PNP probes alleged bribery in Northern Mindanao Hanjin project

MANILA, Philippines - The police will look into allegations of bribery and extortion made by a local government unit against a Korean industrial company, officials said Friday.

In a press conference at Camp Crame, Quezon City yesterday, Department of Interior and Local Government (DILG) Secretary Ronaldo V. Puno instructed the Philippine National Police (PNP) to investigate allegations of a P400-million bribe offer to Tagoloan, Misamis Oriental Mayor Paulino Emano. (see video)


For the latest Philippine news stories and videos, visit GMANews.TV

According to Mr. Emano, he was offered P400-million in contracts by officials of Hanjin to allow continued operation of the ship-building facility in the town.

On the other hand, Hanjin officials, through a letter-complaint filed before the office of Misamis Oriental Gov. Oscar Moreno, said one of its representatives was manhandled and roughed-up by men identified as municipal employees of Mr. Emano.

In the same letter, the Korean industrial firm also complained of alleged harassment of its employees by municipal officials.

PNP Chief Dir. Gen. Avelino I. Razon, Jr. created task force Tagovill, an investigating body to be led by Police Director Jefferson P. Soriano, Directorate for Investigation and Detective Management (DIDM) chief, to look into the accusations of the town mayor.

Mr. Puno said they would investigate Mr. Emano first and ensure that Mr. Emano is not using his political power to extort Hanjin. "In spirit of transparency, there would be no secret lost to the investigation," he said.

"The allegation of Hanjin is a severe blow to promote investments in the country. We will ensure local officials will cooperate in the government’s national effort of job creation on different projects all over the country," he added.

In a statement, Senator Pilar Juliana "Pia" S. Cayetano, chairperson of the committee on environment and natural resources, said, "I am outraged to hear that Hanjin offered such favor to the local official to allow them to continue construction even without first securing a municipal building permit and environmental compliance certificate, among others. These are basic requirements under the law, regardless of whether you’re a local or foreign investor."

Ms. Cayetano noted that Hanjin shows "utter refusal to abide by our laws" and the government is apparently seen "tolerating" the "violations of national and environmental laws," adding that President Gloria Macapagal-Arroyo is "playing deaf and dumb again on what could possibly be another bribery attempt brought to her attention."

"We should send a clear message to investors that they are welcome but they must abide by our laws. If they do not want to follow our laws then they should leave our country," she added.

Hanjin had planned to operate a $2-billion shipyard that would extend from Tagoloan to Villanueva in Misamis Oriental. Its training center alone would occupy eight hectares, while the planned shipyard would be on a 70-hectare property in Tagoloan and on a 400-hectare property in Villanueva.

Mr. Emano earlier issued an order for Hanjin to cease operations after the company failed to present an Environmental Compliance Certificate (ECC) and a municipal building permit.

While investigations are ongoing, police chiefs of Tagoloan and Villanueva towns, Chief Inspector Claudio Mariquit and Senior Inspector Nanette Odchigue respectively, had been relieved from their posts, said Mr. Razon. — Jhoanna Frances S. Valdez and Bernard U. Allauigan, BusinessWorld

Arroyo: Probe Misamis mayors for Hanjin Extortion

President Arroyo has ordered an investigation against two municipal mayors in Misamis Oriental for allegedly extorting money from a South Korean construction company in the province. The alleged extortion attempt reportedly prompted the Koreans to initiate withdrawal from a $2-billion shipyard project.

Interior Secretary Ronaldo Puno said he ordered the Philippine National Police to investigate allegations of Hanjin Heavy Industries Construction Co. Ltd. against Villanueva Mayor Juliet Uy and Tagoloan Mayor Paulino Emano.

Puno said Mrs. Arroyo personally told him during a Cabinet meeting to order the investigation. He said Mrs. Arroyo received the complaint during the meeting.

"An investigation has to happen. An investigation will be conducted immediately," Puno told reporters, explaining that counter-allegations of the construction firm and the two mayors should be acted upon.

Puno said the mayors had denied Hanjin's accusation during a meeting with Mrs. Arroyo in Malacañang. The mayors told Mrs. Arroyo that it was Hanjin that offered them money.

Puno said Hanjin threatened to withdraw from the shipyard project after an employee was allegedly mauled by two officials of the Villanueva municipal government.

