One of two hardware stores selling substandard steel bars

MANILA, Philippines - Sen. Bam Aquino expressed alarm Monday over reports that about 527 or one out of two hardware stores operating in the country are offering substandard steel products to their customers.

Mr. Roberto Cola, president of the Philippine Steelmakers Association (PSA), reported that there is an estimated 60,000 houses which have used substandard materials, particularly rebars.

Cola said the group came out with the estimate through 300,000 tons imported wire rods converted to rebars.

“(About) 60,000 houses are no joke, this is about 300,000 people we are talking about,” Aquino said during the hearing.

The Senate committee on trade, commerce and entrepreneurship conducted a hearing on the resolution that seeks to investigate the alleged proliferation of uncertified and substandard steel products and rampant smuggling of imported steel products in the country.

Willie Tolentino, director of the Bureau of Customs-Enforcement Security Service, reported that there were about 450,000 tons of substandard steel which entered the country in the recent years.

Steel products are either misdeclared at Customs. Others try to smuggle prudcts which are made of uncertified steel.

Cola earlier outlined reasons why there is a need to address the proliferation of substandard steel materials used in construction in the country.

Cola explained further that the manufacturing and selling of substandard rebars is tantamount to fake rebars.

Substandard construction materials noted in devastated areas

Undersecretary Lesley Cordero, presidential assistant for rehabilitation and recovery, said their office had assessed the damages caused by the devastation of the recent earthquakes in Bohol and Cebu as well as the impact of typhoon Hainan (Yolanda).

Cordero said one of the factors that caused the massive devastation was the use of substandard steel bars in the buildings.

“So this is not an exaggeration when we say that the use of substandard steel bars can really cost lives, can kill,” Aquino said.

Cordero agreed with the senator, adding that there is a need to look into the proliferation of substandard steel being sold in hardware stores all over the country.

“…half of the hardware stores are actually selling these substandard materials?” Aquino  said, asking the officials of the Department of Trade and Industry (DTI) to coordinate with the private manufacturers about the findings.

“Let this be a warning on half of the hardware stores that they will be penalized and fined,” Aquino said.

Aquino also urged the DTI to intensify further the monitoring of hardware stores which sells substandard steel products to local residents.

Aquino vowed to call for another hearing in six months to determine how the DTI is faring with the monitoring of these erring hardware stores.

Trade and Industry Undersecretary Victorio Mario Dimagiba welcomed the move of private industry players to conduct their own monitoring but the mandate to inspect.

“It is our notice violation that is the first phase in filing of a case (against erring manufacturers or sellers),” Dimagiba said.

“One of every two hardware stores are selling substandard materials? Is that correct?” Aquino asked.

Ramon Tan, spokesperson and vice president for external affairs of the Steel Angles, Shapes and Section Manufacturers Association of the Philippines Inc, reported to the Senate committee that their group had monitored 527 hardware stores selling substandard steel products.

Tan said the inspections were conducted jointly by the DTI and the private associations from 2009 to 2013.

“If indeed true, that is terribly a high number, or ‘disasterous’ high number,” Aquino quipped.

“The practice of the hardware is that they will ask the customer if they want the cheaper one or the standard. Naturally, one will choose the cheaper ones,” Tan told the panel.

"In the display, the stocks were legal or substandard,”  Tan added.

Tan noted that the use of substandard angle bars would affect the integrity of buildings. The price of substandard angle bars are 20 to 30 percent cheaper compared to standard angle bars, Tan noted.

Smuggling impedes economic growth

Cola said that the proliferation of substandard steel and smuggling prevents the development of the domestic steel industry, making it uncompetitive especially vulnerable to China, and the ASEAN economic community.

“It affects the employment of more than 50,000 people. It affects the current and future investment, especially the foreign direct investments which we badly need,” Cola added.

“In the country, structures of inferior and substandard building materials costs lives, especially in situation earthquakes and natural calamities. These are the pictures of Yolanda, earthquake in Cebu as well as in Samar,” Cola added.

Smuggled steel products, impedes economic growth, Cola said, adding that “substandard steel is cheaper but in the long run it will be more expensive.”

Edgardo Juan, president of the Philippine Metrology, Standards, Testing and Quality, Incorporated, said the consumers should be given tools and information on standard vis-à-vis substandard materials.

Aquino also urged the nine steel organizations to do their share in educating the public on how to buy the right standard steel materials.

While angle bars and other materials have proper identification, Aquino noted that there is a need to a “real communication campaign” to inform the public about the dangers of using substandard materials in construction.