Kuan Yu to face charges over oil spill clean-up

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Thursday, May 15, 2014

ILOILO Governor Arthur Defensor Sr. has decided to file a multi-million damage suit against Kuan Yu Global Technologies Inc. for rendering a poor, ineffective, and long-delayed oil spill clean-up here.

He said he has instructed lawyer Dennis Ventilacion, the province’s legal officer, to prepare the documents for the case right after they got the copy of Kuan Yu’s contract with Power Sector Assets and Liabilities Management (Psalm) Corp.

Despite the contractor’s refusal, the Provincial Legal Office was also successful in obtaining the copy of their articles of incorporation from Security and Exchange Commission.


“They are now on the process of quantifying the damage which the oil spill brought to the environment and to the lives of affected people,” Defensor said in a press conference Thursday.

The governor also asked the help of lawyer Marven Daquilanea, the former president of Integrated Bar of the Philippines-Iloilo Chapter, and lawyer Hector Teodosio.

“I will ask them to help us and maybe I can encourage them to do it for pro bono. I am also planning to involve the municipalities concerned so we can make this a class suit,” he said.

A graft case has been filed against Kuan Yu before the office of the Ombudsman in relation to the alleged irregular bidding favoring the contractor.

He said Psalm awarded the P87 million oil spill clean-up contract to Kuan Yu without post qualification. He said Kuan Yu won two hours after the first bidding, held past 6 p.m., failed.

“A contract, as big as this, only went to a contractor with no experience and capability. They have no equipment or machineries, we can’t find their office and the people they sent here have no expertise,” he said.

He said Kuan Yu’s authorized capital stock is only P1 million, its subscribed capital stock is P250,000 and its paid-up capital is P60,000.

Before Kuan Yu revised its articles of incorporation in 2012, the company is originally known as Maxx Ionized Alkaline Water Inc., a franchiser of purified water refilling stations.

Until now oil slicks on rocks, seawalls and other man-made structures are still present in Barangay Botongon, Estancia where the oil spill first begun.

The oil spill, which happened after Super Typhoon Yolanda (Haiyan), has affected 14 villages in Estancia, Batad, and Ajuy. (PIO)

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