Sherwin Gatchalian: ‘Look for white knight for Hanjin’

MANILA, Philippines — Instead of taking over the facilities of the bankrupt Hanjin Heavy Industries and Construction Philippines, the government should look for a white knight to revive the shipbuilding company and save thousands of jobs, Sen. Sherwin Gatchalian said yesterday.

Speaking as chairman of the Senate committee on economic affairs, he said it would not be prudent for the government to take over operations and the huge financial burden of the Seoul-based company.

“Historically, the government has a poor track record of managing businesses,” Gatchalian said.

He pointed out that the government’s dismal performance in running businesses is evident in various defunct or non-functioning government-owned firms such as the National Power Corp., National Steel Corp. and, most recently, the MRT Corp.

“The best way forward is to attract well established shipbuilders to take over the company – those who have extensive experience in supply chain management and deep financial pockets,” he said, cautioning the government that “national security should be a key consideration in the selection of a white knight to save the failing company” amid fears that another Chinese consortium is set to bail out Hanjin.

Opposition Sen. Antonio Trillanes IV on Thursday warned that a Chinese firm taking over the shipyard in Subic Bay would have serious national security implications as Beijing continues to seek to expand its military presence in the region.

Defense Secretary Delfin Lorenzana on Wednesday told senators President Duterte was open to the idea of the Navy running the shipyard to produce its own vessels but economic managers strongly warned about the huge financial requirements.