Leading business organizations have thrown their support behind the government’s investigation of Philippine Sanjia Steel Corp., saying the case raises broader questions about regulatory oversight, industrial safety, and national security that could have implications for investor confidence and governance standards.
In a joint statement, the Federation of Philippine Industries, Global AI Council PH, Institute of Corporate Directors, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, and Philippine Iron and Steel Institute said the issues surrounding the steel manufacturer warrant a comprehensive and evidence-based review by relevant government agencies.
The groups cited public reports involving alleged environmental and occupational safety risks, compliance concerns, labor-related issues, and questions regarding the quality and safety of certain steel products. They stressed that all findings should be subjected to due process and evaluated by the appropriate technical and regulatory authorities.
Beyond compliance concerns, the organizations echoed concerns raised by National Defense Secretary Gilberto Teodoro Jr. regarding potential security vulnerabilities linked to foreign-connected activities near strategic military facilities, including a naval installation and an under-construction Philippine Navy dry dock in Misamis Oriental.
“We stand firmly by our defense and law enforcement agencies in protecting the Filipino people, upholding the rule of law, and ensuring that accountability is pursued through fair, transparent, and evidence-based processes,” the groups said.
The statement comes weeks after a multi-agency operation conducted on May 15 at the company’s facility inside the PHIVIDEC Industrial Estate in Tagoloan, Misamis Oriental. The operation involved the Philippine National Police, Armed Forces of the Philippines, Presidential Anti-Organized Crime Commission, National Bureau of Investigation, and other law enforcement agencies.
Authorities reported that 69 undocumented Chinese nationals and one Filipino were allegedly found working illegally at the plant. Investigators also disclosed that specialists from the Philippine Nuclear Research Institute detected radioactive materials in several areas of the facility.
According to authorities, imported scrap materials allegedly contaminated with radioactive substances, including uranium-238, thorium-228, and thorium-232, may have been processed at the site.
The case highlights the growing challenge of balancing investment promotion with effective regulatory enforcement. As the Philippines seeks to attract more industrial investments, business groups argued that strong compliance standards, environmental safeguards, and national security considerations remain essential to maintaining public trust and long-term competitiveness.
The organizations urged authorities to complete the investigation promptly, review oversight mechanisms for industrial facilities in sensitive locations, and pursue legislative reforms where regulatory gaps are identified.
