An interesting group

The personalities involved in the PIATCO contracts are an interesting bunch. The man said to have organized it all is former Transportation Secretary Pantaleon Alvarez who served under three presidents. He also managed to get his family’s company Wintrak to win a P150-million contract from the Manila International Airport allegedly to clean up the site for Piatco, an undertaking that was not contained in the bid documents. If the PIATCO contracts are not annulled, PIATCO could literally walk away and the government would be in debt for about $500 million due immediately. That is at least 25 million bags of rice or about one sack of rice per voter. Enough to win an election.

From 1997 to 2000, the MIA project manager for the Terminal 3 project was lawyer Jose Gabriel Benedicto, son-in-law of Tony Gana, a partner at the Romulo, Mabanta law office. No longer project manager for MIA, he is back at said law office representing PIATCO. He signed a letter for the law office addressed to the Commission on Audit on behalf of PIATCO refusing an audit. It turns out that in 1997, prior to Erap’s assumption into office, Asia Emerging Dragons Corp. (AEDC), the corporation organized by the taipans to propose the Terminal 3 project, was assisted by the same Romulo, Mabanta firm when it proposed the project and sued MIA for awarding the contract to PIATCO. At that time, Romulo, Mabanta collaborated with the Carpio, Villaraza law office to get the contract for the AEDC. The combined strength of the two firms was not enough to invalidate the award to PIATCO. AEDC has now asked Romulo, Mabanta to withdraw from representing PIATCO and has asked the Supreme Court to uphold the conflict of interest rule among lawyers. Under Rule 15.03 of the Code of Professional Responsibility, a lawyer shall not represent conflicting interest except by written consent of all concerned after full disclose of facts.

And interestingly, Romulo, Mabanta issued a memorandum addressed to the AEDC board advising the latter that the award to PIATCO is in violation of the build-operate-transfer (BOT) law and rules. The law firm even recommended what courses of action be taken against DOTC. AEDC upon advise of the law firm filed a petition for prohibition and certiorari.

Alvarez’s point man at the DOTC who personally shepherded the contract was lawyer Primitivo Cal. While the Department of Justice issued an opinion confirming that the terminal is a public utility and is therefore subject to the 12-percent limitation on the rate of return on base (RORB) requirement, Cal went on overspin and issued his opinion, declaring that PIATCO is not covered. Cal is now in Las Vegas where Atong Ang is now touring the casinos.

‘Kidlat’ Yasay, spokesperson for the association of ground service providers MASO, says that when the latter initially began its protest two years ago upon learning that the PIATCO contract shut them out from doing business, Frank Chavez brought Chito Clavano to MASO who supposedly had information that was adverse to PIATCO. Chavez claims that for a fee, Clavano would spill the beans. Clavano is a law partner of Alvarez. MASO eventually rejected Chavez’s advice and decided that it was too dangerous to base its case on a paid witness volunteered by Chavez. Rejected by MASO, Chavez now claims that Lucio Tan asked PIATCO’s president Cheng Yong to withdraw his bid for Terminal 3. Talk about sour graping

Musical chair

Here are the results of the rigodon at the National Telecommunications Commission (NTC) initiated by chief Armi Jane Borje. A new presidential appointee formerly engineer 3 was promoted to director of telecommunications planning and development. The latter’s former officer-in-charge, Priscilla Demition, returned to the frequency management division (FMD). Alvin Blanco, former OIC of FMD, went to broadcast services division while the latter’s chief Carlos Saliuan Jr. returned to safety and special services division which is his original item while Ariel Padilla formerly of the safety division went to Region 3 which is his item.

The big loser in this musical chair is Caloy Saliuan. He is expected to hold on to his new post until a retirement a year from now. From a dozen staff and a big office, he has been relegated to having two personnel under him and a cubicle.

It is widely believed that the rigodon was really because of Caloy who is being suspected of some shenanigans while heading the broadcast services division. Caloy is said to have issued the temporary permit to Media One, a broadcasting firm reportedly owned by the Ramoses (of National Bookstore) and identified with a powerful congressman who is now pushing for changes in the manner FM radio frequencies are being allocated, despite the fact that it does not have a frequency allocation.

While Media One has a franchise from Congress, it does not have a frequency. All the FM frequencies have been allocated and Media One is reportedly pushing for NTC to issue a circular that will increase the number of frequencies by reducing the gap between one frequency to the other from 800 mhz to 400 mhz thereby doubling the available frequencies. The Kapisanan ng mga Brodkasters sa Pilipinas (KBP) is against the proposal since it will not only result in cutthroat competition in an industry that is heavily bleeding but will also result in poor broadcast transmission (the reduced gap will allegedly result in interference).

If Media One is really bent on getting a frequency, why not just buy from those FM radio stations that are losing money. One or two are said to be on the block, although the price may be steep since election is fast approaching and so many politicians want to have their own radio station.