Sunday, February 15

Group says MGB’s ‘force majeur’ suspension of Woggle Corp, a legal overreach threatening investment stability in PH

BY LEIF C. DAHL

MANILA—The Truth Defenders (TTD), an advocacy organization committed to truth in communications, an industry advocate, and civil society watchdog, today issued a comprehensive statement condemning the Mines and Geosciences Bureau (MGB) for its suspension of Woggle Corporation’s operations on the basis of “force majeure.”

The group asserts that the MGB’s action fundamentally misapplies the legal doctrine of force majeure, creating a dangerous precedent that undermines contractual stability, regulatory certainty, and investor confidence in the Philippine extractive sector.

Mischaracterization of Force Majeure

The MGB’s suspension order against Woggle rests on its invocation of force majeure, citing civil disturbances and protest actions in Dupax del Norte as the triggering events. However, TTD emphasizes that force majeure, as defined under Article 1174 of the Civil Code of the Philippines, applies only to extraordinary, unforeseeable, and unavoidable events that render contractual performance impossible.

“The circumstances cited by the MGB do not meet the strict legal test for force majeure,” said TTD. “Civil disturbances and protests, while disruptive, are not unforeseeable or unavoidable in the sense contemplated by law. Moreover, Woggle has not abandoned compliance with regulatory requirements, and existing legal remedies — including court injunctions and law enforcement intervention — are available to address such disruptions.”

Indeed, a regional trial court has already declared the barricades in Dupax del Norte illegal and issued a writ for their removal, demonstrating that these acts are within the reach of legal recourse and not beyond the control of the affected party.

Distortion of Legal Doctrine and Regulatory Certainty

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By extending force majeure to encompass protest activity, the MGB effectively penalizes lawful operators for third-party misconduct, a distortion of the doctrine’s intent. “Force majeure is meant to protect contractual integrity, not to serve as a tool for administrative expediency,” TTD added. “To use it as a basis for suspending a validly issued Exploration Permit (EP) undermines the government’s own contractual commitments and sends a chilling message to investors.”

Woggle’s EP, issued after careful statutory review, constitutes a binding government grant. Historically, such regulatory rights have been protected from revocation based on external protest actions alone. The MGB’s action introduces political risk into regulatory compliance, eroding trust in the stability of government-issued permits.

Implications for Investment Climate and Rule of Law

TTD warns that the MGB’s misapplication of force majeure sets a harmful precedent for the entire extractive industry and beyond. “If lawful operations can be suspended at the whim of protest intensity, investors will question the reliability of Philippine permits and contracts,” said TTD. “This discourages capital inflows, jeopardizes project finance, and weakens the legal architecture that supports long-term investments in capital-intensive sectors like mining.”

The group stresses that regulatory certainty is essential for economic growth and that the rule of law must be upheld to maintain investor confidence. “The government must clarify and justify its application of force majeure, not only for Woggle’s sake but for the broader integrity of public contracts and investor protections in the Philippines,” TTD concluded.

Call to Action

TTD calls on the Department of Environment and Natural Resources (DENR), the MGB, and relevant government agencies to re-evaluate the suspension order against Woggle Corporation in light of the proper legal standard for force majeure and ensure that regulatory actions are based on clear, predictable, and lawful criteria that respect contractual rights.

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The group also calls the DENR and MGB to engage with stakeholders to develop guidelines that balance legitimate protest rights with the protection of lawful business operations and reaffirm the government’s commitment to upholding the rule of law and maintaining a stable investment climate.

TTD said it remains committed to advocating for transparency, legal correctness, and economic stability in the Philippines’ regulatory environment.