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  • Government eyes Sulpicio’s available assets

    in ‘Princess’ salvage

     

    By Rene Acosta

    Reporter

     

    THE government is looking into the possibility of using the available assets of Sulpicio Lines in covering the expenses in the refloating and other required works out of its overturned ferry MV Princess of the Stars.

    This was disclosed on Tuesday by Transportation Undersecretary Elena Bautista at the hearing of the House Committee on Transportation, which is investigating the sinking of the country’s biggest passenger ferry.

    Bautista said she discussed the idea of tapping the assets of Sulpicio in the salvaging operations with officials of the Department of Justice and the Department of Finance, hours before she attended the hearing.

    She told the committee, headed by Lakas Rep. Monico Puentevella of Bacolod, that transportation and other officials thought of using the shipping company’s assets and properties as guarantee payment in not only refloating the ship, but in shouldering the other costs including compensating the families of the victims.

    The MV Princess of the Stars overturned off Sibuyan Island in Romblon on June 21 with more than 800 people onboard after it was battered by Typhoon Frank-induced waves.

    Only more than 30 people survived. The bodies of fatalities were washed to as far as Quezon, Masbate, Sorsogon and Camarines Sur days later. Hundreds more are still trapped inside the ferry.

    Kabalikat ng Malayang Pilipino Rep. Elpidio Barzaga Jr. of Cavite said Sulpicio has no money to pay the victims’ kin and for the salvaging of the ship by Titan Salvage Corp.

    He told the committee that he had documents from the Securities and Exchange Commission proving the ship owner had been losing money during the past four years.

    Barzaga brought with him members of three claimant families who said they have been promised P200,000 each in assistance if they sign a quit claim with Sulpicio.

    Independent Rep. Roilo Golez of Parañaque said the government should not only penalize Sulpicio, but also hold Del Monte Philippines responsible for its cargo of 10 tons of endosulfan in the vessel.

    Golez said the justice department should also impose a lien on Del Monte over its still-unrecovered pesticide.

    But a representative of Del Monte said the company was not responsible for the loading of its cargo in the sunken vessel because the shipment was identified as toxic.

    The company also assured that the possibility of leakage is almost zero as the cargo was well wrapped.

    Bautista hinted that Sulpicio may have violated the law when it loaded the endosulfan on MV Princess of the Stars.

    She said that under maritime regulations, no toxic cargo can be loaded in a ship carrying more than 25 passengers.

    Her statement elicited remarks from lawmakers who said that Sulpicio may have been the exception.

    The Coast Guard maintained it has no fault over the sinking of the vessel and again passed the buck on the captain of the ship, who is still missing.

    “We simply did not prevent it from departing. The ship captain has the last say on the matter of whether to sail or not,” a Coast Guard representative said.

    The Maritime Industry Authority (Marina), meanwhile, denied rumors that it has already suspended the franchise of Sulpicio Lines Inc. to operate its vessels.

    Marina Deputy Administrator Primo Rivera told the BusinessMirror that Sulpicio’s certificate of public convenience, or franchise, has not been canceled.

    Rivera said that the suspension of operation of Sulpicio’s roll-on, roll-off passenger ferries does not mean that its franchise has been canceled or suspended.

    Sulpicio’s eight cargo vessels are still in operation as grounding them can cause a major disturbance in the movement of cargo movement. The shipping lines corners at least a fifth of the cargo-shipping market.

    “If he [Marina Administrator Vicente Suazo Jr.] orders me to do so, then I will suspend it. But there’s no cancellation yet,” he said.

    He added that a franchise is a privilege, not a right, and as such can be revoked anytime.

    Rumors are rife on the status of the embattled shipping company after the Board of Marine Inquiry (BMI) finished deliberations last week. The board, however, has yet to release its findings and recommendations, which may lead to lawsuits.

    On Tuesday rumors spread in the shipping industry that Marina has already canceled Sulpicio’s franchise.              

    On Monday Marina has also disowned reports that the agency has cleared the captain of MV Princes of the Stars of any liability and blamed Philippine Atmospheric, Geophysical and Astronomical Services Administration for its inadequate weather bulletin on Typhoon Frank.

    “Marina’s role would be to consider the recommendations of the BMI as they relate to its mandate as the maritime administration and franchising authority. These refer to the safety and seaworthiness of the vessels and where these are allowed to operate in the domestic trade,” the agency said in a statement.

    As a result of the Princess tragedy, which may have killed most of the 800 people onboard when it sunk off Sibuyan Island in Romblon on June 21, the government is setting up a new policy that will require shipping lines to have a compulsory cargo insurance like the tanker operators.

    Bautista told reporters that they are already arranging a public hearing on the issue and a dialogue with ship owners.

    Almost all of the oil tankers operating in the local trade are members of the Protection and Indemnity Club, which will answer to all the damage in case of a sea accident. They are also covered by the International Oil Pollution Fund. (With VG Cabuag)

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