TAGOLOAN, Misamis Oriental — Defense Secretary Gilberto Teodoro Jr. announced on Saturday, May 16, 2026, that 69 Chinese nationals and one Filipino are undergoing formal inquest proceedings following a major raid on a local steel manufacturing facility. Authorities are investigating a complex web of potential offenses, ranging from immigration violations to serious environmental hazards and safety breaches.
The extensive law enforcement operation targeted the production facility of Phil. Sanjia Steel Corporation, located inside the PHIVIDEC Industrial Estate in Tagoloan town.
The inter-agency sweep was executed using a legally issued search warrant, uncovering a variety of immediate operational and legal concerns on-site:
- Immigration Violations: Secretary Teodoro stated that the foreign workforce includes a mix of documented and undocumented Chinese nationals. “What we have here is a case of prima facie undocumented illegal aliens working here,” Teodoro told reporters.
- Environmental Hazards: Investigators are working to validate reports that the factory has been actively processing potentially “harmful and noxious materials.” The facility allegedly utilized induction furnaces, a production method heavily scrutinized for environmental and emission standard breaches.
- Substandard Infrastructure Risks: The Department of National Defense (DND) expressed deep concern over the quality of the commercial outputs leaving the site. “The suspicion here is that this is the source of substandard steel that could harm our structures,” Teodoro explained, noting that technical tests are still being conducted.
- Labor and Safety Standards: Authorities are inspecting the compound for major workplace safety failures and non-compliance with Philippine labor regulations.
The targeted raid was prompted by intelligence reports revealing that the facility continued to operate seamlessly despite intense prior legal scrutiny surrounding its alleged owner, Tony Yang (also known as Yang Jian Xin), the elder brother of former presidential adviser Michael Yang.
Teodoro openly questioned how Phil. Sanjia Steel Corporation managed to successfully maintain its corporate operations and secure local permits, given that Tony Yang previously admitted during Senate testimonies that he was not a legitimate Filipino citizen and had acquired birth certificates through fraudulent means.
- Inter-Agency Support: The tactical raid was executed with direct field assistance from the Presidential Anti-Organized Crime Commission (PAOCC), led by Benjamin Acorda Jr., alongside teams from the National Bureau of Investigation (NBI).
- Suspects at Large: While 69 Chinese nationals were successfully detained on-site for the inquest, officials confirmed that five corporate incorporators linked to the steel firm managed to evade arrest and remain at large.
- PHIVIDEC Cleansing: The operation marks the beginning of a sweeping review of all corporate locators operating inside the PHIVIDEC Industrial Estate. The semi-autonomous, government-owned industrial hub falls under the direct institutional supervision of the DND.
The Office of Civil Defense (OCD) has been tasked to step in and coordinate directly with local government units to handle containment or mitigation if forensic testers verify the presence of hazardous, toxic substances that present an immediate danger to the surrounding Tagoloan community.
The Defense Chief concluded the briefing with a stern warning to any local handlers or influential entities attempting to shield the steel company:
“Anyone who attempts to disrupt or interfere with these legal proceedings will face immediate prosecution for obstruction of justice.” — Defense Secretary Gilberto Teodoro Jr.