with the office of the Tagoloan mayor.
Police chiefs relieved
PNP Director General Avelino Razon has also ordered the administrative relief of the chiefs of police of Tagoloan and Villanueva for being supposedly "instrumental" in the assault on the driver as well as for other "incidents," and to insure a fair investigation, Puno said.
The two officials relieved were Tagoloan Chief Inspector Claudio Mariquit and Villanueva Senior Inspector Nannette Odchigue, according to Puno.
A police team has been deployed to secure the Hanjin facility and prevent further incidents, Puno said.
A statement from Puno's office said Ms Arroyo ordered him to conduct an investigation "after expressing deep concern over the possibility that these [incidents] could seriously hurt national efforts at investment promotion and job creation."
Hanjin's Misamis Oriental shipyard is expected to create around 40,000 jobs and would make the country a major player in the global shipbuilding industry, Puno said.
It is being built inside the Phividec Industrial Estate on Mindanao's northern tip and is one of the biggest investments in the southern Philippines.
The new facility will have a capacity of 830,000 tons per year when completed.
Puno said Hanjin had already started clearing operations for the project when Mayor Emano ordered a halt to the project, saying Hanjin failed to present an Environmental Compliance Certificate (ECC) and a municipal building permit.
"Right now, they (Hanjin) are not inclined to continue with the project," Puno said.
Conflicting versions
He said Hanjin officials had claimed local officials had tried to extort money from them in exchange for the release of the permits.
But after being "confronted" by Ms Arroyo on the matter, Emano said it was Hanjin which offered "a bribe of 400 million," according to Puno.
"The conflicting statements of the mayors and Hanjin officials on the charges of bribery and extortion are puzzling to say the least," Puno said.
He added it was strange that the bribery allegations came after the reported assault on the Hanjin employee by men allegedly identified with one of the mayors.
"It does not make sense for a group that claims to have been bribed to respond by ordering the attack on a company driver of the alleged briber," Puno said.
Emano's account
Emano, for his part, said Hanjin tried to offer him a P400-million worth of contract so he would allow the company to continue with its activities.
Emano said he saw Hanjin's offer as a bribe because it was offered in exchange for lifting the work stoppage order he issued against Hanjin for its failure to secure an ECC prior to its clearing operations that affected two barangays.
The shipbuilding facility will occupy 441 hectares within the Phividec estate.
Emano also told reporters that Hanjin had insulted the people of Tagoloan.
"This is my stand and I am sending a message that we mean business in our place. What they enjoy is only a privilege extended to them and they have no right to trample on our rights. I have always been supporting them but they didn't respect us," he said.
Hanjin has threatened to withdraw its investment.
In a letter to the Phividec Industrial Authority, Hanjin cited "numerous adversities" as its reason for pulling out its project team from Phividec. It cited "local disturbances" as among the adversities.
Hanjin also criticized Emano's order to stop the construction of the training center and the clearing operations as "questionable and improper."
On Friday, the regional office of the Department of Interior and Local Government issued a press statement announcing the lifting of Emano's work stoppage order.
The statement followed the meeting between Emano, Uy, PIA officials and Ms Arroyo held at the Cagayan de Oro airport on Wednesday.
50 ha bulldozed
Almost 50 hectares of coconut, corn and vegetable farms have been bulldozed before Hanjin decided to stop work on Monday.
Gov. Oscar Moreno earlier said the work stoppage was likely to be temporary and that the provincial government had helped clarify matters.
"We asked the EMB (environmental management bureau) to intervene," said Moreno. "The EMB clarified that Hanjin doesn't need to secure an ECC for the clearing operation. Everything was clarified."
Some residents said the suspension of work would give them time to demand compensation for pieces of property that would have to be destroyed to give way to the shipyard.
Capacity constraints in Korea have forced Hanjin to look overseas for expansion. Estimated annual exports from its Subic facility were expected to reach at least $2.5 billion by 2016, equivalent to 40 ships, from about $521 million this year.
Hanjin's Subic facility has received orders for 28 container vessels, three bulk carriers and two oil tankers as of June 2007.
With a report from Reuters - By Alcuin Papa, Ma. Cecilia Rodriguez - Philippine Daily Inquirer
Puno said it was Ms Arroyo herself who had ordered an immediate investigation after Hanjin Heavy Industries Inc. complained of alleged extortion by the mayors of Tagoloan and Villanueva towns in Misamis Oriental in exchange for approvals of environmental and business permits for the project.
Tagoloan Mayor Paulino Emano has denied the accusation and said it was Hanjin which offered him a bribe amounting to P400 million. Villanueva Mayor Juliette Uy could not be reached for comment.
Emano said that on Wednesday, Ms Arroyo met with him, along with Mayor Uy, to ask them to accommodate Hanjin.
Emano said in a statement--and later on local television--that he mentioned the P400-million contract offer to him during the meeting with Ms Arroyo.
But he said Ms Arroyo ignored him.
Emano claimed that instead of listening to him, Ms Arroyo scolded him for issuing the work stoppage order.
"President Arroyo will never violate any existing law just to accommodate persons, individuals or companies who want to invest in the country," Press Secretary Ignacio Bunye said Thursday, reacting to the allegations.
Spare no one
"The President was furious about the alleged extortion...galit na galit (she was very angry)," Puno said at a press conference. "The President has directed us to be very serious in the handling of this case and to spare no one who is at fault."
