PHILIPPINE Sanjia Steel Corp., the company operating the controversial P800-million steel manufacturing plant raided by the Presidential Anti-Organized Crime Commission (PAOCC) and the National Bureau of Investigation (NBI) in Misamis Oriental, has denounced the operation as “harassment packaged as law enforcement.”
The firm demanded the reopening of its facility and release of its detained workers.
In a statement, Philippine Sanjia Steel Corp. rejected allegations that the Tagoloan-based plant was involved in illegal Philippine offshore gaming operations (POGOs), hazardous industrial activities, and the production of substandard steel products, saying authorities relied on “unverified allegations” and sensationalized claims.
The raid was conducted at the company’s 22.7-hectare steel manufacturing facility inside the Phividec Industrial Estate and led by PAOCC Executive Director Undersecretary Benjamin Acorda Jr.
Authorities earlier alleged that the P800-million plant was involved in hazardous industrial operations, the production of substandard steel products, and possible links to illegal POGOs.
Sanjia denied the accusations and questioned the use of search warrants and detention of personnel, arguing that the alleged violations involved administrative and regulatory matters rather than criminal offenses.
“These alleged infractions fall strictly under the regulatory supervision of civilian agencies,” the company’s legal counsel, Julia Chu, said in a statement. “Legitimate compliance issues are ordinarily addressed through a Notice of Violation process — not by serving criminal search warrants, shutting down an industrial complex, and detaining technical personnel.”
Following the operation, authorities ordered the temporary closure of the facility pending legal proceedings.
The company said the closure displaced more than 300 Filipino workers and triggered protests in parts of Mindanao, where employees and their families called for the reopening of the plant amid concerns over lost income.
Sanjia also disputed allegations that it manufactured substandard steel products, noting that representatives from the Department of Trade and Industry–Bureau of Philippine Standards were not present during the operation.
The firm maintained that its products comply with engineering and dimensional standards and said it holds valid Product Standard certifications.
The company likewise rejected allegations involving uranium and “nuclear waste,” describing the claims as baseless and sensationalized.
According to Sanjia, its operations use imported Japanese scrap metal processed under an Environmental Compliance Certificate issued by the Department of Environment and Natural Resources. It added that the imported materials entered the country with complete certifications and complied with Japanese industrial standards.
The company warned that public references to “nuclear waste” involving Japanese industrial materials could affect trade relations and damage investor confidence.
Sanjia also defended the 69 foreign nationals apprehended during the operation, saying they were specialized engineers and technical personnel necessary for machinery operations and technology transfer.
“All foreign personnel possess valid immigration documents and active Alien Employment Permits issued by the Department of Labor and Employment,” Chu said.
The company claimed that authorities barred its legal team from entering the facility during the operation, leaving workers and foreign personnel without legal representation for nearly 24 hours.
Sanjia argued that the alleged restriction may constitute a violation of constitutional rights and could affect the integrity and admissibility of evidence obtained during the raid.
The steel manufacturer also questioned the absence of other regulatory agencies during the operation, including the Department of Environment and Natural Resources, the Bureau of Immigration, and the Securities and Exchange Commission.
“If the objective was truly regulatory compliance, then the proper agencies should have been present from the beginning,” Chu said.
The company likewise denied alleged ties to businessman Tony Yang, saying corporate records filed before the SEC show that Yang had already divested from the corporation.
Sanjia also rejected allegations linking the company to illegal POGO activities, claiming authorities failed to recover servers, gaming systems, or communication infrastructure during the search.
“We find it deeply troubling that broad and highly publicized allegations were used to justify an operation of this magnitude despite the apparent absence of evidence supporting claims of illegal gaming activities,” Chu said.
Despite the controversy, the company said it would invite independent international auditors and Japanese suppliers to assess the facility and validate its compliance and operational standards.
The company maintained that it remains a legitimate industrial manufacturing enterprise and said the allegations had already caused significant reputational and economic damage to its operations, workers, suppliers, and business partners.
