Our present political leaders have been active in inviting foreign investors to venture into various businesses here in the country, as well as, massive campaign against graft and corruption have been launched. Despite these efforts of the government, with the help of non-governmental units (NGO’s) and other concerned citizens, still, anomalies involving government officials and other giant companies, which have powerful influenced, are still rampant.
Let us take the case of Steel Corporation of the Philippines (SCP), for instance. For every one’s information, SCP is the only steel corporation in the country that’s left that is still fully integrated, but has been ordered by the court for corporate rehabilitation by Banco de Oro in 2006. Reports revealed that due to this corporate rehabilitation order, the local steel industry in the country is said to be inactive not to mention the fact that Philippines’ supply of steel are now coming from China, which are said to be smuggled and non-standard.
On September 19, 2012, the rehabilitation court, as reported, issued an order to convert the SCP’s corporate rehabilitation into irreversible liquidation. According to SCP, this court order has no basis and that it violates the SCP’s and other concerned creditors’ right to due process because the order has been issued without giving them (SCP and party) the chance to appear and defend themselves in court. SCP also added that the action for a corporate rehabilitation against SCP is illegal because it has been issued despite the existence of several petitions which are submitted to the Court of Appeals and the Supreme Court.
According to the Law, a definite order or verdict cannot be imposed to a certain party when there is still an existing appeal/s submitted to the higher court; and SCP claimed that the order for corporate rehabilitation, which leads to an issuance of liquidation, is illegal because it has no basis. SCP also added that, even if there are bases, the recommendations of the rehab receiver are erroneous.
Furthermore, SCP states that presiding Judge Ruben Galvez of the Batangas Regional Trial Court’s Fourth Judicial Region, Branch 3, order is a clear “insubordination” because the higher courts, which are the Court of Appeals and the Supreme Courts, have not yet declared their final decision on the pending appeals with regards to the issues involving SCP, yet, the Regional Trial Court, has already made its final decision, without due process.
Moreover, the order of liquidation, as SCP reported, has a malicious motive in favor of the rehab receiver, who was reported to have questionable qualifications and experience but is still appointed. Based on the statements issued by the SCP, Atty. Norma Singson-De Leon, the appointed rehab receiver, based her recommendations to liquidate SCP on information which are baseless and just mere hearsay. SCP also said that Atty. De Leon never really intended to rehabilitate SCP but instead, making up evidence to support her premeditated objective of liquidating SCP.
SCP noted that they have already submitted to the court the balance sheet and cash flow tests, which showed that SCP’s operations is heading towards the right direction or in the upward direction because the assets of the company outweighs its liabilities.
With this kind of issue, how can we say that we are heading to the straight path (Tuwid na Daan)?