‘RP can ignore arbitration court’

A lawyer for a group opposed to the government’s contract with Philippine International Air Terminals Co. said the state may simply ignore the ruling of the International Chamber of Commerce (ICC) arbitration tribunal in Singapore and refuse to hand over Ninoy Aquino International Airport Terminal 3 to Piatco.

Jose Bernas, lawyer of Ilocos Sur Rep. Salacnib Baterina and Asia’s Emerging Dragons Corp. (AEDC), said this position is based on local Rules of Court that allow the government to disregard foreign court decisions deemed contrary to public policy.

Bernas said compliance with such rulings is "voluntary on the part of governments."

"You cannot force governments to do anything," he told The STAR. "You rely on the relations of states. It’s called comity."

But Bernas also said the lifting of the TRO and the eventual payment of P3 billion will not automatically allow the government to take over the NAIA-3 from Piatco.

Bernas cited Section 4 of Republic Act 8974, which requires full government payment of the value of a disputed facility before it can take over such facility. He said the P3 billion was only a tenth of the assessed value of NAIA-3.

He also stressed the need for local courts to resolve the issue on the legal ownership of the facility. A case to determine the ownership of NAIA-3 is pending in the sala of Pasay City Regional Trial Court Judge Jesus Mupas.

"The government may not expropriate Terminal 3 because it is owned by BCDA (Bases Conversion and Development Authority)," he said. "For government to do so would upset well-established law and create a dangerous precedent for government lands presently leased or otherwise occupied by private entities."

As this developed, Malacañang vowed to stop Piatco from taking over NAIA-3 tomorrow despite the ICC ruling.

As confrontation looms, Solicitor General Eduardo Nachura is still optimistic that the Court of Appeals (CA) will lift tomorrow its temporary restraining order (TRO) that prevents the government from paying P3 billion to Piatco as initial compensation for taking over NAIA-3 in December 2004.

"What is at stake here is the interest of the Filipino people and the sovereign prerogatives of the Philippine government under the rule of law," Press Secretary Ignacio Bunye said.

"The Office of the Solicitor General (OSG) will definitely line up its legal moves to back up the government’s control over the terminal," he said.

ICC had reportedly used the TRO as the basis for ordering the government to give up possession of the facility.

Nachura said government lawyers filed yesterday an urgent motion to quash the AEDC’s motion and expressed belief that the TRO would be lifted tomorrow.

"We feel we have enough reason to warrant the lifting of the TRO," Nachura told The STAR. "Once we effect payment (after the TRO is lifted), the writ of possession can be revived and issued and the government is in full possession." He described the motion filed as the "fastest remedy."

Nachura said once the TRO is lifted and the payment was made, the ICC ruling would become moot and academic.

He pointed out that ICC itself had stressed that its issuance of the ruling was without prejudice to the issuance of a writ of possession by Philippine courts. A writ of possession may be issued upon payment to Piatco.

He said the Cabinet Policy Group on NAIA-3, of which he is a member, has not yet met over the issue. There are no instructions yet from President Arroyo on the matter, he said.

Justice Secretary Raul Gonzalez said the government was about to pay Piatco but the AEDC intervened and was able to secure a TRO from the CA.

"What happened was we already announced that we are already paying Piatco but the TRO was issued," Gonzalez said.

Piatco lawyer Moises Tolentino, for his part, said government’s failure to hand over NAIA-3 to Piatco would scare away potential investors. "In the end, the losers will be the Filipino people," he said. — With Paolo Romero, James Mananghaya