GINGOOG City — Questions are being raised over how an alleged Chinese-owned wood manufacturing and export company in Gingoog City managed to secure a business permit despite a cease-and-desist order from the Bureau of Fire Protection (BFP) for lacking an occupancy permit.

City Fire Marshal F/Insp. Randy Obsioma confirmed that the BFP had already issued two cease-and-desist orders against the company, identified as Sishin Enterprises.

The first was released in 2024, before a major fire razed two of its buildings, and the second was issued in July this year.

“It’s clear that the company has not complied with our requirements,” Obsioma said, noting that the business continues to operate without an occupancy permit or a Fire Safety Inspection Certificate — both prerequisites for securing a valid business permit.

P15-m fire damage in 2024

The controversy follows a Level IV fire that gutted two buildings within the company’s compound in August 2024, resulting in an estimated P15 million in structural damage.

The blaze destroyed several bundles of white molding sticks made from falcata lumber, one of the firm’s primary export products.

PLANT IN QUESTION. A wood manufacturing company in Gingoog City continues to operate after securing a business permit despite two cease-and-desist orders from the Bureau of Fire Protection. Photo by Edwin Iyo

Authorities said that while the structural losses were assessed, the cost of the destroyed finished wood products remains undetermined more than a year after the incident.

Permit issued despite violations

Despite the BFP’s orders, Sishin Enterprises was still granted a business permit by the Business Permit and Licensing Office (BPLO) of Gingoog City.

BPLO head Juliet Q. Garredo defended the issuance, saying the company had submitted an affidavit of undertaking, which allowed them to obtain the permit.

“The city government granted a business permit to Sishin Enterprises because they have an affidavit of undertaking,” Garredo said.

However, under local regulations, an occupancy permit is required before a business permit can be released — a rule designed to ensure compliance with fire and safety standards.

No statement from company

Attempts to reach company officials for comment were unsuccessful. A female employee who spoke briefly to reporters said they were “not authorized to issue statements to the media” and that the owner was currently in China.

She did, however, confirm that the company holds a valid business permit and continues operations.

Fire bureau: No fire clearance, no permit

Obsioma reiterated that the company’s continued operation poses a regulatory concern.

“The firm has not been issued a Fire Safety Inspection Clearance, which is a key requirement for an occupancy permit,” he said adding that without the clearance, the firm should not be operating.

As the issue unfolds, both city officials and fire authorities face growing scrutiny over how Sishin Enterprises managed to continue business operations despite safety violations and existing cease-and-desist orders.