The Market Monitor Minding the Nation's Business
By DIEGO C. CAGAHASTIAN
Government law enforcers raided the Philippine Sanjia Steel Corp. and closed the company’s 22.7-hectare steel manufacturing facility inside the PHIVIDEC Industrial Estate in Tagoloan, Misamis Oriental.
The May 15 raid was led by Executive Director Undersecretary Benjamin Acorda Jr. of the Presidential Anti-Organized Crime Commission (PAOCC), the National Bureau of Investigation (NBI) and the Armed Forces of the Philippines.
Authorities earlier alleged that the P800-million plant was involved in hazardous industrial operations, the production of substandard steel products, and possible links to illegal POGOs.
The steel firm denied the accusations and questioned the use of search warrants and detention of personnel, arguing that the alleged violations involved administrative and regulatory matters rather than criminal offenses.
Sanjia Steel has denounced the operation as “harassment” by law enforcers themselves, and demanded the reopening of its facility and release of its detained workers.
The company dismissed as rubbish the raiders’ claim that it was involved in illegal Philippine offshore gaming operations (POGOs), hazardous industrial activities, and the production of substandard steel products, saying authorities relied on “unverified allegations” and sensationalized claims.
“These alleged infractions fall strictly under the regulatory supervision of civilian agencies,” the company’s legal counsel, Julia Chu, said in a statement. “Legitimate compliance issues are ordinarily addressed through a Notice of Violation process — not by serving criminal search warrants, shutting down an industrial complex, and detaining technical personnel.”
The closure displaced more than 300 Filipino workers, including the arrest of some 69 Chinese workers and managers who were found to have valid work permits and working visas.
Sanjia also disputed allegations that it manufactured substandard steel products, noting that representatives from the Department of Trade and Industry–Bureau of Philippine Standards were not present during the raid.
The firm maintained that its products comply with engineering and dimensional standards and said it holds valid Product Standard certifications.
The company likewise rejected allegations involving uranium and “nuclear waste,” describing the claims as baseless and sensationalized. It explained that the firm’s operations use imported Japanese scrap metal processed under an Environmental Compliance Certificate issued by the Department of Environment and Natural Resources. It added that the imported materials entered the country with complete certifications and complied with Japanese industrial standards.
The company warned that public references to “nuclear waste” involving Japanese industrial materials could affect trade relations and damage investor confidence.
Sanjia also defended the 69 Chinese nationals apprehended during the operation, saying they were specialized engineers and technical personnel necessary for machinery operations and technology transfer.
“All foreign personnel possess valid immigration documents and active Alien Employment Permits issued by the Department of Labor and Employment,” Chu said.
The company also denied alleged ties to businessman Tony Yang, saying corporate records filed before the SEC show that Yang had already divested from the corporation.
Sanjia also rejected allegations linking the company to illegal POGO activities, claiming authorities failed to recover servers, gaming systems, or communication infrastructure during the search.
“We find it deeply troubling that broad and highly publicized allegations were used to justify an operation of this magnitude despite the apparent absence of evidence supporting claims of illegal gaming activities,” Chu said.
As this developed, the think tank Asian Century Institute headed by Herman Tiu Laurel called out Defense Secretary Gibo Teodoro for using military aircraft in transporting the Chinese workers to their detention facilities in Metro Manila, and putting them in cramped detention cells with 30 workers in each cell.
Tiu Laurel stressed that while the Marcos administration is enticing foreign investors, the “defense secretary with a Maltese passport” is negating every trade and economic enhancement initiative of the country through harassment and spurious claims of operational violations.
Tiu Laurel supported the Chinese embassy’s claim that the raid was plain harassment because while the Filipino workers were easily set free, the 69 Chinese workers were held in custody and even transported to Manila for detention, using military aircraft.