Makati RTC junks complaint of disqualified TransCo bidder

The winning bidder for the 25-year concession  contract of the National Transmission Corp. (TransCo) may now proceed smoothly with its application for a congressional franchise after the Regional Trial Court of Makati dismissed the complaint of  disqualified bidder La Costa Development Corp. against the Power Sector Assets and Liabilities Management Corp. (PSALM).

In a statement, PSALM, tasked to privatize the transmission and generation assets of the National Power Corp. (Napocor), said the court ruled in its favor as La Costa failed to state a cause of action and for lack of jurisdiction against PSALM and its president Jose C. Ibazeta.

In its Feb. 5 decision, the Makati RTC said La Costa “faltered to state a cause against herein defendants PSALM and Mr. Ibazeta.”

Judge J. Cedrick O. Ruiz explained that “La Costa’s allegations of fraud were not specified which is another translucent badge of an unwholesome intent to go on a ‘fishing expedition,” and that the complainant “even failed to establish and prove its blanket allegations and motherhood statements on fraud.”

“For this Court to entertain La Costa’s egregious attempt to fish for fraudulent acts may open the floodgates to similar harassment suits filed by disgruntled bidders whose woes are largely self-inflicted,” he added.

PSALM noted that the court ruled that, “from the evidence adduced by the parties… it becomes perspicuous that PSALM’s action of disqualifying La Costa was founded upon the published and accepted bidding procedures which were previously revealed to the plaintiff herein which bound itself to abide thereby.” 

The dismissal of La Costa’s complaint, filed in November last year to question its disqualification from the bidding for the TransCo concession due to its failure to satisfy the financial criteria for the bidding, has set aside any doubts on the integrity of the bidding conducted by PSALM.

PSALM has already declared the highest bidder, the consortium led by Monte Oro Grid Resources Corp. (MOGRC), as the winning party and has signed the direct agreement which provides for a one year period for MOGRC to apply for and obtain a franchise from Congress to operate TransCo.