'Anti-dummy raps vs Fraport, Piatco won't affect investments'

MANILA, Philippines - Sen. Joker Arroyo believes the move to file anti-dummy charges against German firm Fraport and the Philippine International Air Terminals Co. (Piatco) would not affect investments.

“The announcement of the DOJ (Department of Justice) that it would pursue and press the anti-dummy law charges against the officers of Piatco and Fraport is long overdue,” he said.

Arroyo said the DOJ can look into the Senate’s committee report in 2002 that found the government’s Terminal 3 contract with Piatco void and tainted with irregularities.

“Even as this case has meandered, one issue stands out; this matter could have been decided independently of the other issues involved, namely that Cheng Yong and company with its inadequate resources, and Fraport, a big German firm, had conspired to engage in dummyism when they underhandedly manipulated their holdings to go around the 60-40 nationality requirement under the Constitution,” he said.

Arroyo said the Cheng Yong group only contributed $16.5 million to the project, while Fraport poured in $350 million. 

However, the official registered stockholdings of Piatco showed the reverse, he added.