Lease of NSC facilities to proceed despite Hottick

Government is going to pursue the negotiations for leasing out the facilities of National Steel Corp. despite the decision of Hottick Investment Ltd. to pull out of the evaluation team headed by the Malaysian government.

Trade and Industry Secretary Manuel Roxas II who is returning from Japan this week, said he would immediately call a meeting of the committee to discuss Hottick’s unilateral decision to pull out of the committee working for the reopening of the steel company.

In a letter to Roxas, Hottick chairman Datuh Abdul Rashid Abdul Manaff said they will no longer participate in the activities of the evaluation committee.

The committee was created by the government to receive, evaluate and select proposals for the interim lease of the NSC’s Iligan plant, after the company was taken over by Pengurusan Danaharta Nasional Bhd.

In his letter, Manaff said Hottick is still interested in seeing NSC operate its plant as soon as practicable and that the investment company had advised the NSC board to "revisit" the lease agreement forged earlier by the NSC with Allengoal.

According to Roxas, Hottick’s action is "inconsistent with the painstaking work" already undertaken by the evaluation committee which had originally set out to study various offers from different investors that want to take over NSC’s Iligan plant.

Roxas said in a statement that Hottick’s move contravenes the discussions and consensus earlier reached by the Philippines and the Malaysian political and financial officials as well as Danaharta, Malaysia’s equivalent of the Philippine Assets and Privatization Trust.

"The consultative process and arrangements developed over many weeks, with the participation of all concerned parties, are all aimed at ensuring a satisfactory and quick resolution of the issue," Roxas said.

However, it is not known how the process could continue following Hottick’s pullout since it still owns the majority shares in the company and its participation is necessary to mobilize the support of NSC’s creditors.

NSC has signed a lease agreement with Allengoal, a landmark development that might finally allow the defunct company to reopen its Iligan plant and resume operations.

With the signing of the agreement, the Malaysian-owned company, Hottick Investment Ltd. has pulled out of the evaluation committee created by study proposals for the Interim lease for NSC. – Des Ferriols