PPA asserts authority, control over Poro Point

SAN FERNANDO, La Union — A legal battle royale is brewing here as the Philippine Ports Authority (PPA) is poised to take over the operations of the Poro Point seaport on orders of Transportation and Communication Secretary Leandro Mendoza.

Bulk Handler’s Inc. (BHI), the present operator, has refused to yield the operations and management of the port’s two piers to the PPA on the basis of former President Fidel Ramos’ Presidential Proclamation 216 transferring jurisdiction of the piers from the PPA to the Bases Conversion Development Authority.

The PPA has assailed the validity of the proclamation, claiming that under the revised charter of the PPA, as embodied in Presidential Decree 857, it is the "only government agency granted with the exclusive power to supervise, control, regulate, construct, maintain, operate" all seaports in the country.

The PPA contends that Ramos’ PP 216 cannot have the effect of amending, modifying or revising PD 857, which grants the PPA the sole authority to manage and/or supervise all ports.

The PPA further stressed that it is allegedly anomalous that the BCDA, which does not possess any mandate to act as PPA, contracted the services of BHI to perform port operations.

Sources said that in order to skirt around the legal restrictions, the BCDA formed subsidiaries (Poro Point Industrial Corp. and Poro Point Management Corp., all private corporations) and entered into a joint venture with BHI, which is reportedly owned by a big-time businessman, Manny Tan, who is engaged in the importation of rice and fertilizer.

Malacañang insiders said President Arroyo, during the Regional Development Council meeting held in La Union on June 21, 2002, publicly announced that she would return jurisdiction of the San Fernando piers to the PPA.

In turn, the PPA, in compliance with the directives from the Presidential Management Staff, submitted its position paper and a proposed executive order for the President’s signature, but no one seems to know why until now no presidential directive has been released pursuant to the President’s public announcement.

According to PD 857, the revised charter creating the PPA, which amended Presidential Decree 505, the revision was necessary in the national interest "so as to enable the (PPA) to exercise all desired objectives," among others being "to integrate and coordinate port planning and development," which includes powers and duties that cannot be delegated, more so, to a private corporation.

Among the corporate powers and duties given to the PPA, under Section 6 of PD 857, are: "to formulate in coordination with the NEDA (National Economic and Development Authority) a comprehensive and practicable development plan for the state and to program its implementation,… etc; to supervise, control, regulate, construct and maintain, operate and provide such facilities or services as are necessary in the ports vested in, or belonging to the authority; to provide rules and regulations, procedures and guidelines governing the establishment, construction, maintenance and operation of all other ports, including private ports in the country."

Based on these provisions of PD 857, the PPA has been granted the sole power of supervision, control, maintenance, regulation, development, construction, administration, operation and control over ports vested in, or belonging to the authority, which must include the San Fernando seaport and all other ports in the country, PPA officials said.