Hanjin to continue with $ 2-B shipyard in Misamis Oriental

{mosimage}A major South Korean investor is still inclined to pursue its $ 2 billion shipyard construction in Northern Mindanao despite a bribery and extortion scandal involving the company and a local government unit, Malacanang said yesterday.

Press Secretary Ignacio Bunye said Trade Secretary Peter Favila got the assurance from Hanjin Heavy Industries about likely keeping its investments in Misamis Oriental pending an investigation into the corruption allegations.

"Hanjin has communicated through Secretary Favila that they are still inclined to stay despite these usual problems with the local government," Bunye said in a news conference in the Palace.

Bunye said Hanjin is willing to cooperate with the police investigation into bribery issue hounding the shipbuilding facility in the Misamis Oriental province.

"They said that they will comply with all the requirements (of the investigation)," he said.

Tagoloan Mayor Paulino Emano earlier said Hanjin tried to bribe him with P400 million worth of contracts in exchange for lifting the work stoppage order against the company.

Hanjin however claimed that Emano and Villanueva Mayor Juliette Uy tried to extort money from the South Korean firm in exchange for the approval of environmental and business permits for the project.

Senators have expressed interest to investigate the matter.

But this early, Bunye appealed to senators to forego any investigation against Hanjin and to allow the proper government agencies to complete their probes.

He said President Arroyo has already directed the Department of Interior and Local Government to investigate the conflicting allegations of Hanjin and the town mayor.

"To ensure a fair investigation, it is better to do away with politics. Let there be an impartial investigation of the charges and countercharges among the parties," Bunye said.

Bunye warned that the government stand to lose revenues and jobs for Filipinos in case Hanjin, one of the biggest foreign investors in the country, pulls out its investment.

"Hanjin is part of the billion-dollar club and it will have a huge impact if the company decides to totally pull out. That’s why we are given a ray of hope that the misunderstanding will be resolved," he said.

Bunye said they are also pleased that Misamis Oriental Governor Oscar Moreno, a former lawmaker and investment banker, will help in the DILG investigation into the alleged bribery.

"We expect a very credible investigation that will determine the root cause of the allegations and counter allegations," he said. "We believe persons like Governor Moreno would try to get to the bottom of this and come up with solution that would benefit everybody," he added.

Deputy Presidential Spokeswoman Lorelei Fajardo said a planned congressional inquiry into the Hanjin situation "may be unnecessary and totally a waste of time."

Fajardo said the Senate should focus on many other critical issues to better serve the interest of the people rather than launch "another witchhunt and premiere another teledrama."

Deputy Presidential Spokesman Anthony Golez also said that another Senate investigation into the Hanjin project in Misamis Oriental may scare away foreign investors.

Golez said it would create an impression that the Philippine government "slaps investors" after asking them to invest in the country. (Genalyn D. Kabiling)

Lacson advises foreign investors to avoid "short cuts"

Opposition Sen. Panfilo M. Lacson advised yesterday foreign investors, particularly Hanjin Heavy Industries Inc., to comply with Philippine laws and requirements and not use "shortcuts" to avoid controversies.

 

"We may be turning off investors who plunk in billions of pesos but violate our laws, but there are investors who are willing to come in while showing respect for our laws," Lacson said.

In a related development, Lacson pointed out that the Anti-Red Tape Act of 2007 that he principally authored imposes administrative and criminal sanctions against those in government who refuse to issue permits within a specified time.

For simple transactions such as mayor’s permit, the application is deemed to be approved if not acted upon in five days. For complex transactions such as environmental certificate by the Department of Environment and Natural Resources (DENR), the application is deemed approved if not acted upon in 10 days.

The Hanjin case appears problematic in that Hanjin officials claimed two mayors of Misamis Oriental tried to "squeeze" P400 million from their firm in return for the issuance of mayor’s permit and environmental clearance.

Hanjin officials did not mention how long they have waited for the issuance of permits or certificates.

Togoloan Mayor Paulino Emano alleged that the South Korean firm offered a bribe in return for the issuance of a mayor’s permit and environmental clearance. The other local executive allegedly involved in the controversy is Villanueva Mayor Juliette Yu.

"Malacanang’s slip may be showing when its legal eagles hoisted this scenario of an investor pullout over an alleged P400 million bribe offer involving Hanjin," Lacson said.

"A Senate investigation on corruption scares Malacanang, period," Lacson said after senior Malacanang legal officials "warned" that the investigation may cause Hanjin and other prospective foreign investors to pull out.

Lacson said President Arroyo’s delayed action on an alleged P400 million bribe offer by Hanjin to Emano smacked of Malacanang benefiting from the "arrangement."

He noted that Korean firms like Hanjin normally follow procedures, unless they get the signal that they could violate laws so long as they pay their way out. (Mario B. Casayuran)

Santiago supports, Enrile opposes call to investigate Hanjin

Administration Sen Miriam Defensor Santiago yesterday said she will support the move to conduct a public hearing into the two major infrastructure projects undertaken by South Korean firm Hanjin Heavy Industries.

