Fate of Cordova damage claim to be known today

CEBU, Philippines - Cordova, Cebu officials and those of the two shipping companies involved in the collision of two sea vessels last year will again meet today to settle the issue concerning the town’s multi-million claim for environmental damage payment because of the resultant oil spill.

It would be determined today whether an amicable settlement could be resorted to or that the matter should better be elevated to the courts.

Cordova Mayor Adelino Sitoy said the town would sue 2Go Travel, which owned the sunken MV Thomas Aquinas, and Philippine Span Asia Carrier Corp (formerly Sulpicio Lines Incorporated), owner of MV Sulpicio Express Siete.

“We will go to court and sue the two of them…. Maniguro mi nga ikiha namo ang duha aron motubag sila (We are suing so they would really answer),” he said.

Cordova is asking for P127 million from the protection and indemnity Insurance of the two shipping firms as compensation for the damage suffered by the town’s mangroves and fishing communities due to the oil spill that followed the collision August 16 last year.

However, the Maritime Industry Authority circular on the mandatory insurance was suspended since March 2010 after an issuance of a cease and desist order.  The order meant the protection and indemnity insurance was “optional.”

The insurance covers shipowners and operators for indeterminate risks and third-party liabilities encountered in their commercial operation, including wreck removal and oil pollution.

Sitoy said that if the two shipping firms are not covered by the insurance, the firms themselves should the town the amount it is claiming.

“Sila may mo-answer ang mga taga-barko. Kung dili sila insured, sila ang barko na mismo (If the ships were not ensured, the companies should be the ones to pay),” he said.

The town had hoped that the matter would be resolved in a conference scheduled last June 2.  2GO, however, continue to refuse agreeing to the compensation demand, arguing that liability has not been determined yet.

Span Asia also did not attend the conference and reportedly did not respond to the demand letters the town sent.

The Provincial Information Office said the concerned parties would convene at 2 p.m. today for a conference presided by Provincial Legal Officer Orvi Ortega. — (FREEMAN)