PNCC gets TRO vs Malaysians over SLEx

The Philippine National Construction Corp. (PNCC) has obtained a temporary restraining order (TRO) against the immediate transfer of control over the South Luzon Expressway (SLEx) to a private firm. The state-led firm said it had sought a one-month extension from its Malaysian joint-venture partner to fulfill commitments to workers. In a telephone interview, PNCC President and Chief Executive Ma. Theresa T. Defensor said the company had asked the Toll Regulatory Board (TRB) to allow a “proper handover" of the project. “We have already agreed that it’s a valid order. But we want to follow a proper handover procedure like allowing us to respect labor rights and inform our workers 30 days before," said Ms. Defensor. She pointed out that the transfer of management should happen only when the project to upgrade and extend SLEx has been completed. The notice for immediate transfer came as a “surprise" amid discussions between the TRB and the PNCC, Ms. Defensor said. She said the PNCC had secured a TRO against the immediate transfer of operations to the Manila Toll Expressway Systems, Inc. (MATES) yesterday. PNCC has a 40% stake in MATES. South Luzon Tollways Corp. (SLTC) and its investment partner MTD Capital Bhd both have a 30% stake in MATES. PNCC has a small stake in SLTC, the joint venture that rehabilitated the SLEx. “There are 700-1,000 employees working for us in the SLEx and we want to give them ample time to prepare," said Ms. Defensor. The Department of Labor and Employment requires a 30-day notice before retrenchments. Julius G. Corpuz, spokesman of the TRB, said in a separate interview that the board would “explore ways to find means to properly implement the order because the order came directly from the Executive Secretary." MATES and SLTC President Isaac David said there would be a transition period. “They can be there at the same time as us, like a transition period. In fact, we can pay the 30 days of the employees because we have P140 million ready for any retrenchments," said Mr. David. Mr. Corpuz noted that there is an interim operations agreement between the government and MATES that would allow the company to take over even if the SLEx is still “only 99% finished." All parties were silent on a Supreme Court ruling early this month that the PNCC should cede control of the tollway in the absence of a congressional franchise. The court said the government now owns the assets, including the toll fees collected by PNCC, following the expiration of its franchise in 2007. “Thus, the toll fees form part of the National Government’s General Fund, which includes public moneys of every sort and other resources pertaining to any agency of the government," the high court said. “The toll fees, as part of the general fund, can only be disposed of or spent through the concurrence of Congress." The court ruling voided a P6-billion compromise between PNCC and an offshore creditor. — Emilia Narni J. David