NEDA okayed PIATCO contract, says Canlas

Director General Dante Canlas of the National Economic Development Authority said yesterday that NEDA approved the amended and restated government contract with Philippine International Air Transport Co. (PIATCO) on the construction of Terminal 3 of the Ninoy Aquino International Airport.

Canlas told the committee on transportation and communications of the Commission on Appointments that contrary to the claims of former Chairman Perfecto Yasay of the Securities and Exchange Commission, NEDA passed on the amended contract in August 1997.

The alleged non-approval by NEDA of the contract is one of the issues being raised by Yasay and other groups against the confirmation of Transportation and Communications Secretary Pantaleon Alvarez.

Canlas also told the committee headed by Quezon Rep. Rafael Nantes that NEDA considered the three supplementary agreements to the PIATCO contract as "advantageous to the government."

He said that the amended contract, as well as two of the three supplementary agreements, was signed before Alvarez’s incumbency at the DOTC.

During Alvarez’s confirmation hearing, Sen. Edgardo Angara cited a consultancy agreement between PIATCO and a certain Alfonso Liongson where PIATCO agreed to pay Liongson $200,000 a month and up to $1 million for some milestone undertakings.

Angara said that this would jack up the Terminal 3 project cost and the government might end up paying for it.

"This has caused a public uproar in Germany because a German firm is the main financier of PIATCO," Angara said.

Canlas said that details of the agreement between PIATCO and its consultant had not been submitted to NEDA so he could not make any comment.

He, however, said that NEDA review of the supplementary contracts showed that they would not impair the rate of return to be received by the government.

Alvarez said that Canlas’ testimony showed that the issues raised against him by Yasay were not factual.

At the same time, Alvarez maintained that he should not be faulted for any fault or deficiency in the PIATCO contract as he had no hand in its negotiations.

Sen. Loren Legarda, Iloilo Rep. Narciso Monfort and Nantes agreed with Alvarez.

Legarda said she has filed a resolution calling for the investigation of the PIATCO by a separate body, as she sought to relieve the body of the issue.

Some CA members had expressed their uneasiness over the detailed inquiry into the PIATCO contract, saying it has transformed the CA into a fact-finding panel which it is not.

Monfort said that the CA should be primarily concerned with the competence and integrity of a nominee and the PIATCO issue has no relation at all to the competence and integrity of Alvarez.

He added that Canlas’ testimony clearly showed that Alvarez had no hand in the crafting of the PIATCO contract.

"That issue on the PIATCO contract appears to have been cleared with the testimony of Secretary Canlas," Nantes said.

He expected his committee to hear all remaining parties against Alvarez’s confirmation in the next two hearings.

He expressed confidence that his committee would dispose of Alvarez’s appointment before the adjournment of the Second Regular Session on June 6.

The committee approved a motion by Sen. Robert Barbers to conduct marathon hearings on the confirmation of Alvarez.