(UPDATE) VALENZUELA City Mayor Weslie Gatchalian has padlocked a warehouse operating without business permit and ordered an investigation over the display of a Chinese flag within its premises in Barangay Bignay.

Gatchalian told The Manila Times on Sunday that he approved the recommendation of the city's Business Permit and Licensing Office (BPLO) to close the STR Power Equipment Corp. located along Mahabang Parang Street in the village.

"Aside from several violations of the company particularly its lack of mayor's and business permits, I have ordered an investigation on why a foreign flag has been displayed within its vicinity," Gatchalian said.

During its inspection and investigation, the BPLO found that the company — one of three firms renting the property in the warehouse compound — has been operating without the necessary permits required by the city government to function as a warehouse.

"An immediate closure order was issued on STR Power Equipment Corporation through an executive order by the mayor," the BPLO said.

"This significant discovery during the inspection of BPLO arose from the investigation into the display of a foreign flag in the vicinity," Gatchalian said.

He said that the display of a foreign flag was a violation of a provision of Republic Act 8491, also known as the Flag and Heraldic Code of the Philippines.

The BPLO is still confirming which of the three companies inside the compound was responsible for raising the foreign flag.

Further investigation revealed the presence of foreigners working as employees in the two other firms operating inside the compound.

Now, the BPLO is verifying whether these employees have working visas, the city's Public Information Office said.

Gatchalian reminded all businesses and residents regarding the prohibition on displaying foreign flags in public spaces, except within embassies, diplomatic establishments and offices of international organizations as mandated by the law.

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