October 31, 2012
Stealing Steel Corporation of the Philippines
With all the different things happening in our surroundings, we seldom take notice of the issues that concern our country. We are so busy with doing different activities which prevent us from knowing that there are some issues needed to be addressed. If only we take time to relax, sit and read the news, we will find out that there are many problems faced by the Philippines. Before we think of the steps that we could take to solve the adversities, I suggest that we inform ourselves first.
In this article, you will find out about one of the problems in the Philippine Government. Sad to say, there are some people in the three branches of the government who are inefficient and ineffective in doing their tasks and duties. Again, I would like to highlight that NOT all government officials fail in what they need to do. There are still those who are able to offer great service to the Filipinos.
Please check the article below and let me know what you think about it.
Despite the government’s aggressive campaign to attract investors to the Philippines and the various reforms initiated purportedly to fight red tape and corruption in the bureaucracy, doing business in the Philippines remains very difficult because of the frequent meddling by the courts even at the expense of public interest.
And by all indications, while the war against corruption is now being won in the government bureaucracy, the judiciary seems to be losing the battle even after the impeachment of former Chief Justice Renato Corona who was dragged into various allegations of corruption and other indiscretions.
Take the case of the Steel Corporation of the Philippines, the country’s only remaining fully integrated steel plant, which was forcible brought to corporate rehabilitation in 2006 by Banco de Oro (BDO) upon orders by the court. This is now the reason why the local steel industry in the Philippines is now practically dead and much of the country’s steel supply are now smuggled and unrated Chinese steel.
The action for a corporate rehabilitation against SCP came despite the pendency of several appeals at the Court of Appeals and the Supreme Court. For some strange reasons, the rehab court has all of a sudden, issued an order on 19 September 2012 converting the rehabilitation proceedings into one of liquidation based on the outdated, erroneous, and speculative report of the rehab receiver.
Moreso, this action of the rehab court being presided over by Judge Ruben Galvez of the Batangas Regional Trial Court’s Fourth Judicial Region, Branch 3 was in utter disregard of judicial courtesy and of SCP’s ’s fundamental right to due process.
The local steel industry is already in pain because while the Philippines is so rich with high grade iron ores and other minerals needed the production of steel, many local steel plants have shut down especially during the onslaught of the Asian Financial Crisis in 1997. Despite the financial challenges, SCP struggle to survive only to be placed under rehab proceedings and without any due process, be converted into one of liquidation upon the mere recommendation of the rehab receiver, whose appointment, experience and qualifications are questionable?
Isn’t in more prudent that all efforts should be focused on the rehabilitation of SCP instead of being quickly dissolved especially if the owners and investors are more than willing to to save their own company? Why is it that the rehab court under Galvez is too much in a hurry to practically erase the SCP on the face of the planet?
For one, the appointed rehab receiver, Atty. Norma Singson-De Leon, based her recommendation to liquidate SCP on information which are false, grossly inaccurate and pure hearsay, and on conclusions which are erroneous, reckless, illogical, unfounded and prejudiced. She never truly intended to rehabilitate SCP but was just fishing for evidence to support her premeditated objective of liquidating SCP.
Contrary to the rehab receiver’s findings, SCP handily passed the balance sheet and cash flow tests of solvency prescribed under both the old and new law of corporate rehabilitation. Based on its audited financial statements for 2011, its total assets exceeded its total liabilities by php5.3 billion (“balance sheet test”) and its current assets exceeded its current liabilities by php2.9 billion (“cash flow test”).
It is clear that the Rehab Receiver never truly intended to rehabilitate SCP but was just fishing for evidence to support her premeditated objective of liquidating SCP.
For whatever reason, it is reeks with anomaly for a Rehab Receiver to be rushing SCP’s liquidation instead of allowing first for its rehabilitation. Besides, it is obvious that the rehab receiver is clearly unqualified for a heavy manufacturing company like SCP having had only two previous experiences for companies which are less than 10% the size of SCP. It also turned out that SCP’s rehab receiver has been discharged twice as rehab receiver by two rehab courts in the past.
Judge Galvez’s court violated the right of SCP and other interested parties to due process as he did not exert any effort to hear the side, not only of SCP, but also those of the creditors and the other interested parties before ordering its liquidation. How can Judge Galvez even issue the liquidation order against SCP on the basis of the mere say-so of an inexperienced rehab receiver, without giving all affected parties their day in court and without the implementing rules and regulations?
