Fraport, Piatco officials face charges

Top executives of the German firm Fraport AG and other shareholders of the Philippine International Air Terminals Co. (Piatco) were charged before a Manila court yesterday with taking part in a conspiracy to restrain trade and monopolize airport-related services at the Ninoy Aquino International Airport (NAIA) Terminal 3 (NAIA-3).

Charged before the Manila metropolitan trial court were Fraport AG executives Wilhelm Bender and Bernd Struck; Piatco and People’s Air Cargo and Warehousing Co. majority owner Cheng Yong, Jefferson Cheng and Stephan Bauschpiess of Philippine Airport and Ground Services (PAGS); Piatco president Henry Go, Oscar Lopez Dee, also of EBC Investments, Rolando Esguerra of Equitable Banking Corp., Remy Tigulo of SB Capital Investment Corp., Hiroshi Kanematsu of Nissho Iwai Corp., Lim Kwee Siah of Chuan Hup Inc., Tony King, Nilo Pena, Antonio Pacis and Jose Perpetuo Lotilla of the Sycip law office.

Manila Prosecutor Joseph Lopez and Second Assistant Prosecutor Rector Macapagal recommended a bail of P6,000 for each of the accused, who were charged for violation of Article 186 of the Revised Penal Code.

In a two-page criminal complaint, Lopez and Macapagal said the Piatco shareholders arrogated upon themselves "the exclusive right to provide handling, catering and fueling services and to operate a warehouse for air cargo handling and related services" within the airport terminal complex, when they executed an addendum to the Piatco shareholders agreement on July 6, 1999.

The case against Piatco’s shareholders arose from a case filed by lawyer Jose Bernas, who claimed that while it was Piatco’s exclusive responsibility to finance, construct, manage and operate NAIA-3, there was nothing in the amended and restated concession agreement (ARCA) that expressly granted Piatco the sole and exclusive right to provide airport-related services.

In their four-page resolution, the prosecutors said section 2.03 of the ARCA clearly enumerated the rights of Piatco in relation to calling for tenders, awarding and entering into contracts, purchasing materials, appointing staff and entering into tenant agreements, which are acts necessary for the completion of the facility.