MANILA, Philippines — The owners of the sunken MTKR Terranova denied that its company was involved in oil smuggling.
The MTKR Terranova sank last month while carrying 1.4 million liters of industrial fuel oil going to Iloilo. Following its capsizing, two other vessels sank off the waters of Bataan but Terranova poses the biggest risk as it could lead to the biggest oil spill in the history of the Philippine maritime industry due to the volume of oil inside the sunken tanker.
“The owners of MTKR Terranova, categorically deny the allegations of smuggling and involvement in ‘paihi’ operations,” Portavaga Ship Management Inc. said in a statement.
The “Paihi” scheme is a type of fraudulent act where oils from a large ship or vessel are transferred to smaller vessels on the high seas to avoid paying taxes.
The remarks came after Justice Secretary Jesus Crispin Remulla claim in an interview over the weekend that authorities were investigating the motor tanker’s possible involvement in oil smuggling.
According to the company, the Terranova is equipped with a CCTV system, and there were no recorded instances of oil loss.
“Since the commencement of its operations, there have been no records of oil loss claims or reports of abnormal losses filed against MTKR Terranova by any of its charterers,” it said.
Portavaga Ship Management Inc. said that its owners were meeting with local government officials from Cavite, Bataan, and Bulacan to assess the oil spill’s impact on coastal towns.
The oil spill from Bataan is believed to have reached the shores of Bataan, Cavite, Bulacan, and Metro Manila.
Eight towns in Cavite have declared a state of calamity due to the spill. Environmental groups have condemned the incident and pressed the national government to pass the climate accountability bill into law that seeks to demand accountability from corporations deteriorating the environment.
