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INGASCO, INCORPORATED,
Plaintiff,
JUDICIAL AFFIDAVIT
OF RAYMOND M. CHU
OFFER
11. From the time that INGASCO technical personnel were allowed
re-entry and access to the INGASCO Oxygen Facility, there was
no ice-build up on the INGASCO Ambient Air Vaporizers,
flooding or even severe fogging; and
PRELIMINARY STATEMENT
The person examining me is Attorney CESARE NAPOLIONE S. STA.
ROMANA, a Partner of the UBANO SIANGHIO LOZADA &
CABANTAC LAW OFFICES, with office address at the 5th Floor COCOFED
Building, 144 Amorsolo Street, Legaspi Village, Makati City. The
examination was held on 21, 23 ____ October 2019, 19 November 2019 and
6 December 2019 at the 5th Floor COCOFED Building, 144 Amorsolo Street,
Legaspi Village, Makati City. I am answering his questions fully conscious
that I do so under oath and that I may face criminal liability for false
testimony or perjury.
EXAMINATION PROPER
A: Yes.
A: Yes.
I was tasked to assist the Presidents of INGASCO, in managing day- Formatted: Font: Bold
to-day activities and operations. I was specifically mandated to Formatted: List Paragraph, Indent: Hanging: 1", Numbered
+ Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 +
closely coordinate and consult with the Presidents of Alignment: Left + Aligned at: 0.75" + Indent at: 1"
INGASCO on all management decisions. All aspects of the
operations, including day-to-day operations, were decided by
the Presidents and me.I had the same functions as the
Executive Vice-President, Attorney.
12. Q: Prior to working with INGASCO, have you had any experience
working in the industrial gases industry?
A: Yes.
19. Q: When were youithin what period of time were you working as
an industrial gases sales agent?
A: Nagstart ako noong mga 16 years old ako hangang siguro mga 21
years old ako, Attorney. Ang tanda ko, mga 5 years ako nag-ahente.
20. Q: You said earlier that you were an industrial gases truck driver-
helper when you were 18 or 19 years old and now you are
saying you were an industrial gases sales agent from when you
were 16 years old until about 21 years old. Please explain your
answers.
22.21. Q: How long did you hold the position of Plant Manager?
A: Yes.
A: No.
27.26. Q: What would qualify someone to be a plant manager?y do you
say this?
33.32. Q: What is the the most number of plants, in terms of site, that
you managed at one time?
A: 23.19.
A: Yes.
A: Since 1986.
45.44. Q: If you know, how were you selected to become the President
of INGASCO?
A: Yes.
48.47. Q: When you refer to “this caseitong kasong ito”, are you referring
to this case which is entitled Ingasco, Incorporated v. High
Street Manufacturing Corporation and Air Liquide Philippines,
Inc. and docketed as Civil Case No. 74498 with Branch 161 of
the Regional Trial Court of Pasig City?
A: Yes.
51.50. Q: Are you aware that, for this case, ALPI submitted a Plant Sale
Agreement executed on 24 October 2017 by HIGH STREET and
ALPI?
A: Yes.
53.52. Q: Why did the INGASCO lawyers provide you a copy of the
Plant Sale Agreement?
A: Yes.
A: The original is with HIGH STREET and ALPI. Ang binigay lang
sa amin sa INGASCO ay kopya lang nitong Plant Sale Agreement.
57.56. Q: How did you react to the request of the INGASCO lawyers to
comment on the technical specifications?
A: I provided my comments.
59.58. Q: How do you know that the Plant of ALPI has a Back-Up
System?
60.59. Q: Where in this Plant Sale Agreement does it state the Back-Up
System?
Mr. Chu went over the Plant Sale Agreement and pointed to item
2 of Annexure-I, which was later marked in evidence as Exhibit
“___”.
61.60. Q: Why did you say that “Yung Back-Up System, kailangan ng
Liquid Oxygen na hindi iprinoproduce noong Planta na
isusuplay daw ng ALPI”?
62.61. Q: What is your basis for saying that the Plant of ALPI that would
be supposedly bought by HIGH STREET produces gaseous
Oxygen, not Liquid Oxygen?
63.62. Q: Where in this Plant Sale Agreement does it state that what the
Plant of ALPI will produce is Gaseous Oxygen?
Mr. Chu pointed to the second row of the first column on item
A1 of Annexure – II of the Plant Sale Agreement, which item was
later marked as Exhibit “___”.
