J.C. Frial, the lawyer of businessman Willy Keng, said Maritime policemen acted illegally when they intervened on behalf of the Matatag Mining Corp. (MMC), which wanted to load the iron ore on a carrying vessel against the interests of the real owner.
Frial said that the iron ore shipment was the subject of a pending court suit.
He explained that Keng was the successor in interest of Chen Keyong, who had obtained the "exclusive" right to purchase the iron ore mined by the MMC from the Camachin iron mine in exchange for his investment of $600,000, equivalent to 40 percent of the equity of MMC.
At the same time, Chen had advanced $2.3 million to MMC for its mining operations, payable either in cash with six percent interest or in iron ore.
The transactions were covered by a memorandum of agreement signed on Feb. 10, 2005, between Chen and MMC, Frial said.
"The mining operations of MMC had since been undertaken by the group of Mr. Chen pursuant to the terms and conditions of the MOA, from production to exportation," the lawyer said.
Dick T. S. Yau, one of the MMC directors, filed a complaint for injunction with the Regional Trial Court of Manila, which temporarily stopped the exportation of the iron ore to China.
Chen later executed a deed assigning to Willy Keng, all his rights, shares, and interests in MMC.