Government to conduct full audit of Global Steel

MANILA, Philippines - The government will conduct a full audit on ailing Indian firm Global Steel Philippines Inc. (GSPI) before the reimposition of the seven-percent steel tariff.

In a press conference, Trade Undersecretary Zenaida C. Maglaya said that a full audit on the financials and operations of Global Steel must be made before the safeguards against imported steel will be returned.

The government removed the seven- percent tariff after Global Steel failed to supply the domestic market.

Maglaya said Global Steel has been complaining that they are in commercial operations and are even exporting. However, she said the firm must prove this.

Maglaya said Global Steel must prove that they can operate and sustain their operations and maybe even have orders for at least six months before we recommend that the tariff be implemented again.

Aside from commercial operations, Maglaya said Global Steel must prove that they are able to pay their outstanding financial liabilities. It has been reported that the company has been unable to pay their electricity bills among other debts.

Maglaya said the government has implemented a zero tariff in order to ensure a reliable supply of steel for sheetmakers.

Maglaya said that they have already facilitated several dialogues between Global Steel and the Filipino Galvanizers Institute (FGI). She said the FGI claimed that they have been placing orders to Global Steel but it was unable to deliver the products.

Maglaya assured Global Steel that once they can prove that they can operate commercially and is able to pay their liabilities the government will again impose the seven-percent tariff.

Global Steel was unavailable for comment.