Olongapo SubicBay BatangGapo Newscenter

Sunday, May 04, 2008

Mayor urged to name S. Korean execs in bribe try

Misamis Oriental Governor Oscar Moreno has called on Tagoloan Mayor Paulino Emano to identify the officials of the controversial South Korean giant firm Hanjin, who allegedly tried to bribe him.

Emano claimed earlier that Hanjin Heavy Industries and Construction Corp. offered him P400-million worth of contract just to allow the construction of the $2-billion shipyard inside Philippine Veterans Investment Development Corporation (Phividec).

Warning it could further jeopardize the already shaky project, Moreno said it would be prudent for Emano to "bring the matter to the courts and identify those who are involved in the bribery attempt, if this claim is true."

Emano's allegation dealt another blow to the already shaky Korean project, which saw MalacaƱang scrambling to salvage it after Hanjin announced the withdrawal of its investment early this week.

In television interview Thursday, Emano claimed Hanjin had offered him P400-million worth of contract to repeal an order barring the company from continuing its site clearing operations due to the firms' failure to comply with environmental and building permits.

"I can't say no to the President," Emano was quoted as saying in the report, referring to a meeting with President Gloria Macapagal-Arroyo last Wednesday.

In that meeting, the Tagoloan mayor said he brought Hanjin's purported bribery attempt to the President, who brushed aside the matter and instead scolded him.

Sounding begrudgingly, Emano's reversal order later that day was premised on "the wishes" of President Arroyo.

Senator Pia Cayetano, chairman of the Senate's environment committee, was outraged by the reported bribe offer and said Hanjin should comply the "basic requirements under the law, regardless of whether you're a local or foreign investor."

In television reports Saturday, Cayetano hit President Arroyo for ignoring Emano when he purportedly reported the matter before her.

"But what I found more revealing is when President Arroyo even scolded Mayor Emano [last Wednesday in Cagaytan de Oro City] for standing his ground, even if he only acted in accordance with his duties as an elected public official. The President also allegedly ignored him when he reported the matter about Hanjin's offer," Cayetano said.

Senate President Manuel Villar, who was in Cagayan de Oro Saturday, said Hanjin might be trying to bluff the government in withdrawing the $2-billion shipyard facility in Phividec.

It may be seeking for leverage after getting a lot of heat in Subic, when it constructed a condominium in the middle of the forest without an ECC, Villar added.

Moreno, who was appointed by Arroyo to head the task force coordinating with the shipyard project, said he was stunned with Emano's allegation, and admitted it could further deteriorate relations with the Korean firm if the matter is not handled correctly.

"Having made this claim, the good mayor of Tagoloan is now being called upon to clarify this statement. He can do this by filing charges against Hanjin officials he believed had tried to bribe him," Moreno told Sun.Star in a phone interview.

The governor added he was not in the position to judge whether the mayor's claim was true.

Bad publicity

In a letter to Phividec explaining their withdrawal from the project, Hanjin managing director Myung Goo Kwon cited the "negative and undue publicity of Hanjin projects both in Subic and Mindanao" as one of the factors influencing their decision.

Hanjin Philippines president JS Shim earlier said they might rethink their investments in the Philippines in the wake of negative media publicity brought about by the company's construction of a housing project inside Subic, where it is building a $1.7 billion shipyard facility.

Lloyd's List, a maritime-oriented UK-based media company, quoted Shim as saying if the torrent of negative media reports on its projects "get any worse," it may have to consider reviewing its investments in the country.

It was also stated in the letter that "local disturbances in the operations of the project; outstanding ROW (Right of Way) clearance and unfavorable actions" in the project site were among the problems that the company encountered.

Non-compliant

Emano defended his stoppage order, insisting that Hanjin failed to secure the necessary permits before it started its site clearing operations early this year.

Eight hectares of the total 441-hectare shipyard is located in Tagoloan, while the rest is in the neighboring Villanueva town.

A check at the regional office of the Environmental Management Bureau Saturday revealed that Hanjin has not yet submitted an Environment Impact Statement (EIS) report to the environment department.

An EIS, which assesses impact of a project to the environment, is a requisite before an Environment Compliance Certificate can be issued.

What was issued to Hanjin was a permit allowing it to install fences, said Engineer Alex Jimenez, EMB-Northern Mindanao chief of Environment Impact Statement Division (EISD).

"Hanjin's consultants have yet to submit documents for the EIS," Jimenez told Sun.Star Cagayan de Oro.

The lacking documents pertain to the public hearing conducted among the communities affected by the project, inventory of the shipyard's total area, and other data relating to socio-economic and environmental aspects of the project.

Police probe

Interior and Local Government Secretary Ronaldo Puno ordered the police to investigate the bribe try and the case of violation confrontation involving a Hanjin representative in Tagoloan town.

PNP Chief Avelino Razon Jr. directed the creation of a task force to dig deeper into incidents, allegations, and peace and order issues surrounding the operation of the Hanjin in Misamis Oriental.

The PNP chief also ordered the administrative relief of Tagaloan Police Chief Claudio Mariquit and Villanueva Police Chief Nannette Odchigue to insure a fair and impartial investigation.

A team from the Regional Mobile Group of the Northern Mindanao Regional Police Office was deployed to secure the Hanjin facility and prevent further untoward incidents. (Sun.Star Cagayan de Oro/Sunnex)

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