MANILA, Philippines — A South Korean shipbuilder that won the Philippine Navy’s frigate project has assured the Philippine government that it will “continue its utmost effort” to support fleet modernization even after it was barred by the South Korean Supreme Court from joining state-led bids over bribery issues.
In a letter dated January 30 to Defense Secretary Delfin Lorenzana, Hyundai Heavy Industries executive vice president and COO Sang Hoon Nam assured the government that the issue “is not a matter to be concerned with, as it is totally unrelated to the Philippine Frigate Acquisition Program.”
The South Korean Supreme Court earlier decided to ban HHI from participating in any state-led tender in South Korea for two years after some of its employees were found guilty of offering bribes to win the bid to supply parts for four nuclear reactors to be constructed in the United Arab Emirates.
Sang noted that the restriction is only effective to Korean government bidding and is not a blacklist action that restricts private contracts, special appointment contracts, or other forms of business participation.
“We have confidence that there is no impediment to sign and implement the contract with your esteemed government for the construction of (the) frigate(s),” he added.
The FAP will cost around P16 billion, excluding weapons systems and munitions.
But the deal has also drawn controversy after Magdalo party-list Representative Gary Alejano earlier irregularities.
A Senate hearing into the allegations will be held on February. Among those expected to show up are Special Assistant to the President Christopher “Bong” Go, who is accused of meddling in the deal.
