Marcos likens substandard steel trade to Pogo menace, cites 2018 pattern

MANILA, Philippines — The illegal trade of substandard steel in the Philippines may have proliferated as early as 2018, President Ferdinand R. Marcos Jr. said.

Marcos also warned that the problem could be bigger than previously known, comparing the emerging problem to the social and moral scourge brought by the proliferation of Philippine offshore gaming operators (Pogos) during the term of his predecessor.

Marcos said the government initially believed only a few operators were involved but that ongoing investigations are uncovering indications that the trade had become more extensive.

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“If you look at their records, we started seeing more of these operations around 2018,” Marcos told reporters in New Delhi on Sunday following his attendance to the 18th BRICS Summit.

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“There may be more”

“There may still be more that we will uncover because we are continuing our search. At first, we thought there were only a few, but as the investigation progressed, it seems there may be more,” he added.

According to Marcos, the government is still determining the extent of the operations and how much substandard steel may have entered the construction supply chain.

“But because they have been there for so long, they have probably already supplied quite a lot of materials to structures that have been built,” he warned.

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The issue surfaced after government authorities raided last month Davao Mighty Steel Corp. in Davao City which was found to be manufacturing and distributing substandard steel bars.

Authorities also found radioactive materials at the steel facility, which posed health risks to workers.

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READ: Raided Davao steel plant found posing radioactive hazards

The National Bureau of Investigation and the Presidential Anti-Organized Crime Commission said about 20 steel facilities across the country are currently under surveillance and monitoring for suspected violations of product and safety standards.

The NBI and PAOCC also previously raided four other steel plants this year: two in Pampanga, one in Bulacan and one in Misamis Oriental.

“Very dangerous”

Marcos described the use of substandard steel in construction as “very dangerous,” saying authorities were looking into whether such materials may have contributed to the collapse of some buildings.

“We already suspect that some buildings that collapsed may have done so because substandard materials were used,” he said.

The NBI found that at least 394 buildings — including government offices, schools, and a hospital — that reportedly used Davao Mighty Steel reinforcing bars were damaged during the June earthquake in Mindanao.

Marcos said contractors may not be the ones to be blamed as they may not necessarily know that the materials supplied to them are substandard because they generally follow approved plans and specifications.

Instead, he said inspectors should be made accountable, as they were the ones responsible for substandard steel getting used in construction.

“Like Pogo menace”

Marcos compared the situation to the Pogo problem, saying the government was similarly surprised when it discovered how extensive those operations had become.

“It’s probably like the Pogo operations. When we went after them, we were all surprised at how large their operations had become,” he said.

“I don’t think this will be that bad. But it’s bigger than most people know,” he added.

READ: Marcos signs law making Pogo ban permanent

Pogos expanded significantly during the Duterte administration before the Marcos administration moved to eliminate them amid concerns over illegal activities associated with some operators.

At the height of Pogos pre-COVID-19 pandemic, there were at least 60 Pogos and more than 200 Pogo service providers in the country, which were concentrated in Metro Manila.

Most of them were managed by Chinese nationals and employed mostly trafficked Chinese nationals, along with Southeast Asians, including Filipinos.

In 2024, Marcos declared a ban on Pogos due to the massive surge of crimes related to the industry, including financial scamming, money laundering, prostitution, human trafficking, kidnapping, torture, and murder.

The following year, he signed Republic Act No. 12312, or the “Anti-Pogo Act of 2025,” permanently outlawing all forms of Pogos and internet gaming operators.

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It imposes imprisonment of up to 12 years and fines of up to P50 million on violators, as well as the freezing and forfeiture of assets used to commit the offenses listed under the law. /gsg