MANILA, Philippines—The government has initiated moves to tie up assets of Sulpicio Lines Inc. to make sure that the company would shoulder the multimillion-dollar cost of retrieving its sunken MV Princess of the Stars.

Transportation Undersecretary Elena Bautista, head of the government task force on the maritime disaster, Tuesday told a congressional inquiry that the departments of justice and finance were spearheading the effort.

“They are doing actions on funding to make sure that Sulpicio will fulfill its obligation,” Bautista said.

Senior Deputy Minority Leader Roilo Golez proposed tougher action such as placing Sulpicio Lines executives under arrest in case the company reneged on its promise to pay for the refloating of its vessel.

Golez has said the salvaging will cost anywhere from $50 million to $100 million, while the Princess of the Stars was insured for only P350 million.

The ferry capsized off Sibuyan Island in Romblon province at the height of Typhoon “Frank” (international codename: Fengshen) on June 21 while en route from Manila to Cebu. Of the more than 860 people aboard, only 56 survived.

Cavite Rep. Elpidio Barzaga Jr. said he would move to hold Edgar Go, Sulpicio Lines vice president, in contempt and detain him if his company failed to keep its promise of spending for the retrieval operations.

Golez told Bautista that the government could even prevent vessels of Sulpicio Lines from leaving the country to further pressure the company into shouldering retrieval expenses.

Bautista said tying the company’s assets with the refloating operation was discussed during her meeting with representatives from the justice and finance departments Tuesday morning.

She said she had secured a copy of Sulpicio Lines’ financial statement that had been submitted to the Maritime Industry Authority “relative to the direction being recommended” by Golez.

Time running out

Bautista also made it clear that time was running out on Sulpicio Lines to secure a letter of guarantee that would finally initiate retrieval operations by US-based Titan Salvage Corp.

The salvor wanted to make sure that it would be paid in full at the end of the procedure.

“It was very clear from Titan that (the matter) would be a deal-breaker,” Bautista said, noting that company officials were ready to fly out of the country if a deal was not made by Friday. “They’ll walk out of the arrangement.”

Go said his company was doing its best to satisfy the salvor’s demand. Bautista said Sulpicio Lines had asked to be given until Wednesday to come up with the letter of guarantee.

Until liability for the latest maritime disaster is officially determined, Golez suggested that the government also impose a lien on Del Monte Philippines, owner of the toxic cargo endosulfan which remains in the shipwreck.

Del Monte to join rehab

Luis Alejandro, Del Monte chief operating officer, maintained that his company had no liability for the accident, particularly the shipment of its pesticide cargo aboard the Princess of the Stars.

Alejandro noted that the cargo was supposed to have been shipped aboard the MV Princess of Paradise, which is also owned by Sulpicio Lines.

“But if leakage happens—and I want to make sure that it is due to endosulfan—we will do whatever we can to assist the government in any environmental rehabilitation and help the people of Sibuyan (Island),” he told lawmakers.

Alejandro said other toxic cargoes were also inside the sunken vessel. Dr. Lynn Panganiban of the University of the Philippines’ Poison Center later said the toxic cargoes consisted of 150 liters of “metamidophos” and 501 kilograms of “carbofuran.”

Quit claim

Congressmen also grilled Sulpicio Lines over the compensation of survivors and relatives of dead passengers and those who remain missing.

Lourdes Barba, whose husband died in the tragedy, Tuesday told lawmakers that she did not get the P200,000 compensation promised by the company because she was required to sign a waiver saying she would no longer press charges against Sulpicio Lines.

“Mr. Go, do you confirm this statement of Mrs. Barba,” an agitated Barzaga asked the Sulpicio Lines vice president.

“That’s correct,” Go replied, apparently contradicting a previous statement that the money was meant only as financial assistance consistent with the company’s “social responsibility.”

Barzaga presented to the joint congressional inquiry documents from the Securities and Exchange Commission supposedly showing that Sulpicio Lines had a gross revenue of more than P5 billion from 2005 to 2007.

He said the company also had a net loss of at least P200 million during the same period.

Go denied the figures.

Albay Rep. Edcel Lagman blasted Go for requiring claimants to sign a quit claim. “You let people in distress to sign a quit claim and you claim you have a social conscience? You tell that to the Marines and to the Coast Guard,” Lagman said.