Allengoal scores Roxas over NSC lease agreement

Allengoal Steel is accusing Trade and Industry Secretary Manuel Roxas II of trying to thwart the lease agreement which could rehabilitate the ailing National Steel Corp. (NSC).

Allengoal Steel, which claims to have submitted the best offer to run NSC, said that Roxas is trying to "thwart the lease agreement that could restore life to the NSC plant in the shortest time possible and under the best operation and financing terms."

Roxas, however, said yesterday that the opening of proposals or bids to rehabilitate the NSC will continue today.

Earlier, Allengoal Steel has assured the government that the company is cash rich and is supported by stand-by credit from undisclosed banks.

Roxas and the Department of Trade and Industry (DTI) have been trying to mediate the dispute between the Malaysian owners and the creditor banks of NSC which have differing plans for the cash-strapped steel firm.

Earlier, Hottick Investment Ltd., announced that it is withdrawing from the evaluation committee created by Roxas to study all offers to operate the NSC facilities as an interim solution to the longer-term debt restructuring and rehabilitation of the mothballed steel plant.

The Malaysian-based Hottick is the majority owner of NSC.

Allengoal complained that " Roxas is using his evaluation committee as an exclusion committee to thwart a legally-binding lease contract that offers the best deal for NSC, its employees, the city of Iligan, Northern Mindanao and the entire steel industry."

The steel firm claims that it had actually reached a lease agreement with the then NSC working board represented by Executive Director and Interim Management Committee chairman Ibrahim Bidin.

At least four firms have expressed interest in NSC– Swiss firm Glencore, Dutch Ispat International NV., Novolipestsk Iron and Steel Corp. of Russia and Duferco SA.