Filtered By: Topstories
News

Court says PNCC can’t operate tollway


MANILA, Philippines - A regional trial court has ruled that Philippine National Construction Corp. (PNCC) cannot run the South Luzon Expressway (SLEX) given the expiry of its franchise, but the state-owned firm on Wednesday insisted that it retained the "legal and moral responsibility" to run the tollway. Judge Luis R. Tongco of the Pasig Regional Trial Court Branch 155, in a 13-page decision dated June 23, said the PNCC was operating under an invalid permit issued by the Toll Regulatory Board (TRB). The firm’s 30-year franchise lapsed in May last year after legal issues stalled Congress’ grant of an extension. Prior to the expiry, however, the TRB issued a Toll Operations Certificate (TOC), which officials deemed gave PNCC the right to continue operating the tollway. An organization calling itself the Young Professionals and Entrepreneurs of San Pedro, Laguna filed suit, claiming that PNCC, sans a valid franchise from Congress, was illegally collecting tolls. Judge Tongco agreed, ruling that the TRB had committed "serious usurpation of the legislative power of Congress" and that the SLEX should now be turned over to the government. PNCC, which said it had yet to receive a copy of the court order, nevertheless issued a statement claiming the ruling was still subject to appeal. The firm said it had the "legal and moral responsibility ... to maintain the status quo at the SLEX and ensure the safety and convenience of hundreds of thousands of motorists plying the SLEX." Government Corporate Counsel Alberto Agra, who represents PNCC, declined to comment, saying he also had yet to see the trial court’s decision. TRB spokesman Julius Corpuz also refused to comment, citing the same reason. Judge Tongco said the TRB "is merely vested with regulatory power over toll facilities, but the authority to grant or renew the franchise of PNCC to operate such facilities remains in the hands of Congress." He also ruled that the TOC infringed on the Build-Operate-Transfer Law by not undergoing a public bidding. A PNCC consultant who requested anonymity said the firm could seek to have the decision overturned on the grounds that the Pasig court did not have jurisdiction. The consultant cited Republic Act 8975, which prohibits lower courts from issuing injunctions against the implementation of major government infrastructure projects. PNCC, in the statement, noted that toll collection was an integral part of operating the highway. "The country can ill afford anarchy in the tollway as it will cause serious economic disruptions and threaten the safety of the motorists. Until such time that the courts finally resolve the case, PNCC will maintain order at the SLEX," it said. - BusinessWorld
Tags: pncc
LOADING CONTENT