Puno said he had ordered the Philippine National Police (PNP) to get down to the bottom of the matter.
The Misamis Oriental shipyard was the latest of a number of government projects with foreign investors that have become centers of controversy.
Earlier, environmentalists denounced the construction of two condominium buildings being built by Hanjin for its staff in the Subic Bay Freeport rainforest. Hanjin is also constructing a $1.68-billion shipyard at Subic.
Late last year, Ms Arroyo was forced to scrap a $329-million National Broadband Network deal with China's ZTE Corp. following allegations that some officials, led by then Commission on Elections Chair Benjamin Abalos Sr., had received kickbacks and that Ms Arroyo's husband, Jose Miguel "Mike" Arroyo, had intervened to get the project approved. Both Abalos and Mike Arroyo denied involvement.
Puno said he had also ordered a PNP task force to investigate the reported assault of a company driver of Hanjin allegedly by men connected with the office of the Tagoloan mayor.
Police chiefs relieved
PNP Director General Avelino Razon has also ordered the administrative relief of the chiefs of police of Tagoloan and Villanueva for being supposedly "instrumental" in the assault on the driver as well as for other "incidents," and to insure a fair investigation, Puno said.
The two officials relieved were Tagoloan Chief Inspector Claudio Mariquit and Villanueva Senior Inspector Nannette Odchigue, according to Puno.
A police team has been deployed to secure the Hanjin facility and prevent further incidents, Puno said.
A statement from Puno's office said Ms Arroyo ordered him to conduct an investigation "after expressing deep concern over the possibility that these [incidents] could seriously hurt national efforts at investment promotion and job creation."
Hanjin's Misamis Oriental shipyard is expected to create around 40,000 jobs and would make the country a major player in the global shipbuilding industry, Puno said.
It is being built inside the Phividec Industrial Estate on Mindanao's northern tip and is one of the biggest investments in the southern Philippines.
The new facility will have a capacity of 830,000 tons per year when completed.
Puno said Hanjin had already started clearing operations for the project when Mayor Emano ordered a halt to the project, saying Hanjin failed to present an Environmental Compliance Certificate (ECC) and a municipal building permit.
"Right now, they (Hanjin) are not inclined to continue with the project," Puno said.
Conflicting versions
He said Hanjin officials had claimed local officials had tried to extort money from them in exchange for the release of the permits.
But after being "confronted" by Ms Arroyo on the matter, Emano said it was Hanjin which offered "a bribe of 400 million," according to Puno.
"The conflicting statements of the mayors and Hanjin officials on the charges of bribery and extortion are puzzling to say the least," Puno said.
He added it was strange that the bribery allegations came after the reported assault on the Hanjin employee by men allegedly identified with one of the mayors.
"It does not make sense for a group that claims to have been bribed to respond by ordering the attack on a company driver of the alleged briber," Puno said.
Emano's account
Emano, for his part, said Hanjin tried to offer him a P400-million worth of contract so he would allow the company to continue with its activities.
Emano said he saw Hanjin's offer as a bribe because it was offered in exchange for lifting the work stoppage order he issued against Hanjin for its failure to secure an ECC prior to its clearing operations that affected two barangays.
The shipbuilding facility will occupy 441 hectares within the Phividec estate.
Emano also told reporters that Hanjin had insulted the people of Tagoloan.
"This is my stand and I am sending a message that we mean business in our place. What they enjoy is only a privilege extended to them and they have no right to trample on our rights. I have always been supporting them but they didn't respect us," he said.
Hanjin has threatened to withdraw its investment.
In a letter to the Phividec Industrial Authority, Hanjin cited "numerous adversities" as its reason for pulling out its project team from Phividec. It cited "local disturbances" as among the adversities.
Hanjin also criticized Emano's order to stop the construction of the training center and the clearing operations as "questionable and improper."
On Friday, the regional office of the Department of Interior and Local Government issued a press statement announcing the lifting of Emano's work stoppage order.
The statement followed the meeting between Emano, Uy, PIA officials and Ms Arroyo held at the Cagayan de Oro airport on Wednesday.
50 ha bulldozed
Almost 50 hectares of coconut, corn and vegetable farms have been bulldozed before Hanjin decided to stop work on Monday.
Gov. Oscar Moreno earlier said the work stoppage was likely to be temporary and that the provincial government had helped clarify matters.
"We asked the EMB (environmental management bureau) to intervene," said Moreno. "The EMB clarified that Hanjin doesn't need to secure an ECC for the clearing operation. Everything was clarified."
Some residents said the suspension of work would give them time to demand compensation for pieces of property that would have to be destroyed to give way to the shipyard.
Capacity constraints in Korea have forced Hanjin to look overseas for expansion. Estimated annual exports from its Subic facility were expected to reach at least $2.5 billion by 2016, equivalent to 40 ships, from about $521 million this year.
Hanjin's Subic facility has received orders for 28 container vessels, three bulk carriers and two oil tankers as of June 2007.
With a report from Reuters - By Alcuin Papa, Ma. Cecilia Rodriguez - Philippine Daily Inquirer
Labels: hanjin, hhic, misamis oriental
posted by OlongapoCity Zambales at
7:13 AM
0 Comments:
Post a Comment
<< Home