7 officials charged for Terminal 3 deal

Seven government officials were charged yesterday with graft by the Presidential Anti Graft Commission (PAGC) for their involvement in the construction of the Ninoy Aquino International Airport Terminal 3 (NAIA 3).

In a three-page complaint, the PAGC said there is "sufficient basis to conduct administrative investigation" against the seven officials for granting Philippine International Air Terminals Corp. (Piatco) the contract to build the $500-million airport terminal to the disadvantage of the government.

Those included in the charge sheet were Wilfredo Trinidad, former assistant secretary for administration and legal affairs and now Undersecretary for Railways, Maritime and Water Transport of the Department of Transportation and Communications; Edgardo Manda, general manager of the Manila International Airport Authority and Ofelia Bulaong, former governor of the Board of Investments (and present general manager of National Development Corp..

Also charged were Herminia Castillo, assistant general manager for finance of MIAA; Felipe Medalla, former director general of the National Economic and Development Authority; Bingle Gutierrez, former employee of the Department of Budget and Management ) and now executive director of the Pasig River Rehabilitation Commission; and Sylvia Clemente, deputy director of the Coordinating Council of the Philippine Assistance Program.

PAGC Chairman Dario Rama gave the respondents 10 days to answer the complaint.

The PAGC said Trinidad and Castillo, while acting as members of the Pre-qualifications, Bids and Awards Committee of the DOTC, "erroneously" approved the pre-qualification bid of Paircargo Joint Venture, a business firm which later incorporated as Piatco.

PAGC said both officials deliberately denied any bidding made by Asia’s Emerging Dragon Corp. to match the bid price tendered by Paircargo on the construction of NAIA 3.

The PAGC noted Trinidad and Manda, even while acting on behalf of the Philippine government, entered into the deal with Piatco to the disadvantage of the government.

Medalla, Bulaong, Clemente and Gutierrez, on the other hand, allegedly conspired in deliberately approving the Amended and Restated Concession Agreement (ARCA) of the NAIA 3 contract, also to the disadvantage of the government, PAGC said.

Manda, for his part, stressed everything had been done accordingly.

"Sinunod namin ang proseso (We followed the process)," Manda told The STAR by telephone.

The NAIA manager pointed out there were three supplements signed under ARCA. He said the first and second supplements were signed during the administration of former President Joseph Estrada.

Manda admitted they signed the third supplement but this was done to clarify the first ARCA supplement.

"We submitted the third supplement to NEDA to clarify things," Manda said. "Everything was done according to procedure."

Manda said he will submit a counter-affidavit before the PAGC to explain his role on the Piatco deal.

Aside from graft, the PAGC charged the respondents in violation of Republic Act 6957, or the Act Authorizing the Financing, Construction, Operation and Maintenance of Infrastructure Projects by the Private Sector.

The seven officials are also facing administrative charges and violation of the code of conduct and ethical standards for government officials.

The anti-graft commission has scheduled the initial hearing on the case on Feb. 11.

The government maintained that the September 1997 deal struck by the DOTC and its supplements with Piatco are void since most of the conditions in the contract are allegedly onerous on the part of the government.

One condition stated in the contract, as pointed out, is the government should shoulder Piatco’s financial obligations if it defaulted on its loans.

The question has been elevated to the Supreme Court which later ruled down that both parties –Piatco and the government –should settle their differences at their level.

Piatco stated in its 108-page pleading that the mediation and arbitration mode suggested by Chief Justice Hilario Davide Jr. seemed to be headed for a stalemate because of DOTC’s refusal to appoint an expert neutral evaluator who will be handling the dispute.

Piatco and the government have submitted their respective position papers before the high tribunal where a resolution on the dispute is expected to be handed down.