NO HANJIN BRIBERY, EXTORTION; FIRM TOLD TO PAY THE P293 M
MANILA, MAY 7, 2008 (STAR) By Cecille Suerte Felipe - Police disclosed yesterday there was no evidence to prove that bribery and extortion took place in the controversial construction of a $2-billion shipyard by Hanjin Heavy Industries and Construction Co. in Mindanao.The Supreme Court meanwhile affirmed the decision of the Court of Appeals ordering the South Korean construction firm to pay its subcontractor, Dynamic Planners and Construction Corp., the unpaid subcontract amount of P293.9 million and release the retention money of P58.2 million for the construction of the Davao International Airport.
Task Force TAGOVILL head Director Jefferson Soriano said investigators headed by Senior Superintendent Joel Coronel faced a blank wall during the probe because officials of Hanjin and the local government units denied the accusations.
“Apparently there is no case of extortion and bribery because the supposed complainants of extortion and bribery were both denying such incidents,” Soriano said, admitting that he had already informed Interior Secretary Ronaldo Puno about the initial findings.
Soriano, chief of the Directorate for Investigation and Detective Management (DIDM), was tasked to investigate allegations of bribery and extortion involving Tagaloan Mayor Paulino Emano and Villanueva Mayor Juliette Uy and officials of Hanjin, which is putting up a $2-billion shipbuilding project in the PHIVIDEC property in Tagaloan and Villanueva, Misamis Oriental.
In his affidavit, Emano categorically denied that there was an attempt by Hanjin to offer a bribe or any suggestion to that effect. He explained that the P400 million mentioned was actually the cost of a project to extract aggregates from the Tagaloan riverbed that Hanjin was proposing, through project manager Gok Hyun-choi.
“There was neither bribery on the part of Hanjin nor an extortion on my part and that of Mayor Uy. I was merely misquoted and misunderstood by the media,” Emano said in his affidavit.
Soriano said he also personally talked to Jeong Sup-shim, president of the Hanjin Philippines and Myung Goo-kwon, Hanjin Mindanao managing director, who both denied having made allegations of extortion purportedly committed by either Emano, Uy and other local officials in the province.
Officials of Hanjin reiterated their earlier statement that they also have a strict code of conduct and high ethical standards. “We do not engage in unlawful transactions and activities with the government or with any other regulatory group.”
On the issue of the stoppage order issued by Emano, Soriano said it was found out that Hanjin already secured an Environmental Compliance Certificate (ECC) last April 28 for the training center which was part of the shipyard facility.
The compliance of the documentary requirements paved the way for the lifting of the stoppage order.
Soriano said Coronel’s team would still investigate the assault on Arturo Baz, an employee of Hanjin allegedly by persons identified with the Tagaloan mayor at the Hanjin training center last April 26.
Breach of contract
The Court’s Second Division, in a 33-page decision, agreed with the appellate court’s Jan. 28, 2005 ruling that affirmed the findings of the Construction Industry Arbitration Commission (CIAC) that ordered Hanjin to pay Dynamic’s claims.
On Aug. 23, 1999, the Department of Transportation and Communications awarded to Hanjin the contract for the airport’s construction for an aggregate sum of P1.7 billion, 65 percent of which is payable in Philippine pesos and the remaining 35 percent in US dollars at the stipulated exchange rate of P34.10 to $1.
Thereafter, steps were taken to strike a sub-contracting arrangement between Hanjin and Dynamic.
On Feb. 28, 2000, Hanjin and Dynamic executed a subcontract agreement for a 76.5-percent portion of the main contract for the price of P924.6 million.
After re-measuring on the basis of changes in the specifications, the estimated amount of materials for the construction was reduced. The reduction resulted in an adjustment of the subcontract price to P714.8 million.
Records showed that in January 2000, Dynamic mobilized its equipment and manpower for the project although it had yet to receive a notice to proceed from Hanjin. By March 2000, when it received a notice to proceed from Hanjin, Dynamic had already spent a “tidy sum” for mobilization purposes.
According to the Court, in a “clear breach of the subcontract agreement” which obligated Hanjin to give Dynamic an advance payment within 20 days from contract execution, Hanjin paid Dynamic the stipulated down payment in 10 installments spread over six months.– Delon Porcalla, Mike Frialde, Christina Paguinto, Jose Miguel Reyes, Nikki Angulo
Reported by: Sol Jose Vanzi
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