By Mario Casayuran

Senator Sherwin T. Gatchalian on Friday advised the Duterte administration to back off from any proposal for government to take over the debt-laden Hanjin Heavy Industries and Construction shipyard in Subic Bay.

Sen. Sherwin T. Gatchalian (Senate of the Philippines / MANILA BULLETIN)

“Historically, the government has a poor track record of managing businesses,’’ Gatchalian, chairman of the Senate economic affairs committee, said.

“This is very evident in various defunct or non-functioning government-owned corporations (GOCCs) such as the National Power Corporation (NAPOCOR), National Steel Corporation (NSC), and most recently the Metro Rail Transit (MRT),’’ he added.

Gatchalian, who also heads the Senate energy committee, said the best option is to attract established shipbuilders to take over the company.

These shipbuilders should have extensive experience in supply chain management and deep financial pockets, he said.

“National security should also be a key consideration in the selection of a white knight to save the failing company,’’ Gatchalian added.

Hanjin is under receivership after loaning $420 million from various local banks.

Senator Richard J, Gordon had strongly suggested that President Duterte package a group consisting of local business magnates and South Korean investors to take over Hanjin.

He said Hanjin’s ship orders are on hold because it has become one of the victims in the current fight between China and US President Donald Trump over tariff issues.