Emano, meanwhile, accused Hanjin of offering him P400 million to allow the construction of the shipyard.(see video)


For the latest Philippine news stories and videos, visit GMANews.TV


ECC caused trouble?

The mayor suspended the projected because of the South Korean firm's failure to secure an Environment Compliance Certificate. The Department of Environment and Natural Resources, however, had already issued Hanjin an ECC, allowing the resumption of the construction.

The South Korean firm, on the other hand, complained that its employee was "manhandled and roughed-up" by Emano's men.

PNP chief Director General Avelino Razon Jr., meanwhile, relieved the police chiefs in Tagoloan and Villanueva to make sure that these officials will not be able to influence the investigation.

Razon said police chiefs Claudio Mariquit and Nannette Odchigue of Tagoloan and Villanueva, respectively, were relieved "to ensure a fair and impartial investigation."

The PNP chief said he had also ordered the deployment of a team of policemen from the Northern Mindanao police Regional Mobile Group to secure the Hanjin construction facility.

Razon also announced the creation of Task force TAGOVILL that will conduct the Hanjin project investigation. (Source)

Cayetano hits Hanjin, Arroyo over Mindanao shipyard project mess

MANILA, Philippines - Sen. Pia Cayetano on Friday expressed outrage over reports that Korean firm Hanjin Heavy Industries and Construction Corp. allegedly offered a P400-million contract to a municipal mayor in Misamis Oriental, in exchange for a reversal of his order stopping the construction of a $2-billion shipyard which still hasn't secured the necessary permits.

"I am outraged to hear that Hanjin offered such favor to the local official to allow them to continue construction even without first securing a municipal building permit and environmental compliance certificate (ECC), among others. These are basic requirements under the law, regardless of whether you're a local or foreign investor," said Cayetano.

Cayetano was referring to the recent revelation made by Tagoloan Mayor Paulino Emano about the P400-million contract offered to him by Hanjin.

However, the senator said is that what is more deplorable is President Gloria Macapagal Arroyo's reaction to Emano's claims that Hanjin offered him a multi-million contract.

"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.

"If these reports are true, then there are clearly three disturbing trends here. The first points to a trend showing Hanjin's utter refusal to abide by our laws, as it has been involved in a similar controversy in Subic. Second is government's apparent tolerance of violations of national and environmental laws allegedly committed by this investor. And the third, and most disturbing, is the President playing deaf and dumb again on what could possibly be another bribery attempt brought to her attention," she added.

Cayetano noted that Hanjin is also under fire by environmentalists for constructing two condominiums beginning January 2007 inside the protected Subic forest reserve without an ECC.

Hanjin applied for an ECC only in March 2007 and was granted the same by the Subic Bay Metropolitan Authority (SBMA) in July 2007. By then, Hanjin's 22-storey condominium was already eight floors high, while the 12-storey condominium was already four floors high.

On the other hand, Cayetano said President Arroyo likewise ignored former NEDA chief Romulo Neri's report that he was offered a P200-million bribe by former Comelec Commissioner Benjamin Abalos in exchange for NEDA's approval of the national broadband network contract with ZTE Corp.

Hanjin had planned to operate a $2 billion shipyard that would extend from Tagoloan town to Villanueva in Misamis Oriental. Its training center alone would occupy eight hectares, while the planned shipyard would be on a 70-hectare property in Tagoloan and on a 400-hectare property in Villanueva.

"We should send a clear message to investors that they are welcome but they must abide by our laws. If they do not want to follow our laws then they should leave our country," Cayetano said. - GMANews.TV

Arroyo asks Hanjin to stay in Misamis Oriental

CAGAYAN DE ORO CITY, Philippines - President Gloria Macapagal-Arroyo and other government officials scrambled into action Wednesday to dissuade South Korean Hanjin Heavy Industries Construction Co. Ltd. from withdrawing the construction of the $2-billion shipyard facility in Villanueva, Misamis Oriental.

Arroyo met with Misamis Oriental Governor Oscar Moreno; Administrator Ninfa Albania of the Philippine Veterans Investments and Development Corporation (Phividec); Secretary Serge Remonde of the Presidential Management Staff, whom the President has designated as the secretary-in-charge for the Hanjin project; Undersecretary Boy Ibarle of PMS; Presidential Assistant for Northern Mindanao Jojo Popos; Tagoloan Mayor Paulino Emano; Villanueva Mayor Juliet Uy; Misamis Oriental 2nd District Representative Bambi Emano; and Northern Mindanao Regional Development Council Chair JJ Romualdo in Lumbia airport late Wednesday afternoon.

