TAGOLOAN, Misamis Oriental — A massive government crackdown on a controversial steel manufacturing facility inside the PHIVIDEC Industrial Estate in Barangay Baluarte, Tagoloan has led to the shutdown of the Philippine Sanjia Steel Corporation following allegations of hazardous chemical processing, environmental violations, and the discovery of dozens of undocumented Chinese nationals working inside the compound.
The operation, conducted on May 15, 2026, stemmed from the implementation of two search warrants by agents from the National Bureau of Investigation (NBI) Central Office, assisted by operatives from the NBI-North Eastern Mindanao Region, the Armed Forces of the Philippines (AFP), Presidential Anti-Organized Crime Commission (PAOCC), Bureau of Immigration, and other law enforcement agencies.
Authorities swooped down on the sprawling steel plant at around 9:00 a.m. amid reports that the facility was allegedly processing hazardous and possibly nuclear-related chemicals while manufacturing substandard steel products.
Initial reports indicated that local police personnel were prohibited from entering portions of the facility during the operation to avoid possible contamination as specialized teams from the NBI handled the search and evidence gathering.
69 Chinese Nationals, One Filipino Under Investigation
During the raid, authorities recovered 69 Chinese nationals and one Filipino worker inside the compound. According to the Department of National Defense (DND) and PAOCC, several of the foreign nationals were allegedly undocumented and illegally employed at the facility.
The workers are now undergoing inquest proceedings for possible violations of immigration laws, labor regulations, environmental statutes, and workplace safety standards.
Defense Secretary Gilbert Teodoro Jr. confirmed that authorities are validating reports linking the plant to the processing of potentially dangerous materials and the production of allegedly substandard steel products.
Investigators are also pursuing additional charges under Republic Act 6969 or the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990.
Authorities disclosed that five incorporators and key officials linked to the company remain at large.
Plant Allegedly Linked to Tony Yang
Government investigators identified the facility as allegedly being connected to businessman Tony Yang, brother of former presidential economic adviser Michael Yang.
Tony Yang, also known as Antonio Lim, had previously been arrested in 2024 over alleged involvement in illegal Philippine Offshore Gaming Operations (POGO).
Authorities are now also investigating allegations that the steel plant may have been used as a front for illegal activities, including alleged smuggling operations and possible POGO-related transactions.
National Security Concerns Raised
Defense officials expressed alarm over the location of the facility, which operates inside the PHIVIDEC Industrial Estate — an area under the supervision of the DND and situated near an ongoing naval facility development.
Teodoro warned that the situation raises serious national security concerns aside from possible violations of environmental and industrial safety laws.
Authorities said initial findings revealed alleged blatant safety violations and possible environmental damage caused by piles of scrap metal and industrial waste reportedly dumped near coastal areas surrounding the plant.
Investigators from the NBI and PAOCC are currently examining the chemicals and materials recovered from the facility to determine whether workers and nearby communities were exposed to toxic or radioactive substances.
Workers Fear Loss of Livelihood
Following the shutdown order, hundreds of workers gathered outside the plant, expressing fear and uncertainty over the sudden loss of their jobs.
Employees said the abrupt suspension of operations would heavily affect their families and livelihoods.
The Municipal Employment and Services Office (MESO) of Tagoloan, led by MESO Head Merlie Emano, immediately coordinated with displaced workers and their families to provide assistance and explain the ongoing legal situation.
Medical teams from the Municipal Health Office and the Municipal Disaster Risk Reduction and Management Office (MDRRMO) also conducted health assessments and medical assistance for workers who complained of physical discomfort following the operation.
Tagoloan police officials and the Misamis Oriental Provincial Police Office likewise held dialogues with affected employees to discuss government assistance programs available to them.
Search for Escapees Continues
Authorities revealed that an estimated 20 to 30 individuals may have escaped during the height of the operation and are now being tracked by law enforcement agencies.
Among the possible charges being prepared against company officials and workers are violations of immigration laws, labor laws, environmental regulations, smuggling statutes, and alleged illegal business operations.
Government prosecutors and NBI agents continue conducting inventory and forensic examinations inside the facility, which authorities now consider an active “crime scene.”
As of Sunday, operations and investigations remain ongoing inside the compound while authorities work to determine the full extent of the alleged illegal activities and the possible public health and environmental risks posed by the facility.