Piatco stops flow of data to Fraport

Fraport of Germany can no longer track the almost $400 million it spent to build the Ninoy Aquino International Airport (NAIA) Terminal 3 because the Chengs have eased out Fraport’s top executive from Piatco and stopped the flow of data, effectively denying Fraport an audit of expenses.

The Chengs, despite their meager $6-million investment, control 60 percent of Piatco, "an anomaly that has come back to haunt Fraport," Perfecto Yasay Jr., chairman of the MIAA-NAIA Association of Service Operators, said.

Yasay, former chairman of the Securities and Exchange Commission, said this questionable ownership arrangement and the refusal of the Chengs to open their books both to Fraport and the government must be addressed by authorities after the Supreme Court rules on the validity of the Piatco contract any time now.

Yasay, quoting Senate records, said Fraport executive vice president Peter Henkel told the Blue Ribbon Committee he considered the Cheng’s move at the very least "an unfriendly act" and that he was "very much concerned (about the Chengs’ decision) not to provide figures to us anymore."

"Unfortunately, it is the Filipino nation that is being painted in a negative light especially in Europe because of the Cheng’s maneuvers against Fraport. Foreign companies have also become leery of doing BOT projects now. We are paying the price for everything the Chengs have done," he said.

Henkel, replying to a query from Sen. Serge Osmeña whether Fraport would still invest in a company without access to the expenses, said "definitely not."

Fraport has cut off all flow of funds, leaving the Chengs with no money to finish the project. Takenaka, the Japanese contractor that has yet to be paid for its services and advances, stopped work on the project last December and even padlocked some parts of the terminal.

Another Japanese company, serving as quality assurance inspector and also after Piatco for payment, has identified at least 42 defects in the terminal, some of them concerning safety and security. These would require about $100 million more to bring the terminal up to global standards.

Yasay said Fraport does not come with clean hands and is to blame for many of its problems with the Chengs.

He added the Chengs eventually would have to open their books at least to the government if they want to be reimbursed for legitimate expenses. The Filipino people, he said, will not pay the Chengs unless an audit is allowed. "Any questionable claim, such as the notorious Alfonso Liongson account, will most likely not get paid unless Liongson or Piatco names names and shows proof everything was legal."