DOJ orders review of anti-trust cases vs Fraport, Piatco

MANILA, Philippines - Justice Secretary Leila de Lima ordered yesterday a review of anti-trust cases filed against German company Fraport AG and its local partner Philippine International Air Terminals Co. (Piatco) for the sloppy construction of the Ninoy Aquino International Airport Terminal 3 (NAIA-3).

De Lima said she has directed her officials to conduct a “verification of exact status of those anti-trust cases and who is/are handling the same.”

De Lima’s order came in the wake of an announcement by lawyer Jose Bernas that he was giving up on the anti-trust law cases he initiated against Fraport and Piatco due to lack of support from the government.

De Lima said she would wait for the results of the audit before commenting on Bernas’ declaration.

“What I can say at this point is – I hope attorney Bernas approached me and/or SolGen (Joel) Cadiz first and discussed his concerns about the cases before he decided to quit therefrom,” she said.

De Lima explained that the cases involving the construction of NAIA-3 were among the “more complicated cases we inherited from the previous administration.”

“We, in this administration, know and have been attending to the other cases like the expropriation proceedings handled by the OSG (Office of Solicitor General),” she stressed.

She also cited the DOJ’s issuance of a resolution last January affirming the indictment of officers of Fraport and Piatco for alleged violation of the country’s anti-dummy law.

Bernas has decided to leave the prosecution of the case to the DOJ and the OSG, in a recent manifestation filed with the Court of Appeals (CA).

Bernas accused Fraport and Piatco of excluding competitors to monopolize the operation and services at the NAIA-3.

The CA earlier junked his petition against the two firms for lack of legal standing.

Bernas has expressed dismay over the long delay in prosecution of the anti-dummy charges he filed together with the anti-trust case almost 10 years ago.

He said the government has shown lack of aggressiveness and resolve in prosecuting the anti-dummy charges even after the Washington-based International Center for Settlement of Investment Disputes’ (ICSID) dismissal of Fraport’s compensation claim.

Bernas alleged that an addendum dated July 6, 1999 to the Piatco and Fraport contract was violative of the law against monopolies contained in Article 186 of the Revised Penal Code.

The addendum provides that Piatco “and/or its designated affiliates’ shall be exclusively authorized to provide ground handling, catering and fueling services, construct and operate a warehouse for air-cargo handling and related services within NAIA-3.”

After the dismissal of the case by a municipal trial court, the DOJ ordered the public prosecutors to withdraw the information on the case.

The OSG earlier took the position of Bernas that there was probable cause to prosecute the anti-trust complaint and that he had the legal personality to pursue the case.

But the appellate court disregarded OSG’s comment reportedly due to late submission, even it had granted the lawyer’s motion for reconsideration regarding the existence of violations of the Anti-Trust Law.