Groups slam attempt to put Piatco contract under arbitration

Tourism groups said the government and other parties prejudiced by the Philippine International Air Terminals Co. Inc. (Piatco) deal cannot join in an arbitration over a contract that is deemed illegal from the very start as they supported moves against any attempt at mediation.

The groups, belonging to the Save Our Skies (SOS) movement, said by joining an arbitrator or mediation, the oppositors to the deal will be made a party to an illegal and anomalous contract. "It is as if we tolerated all the anomalies committed by Piatco, particularly the Cheng Yong group, in implementing the project."

They said, "If we negotiate a settlement with Piatco, it means we are agreeing to absolve the company of its irregular and anomalous acts and to set free government officials and private individuals that unscrupulously gained from the transaction."

They pointed out that there were payments or expenses incurred by Piatco that were highly irregular but were included in the project costs, citing as example the alleged scandalous fees paid to missing Piatco lobbyist Alfonso Liongson.

Fresh negotiations could only start if Piatco accepts that the contract is null and void and agrees to throw it altogether. "The investigation and prosecution of those involved in the contract should still continue," the groups added.

"We support the position of Sen. Joker Arroyo, chairman of the Senate Blue Ribbon Committee, which found the contract to be null and void, that the government would be an accomplice in an irregular act if it negotiates a settlement of the Piatco contract," they said.

They said the country will be a laughing stock in the international business community "if we negotiate a settlement with Piatco knowing fully well that the contract was illegal from the very start and was characterized by anomalies every step of the way spanning three administrations."

The groups said even Fraport AG of Germany, the major foreign partner of the Cheng Yong group in the Piatco, could not stomach the anomalies committed by its local partners that it offered to sell its shares to the government.

"How can you explain a local partner who has spent only $16.5 million as compared to Fraport’s $400 million investment calling the shots in Piatco," he added.

They agree with Arroyo’s position that the Cheng Yong group should be made to answer for the numerous anomalies in the project.