Is Pres. Ramos the Reason Why National Steel Went Bankrupt?
The National Steel Corp. (NSC), which used to be the symbol of the Philippines march towards industrialization, has been abandoned, looted and is now rotting in its 145-hectare industrial complex in Iligan City.
There are so many reasons why the National Steel went bankrupt but recent controversies surfaced online that Pres. Ramos is the reason behind NSC's downfall.
In an interview with Manila Bulletin, Congressman Vicente F. Belmonte Jr. of the lone legislative district of Iligan City blamed the national government policy of privatization and making NSC, which used to employ as many as 4,200 Filipinos, into what it is today - a big white elephant.
During the administration of Pres. Fidel V. Ramos, under the government's privatization policy, the National Steel Corp. were turned over to the Malaysian investors in 1995. A few years later, the Indian investors took over in 2004 and the mills eventually went on total shutdown in 2009.
According to the statement of Rep. Belmonte, the Philippines made a mistake in awarding the NSC to the Indians. The NSC was acquired by Pramod Mittal's Global Steel Holdings Ltd. from creditor banks in 2004 for a total price of P13.25 billion including an upfront cash of P1 billion while the remainder was to be paid over an 8-year-period.
The privatazation of the National Steel Corporation under the Ramos administration was overseen by the former Department of Trade and Industry (DTI) Secretary Mar Roxas.
The National Steel Corp. during its glory days became the first government corporation to obtain an ISO-certification, it is complete with staff houses and other real estate assets inside its sprawling premises.
NSC was also the first government corporation to be declared Employer of the Year and also the first government corporation to be bestowed AIM's Award for Managerial Excellence in people development.
During its peak, NSC supplied 62 percent of the Philippine total flat steel demand (34 percent for hot-rolled products; 75 percent for cold-rolled products; 69 percent for tinplate products). It used to directly export an average of 4,000 MT per month to China
NSC generated R12 billion in annual revenues and earned a net income of P500 million every year, after paying duties and taxes of R1 billion yearly to the government.
There are so many reasons why the National Steel went bankrupt but recent controversies surfaced online that Pres. Ramos is the reason behind NSC's downfall.
In an interview with Manila Bulletin, Congressman Vicente F. Belmonte Jr. of the lone legislative district of Iligan City blamed the national government policy of privatization and making NSC, which used to employ as many as 4,200 Filipinos, into what it is today - a big white elephant.
During the administration of Pres. Fidel V. Ramos, under the government's privatization policy, the National Steel Corp. were turned over to the Malaysian investors in 1995. A few years later, the Indian investors took over in 2004 and the mills eventually went on total shutdown in 2009.
According to the statement of Rep. Belmonte, the Philippines made a mistake in awarding the NSC to the Indians. The NSC was acquired by Pramod Mittal's Global Steel Holdings Ltd. from creditor banks in 2004 for a total price of P13.25 billion including an upfront cash of P1 billion while the remainder was to be paid over an 8-year-period.
The privatazation of the National Steel Corporation under the Ramos administration was overseen by the former Department of Trade and Industry (DTI) Secretary Mar Roxas.
The National Steel Corp. during its glory days became the first government corporation to obtain an ISO-certification, it is complete with staff houses and other real estate assets inside its sprawling premises.
NSC was also the first government corporation to be declared Employer of the Year and also the first government corporation to be bestowed AIM's Award for Managerial Excellence in people development.
During its peak, NSC supplied 62 percent of the Philippine total flat steel demand (34 percent for hot-rolled products; 75 percent for cold-rolled products; 69 percent for tinplate products). It used to directly export an average of 4,000 MT per month to China
NSC generated R12 billion in annual revenues and earned a net income of P500 million every year, after paying duties and taxes of R1 billion yearly to the government.
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Is Pres. Ramos the Reason Why National Steel Went Bankrupt?
Reviewed by Anne Reyes
on
July 07, 2016
Rating:
Reviewed by Anne Reyes
on
July 07, 2016
Rating:
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