CITY OF SAN FERNANDO, Philippines--An official of Hanjin rejected as baseless allegations that the company offered a P400-million contract to Mayor Paulino Emano of Tagoloan, Misamis Oriental, in exchange for allowing the firm to build its facilities without permits.

"That is absolutely not true. Hanjin would never do that," said Pyeong Jong Yu, senior manager of the outside business team of the Hanjin Heavy Industries & Construction Phil. Inc, based at the Subic Bay Freeport in Zambales. Hanjin is building its $1.65-billion shipyard off the Redondo Bay of the freeport.

"We have a strict code of conduct and high ethical standards. We do not engage in unlawful transactions and activities with the government or with any other regulatory group," Pyeong said in a statement sent by e-mail to the Philippine Daily Inquirer (parent company of INQUIRER.net).

He said that in a meeting between Hanjin's project manager and Emano in March, "Hanjin, acknowledging the mayor's intention to help the local businesses, agreed to consider giving the hauling of aggregate (gravel, sand and soil) to contractors recommended by [Emano] provided their price is competitive."

Earlier, Sen. Pia Cayetano said Hanjin continued with its construction work for the $2-billion shipyard and training center in Misamis Oriental despite lacking permits.

But Pyeong said the company secured an environmental compliance certificate on April 28.

He said the company "cannot afford to violate the laws of the Philippines" given its big investments in the country.

Pyeong said the construction of Hanjin's training center in Misamis Oriental would resume "when all these issues with the national and local authorities are resolved."

Like in the training center for its Subic shipyard, the center in Misamis Oriental aims to provide skills to Mindanao-based workers who will be employed by the company.