Nenaco files P73-M libel suit vs UFS

Negros Navigation Co. (Nenaco) filed a P73-million libel suit against the head of United Filipino Seafarers (UFS), Nelson T. Ramirez, before the Office of the City Prosecutor of Manila on April 11, 2003.

The complaint was based on a newspaper advertisement signed by Ramirez last Feb. 13, 2003, which Nenaco said contains libelous implications and accusations geared to dishonor and discredit the company.

Nenaco said Ramirez made it appear in the paid advertisement that the company is like Enron, the American company which collapsed due to what Ramirez calls "creative accounting." Ramirez added that Nenaco has virtually misled the public as to its condition by "doctoring" financial statement submitted to the Securities and Exchange Commission and that Nenaco has not been paying its trade suppliers and has a bad credit standing with them, adding that Nenaco is potentially bankrupt due to staggering debts.

Nenaco said that these are all patently untrue, grossly unfounded. Nenaco has maintained healthy credit arrangements with its suppliers.

Nenaco asked for P20 million in moral damages and another P40 million for loss of revenues and other opportunities plus P10-million exemplary damages and P3 million in attorney’s fee.

Nenaco, in its complaint, said "a well-funded orchestrated campaign has been launched in the media by the detractors of the company who wish to destroy and see Nenaco fail."

It added that "the campaign has sought to frighten and damage sensitive business relationship between Nenaco and its suppliers, creditors, business partners and associates and to cause a public loss of confidence among Nenaco’s customers as well."

Ramirez, Nenaco said, has prejudiced the good name and reputation of Nenaco, which was established in 1932 making it the oldest shipping company in the country.