Corrupt Officials Pestered Koreans

Lizanilla Amarga

They saw Hanjin as a milking cow. One local official wanted a contract to supply aggregates to Hanjin; another wanted to corner a multimillion peso steel deal.

The Hanjin Heavy Industries and Construction Corp. (Hanjin) complained and was even on the verge of filing graft charges against entreprising local officials who allegedly saw the Korean project as an opportunity for them to make money, lawyers disclosed to this paper.

Speaking on condition of anonymity, the lawyers said they were asked to draft complaints against the officials. They said the Koreans nearly charged the officials with breaking the law against graft and corruption, and with violating the code of ethics of public servants. “There were even discussions on the possibility of a lawsuit because of the alleged violation of the Revised Penal Code.” one lawyer told the Gold Star Daily.

Hanjin opted not to go to court for fear of repercussions on their businesses elsewhere, the lawyers said. Instead the Koreans who were supposed to employ some 40 thousand people within the next three years abruptly decided to back off from the US$2-billion shipyard project and moved out from Villanueva and Tagoloan towns in Misamis Oriental.

Camiguin Rep. Pedro Romualdo confirmed that he received information about how local officials allegedly demanded business deals with Hanjin.

“Correct nga labihan ka correct.”

said Romualdo when this paper sought his comment on allegations that one official sought a contract to supply sand and gravel, and another wanted to corner a contract for the supply of steel to hanjin. Romualdo earlier said he wanted a congressional investigation into the circumstances that factored in Hanjin’s decision to call it quits in Misamis Oriental.

Misamis Oriental Gov. Oscar Moreno and Rep. Yevgeny Vicente Emano of the province’s 2nd District confirmed that Hanjin executives complained about the alleged corruption of some officials. Moreno said a Hanjin officials and Phividec administrator Nimfa Albania visited him to complain. During the meeting, he was asked to “discipline” the local officials. But Moreno said he asked Hanjin executive to show him proof. “I had to tell him that as much as we need investments, we have laws and we should follow due process,” Moreno said. Rep. Emano said Hanjin exercised “maximum tolerance” in their dealings with local officials. The officials kept on going to Hanjin with their selfish interest in mind, said Emano. And then the Koreans got fed up. “Hanjin wanted to withdraw a long time ago. They planned on filing charges.” said Emano.

President Arroyo was very disappointed when she read The Gold Star Daily story about Hanjin’s decision to move out, sources said. They said Arroyo, during a meeting at the Lumbia airport last week, gave local officials a “very clear lowdown” as she lectured them on how losing the project would embarrass not just Misamis Oriental and Mindanao but the entire country.