64.63. Q: Why did you say that it is ALPI that will supply the Liquid
Oxygen to be produced by the Back-Up System?
Mr. Chu pointed to the 2nd Whereas Clause of the Plant Sale Agreement,
which was later marked in evidence as Exhibit “___”.
65. Q: Where in the Plant Sale Agreement does it provide that “may
rehabilitation at testing period bago tumakbo yung Planta ng
ALPI”?
Mr. Chu pointed to Article 5.1 of the Plant Sale Agreement found
on page 6, which article was later encircled and marked in
evidence as Exhibit “___”.
66. Q: Why did you say that habang renerehabilitate at itinetest yung
Planta, ALPI din ang magsusuplay ng Liquid Oxygen”?
67. Q: Why did you say “may chance na hindi tangapin ng HIGH
STREET yung Planta. So, hindi talaga sigurado na kaya ng
Plantang isuplay yung Melt Shop”?
69. Q: Why did you say that “base sa technical specifications nitong
Planta, hindi kaya nitong isuplay yung Oxygen requirements
ng Melt Shop ng HIGH STREET”?
73.72. Q: What is your basis for saying “Same lang yung Planta na pinag-
uusapan sa dalawang kontratang ito”?
74.73. Q: When you said that HIGH STREET’s “testigo” confirmed that
“Same lang yung Planta na pinag-uusapan sa dalawang
kontratang ito”, who were you referring to?
A: Rodrigo Villapaña.
76.75. Q: How do you know that Mr. Rodrigo Villapaña testified on this
in December 2018?
81.80. Q: How do you know about the 2013 contract between HIGH
STREET and ALPI that you mentioned earlier?
A: Nakakuha kami ng certified true copy nito from the Clerk of Court
of Makati kung saan ninotaryo itong kontrata at binasa ko yung
kontrata, Attorney.
82.81. Q: If the 2013 contract between HIGH STREET and ALPI that you
mentioned earlier is shown to you, would you be able to
identify it?
A: Yes.
Mr. Chu is going over the Supply Agreement for Gaseous Oxygen
through On-Site EOX with Back-Up Liquid Oxygen Bulk
System between HIGH STREET (SPV-AMC) and Air Liquide
Philippines, Inc.
89.88. Q: Earlier, you said you read the pleadings and order to closely
monitor this case and give inputs on the technical matters. Are
you aware that HIGH STREET presented a Technical Report
where the editor is Denis Pontvianne?
A: Yes.
A: Yes.
93.92. Q: Why did the INGASCO lawyers provide you a copy of the
Plant Sale Agreement?
95.94. Q: How did you react to the request of the INGASCO lawyers to
comment on the technical specifications?
97.96. Q: Why did you say that “Inamin din naman ni Pontvianne na
yung analysis niya ay puro base sa mga assumption”?
A: Nakasulat sa report, Attorney.
99.98. Q: Why did you say that “mali yung pag-compute noong capacity
ng Vaporizers”?
The part of the Technical Report found on page 8 that Mr. Chu
read is bracketed and marked in evidence as Exhibit “___-___”.
103.102. Q: How does this analysis, which you read, show that “ang
analysis ni Pontvianne ay kapag ang description ng Vaporizer
ay halimbawa 2000Nm3/hr, hanggang doon lang ang kayang
Flow Rate na ibigay ng Vaporizer”?
A: Ang ginawa niya, Attorney, inadd lang niya yung capacity based
on the description of the Vaporizers para kunin kung hanggang
saan kayang ibigay na Flow Rate. So, dito sabi niya na kung dalawang
2000Nm3/hr Vaporizers ang gagana, ang kaya lang ng dalawang
vaporizers ay hanggang 4000Nm3/hr na flow lang. Ganoon din
yung sa second configuration niya. Inadd lang niya yung
1500Nm3/hr at 2000Nm3/hr para makuha yung Flow Rate
capacity na 3500Nm3/hr.
104.103. Q: Why did you say that this analysis of Denis Pontivianne
is “maling-mali”?
108.107. Q: How would the Duty Factor data for the vaporizer from
another manufacturer enable you to get an estimate of the
capacity of the vaporizers?
109.108. Q: Why did you say that “Mali din yung analysis ni
Pontvianne tungkol sa switching ng Vaporizers at hindi niya
alam kung papaano mag-thaw ng Vaporizers”?
111.110. Q: Please read the portion of the Technical Report you are
referring to.
A: Yes.