Why is he in a rush to liquidate a company which is the country’s last stand against the invasion of substandard and China-made steel?
While there are pending petitioned before the Supreme Court and the Court of Appeals, Judge Galvez seemed to be too over-eager to implement the recommendation of Singson-De Leon even if it means that this would pre-empt the ruling of both superior courts.
It simply ignored the doctrine of judicial courtesy which requires that lower courts must await the decision of higher courts on matters related to cases before it. Otherwise, the appeals may be rendered moot and academic, and useless, resulting in judicial anarchy. Moreso, why can’t the rehab court wait for the decisions of the higher courts as it has always done in the past instead of risking being cited in contempt?
In ordering the liquidation of SCP, the Galvez court may have committed contempt of court by preempting the pending decisions of the Court of Appeals and the Supreme Court. Disregarding the superiority of the CA and the SC as arbiters of the SCP’s case is tantamount to abuse of discretion and does not sit well with the judiciary’s earnest struggle to regain the people’s trust and confidence which was somehow eroded by the painful Corona impeachment trial.
SCP is the last fully integrated steel plant still standing in the country and it must be saved from predatory takeover attempts by those casting a moist eye on its business for their own selfish interests. Because BDO failed to take over SCP after forcibly bringing it to corporate rehabilitation, fear are rife that it now wants to do it again by using the liquidation order as an excuse to use SCP funds to selectively buy back its debts held by the other creditors to complete the takeover.
This would not only allow an easier takeover but it would be a lot cheaper for BDO to possess SCP through liquidation.
Clearly, the rehab receiver and the judge handling SCP’s case had no interest to save the company at all and it looks like they are not doing this out of patriotism. Someone must be moving heaven and earth to make sure the SCP fails in its bid for rehabilitation. Like vultures, they are just waiting for SCP to fall before feasting on its carcass. END
Just a classic example where money really talks. Such a pity when one of our own (Filipino) sides with the oppressors.
The Philippines has to much to offer in terms of resources , if only managed well and greediness is out from the evil mind of the capitalist , this country could be one of the leading business center if not in the world atleast in Asia.
This is one reason why our country is into the worst economy.Our country is rich ,we have all the resources but despite everything ,corrupt and self centered people and politicians are always there to hinder our growth.
this is one of our greatest problem…we allow powerful people to control and exploit us….then we complain.
I guess this is not new to the Filipinos anymore. These type of acts from corporations/politicians or from other agencies all over are becoming really normal. Too bad. Just sad.
may tinatawag daw na big three company sa pilipinas. yun daw ang nag cocontrol ng media, negosyo tapos politika. yan din ang nag loloklok sa mga magiging presidente.
Nakakalungkot isipin na hindi masyadong napagtutuunan ng pansin ang mga taong ini-exploit ng mga makapangyarihan sa gobyerno.
Kaya naman confident ang mga may kapangyrihan na gawin ito.
Hindi araw araw pasko….May araw din kayo!
There are only two things in this world. Reasons and results.. I guess, it's all political, money matters and covering asses 🙂
Just to inform readers our competitiveness ranking increased by 10 pts. Slowly we are improving albeit there is a long way to go. But eventually we will be there we just need to start with ourselves.
I guess, personal motives always end up the winner in every undertaking done here in our country. Enough of red tape but ang uso naman now is may naghahariang governmet brach, be it the executive, legislative or judicial. Ang bottom line, GREED for Money.
Too Long X_x but this made me think. Bakit kelangan gawin ito ng mga tao sa ibang tao na medyo mababa? Maxado na silang greedy, uhm I guess I know kung san sila pupunta. 🙂
It is sad because there were lots of people who were depending on their jobs in order to be able to provide for their family, were now jobless because of this. I hope that that these problems will be solved.
It's not at all that uncommon. Take a look at more projects around our country and you'll see there were already 'decisions made' even before any kind of audit. Our football, for example, suffered for this, with wrongly allocated funds.
"This is an old story" – forgive the pun, these issues are here for almost long time now. We can't just resolves stuffs like this when there are complicated relationships involved. From the greedy people in high spots protecting their meats down to local government who simply can't follow rules and instruction even though they're the one who created it by nature.
It's all about money then. Update us with more post about this steel corporation issue Attorney.
that is why china