Report declaring Piatco deal illegal gets majority backing

Some 29 members of the House good government committee, which represent a majority, have signed the alternate committee report declaring the Piatco (Philippine International Air Terminals Co., Inc.) contract illegal and unconstitutional.

This was gleaned from the petition filed by three congressmen before the Supreme Court last Wednesday declaring null and void the Piatco contract for violation of several laws, including the Build-Operate-Transfer (BOT) law, and the Constitution.

The alternate committee report contradicted the action of Rep. Ruy Elias Lopez, committee chairman, who upheld the validity of the contract.

The congressmen who signed the alternate report, which was the result of several committee hearings, agreed that the deal was grossly disadvantageous to the government and the people because of several onerous provisions, which were inserted after the bidding and award of the contract to Piatco.

Those who signed the alternate committee report were Reps. Salacnib Baterina, Antonio Abaya, Joseph Ace Durano, Plaridel Abaya, Augusto Syjuco Jr., Laurente Wacnang, Antonio Cuenco, Oscar Rodriguez, Ted Failon, Clavel Martinez, Ace Barbers, Edmundo Reyes, Roque Ablan Jr., Reynaldo Uy, Junie Cua, Antonino Roman, Jesli Lapus, Marcelino Libanan, Celia Layus, Alipio Cirilo Badelles, Sulpicio Roco, Douglas R. A. Cagas, Joaquin Chipeco Jr., Hussin Amin, Abraham Kahlil Mitra, Gilbert Remulla, Carlos Padilla, Ernesto Pablo and Constantino Jaraula.

In their petition before the High Court, Baterina, Martinez and Jaraula said the Piatco contract usurped congressional powers to allocate funds, in violation of the Constitution and other laws.

They said the first supplement to the Amended and Restated Concession Agreement (ARCA) requires the government to spend on infrastructure projects in connection with the new airport amounting to P10.7 billion.

The projects include the P344.6-million road upgrade at the Villamor Air Base, the P9-billion elevated expressway, the P150-million storm drainage system, the P150-million EDSA-Tramo overpass and the P500-million access road and additional taxiway.

"None of these expenditures is covered by a congressional appropriation in violation of the Constitution, which mandates that no money shall be paid out of the Treasury except in pursuance of an appropriation made by law," they said.

They said besides unauthorized expenditures, the ARCA also requires government to guarantee the payment of Piatco’s unpaid debts and make a "termination payment" equivalent to the appraised value of the facility or the attendant liabilities, if greater.

"Neither the guarantee nor the termination payment are permitted by law or appropriated for by Congress. Thus, by merely providing for a guarantee or a termination payment prohibited by law and unappropriated for by Congress, the ARCA is rendered void," they stressed.

The congressmen said from the documents on record in the House, the original concession agreement dated July 12, 1997 was never approved by the National Economic Development Authority while the ARCA dated Nov. 26, 1998 was only conditionally approved by NEDA on June 25, 1999 and did not obtain a "clearance on a no objection basis."

Likewise, the first, second and third supplements to the ARCA, which require the government to spend on public works projects, were never approved by NEDA, making them void, they added.