114.113. Q: Why did you say that “Muhkang hindi rin siya marunong
sa site preparation dahil hindi niya na-intindihan kung ano
yung cause noong flooding”?
116.115. Q: Why did you say that “walang drain na prinovide yung
HIGH STREET para sa facilities namin”?
117.116. Q: Why did you say that “nakuha niya na may problema sa
pressure requirement ay sa side ng HIGH STREET at hindi sa
amin”?
122.121. Q: Why do you say that this portion that you read “hindi
niya alam yung sinasabi niya at hindi makatotohanan”?
A: Una, Attorney, noong sinabi niya na “no maintenance was
performed on the plant for ice removal”, parang sinasabi niya na
kailangang may gagawin lagi for ice removal kasi ang gamit niya na
term ay maintenance. Ibig sabihin regular itong kailangang gawin.
Prior to the ice build-up na irineport naming kay HIGH STREET
noong October 2017, walang incident ng ice build-up. So, anong
sinasabi niya na maintenance para dito? Next, may regular
maintenance kaming ginagawa sa facilities namin kaya nga namin
nakita yung ice build-up noong October 2017 at rineport namin ito
sa HIGH STREET. Kami ang nagsabi sa HIGH STREET na
kailangang ithaw pero ang tagal bago kami bigyan ng Entry Pass.
Pero inaksyonan namin ito noong pumayag na si HIGH STREET na
mag-thaw kami at pumasok kami sa site.
A: “There was not much ice built-up observed during the night of
January 7th to 8th, only some frosting on the first 2 rows of the
2000Nm3/h vaporizers (the 1500Nm3/h being in standby). This
could result from heavy water hosing during the previous hours
or days (it is noted that no water hosing was performed during
the period of the night I spent on site).”
124.123. Q: Why do you say that this portion that you read “hindi
niya alam yung sinasabi niya at hindi makatotohanan”?
A: Sabi niya wala daw ice build-up kasi baka nag water hosing during
the previous hours. Una, wala kaming water hosing ng vaporizers
after nung incident noong October 2017. Pangalawa, pwede naman
niyang tanunin sa mga tao ng HIGH STREET kung nag-water
hosing kami bago siya nag-observe sa facilities namin. So, hindi na
niya kailangang mag-hakahaka pa na mali pa. Experto daw siya diba?
Bakit siya magpapalabas ng report na base sa hakahaka na maari
naman niyang i-validate. Wala nang ibang konklusyon doon kundi
deliberate siyang nagsinungaling.
Mr. Chu pointed to the 3rd paragraph of item 3.1 of the Technical
Report, which is marked in evidence as Exhibit “___-___”.
A: Yes.
A: It is my signature.
A: Yes.
A: Mine.
A: INGASCO.
A: HIGH STREET.
A: No.
A: Assuming the Calaca Plant runs for 24 hours, it could range from
59,123.39 to 61,470.98 Nm3 per day.
153.152. Q: Please explain why you say that the subject of the
contract is Oxygen in its gaseous form.
V. The Site
156. Q: At the time that the INGASCO Oxygen Facility was set up at
the Calaca Plant, did HIGH STREET provide INGASCO with a Site that
had the Foundation in accordance with INGASCO’s plans and
specification?
A: Attorney, clarify ko lang – meyroon nang existing area or Site sa Calaca Plant
na ipinaaprove ng HIGH STREET sa INGASCO. Nagconduct ang mga tao ko ng
ocular inspection to determine whether yung site ay suitable para sa equipment na
prinovision namin para sa HIGH STREET. After the inspection, inapprove naming
yung Site at binigay ito sa amin ng HIGH STREET for our facilities.
157. Q: Please describe the Site allotted by HIGH STREET for the of
INGASCO at the time the INGASCO OXYGEN AGREEEMENT was
executed?
A: The Site consisted of 148.5 square meters, or 5.5 meters by 27 meters. The right side
of the Site facing the road had a concrete foundation that was surrounded by gravel bedding,
which allowed water to flow towards a drain located on the back right-side corner. To the
right of this area, is another area wherein the foundation was all concrete. To the right of
this all-concrete area was a bigger area where the center was concrete. In the back area,
there was a gravel bedding channeling water to the drain located on the back left-side corner.
There was also a gravel bedding in the front area where water was channeled out towards
the street.
VII. Pre-Termination of the INGASCO OXYGEN AGREEMENT
A: Yes.
