Vol. XXII, No. 74 [ BusinessWorld Online ]
Thursday, November 6, 2008 | MANILA, PHILIPPINES
A PASIG regional trial court has affirmed a decision barring the government from collecting toll fees at the South Luzon Expressway.
In a resolution, the court junked a motion of the Philippine National Construction Corp. (PNCC) seeking a reconsideration of the case, as it ruled the state firm had been running the main artery of the expressway under an invalid permit.
"All of the grounds relied upon in the instant motion have already been resolved and passed upon by this court... The instant motion has raised no new and substantial issues that would warrant reversal of the decision," Judge Luis R. Tongco said in an order dated Oct. 24.
In a phone interview, lawyer Caesar Certeza said the decision would have to be enforced within 15 days if the government fails to get a temporary restraining order from the appellate court.
The lawyer represents the Young Professionals and Entrepreneurs of San Pedro, Laguna. Acting as taxpayers, the group had questioned the PNCC’s permit to operate the toll. On June 23, the trial court ruled the state company had been operating under an invalid permit issued by the Toll Regulatory Board (TRB).
The PNCC’s 30-year franchise lapsed in May last year after Congress failed to extend it. Before the expiration, the toll board issued a certificate allowing the government to continue operating the tollway.
But the trial court noted that without a franchise, the PNCC was illegally collecting toll fees. The toll operator had also usurped legislative powers, it added.
It said the TRB could only regulate toll facilities, but not grant or renew franchises, which is a legislative prerogative. The trial court further said the toll permit given to the PNCC had violated the Build-Operate-Transfer Law, which mandates public bidding.
Pending a final ruling, PNCC continues to run the main artery. The toll operator has gone directly to the Supreme Court to raise legal questions. PNCC officials could not be reached, while a TRB official declined to comment. — Ira P. Pedrasa
