Presidential chief of staff Rigoberto Tiglao also released a statement yesterday accusing Bender of "blackmail" in filing an arbitration case against the Philippine government before the World Bank to settle the dispute over the construction of the Ninoy Aquino International Airport Terminal 3 (NAIA-3).
Climaco claimed Fraport is facing prosecution over alleged rigging of the Berlin airport project.
Interviewed over dzBB radio, Climaco also cited a case where Fraport also lost its case against the German airport operator in Frankfurt in the European Commission where the firm was charged by Air France and six other foreign airlines with overcharging its service fees.
Climaco added Bender was also involved in an anomaly in another airport project in Peru.
"Look at the track record of this Bender who is accusing me of extortion before the World Bank," she said.
There were allegations that Climaco and presidential legal counsel Avelino Cruz reportedly threatened Fraport that the government would not allow the operation of the NAIA-3 unless the Cheng family, one of the Filipino majority shareholders in the consortium, was forced to reduce its role in Piatco and replaced by "other business interests."
Tiglao, for his part, said Fraport’s filing of the arbitration case before an international arbitration court "is a devious maneuver to pressure (the Philippine) government to hand over to Fraport more money."
He cited the ongoing negotiations with Fraport which started a few months back to arrive at a consensus of just compensation for their investments.
Tiglao said "certain individuals dedicated to slinging mud at the President or earning lucrative fees" were collaborating with Bender.
President Arroyo also challenged Fraport top executives to produce proof of the alleged extortion attempts by Climaco and Cruz.
Mrs. Arroyo hurled the challenge to the German firm as she reaffirmed the position of the Philippine government to abide by the Supreme Court decision that voided the controversial contract of Fraport-led consortium Philippine International Air Terminals Co. (Piatco) in undertaking the NAIA-3 project.
"The principle involved here is fair and reasonable compensation under our laws and standards of justice," Mrs. Arroyo said.
The President said she is willing to place herself under investigation with Climaco and Cruz for the alleged extortion raps filed by the German firm.
Fraport, which largely funded NAIA-3 construction project, sought before the World Bank International Center for Settlement of Investment Disputes (WB-ICSID) on Sept. 17 arbitration of its conflict with the Philippine government over the contract.
In support of its request, Fraport also complained that Arthur Villaraza, the personal lawyer of Mrs. Arroyo and her husband First Gentleman Jose Miguel Arroyo, allegedly demanded "several tens of millions of US dollars" in exchange for getting favorable government action on the NAIA-3 dispute.
Villaraza’s law office denied the allegations, claiming it was the German firm that offered the amount which it simply rejected.
Fraport’s Bender had issued a letter of apology to Villaraza last May 2002 "for the misunderstandings concerning recent discussions in Manila."
Mrs. Arroyo said the actions she made in voiding the contract were "aboveboard" and followed international accepted norms of due process and fair play, contrary to complaints by Fraport before WB-ICSID.
"Arbitration cannot move forward if one party is accused of fraud," she said.
"We have to clear this matter first and I welcome an open transparent probe by any entity of stature and prestige," the President said.
Cruz earlier denied the allegations and said the nullification of Piatco contract was the result of its provisions placing the government at a disadvantage for which reason it cannot be implemented.
He reiterated that the government never made any unlawful demands on Fraport.
Cruz explained the Department of Justice (DOJ) and the Office of the Solicitor General (OSG) issued their respective legal opinions shooting down the validity of the contract.
He said the legal opinions, which were later upheld by the Supreme Court, served as basis for the government’s position on the issue of the validity of the Piatco contracts.
Climaco earlier said representatives of the German firm even offered her two board seats if she succeeded in easing out the Cheng family from the consortium.
Climaco said she declined the offer since it could be construed as a form of bribery. — Marichu Villanueva