The huddle came after Hanjin managing director Myung Goo Kwon sent a letter to Albania expressing their desire to withdraw from the project.

"We are constrained to take this in view of the numerous adversities that beset the company's initial operations, to wit; negative and undue publicity of Hanjin projects both in Subic and Mindanao; local disturbances in the operations of the project; outstanding ROW (Right of Way) clearance and unfavorable actions therefrom," A Philippine star report quoted Myung.

Elisa Pabillore, Misamis Oriental Department of Trade and Industry (DTI) director said a pullout by Hanjin would have "serious ramifications" to Cagayan de Oro, Misamis Oriental, and the country's image of haven for business investments in Asia.

"It would take years to rebuild a shattered image. A damaged credibility is one of the many potential ramifications that would materialize in case Hanjin pulls out its investment," Pabillore said.

President Arroyo met with the officials before she went back to Manila after spending two days in Camiguin and Cagayan de Oro to inaugurate the Second Strong Republic Nautical Highway project. The meeting lasted for at least 30 minutes at the pre-departure lounge of the Lumbia airport.

Governor Morena in a statement said: "Instead of looking back and resort to finger pointing, we need to look forward and learn from the lessons of the past. I appeal to everybody to cooperate in insuring that this project will be completed and realize our dreams."

"I am not at liberty to disclose everything that was discussed but suffice it to say that the President, in no uncertain terms, urge the group not to lose the Hanjin investment," he added.

One of Hanjin's headaches -- an executive order from Tagoloan town Mayor Paulino Emano that seeks to stop the construction -- was solved Wednesday after Emano and Villanueva town Mayor Juliette Uy relented.

Emano and Uy gave Hanjin the go signal to continue the construction after a lengthy discussion with PMS Usec Ebarle Wednesday afternoon.

"The dialogue (with Ebarle) opened the way for a much clearer understanding of certain points and issues raised by the concerned local executives," said a statement from the Department of Interior and Local Government (DILG)-Northern Mindanao office.

Emano earlier ordered Hanjin to stop the construction of the shipyard because the Korean firm failed to secure a municipal building permit and an Environmental Clearance Certificate (ECC).

On Wednesday, the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources (DENR) issued a permit that would allow the Korean firm to put up fences around its facility in Tagoloan and Villanueva towns.

Most of the Hanjin staff in Villanueva had gone back to Manila according to Divine Lagdamen, head of the Phividec corporate planning department, but she said she got assurance that they would be coming back.

"Yes there is a work stoppage, but Hanjin is not closing down the project. The company's Korean staff has already gone back to Manila where they are based, but they will return once the project resumes," Lagdamen told Sun.Star Cagayan de Oro.

Lagdamen said Hanjin officials told Albania that the work stoppage is "only temporary." She estimated that Hanjin have cleared 20 percent of the 441 hectares it will used for it's shipyard facility in the towns of Tagoloan and Misamis Oriental.

Hanjin said the $2-billion facility is expected to employ about 45,000 people -- including engineers, welders, fabricators and administrative personnel -- within the next three years, when the shipyard is expected to become fully operational.

"Recently there are a series of investigations and hearings by the Senate and everyday there are articles in the media denouncing and condemning Hanjin. Nobody refers to the brighter side such as more than 10,000 employment," Hanjin said in a press statement.

Still, there are other problems that hound Hanjin in its construction of its Misamis Oriental shipyard facility.

DTI-Northern Mindanao Director Alicia Eusena said the shipyard facility does not have yet the approval of the Philippine Economic Zone Authority (Peza).

Without the approval from Peza, Eusena said Hanjin will have to pay taxes to the Municipal Governments of Villanueva and Tagoloan.

The Senate is investigating Hanjin for construction a condominium right in the middle of a forest in Subic, Olongapo City.

In Misamis Oriental, hundreds of affected residents complained of poorly constructed resettlement site and non-payment of their farm products after their houses were torn down by bulldozers to make way for the construction.

Two villages -- barangays Tambobong and Balacanas -- will be destroyed and will exist no more this year. At least 6,000 residents, mostly farmers, will become homeless. - Sun.Star Cagayan de Oro