Monday, May 05, 2008 Hanjin hints retreat before negative press
EVEN before the spat on its shipyard project in Misamis Oriental, Hanjin Heavy Industries and Construction Corp. has already had second thoughts on its recent investments in the country consisting of two huge shipyards totaling at least $3.7 billion.
Early last month, Hanjin Philippines president JS Shim said they might rethink their investments in the country in the wake of negative media publicity brought about by the company's construction of a housing project inside Subic, where it is building a $1.7 billion shipyard facility.
Lloyd's List, a maritime-oriented UK-based media company, quoted Shim as saying if the torrent of negative media reports on its projects "get any worse," it may have to consider reviewing its investments in the country.
And it could not get much worse for the South Korean company. Weeks after Shim issued the caution, permit-related problems started to surface on its second-and bigger-shipyard project in Misamis Oriental, valued at $2 billion.
The problems -- brought about local opposition and by the company's non-compliance with building and environmental permits -- ended on Hanjin's withdrawal from the project early this week and followed by the damaging claim of Tagoloan Mayor Paulino Emano that Hanjin offered him P400 million worth of contract to soften him up.
Emano had issued an order stopping Hanjin's site clearing operations in his town, where part of the shipyard complex will be located. The mayor repealed the order last Wednesday after he said he was "scolded" by President Gloria Macapagal-Arroyo.
Although Malacañang officials have announced the problems between local official and Hanjin have been ironed out, the company had yet to respond on the government's conciliatory gestures.
Lawmakers, however, said the drawbacks experienced by the South Korean firm are solely of its own making.
Senator Pia Cayetano, who heads the Senate committee on environment and natural resources, pointed out that Hanjin had recurring problems in Subic and Misamis Oriental projects: the failure to secure local permits and environmental clearance.
"These are basic requirements under the law, regardless of whether you're a local or foreign investor," Cayetano said in a press statement.
For his part, Senate President Manuel Villar suspected the South Korean company's latest overtures may be aimed at taking off the heat amid the negative publicity on the manner it handles both projects.
"They should follow the law like anyone else in this country. Of course maluwag tayo minsan ng kunti dahil investors sila, but there is no excuse when you don't follow regulations," Villar said in press briefing with the local media Friday.
