Iligan City Govt. consolidates tax delinquent worth 4.6 B into NSC ownership

By Jun Enriquez

Hundreds of people in Iligan City witnessed the event.

Iligan City - This is the day the Lord has made to own the National Steel Corporation (NSC) and bring back its poise to operate again, said Iligan City Vice Mayor Jemar Vera Cruz, a Priest on Sabbatical leave, during the Inauguration of the Consolidation of ownership of the (NSC) properties to the City Government of Iligan held on November 6, 2017 at the ground of the NSC administration building, Suarez, Iligan City, attended by other public officials such as the Iligan city councilors, Barangay officials, national and local government executives, including private business executives and hundreds of iliganons witnessed the event. Atty Dexter Rey Sumaoy, City Administrator and Atty. Rafael Benedictos, Jr. Chief of Staff, office of the Mayor were also help facilitated for the success of the event.

At the table, Iligan City Vice Mayor Jemar Vera Cruz

Vera Cruz said during the time NSC operates the people in Iligan city experienced excellent economic condition and enjoyed prosperity in life with substantive paid salaries. When the NSC stops operation the economy of Iligan city went down and thousands of people became jobless resulted to the increase of poverty incidence. He said due to frustrations many people go into illegal drugs to forget problems they encountered in life and worst others went into the proliferation of illegal drugs as alternative livelihood resulted to high crime incidence. Vera Cruz in his promised said the executive and legislative under the Regencia administration will not go in any way to get “kick back” or get contracts out of NSC operation.

Atty. Voltaire Rovera

Department of Trade and Industry (DTI) Regional Director Linda O. Boniao said that DTI places as priority partner in the development.

Atty. Voltaire Rovira, Iligan City legal officer and head of the NSC Working Group (NSCWG), who is the architect of the tax delinquent recovery of NSC said that Iligan City Treasurer Louela Maybituin was the hero in the fight of acquiring the ownership of NSC. The government Treasurers has the sole powers to warrant tax delinquents.

Iligan City Mayor Celso G. Regencia said that NSC need Low cost electricity to sustain its future operation. The source of power to operate NSC is essentially coming from Hydro power plant of the National Power Corporation (NPC) that generates an average of 100 megawatts (MW) to be the potential power supply. Regencia said that mix power is disadvantageous and will not be used in the operation because of its high cost power rates, composed of power sources from diesel or bunker fuel generation, geothermal, coal among others.

Iligan City Mayor Celso G. Regencia

Regencia said that Iligan City is the host city of hydro power plants such as Agus Plant no. 5, 6 and 7, is entitled 25 percent priority load dispatch from generation in case of emergency crisis, especially that Mindanao still under Martial law and people are in need of jobs and livelihood to earn a living. The 3 hydro power plants situated in Iligan city estimated to produce at an average of 100 megawatts (MW) per power plant unit or a total of 300 MW estimated power production. at this point, the 25 percent load dispatch is equivalent to 75 mw more than enough to energize Iligan City including NSC operation which will need only 58 mw, said Regencia. The steel plant will bring raw materials to become an integrated steel plant to manufacture cars, shipbuilding, including arms and ammunitions, and other steel products.

Regencia said NSC tax delinquent is amounted to 4.6 Billion pesos from 2004 to date. From 1999 to 2004 the tax delinquent is amounted to 997 Million pesos only. Previous administration agreed to receive 140 Million from the Liquidator as compromise payment of tax delinquents in billions of pesos but only 130 Million pesos was allegedly officially received, said Regencia. The total asset of NSC is worth 20 billion pesos.

The 4.6 billion pesos through tax delinquent will served as an equity of the LGU as soon as the NSC will operate and will not be taken from the investors in order not to hamper their capital investments. At this point, the local government of Iligan City will allow at least two seats in the corporate board of director when the steel plant to operate soon.

Engr. Bert Oller, a former Manager of NSC and head of the technical study of the NSCWG said during the 1980s to 1990s, the operation of NSC was in a heyday.  Sometime in 1990 to1994 the NSC operation was privatized and operated by a Malaysian company and transfer to another Malaysian company. In 1998 to1999, NSC was totally closed.

In 2004, NSC was assumed by the Indian company, Global Steel Phils. Inc.. In June 2010, global Steel stopped their operation. Oller said that was the time that the Global Steel filed a case against the NSC liquidator questioning the NSC properties was not transferred to Global steel company. 

Oller said that NSC was on Auction sale started on October 19, 2016, by law the owner has one year to redeem property. The auction sale was closed after one year had lapsed, the LGU of Iligan through the City Treasurer forfeited the redemption. Oller said there is no need for court order of NSC ownership acquisition because all the procedure is within the bounds of the law. The first step is the acquisition of ownership the next step is to invite investors. There were already group of businessmen came and visited NSC, two Koreans, one Japanese and one local investors. The NSCWG was tasked by the Mayor to look all possibilities to talk, listen and ensure that the investor is really qualified of their capital investments and track record in operating steel plant. Photos by Jac Macatimbol.