The incident stemmed from a report received by the City Environment and Natural Resources Office (CENRO) regarding a foul odor emanating from a creek that connects Barangay Lingunan and Barangay Veinte Reales. In response to the call, a conglomerate inspection team of staff from CENRO, the City Sanitation Office, staff from the involved barangay, and the Bureau of Fire Protection (BFP) was sent to verify the report received from the resident. During their assessment, they traced the foul odor from the creek to an oil leak originating from MAXIMA Steel Mills Corp. The leak has caused a lingering unpleasant smell, sparked multiple public complaints, and poses an immediate risk to waterways and public health.

In this regard, due to the possibility of even more severe impacts of the oil spill to the community, CENRO recommended to the Business Permit and Licensing Office (BPLO) that the said establishment be closed immediately—which was promptly acted upon by the City Mayor issuing an Executive Order. The signed EO states the immediate closure and potential infractions the facility may face through CENRO’s recommendation;

• Violation of Tax Ordinance No. 92-012 “For operating without necessary permit” as a manufacturer (steel bars);
• Violation of PD 856 (Code of Sanitation of the Philippines), Chapter XIX, Sections 3.1.1 and 3.1.5: Creation of public nuisance through noxious odors and harmful effluent;
• Violation of RA 9275 (Philippine Clean Water Act of 2004), Section 27 (a), 27 (b), 27 (d): Unauthorized discharge of pollutants, release of untreated effluents, and use of concealment methods; and
• Violation of RA 9483 (Oil Pollution Compensation Act of 2007): Unlawful dumping of oil into inland waters and strict liability for cleanup and damages. 

On the other hand, considering the possible health risks associated with noxious gases, polluted water, and other environmental impacts, the City Health Office focused on three key areas of intervention: distribution of facemasks, the supply of necessary medications, and the provision of targeted health education.

In a discussion between Mayor WES Gatchalian and the management team of MAXIMA Steels, it was agreed to temporarily close the facility until they can comply with the requirements of the city government. The closure order, although temporary, is an initial step for the accused to address the problem presented to them. Their operations will be temporarily suspended until the issue is addressed and the effects on health and water caused by the oil leakage are resolved.

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