Supreme Court asked to stop 277% hike in STAR toll rates

MANILA, Philippines - The Supreme Court (SC) was asked yesterday to stop the 277-percent increase in toll rates at the Southern Tagalog Arterial Road (STAR) on July 7.

In his petition, Albay Gov. Joey Salceda said he is seeking a temporary restraining order and eventually a writ of preliminary injunction to avoid any economic dislocations caused by the “abrupt, unconscionable, exorbitant and shocking” increase in toll.

Salceda urged the SC to void the published new toll rates and order the Toll Regulatory Board to perform their legal duty to send notice and conduct hearings on the adjustment of toll.

Salceda, Bicol Regional Development Council chairman, wants a TRO against implementation of the new toll under the Supplemental Toll Operation Agreement (STOA) between South Luzon Tollways Corp. (SLTC) and TRB.

Salceda said he sought the relief to “prevent the respondents from taking undue advantage of their power” provided under Presidential Decree No. 1112 not allowing no public consultation.

Salceda accused the TRB of “grave abuse of discretion amounting to lack or excess of jurisdiction” in including toll rates in the contract with SLTC.

Its authority is limited to construction, operation and maintenance of toll facilities, he added.

Salceda said the STOA entered into by the government with SLTC through the TRB for a 25-year concession on the 30-kilometer SLEX violated PD 1112 because it included provisions on determining and fixing of toll rates.

Last December the SC voided the compromise agreement between Philippine National Construction Corp. and Radstock Securities, Ltd., he added.

Salceda said in that decision, the SC noted the expiration of the PNCC franchise in 2007.

In 2008, a Pasig court also ruled that the TRB usurped the legislative power of Congress in granting PNCC a transitional agreement to operate SLEX after the expiration of its franchise, he added.

Named respondents in the petition are the Department of Transportation and Communications , TRB, Manila Toll Expressway Systems Inc., and South Luzon Tollway Corp.

Enrile asks Congress to probe toll hike

Senate President Juan Ponce Enrile will ask Congress to investigate the “inordinate” 250-percent increase in toll rates at the renovated South Luzon Expressway beginning on June 30.

“I will file a resolution in the 15th Congress to investigate it,” he said.

“We should find out what justifies such an inordinate increase. Those affected should file a collective suit to ask for a TRO until this is settled.”

Enrile wants to know why the toll would be raised that much.

“They must justify it [and state] what kind of investment they did to justify such an increase when inflation in the country is not that much,” he said.

However, TRB spokesman Julius Corpus defended the toll increase.

“It is but right for investors to recover their investments after investing P11 billion in the project.”

Meanwhile, Malaysian-controlled South Luzon Tollways Corp. announced yesterday they will defer implementation of the 250-percent toll hike for a week.

In a statement, SLTC chairman Dato Azmil Khalid said increased toll will be collected starting July 7.

“As a way of showing unity with millions of Filipinos in welcoming the new president on June 30, SLTC has decided to delay carrying out the new toll fees until July 7, 2010,” read the statement.

The SLTC said that the TRB had approved the toll hike after they had met all conditions imposed by the TRB board of directors in accordance with the STOA. – Edu Pu­nay, Christina Mendez, Rainier Allan Ronda