Press Release
April 6, 2008

Senate to probe Korean firm's invasion of Subic forest

The Senate will investigate South Korean shipbuilder Hanjin Heavy Industries & Construction Ltd.'s alleged invasion of the Subic rainforest. This, after Sen. Loren Legarda said she would introduce Monday a Senate resolution enabling the inquiry.

"We will definitely look into the allegation," Legarda said, referring to Hanjin's reported construction of two high-rise condominium building projects inside the forest reserve that formed part of what used to be the Subic Naval Base.

"This is a very grave allegation that we cannot just sweep under the rug," Legarda said.

The senator is founder of Luntiang Pilipinas, the nationwide tree-growing plan that received the United Nations Environment Program Award in 2001. She is also author of a bill seeking to declare a 25-year total ban on all logging activities.

Legarda chaired the Senate environment and natural resources committee and authored the Solid Waste Management Act, the Clean Air Act and the Wildlife Conservation and Protection Act in the 12th Congress.

Hanjin actually has two multibillion-peso shipyard projects in the country -- one in Zambales and one in Misamis Oriental, according to Legarda, chairperson of the Senate committee on economic affairs.

Malacañang issued Executive Order 701 on January 22, 2008, directing all heads of departments, bureaus, offices, agencies of the government to support the investments projects of Hanjin.

Hanjin is investing about $3.6 billion (about P150 billion) to put up two shipbuilding and repair facilities, one at the Subic Bay Freeport Zone for $1.6 billion and the other at the Phividec Industrial Estate at a cost of $2 billion, according to EO 701.

The two projects are expected to generate a total of 50,000 new jobs, according to the presidential directive.

"If you have investment projects these large, there are bound to be issues. We will look into these issues, and ascertain whether the projects are in full compliance with environmental protection laws, among other statutes," Legarda said.

As to Hanjin's Phividec project, Legarda said, "there have been complaints that some communities there have been dislocated, and that the families affected were not adequately compensated."

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