Santiago said that rather than limiting themselves into inspections at the construction site of two of Hanjin’s projects: the shipyard project in Misamis Oriental and the $ 20 million condominium building in Subic, senators should hold a public hearing at the Senate to determine whether the foreign multi-billion investor was liable for violating the country’s environmental laws.

"The construction and the issuance of the necessary permits were above board but that was just the result of a visual ocular inspection of the premises. There was no public hearing. I support the move to conduct a public hearing in the Senate instead of just limiting ourselves to ocular inspection by just a few senators," Santiago said.

Santiago said the Senate probe should include the report of the mayor of Tagoloan, Misamis Oriental, Paulino Emano, who claimed he refused a P400 million bribe offer of the Korean investor just to approve the shipyard project and later told Presid
ent Arroyo of the incident.

"Basically that’s an NBI (National Bureau of Investigation) matter, as you know, but if the impact on the environment would be substantial, the Senate itself should conduct its own investigation instead of leaving it to the administrative agency so it can serve as a deterrent to similar actions in the near future," Santiago said.

Santiago also rejected talk that the move would discourage foreign investors from investing in the country, saying that all foreign investments are covered by a United Nations convention that oblige member countries to uphold to environmental integrity.

"The UN Convention states that overseas investors must comply with environmental laws and the UN has already passed many resolutions and declarations on environmental integrity," Santiago said.

Sen. Juan Ponce Enrile, however, disagreed with the proposal, saying that it should be the country’s law enforcement units who should go after foreign firms who violate the country’s law.

"They (Hanjin) were accused of having no ECC (environment compliance certificate). We have laws and they did not follow them, so the law enforcers should do their jobs," Enrile said.

"Ano ang pakialam ng Senado sa bagay na ito? We have so many other important matters to attend to, like the CARP," Enrile said. (Hannah L. Torregoza)

Congressmen ask senators to lay off Hanjin bribe case

Administration lawmakers yesterday warned senators against investigating the alleged bribery in the $ 2-billion shipyard project of South Korea’s Hanjin Heavy Industries Inc., saying hearings in a "highly politicized environment" might scare foreign investors out of the country.

Instead, they urged senators to let the Department of Interior and Local Government (DILG) or the Office of the Ombudsman look into the matter which falls under their jurisdiction.

Lakas Reps. Maria Milagros "Mitos" Magsaysay of Zambales and Monico Puentevella of Bacolod City said it would be better if senators focused on pressing issues such as rice and oil problems.

"Our good senators should focus on pressing issues such as rice shortage and not to politicize the issue through their inquiry like what happened in their previous inquiries," Magsaysay said.

"It is better for them (senators) to pass the investigation directly to concerned government agencies so that we can protect investments. We have to remember that the power of Congress to investigate is only recommendatory," she said.

Puentevella said the alleged bribery attempt must be handled with "utmost sensitivity" since it involves a very substantial investor and an opposition-dominated Senate simply cannot do that.

"We should be looking for ways and means to solve oil and rice problems instead of investigating issues that tend to drive investors away," he said.

Reps. Rodolfo "Ompong" Plaza (NPC, Agusan del Sur) and Bienvenido Abante (Lakas, Manila) shared the opinions of Magsaysay and Puentevella.

Plaza said while no one can stop the Senate from conducting inquiry in aid of legislation, he personally feels that the task to investigate the Hanjin controversy must be given to the DILG and the Ombudsman.

"A careful inquiry is imperative as it leaves bad taste and will discourage foreign investors if not properly handled," Plaza said.

"Remember as they (investors) say it’s very expensive to do business in the Philippines," he added.

Abante said that this time around, senators must prove their worth by doing their primary duty and that is to legislate.

"There is no need (for the Senate to investigate). There are too many investigations, too many grandstanding. Let them buckle down to work as legislators, not investigators," he said.

Kampi Rep. Rodolfo Antonino of Nueva Ecija said the senators should allow concerned agencies to conduct the investigation and if later on they find the findings unacceptable, then the Senate can perform its oversight function.

"They (senators) should let the affected agencies do their job and when the agencies come out with their findings then they can perform oversight through committee hearing," Antonino said.

Earlier, DILG Secretary Ronaldo Puno ordered the PNP to investigate accusations of extortion made by Hanjin against some mayors, and a counterclaim by one of the mayors that the foreign construction firm offered him a P400-million bribe to clear the way for the project in Misamis Oriental.

Puno said the probe was ordered by President Arroyo after Hanjin complained of extortion by the mayors of Tagoloan and Villanueva towns in the province in exchange for the approval of environmental and business permits for the project.

Tagoloan Mayor Paulino Emano alleged that Hanjin offered him a P400-million contract to supply materials for the project, which he saw as a bribe.

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