Korean firm sues SBMA execs over condotel row

CLARK FREEPORT ZONE—Directors of a Korean corporation have sued officials of the Subic Bay Metropolitan Authority (SBMA) for grave misconduct and grave abuse of authority after they installed another investor at the helm of Ocean Condotel in the Subic Bay Freeport in Zambales province.

The case was filed in the Office of the Ombudsman on April 16 by Jo Kwang-rae, a resident here, who was given authority by directors of Freeport Elite Resort Inc. (Feri) to represent them in the case.

Respondents are Roberto Garcia, SBMA chair and administrator; Randy Escolango, deputy director for legal affairs; Von Rodriguez, legal department manager; Ruel John Kabigting of the regulatory monitoring unit; and Orlando Maddela Jr., chief of the law enforcement department.

In his complaint, Jo said the Feri-owned Ocean Condotel was forcibly and illegally taken over by codirector Kang Il-chan on April 1, with the assistance of Rodriguez, Escolango, Kabigting and Maddela, together with 50 armed SBMA law enforcers and 10 security guards.

Jo said SBMA officials facilitated the takeover by Kang of Ocean Condotel in the absence of a court sheriff and without a court-issued writ of execution.

The takeover stemmed from a March 16 decision by the Olongapo City Regional Trial Court Branch 72 that favored Kang, one of six Korean directors of Feri, recognizing his right to inspect the books of the corporation.

The court also ordered the annulment and deduction of a significant portion of former Feri president and director Cho Han-choon’s shares of stock in the corporation. It said Kang owned 50 percent of shares in the corporation.

With this in mind, Kang and some Filipino companions tried to take over the operation of Ocean Condotel from March 18 to 20 and March 30 to 31 but were prevented by lawyer Roseller Logronio, Feri’s legal counsel, who insisted on the necessity of a writ of execution and the presence of a court sheriff.

Logronio said the court decision never mentioned that Kang should take over the management and operation of the hotel.

During the March 31 incident, Jo said Maddela ordered Feri’s security guards to leave their posts and forced them to board SBMA vehicles that took them outside the free port. Jo said Maddela ordered SBMA policemen to secure the hotel.

At 11:15 p.m. on April 1, SBMA officials were able to install Kang at Ocean Condotel. This happened when Logronio was not around, the complaint said.

But Kabigting, in an e-mail, said he had no hand in the SBMA’s takeover of Ocean Condotel on April 1.

He said he just happened to pass by the hotel past 11 p.m. when he saw four SBMA patrol vehicles parked in front of the establishment and several law enforcers, prompting him to stop and find out what was happening.

There, he saw Rodriguez, who told him that the SBMA legal department was carrying out orders.

Kabigting said he lingered to accompany Rodriguez and immediately went home when Escolango arrived before midnight.

Garcia declined to be interviewed on Monday but referred the Inquirer to a position paper the SBMA sent by e-mail on April 25. Jun Malig, Inquirer Central Luzon