A: I kneow for a fact that in February 2013, ALPI was looking for a
customer which could purchase the excess Liquid Oxygen
produced by its Batino Plant and HIGH STREET and ALPI also
executed an agreement for the supply of Oxygen to the Calaca
Plant on August 14, 2013.
A: Yes.
A: Other than the fact that HIGH STREET notified INGASCO of the
dismantling, the Minutes of Dismantling that HIGH STREET
prepared.
A: Yes.
A: I visited our current facilities and saw this for myself. I also
received reports from yung mga tao ko, Attorney.
A: Yes.
175.170. Q: How did you react to the request for you to comment on
the Urgent Motion?
177.172. Q: Earlier, you said that you assessed the situation about the
ice build-up on the vaporizers. What was your assessment
about the ice build-up on the vaporizers?
A: Yung tinatawag nilang “ice build-up” ay very abnormal and
suspicious. At saka indirectly and possibly directly ang nag
cause nito ay ang HIGH STREET, Attorney.
178.173. Q: Why do you say that, based on your assessment, the ice
build-up is suspicious?
179.174. Q: Why do you say that, based on your assessment, the ice
build-up is abnormal?
180.175. Q: What was the consumption during those periods that you
are referring to?
182.177. Q: Why would frost or a thin sheen of ice form on the fins
of the vaporizer?
183.178. Q: What proof, if any, do you have to show that, even if the
vaporizers installed at the Oxygen Facility run continuously,
only frost or a thin sheen of ice would form on the fins of the
vaporizers during the course of operations of the Calaca Plant?
A: I am handing it to you.
188.183. Q: Why do you say that the ice build-up may indirectly or
possibly directly be caused by HIGH STREET’s actions?
A: Yes.
194.189. Q: When did INGASCO send its people for inspection and
maintenance of the Oxygen Facility?
A: Yes.
A: Yes.
A: No.
VIII. Flooding
206.201. Q: What, if any, did you discover about the water drains at
the Site?
A: I found out that the 2 water drains existing when INGASCO set
up its Nitrogen and Oxygen Facilities no longer exists because
ALPI built over them. So, kung magkaroon ng tubig sa facilities
namin wala nang lusotan dadaluyan ito yung tubig kundi kung hindi
yung sa access gate sa harap ng facilities namin. Kumbaga, mago-
overflow yung tubig to the lowest part kasi siyempre walang
dadaluyan.
208.203. Q: Earlier, you mentioned that you verified the cause of the
water flowing out of the INGASCO Facilities on to the road in
front of it. What, if any, were the results of this verification?
A: No.
214.209. Q: What is your basis for sating stating that HIGH STREET
should provide the outlets leading to the storm drains?
IX. Fogging
A: Yes.
216.211. Q: How did you learn about this complaint?
226.221. Q: How would the weather conditions make the fog linger
or thicken?
A: The fog or mist also naturally gets thicker with higher humidity
or if there is more water in the air. With more water in the air
that is condensed, there is more fog or mist. Also, regardless of
how thick the fog or mist is, if there is wind, it blows away the
mist or fog. So, if it is windy, the mist or fog will quickly
disappear. If there is no wind, the fog or mist will linger and
thicken.
227.222. Q: By the way, is the fog or mist that occurs when the
Vaporizers are online toxic?
A: No.
229.224. Q: Is the fog or mist that occurs when the Vaporizers are
online flammable?
A: No.
230.225. Q: How do you know this?
231.226. Q: Is the fog or mist that occurs when the Vaporizers are
online combustible?
A: No.
234.229. Q: How are you sure that no such complaint was made by
HIGH STREET?
A: When this case was filed, I questioned the persons who had been
dealing with HIGH STREET about the facilities and monitored
the concerns of HIGH STREET. Based on my inquiries, there was
no other complaint was made about fogging prior to August
2018.
236.231. Q: How do you know that HIGH STREET did not approve
the proposal to re-arrange equipment in the INGASCO Facility
at the Calaca Plant?
A: Having lights in and about the premises will allow people to see
through the fog. Parang sa Tagaytay or Baguio, Attorney, kung may
fog sa daan ilalagay mo sa bright yung headlights mo. So, gusto kong
malaman kung naglagay ang HIGH STREET nito.
238.233. Q: How did JAMAAL react to your query about the lights in
the premises?
RAYMOND M. CHU
Affiant
RAYMOND
M. CHU 2
____________________________________
Affiant
SUBSCRIBED AND SWORN to before me this ___ day of
_______________ at Taguig City, Metro Manila, Philippines, with affiant
exhibiting to me the following: