Philippines Allows Sulpicio Lines To Resume Operations Under Strict Supervision

Manila, Philippines (AHN) - Sulpicio Lines, the owner of the sunken vessel which caused the death of almost 800 passengers at the height of Typhoon Fengshen, has been allowed to resume its cargo operations.

Philippine President Gloria Macapagal-Arroyo said Tuesday the condition to the resumption of Sulpicio's cargo business was that it would be under the strict supervision of the government. Arroyo explained that 40 percent of the country's cargo is handled by the embattled shipping company. Thus she could not heed the many calls for the government to cancel the franchise, which has been involved in four major sea tragedies over the past few years,

Arroyo announced the decision following her meeting of the Cabinet. She gave the Philippine Coast Guard 15 days to complete its report on the sea mishap.

On Tuesday, Sulpicio filed a lawsuit against the Philippine weather bureau for $66,418 (3 million pesos) as it blamed PAG-ASA for a wrong weather forecast that resulted in Sulpicio's failure to seek cover.

But PAG-ASA head Nilo Frisco maintained the agency provided a correct weather forecast and that it was Sulpicio that insisted on sailing despite a storm signal..

The shipping company also promised to start releasing the compensation of $4,428 (200,000 peso) to families of those aboard the capsized ferry, an amount which many of the relatives of the M/V Princess of the Star's passengers said was not sufficient.